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By Washington Mito

Hello and welcome to the Friday edition of the Evening Brief Newsletter where the dollar has lost its dominance to the shilling by Ksh7.

The shilling has made great strides against the dollar after gaining Ksh7 in value against the greenback overnight.?

According to the exchange rates published by the Central Bank of Kenya (CBK), the dollar is currently trading at Ksh145.8. This was a Ksh7.4 drop from the rate that was published on Wednesday, January 14 (Ksh153.2).?

Notably, this is one of the biggest gains that the shilling has made against the dollar since January.

While many Kenyans have been left pondering the drastic changes in the exchange rate, the? Kenya Bankers Association has attributed the recent trend to Kenya's recent success in the Eurobond market and the bids made by Kenyans in government infrastructure bonds.

As detailed by the financial institutions led by NCBA Group Managing Director John Gachora, the recent successful pricing of the USD 1.5 billion Eurobond has boosted investors' confidence in the economy.

There had been significant concern on whether Kenya would be successful in the exercise given that many financial institutions had warned of debt distress this year with the USD2 billion Eurobond, borrowed in 2014 maturing in June.

On the other hand, the banks have explained that Kenyans investing in government securities have also helped in the shilling resurgence.

"Data from the Central Bank of Kenya (CBK) confirms that the Infrastructure bond received total bids worth Ksh288 billion, and CBK accepted Ksh240.9 billion with Ksh218 billion in competitive bids.

"Expectedly, the infrastructure bond elicited considerable foreign investor appetite, leading to the shilling rally, especially on the back of the sovereign’s successful Eurobond issuance that beat back quite convincingly earlier difficult risk concerns," read a statement by the Kenya Bankers Association.

Nonetheless, the financial institutions have noted that there will be fluctuations in the exchange rate in the coming weeks based on the demand and supply of the dollar.

On its part, the government has urged Kenyans who have been hoarding dollars to take the opportunity of the current rates or risk losing in the end.

“I want to encourage Kenyans if you’re holding any dollar because you fear the Eurobond, please note that now the risk of failure to settle the Eurobond is gone and so you need to get back to business sell your dollars and get back to business don’t do any speculation anymore,” Treasury Principal Secretary Chris Kiptoo cautioned.

Winner and Losers

With the dollar dropping, importers are set to gain significantly. This is mainly because international trade is mostly done in dollars and the drop will therefore see a reduction in the cost of importation.

Ultimately, this could translate to a reduction in the prices of imported goods and services.

Conversely, a section of other Kenyan businesses are counting losses, given that they have been depending on the high rates to make more money. This includes exporters and landlords who have been collecting rent in dollars.

Here are some of the businesses that are the biggest losers with the latest shiling developments.

Raila AU Jitters

The recent declaration by former Prime Minister Raila Odinga on his ambitions for the African Union (AU) Commission Chairperson post, has caused jitters in his party with some leaders depressing their reservations.

According to a section of the leaders including the Kileleshwa Member of County Assembly (MCA) Robert Alai, President William Ruto could be managing Raila and planning for his downfall on the global stage.

"It might be Kenya Kwanza fishing for new insults to throw Baba's way with a campaign they strategically want to fail," Alai stated.

On the other hand, some leaders have also expressed that a section of ODM politicians could be using the AU bid to plan the inheritance of Raila's political base.

Nonetheless, a section of leaders including Babu Owino has expressed that the former premier deserves the powerful seat which attracts a monthly salary of Ksh2.4 million.

Meanwhile, Foreign Affairs Principal Secretary Korir Sing'oei has admitted that Kenya will facilitate and champion Raila's candidature should Ruto give the green light.

"Facilitating the candidature of qualified Kenyans to regional and international organisations is one of the mandates of the Ministry of Foreign Affairs. We are on standby to support this quest for a well-deserving national," the PS stated.

Weekly Kenyans.co.ke Quiz

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Take our quiz and test how well you understood the week's most important stories.

Here are the Top 5 stories Kenyans.co.ke have followed for you today.

1. Ruto orders experts to build a 3-bedroom house for the late World Record holder Kelvin Kiptum in honour of his lash wishes for his family.

2. DCI Raises alarm on carjackers targeting taxi drivers. Here is the new trick being used.

3. Interior CS Kithure Kindiki issues orders on all bars in villages across the country after over 13 people die in Kirinyaga County.

4. Kenyan teacher Rose Wekesa breaks the world record for the longest science lesson taught by an individual. Read how she did it.

5.? Have you ever wondered how much the government collects in taxes for a litre of fuel bought in Nairobi? Here is the breakdown of the figures.

This newsletter was written by Washington Mito and edited by Brian Muuo.

Derrick Kubasu contributed to the content.

Graphics prepared by Adongo Kyalo and Ronnie Mbugua.