The Kenyan shilling has surged to its highest point against the U.S. dollar in a year, currently standing at 130 shillings. This strengthening currency is fueling optimism among business leaders for robust economic growth in 2024.

Economic confidence is further bolstered by the recent drop in inflation to 5.7 percent in March and favorable weather conditions supporting agricultural activities. The easing of global inflation and positive internal and global macroeconomic environments contribute to this optimism.

The Central Bank anticipates continued strengthening of the shilling, potentially reaching the 120 mark against the dollar. This upward trend is expected to benefit Kenya’s economy by reducing the cost of imports, particularly oil.

Kenya is currently experiencing heavy rains, following El Nino rains in December 2023. These rains are anticipated to enhance agricultural production, further supporting economic growth prospects.

National Treasury and the World Bank projected a 5 percent average growth for Kenya’s economy in 2024, but analysts suggest this forecast could be surpassed due to the favorable economic conditions, including the strengthened shilling and positive agricultural outlook.