Shilling Strength: Kenyan Man Laments After Bank Exchange US Dollars He Received At KSh 114

• Kenya shilling continued to regain strength against major global currencies, including the US dollar
• Central Bank of Kenya official data showed the shilling exchanged at KSh 130.38 per dollar on Thursday, April 11
• A spot check by TUKO.co.ke showed commercial banks were buying and selling the greenback at an average of KSh 126 and KSh 134, respectively
• A Kenyan man raised concerns about the bank buying rates after his dollars were exchanged at KSh 114

TUKO.co.ke journalist Wycliffe Musalia brings over five years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.

A Kenyan man who received money via Western Union has caused a stir online after the bank he transacted with bought the dollars at a low rate.

This came as the Kenya shilling continued to register a strong performance against the US currency.

The Central Bank of Kenya (CBK) data indicated that the shilling traded at KSh 130.38 as of Thursday, April 11.

What's the current bank rate for Kenya shilling/USD?

A spot check by TUKO.co.ke showed commercial banks were buying and selling the greenback at an average of KSh 126 and KSh 134, respectively, on Thursday.

The man, who expressed his concerns via a Facebook post, said that the receiving bank bought his $50 at KSh 114, giving him KSh 5,724.

"It's like I'm being robbed.., has the US dollar gone up to KSh 114 or its just me facing this?.. that is the receipt I have attached, I went to Western Union to receive the money I was shocked," read the post in part.

If the Forex Bureau exchanged using the average rate of KSh 126, the man could have pocketed KSh 6,300.

What Kenyans said about bank's dollar buying rate

The post stirred mixed reactions among social media users, with some sharing their experiences.

Gladys Levixone said:

"I recently withdrew money via Western Union and I was given all the amount without any charge. You should have changed the bank."

Kipkorir Corn noted:

"The difference between dollar buying rate should not exceed $5. This is way too low."

Mc'Shem Fred argued:

"This one has nothing to do with the bank. The money came via Western Union. The money is converted to the receipient's local currency before it is send via Western Union. So, the rate is from Western Union."

Hon Kibet Chepkwony added:

"The bank only offers the service on behalf of Western Union."

Jones Khabal claimed:

"That is after they have converted to the local currency minus the charges."

Sigirah Kip said:

"Buying rates vary from one bank to another depending on the exchange rates system they use."

Kags Kag noted:

"The person sending should have negotiated the rate at the source..."

Why Kenyans earning in dollars are hit

Meanwhile, Kenyans and businesses earning in US dollars have seen the value of their income decline since February 2024.

Tables turned when the Central Bank of Kenya (CBK) propped up the shilling against the US dollar, which saw the shilling appreciate.

The regulator raised the base lending rate by 50 basis points, from 12.5% to 13%, a level last seen in the final years of Mwai Kibaki's presidency.

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Kamau Thugge said the measures CBK undertook have strengthened the shilling.

The man said that he had received the money via Western Union.

Shilling Strength: Kenyan Man Laments after Bank Exchange US Dollars He