Kenyan shilling depreciates against dollar, euro

Kenyan currency in notes. [Wilberforce Okwiri, Standard]

The Kenyan shilling has depreciated against major trading currencies as of March 2023, Treasury Cabinet Secretary Njuguna Ndung'u says.

In a monthly report highlighting the leading economic indicators in the country, Ndungu said that the shilling has depreciated further compared to the month of February.

In February, the exchange rate between one US Dollar (USD) to Kenyan Shilling (KES) was at Sh127.08.

In March, the exchange rates went up by Sh4 to Sh131.41 and by the end of May, the shilling was trading at 138.25 against the dollar.

Additionally, at the beginning of the year, the Kenyan Shilling to British Pound exchange rate was at Sh147.

In March this year, the rates went up by Sh18 to bring the exchange rate to 163 Kenyan shillings.

This has further gone up with the rates now standing at Sh170.1 per British pound.

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The increase has affected some aspects of the economy including the National Security Exchange (NSE) and the exportation of some goods.

In February, the NSE share index was at 1,647 points but dropped by 20 points to 1,622 points in March.

The quantity of vegetables exported also decreased from 8,336.23 metric tons in January to 5,751.4. metric tons in February, with its value decreasing by Sh371 million around the same period.

"Cut-flowers and fruits exported on the other hand was at 11,935.17 metric tons and 7,035.74 metric tons respectively while their value stood at 7,238.32 million and 953.35 million respectively during the same period," Ndung'u said.

Despite the decrease, experts believe that the Kenyan shilling is performing better against the dollar than major African countries.

Currently, South Africa's and Ghana's currencies weakened by 13.9 per cent and 11.2 per cent respectively compared to Kenya's 9.7per cent.