Cytonn forecasts a 4.6% depreciation of the Kenyan shilling, projecting it to trade between KES 120.9 and KES 140.5 against the USD by year-end. This is driven by Kenya’s persistent current account deficit, a net import position, and a large portion of external debt in USD, which pressures the shilling. Easing of local interest rates could also reduce investor demand for local-currency assets, further weakening the shilling.