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Kenya Shilling Loses Ground Against US Dollar

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For Rwandan traders considering using the Kenyan shilling to purchase goods should know that the Shilling is experiencing a downward performance against the US dollar.

Financial market observer in Kenya reported that for the second week in row, the Kenya shilling has been losing value.

On Monday the shilling traded at 109.23 units to the US dollar marking an eleventh straight day of trading the shilling has lost ground against the dollar since touching 108.83 on November 2 and has shed Sh6.81 since March 13 when Kenya reported its first Covid-19 case.

According to currency experts, the weak shilling is attributed to increased dollar demand and dim outlook for exports in the wake of renewed lockdowns in Europe following a second wave of Covid-19 infections.

This situation is signaling rising costs of imports of raw and finished goods such as petroleum products, wheat, vegetable oil and motor vehicles.

In essence the sustained weakening of the Kenyan currency raises the prospects of pushing up living costs in a country that largely depends on imports for its consumer and capital goods, especially fuel and industrial raw materials.

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