Consumers will now pay a high price for imported goods as a result of the Kenyan shilling’s one of the costliest freefalls in history, which saw it lose nearly half of its value trading against the US dollar in less than 50 months.
The Kenyan shilling is under pressure due to some commercial banks in Nairobi already selling US dollars beyond the Sh150 threshold, preparing customers for a new round of currency-driven price increases on imported goods including fertiliser, electronics, and cars.
The average exchange rate, according to the Central Bank of Kenya (CBK), was Sh142.98, a significant difference from the actual trade on the ground as reported by forex dealers.
Since the start of this year, the value of the Kenyan shilling has decreased. The average exchange rate of the local currency to the dollar at the beginning of the year was 123.42.
The local currency has fallen even lower for the second time in less than a week, placing pressure on importers.
The majority of the nation’s currency needs are met by importers, who primarily purchase raw goods for manufacturing, including fuel, wheat, cooking oil, and clothing.