By O’Brien Kimani

The National Treasury has ruled out intervening to stop further slide of the Kenyan shilling.

Cabinet secretary Henry Rotich says the weakening of currencies is a global trend occasioned by the strengthening dollar.

The Kenyan shilling, which was quoted at a mean of 95.35 to the dollar Thursday, has lost close to 6 percent of her value to the dollar since January this year.

When it comes to volatility and uncertainty, the Kenya shilling has been a serious contender in the race in recent months.

This year the local currency has faced serious battering from the American dollar. However, all world currencies are feeling the heat of a rebound greenback.

For Africa that relies on foreign direct investment for dollars, the impact has been more painful.

This year alone the Kenya shilling has lost close to 6 percent of her value to the dollar, making imports more expensive and exports more profitable.

This has encouraged calls on the National Treasury to intervene and halt further slide in the Kenyan currency, but this may not happen anytime soon.

Rotich says the Central Bank of Kenya has been moving into the market to mop up excess liquidity.

On Wednesday, the CBK retained the benchmark rate at 8.5 percent not to choke lending and make a bad situation worse.

There are also fears that some market traders have created an artificial shortage by hoarding dollars.

On Thursday, commercial banks quoted the shilling at a mean of 95.35 to the dollar, its lowest point in the last three and a half years.

Source:KBC