The Kenyan shilling has remained stable this year at an average of 101 units against the dollar. PHOTO | FILE
Banks are offering clients more foreign currency options, a move seen to be in response to local retail movement away from the shilling.
Last year, when the shilling lost ground against the dollar some firms resorted to quoting prices in US dollars to hedge against currency losses.
The local Mitsubishi Motors and Mitsubishi Fuso truck and bus dealer has changed pricing to dollars in what a source in the company called “new changes from above”.
Nissan also put an advert in the press showing in US dollars prices of its single-cabin and double-cabin pickup trucks.
An ICT conference of Commonwealth senior policymakers, regulators and industry leaders to be hosted by the Communications Authority of Kenya next week also asked applicants to pay fees in dollars.
Last week, Ecobank launched the US Dollar Denominated Pre-Paid Cards, just under a year since Standard Chartered Bank started operating Chinese currency accounts for its clients on account of rising China-Africa trade.
“Prepaid cards provide a more convenient and safer way to make payments and in some cases track expenses and manage funds. Our USD prepaid card will be of great benefit to Kenyans who travel and require to carry foreign currency,” Ecobank Kenya Managing Director and Regional Executive Director Sam Adjei said.
Ecobank said the move was targeting travellers with a convenient way to travel without the hassle of carrying foreign exchange.
Once loaded with money, the Ecobank USD Visa prepaid card can be used for bill payments, shopping and ATM withdrawals at any Visa branded ATM or outlet worldwide.
“Our USD pre-paid card is easy to acquire, easy to set up and easy to use. You do not need to be an account holder to get one. One only needs to walk into any Ecobank branch with their original ID or passport and the card will be issued on the spot,” Mr Adjei said.
StanChart said they were targeting small scale local traders who import fast moving goods to mitigate currency risks that were eroding their margins and making it more difficult to get new stock.
StanChart CEO East Africa Lamin Manjang said so far the adoption of yuan by local companies and traders was gradual but positive.
The Kenyan shilling has remained stable this year at an average of 101 units against the dollar and has recently strengthened amid increased foreign demand for Kenyan securities after the US Federal Reserve’s decision to leave interest rates unchanged, according to EcoBank currency analysts.
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