The Kenyan shilling has hit a record low of 117.01 against the dollar, indicating a continued rally in prices of imported commodities like fuel and cooking oil.
The depreciation is attributed to increased demand for dollars from importers, especially crude oil and merchandise traders.
The Kenyan currency also suffered the strengthening of the US dollar following the recent rate hikes that have made the greenback a safe haven for investors amid global uncertainties following Russia’s invasion of Ukraine.
This has seen the local currency decline 3.5 percent or Sh3.96 since the start of this year amid speculation of further decline.
The continued weakening is set to hit manufacturers who have raised the alarm of dollar shortage and struggle to settle payments to oversee suppliers on time.
The crisis has triggered a parallel exchange rate market with the firms revealing that they are buying the dollar at Sh120 or Sh121 compared to the central bank’s official exchange rate.
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