The Kenyan Shilling has weakened against the U.S. Dollar for the first time in 20 months on Wednesday, April 1, reaching Ksh130.0200 against the dollar.

• The Shilling touched the 130 unit level for the first time since August 2024.
• This weakening is attributed to increased demand for foreign currency by importers and manufacturers, partly influenced by the ongoing Middle East war.
• This shift follows a period where the Shilling was ranked the most stable currency in Africa and fifth globally by Bloomberg, with a volatility rate of just 1.5 per cent.

Global financial institutions are joining forces to combat the escalating fuel crisis stemming from the Middle East conflict.

• The International Monetary Fund (IMF), the World Bank, and the International Energy Agency (IEA) have formed a joint coordination group.
• They aim to address the severe energy and economic impacts, which are disproportionately affecting low-income countries, including Kenya.
• The disruptions extend beyond fuel to supply chains for helium, phosphate, and aluminum, and are impacting tourism and trade, with Kenya reporting tea export losses exceeding Ksh3.1 billion.

Kenya's Cabinet Secretary for Investments, Trade and Industry, Lee Kinyanjui, has stated that Uganda and Tanzania may soon rely on Kenya for fuel due to worsening energy crises in their countries.

• Kenya expects Ugandans and Tanzanians to buy fuel domestically.
• The assurance of fuel security in Kenya is attributed to a government-to-government oil deal with Saudi Arabia.
• Neighboring countries like Tanzania (prices up 30%) and Uganda are experiencing significant fuel shortages and price hikes.