Earlier in 2023, speculation on the weakening of the shilling had led to a large build-up of hard currency in banks as both corporates and households moved to seek a hedge against the then weakening domestic unit.
The value of foreign currency deposits held in local banks rose 2.5 percent to Sh1.27 trillion in April, up from Sh1.24 trillion in March, breaking a four-month decline that commenced in December last year, when the holdings hit a 17-month low at Sh1.26 trillion.
This is according to data from the Kenya National Bureau of Statistics (KNBS).
