- "Maybe Sh115, you never know," he stated, and by then the exchange rate was at Sh133.3.
- With the Kenyan Shilling falling against the dollar, the prices of fuel in the country have gone up, not excluding the costs of 'Mitumba' and other imported commodities.
Kenya has been experiencing a depreciation in the value of its currency not only against the dollar but also the euro and pound.
The shilling has also dropped in value within the East African region.
This has occasioned a hike in prices of local commodities, imported goods, and other basic needs within the household.
In 2022, the Kenyan shilling against the American dollar was Sh120.8.
As Kenyans were hopeful that things would get better, the shilling went to the lowest of Sh134.
According to the Central Bank Of Kenya, as of October 4, 2023, the Kenyan shilling against the dollar is now Sh148.4, this is lower than just last week, as it was at Sh147.8.
The Kenyan shilling continued to depreciate several months later even after President William Ruto had in April 2023 promised that the dollar exchange rate to the Kenyan shilling would be going down to below Sh120, in a very phenomenal way.
"Maybe Sh115, you never know," he stated, and by then the exchange rate was at Sh133.3.
The head of state announcement was backed by Trade Cabinet Secretary Moses Kuria, who said the government is working towards seeing the dollar-shilling exchange rate stand at Sh85.
Even as the dollar goes deep down, the British pound against the Kenyan shilling is worrying.
In 2022, the Kenyan shilling against the pound was Sh135.4, and in the latest update by CBK, the exchange rate is now at Sh180.3.
The trend has also been witnessed with the Euros. In a span of one year, the exchange rate has dipped by Sh37.51, and so have the Ugandan and Tanzanian shillings.
In 2022, the Kenyan shilling against the Euro was Sh118.3, and today it's at Sh155.5
With the Kenyan Shilling falling against the dollar, the prices of fuel in the country have gone up, not excluding the costs of 'Mitumba' and other imported commodities.
When the Energy and Petroleum Regulatory Authority (EPRA) in September announced a fuel prices review, it said in a statement that for three months the weighted average cost of imported fuel rose from $691.76(Sh102,657) per cubic metre in June to $739.21 (Sh109,698) in July and $774.67(Sh114,961) in August.
In April 2022, Mitumba dealers announced an increase in prices of second-hand clothes as the cost of importation doubled.
The dealers attributed the price rise to the weak shilling against the US dollar.
The cost of importing a 40-foot container from China had at the time increased from $3,000 (Sh445,200 with the current exchange rate) to $9,000 (Sh1.34 million).
Currently, with inflation, for an average household to have balanced meals in a day, the family plans to use approximately Sh3500, more than triple what it could use two years ago.
Image: FILE