NAIROBI - Kenya's Deputy President Rigathi Gachagua recently highlighted a significant financial scandal as a key factor in the declining value of the Kenyan shilling, listed at 152.44 against the US dollar at the time of writing. Speaking at the Institute of Certified Public Accountants of Kenya (ICPAK) event in Mombasa today, Gachagua linked the currency's fall to a $2 billion misappropriation from the Central Bank of Kenya (CBK) to a private bank during the former Jubilee government's tenure.
The Deputy President condemned the previous regime's overborrowing, which has contributed to the current economic challenges, including a weakening currency. He stressed that Kenya's economic stabilization is a top priority, but cautioned that recovery from past fiscal missteps would be a lengthy process. Gachagua also defended recent tax increases as necessary for repaying debts and urged critics to offer constructive solutions.
Adding to the currency woes, FX Pesa analysts forecasted further depreciation of the Kenyan shilling. Influenced by high American interest rates, rising oil prices, and investors shifting their focus away from Kenyan bonds due to instability, the analysts suggested that the exchange rate could reach as high as 200 shillings per US dollar by year-end.
In his address, Gachagua reiterated the Kenya Kwanza administration's commitment to economic recovery and fiscal stability. He acknowledged the burden President William Ruto faces in addressing these inherited debts and emphasized the government's focus on rectifying past economic mismanagement. The Deputy President called for viable solutions rather than opposition, signaling a push towards proactive measures to navigate through the financial crisis.
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