Treasury reveals shilling undervaluation amid IMF concern

John Mbadi

National Treasury Cabinet Secretary John Mbadi before a National Assembly Committee in Machakos County on August 11, 2025.

Photo credit: Dennis Onsongo | Nation

The Treasury on Tuesday made a stark admission of the shilling being undervalued against the dollar, placing Kenya on a collision course with the International Monetary Fund (IMF) that advocates a freely traded exchange rate.

Treasury Cabinet Secretary John Mbadi said at a press briefing on Tuesday that the shilling could strengthen to Sh118 to the dollar if allowed to fall freely in a setting of increased inflows of the US currency.

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