Row on shilling pits CBK boss Njoroge against former employer

CBK boss Patrick Njoroge. He has accused IMF of using unconventional models to price the local currency. [File, Standard]

The purchasing power of the Shilling has dropped tremendously. In 2006, US consumers could use about $2.57 to buy a litre of petrol (gasoline). Back then, a motorist with the $2.57 at the prevailing exchange rate of 72 would buy 2.3 litres of petrol in Kenya. Today, things have changed for the worse.

The price of a litre of petrol in the US has since dropped to $0.76. Should a motorist convert $0.76 into local currency at the current exchange rate of 102 - they can barely get a litre of the fuel. In fact, you will buy 700 millilitres of petrol.