The Kenyan shilling had today, October 23, dropped to a new all-time low of 150 to the US dollar, adding to the plight of citizens already battling high inflation and a collection of new taxes.
This news might not surprise some as the Kenyan shilling has been declining for several years, plunging by almost 24 percent over the last year, under pressure from increased debt levels and exhausted government revenues.
According to the Central Bank of Kenya figures, the dollar was selling at just over 150 shillings, although not many commercial banks and foreign exchange bureaux have been trading it at that level , if not higher in recent weeks.
Ken Gichinga, the chief economist at Mentoria Economics, had informed AFP that the exchange rate showed that the dollar was strengthening amidst the Middle East crisis “which is forcing investors towards safe-haven assets”, as well as to purchase high US treasury yields.
President William Ruto had earlier this year introduced a span of new and increased taxes to help replenish the government coffers, despite his promises during last year’s election campaign to help ease the financial burdens of ordinary Kenyans.
Economic growth dawdled last year to 4.8 percent from the 7.6 percent recorded in 2021, aided by the global fallout from Russia’s invasion of Ukraine, and the unfortunate regional drought that hit Kenya’s vital agriculture sector.
Inflation has stubbornly remained high, at an annual rate of 6.8 percent as at September, with food and fuel prices still on the hike.
