Business; Yet for relief as Kenyan citizens face economy tough times after the bank dollar rate shoots to Ksh130 at the new selling rate.
Given the factual economic image, most of the Kenyan banks, by close of business on October 31, 2022, were significantly buying the dollar between Ksh117 and Ksh119 and selling the same at Ksh130 and Ksh131respectively.
Meanwhile, the dollar is currently trading at Ksh121 at the Central Bank of Kenya with experts noting that it will be gaining value in the coming days.
Simply with the high exchange rates, several sectors of the Kenyan economy are set to feel the hardships.
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Giving the full picture, economic Expert-Augustine Kimau stated that the first short-term effect will be a spike in inflation.
“Noting the process, the dollar being sold at such a high price will definitely cause instant inflation, which will look upon the price of basic commodities rise,” he told the press.
“Significantly, if the shilling stabilizes, the inflation will be short-term but should it continue trading at Ksh130 then Kenyan nationals will automatically face economic hardships,’ he stated.
Furthermore, foreign customers are expected to significantly benefit from the high exchange rate. Trade analyst Gideon Kirui argued that the exchange rate will largely affect the citizens of Kenya, especially farmers.
“Signifying up the process, most Kenyan exports are on largest percentage fall under agricultural products and this means farmers might be forced to incur loses when exporting farm produce,” Gideon Kirui told the media.
Meanwhile, the country’s top agricultural set to be affected include flowers, coffee, tea, and vegetables. Also non-agricultural products – apparel/clothing and minerals – may also hike owing to the high bank dollar rates.
Simply, according to the financial analyst, there are two methods Kenyan importers can survive. First, through increasing the price of their goods or downsizing their magnificent operations.
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