Expert: The shilling has regained value, but don't expect it to last

Low economic production reduces exports and increases imports, leading to currency depreciation. [Elvis Ogina, Standard]

Kenya operates a floating exchange rate regime. This means that the value of the shilling is, in principle, determined by market demand and supply. Market demand and supply are affected by the movements of money across national borders.

Movements of money into the country are driven by forces such as the value of exports and transfers from abroad (such as diaspora remittances), and the value of investments from abroad.