Business News

CBK boss clears the air on effects of Rotich’s arrest on the shilling against dollar

Central Bank Governor Patrick Njoroge speaks during a news conference at the Central Bank in Nairobi, Kenya November 28, 2018. REUTERS/Njeri Mwangi.

The arrest of fired National Treasury Cabinet Secretary Henry Rotich has not affected the Kenyan shilling exchange against the dollar as some purport, Central Bank Governor Prof Patrick Njoroge has said.

Addressing the media on Thursday, Njoroge said that the fall of the shilling that coincided with Rotich’s arrest can be attributed to the seasonal demand of the dollars.

The forex rates show that the shilling had fallen by 0.8 per cent since Rotich was charged to trade at 104.05 per dollar as per Thursday.

“I don’t know what a vacuum is in an institution like that. There are processes. There are mechanisms in place, and those mechanisms are executed. And it has to be done legally,” Njoroge, as quoted by the Standard.

He added that the fall in the shilling is also as a result of the high liquidity in the market occasioned by increased demand for hard currency.

President Uhuru Kenyatta on Wednesday appointed Labour Cabinet Secretary Ukur Yattani as the acting National Treasury boss following Rotich’s arrest and arraignment in court a day earlier.

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