The Kenyan shilling has been losing its significant value against foreign currencies.
For instance, the US dollar was exchanging at 160 shillings as of Wednesday, January 24, knocking off nearly 25 percent of the shilling’s value in under a year.
Similarly, records show that over the past year, the UK Sterling Pound has gained more than 33 percent against the Kenyan shillings.
The drop in the value of Kenyan currency comes at a time when the UK is nearing the winter season making Kenya the best tourist destination.
As such, UK citizens are now contemplating visiting Kenya to take advantage of the depreciating Kenyan shilling against the dollar.
Further, the weakening shilling against foreign currencies might cause tourists who are already in Kenya to extend their stay due to what economists say is affordability, making vacation costs cheaper.
The Brits are also taking advantage of President William Ruto’s Visa-free policy, a move that has eased the hustle of making travel plans into the country.
In December 2023, the Head of State abolished the Visa requirement for foreigners visiting the country, a move that has already seen the first batch of visa-free foreigners land in Kenya.
Ruto says the Federal Reserve’s move to raise rates over the months increased the value of the US dollar, thus affecting the value of the local currency.
“Because of the USA’s increase in the interest rate, there was (an increased) demand for the dollar. People who had invested outside the US began to see an opportunity in the US,” Ruto said in an interview aired on major television stations in Kenya.
“And so, there was a lot of dollars leaving Kenya and other countries, going to the US. What does that mean? It reduces the supply of dollars (in the local market). And therefore, when compared to the Kenyan shilling, the (dollar strength) situation went up,” he said.
