Kenyan Shilling Crosses KSh 200 Against British Pound, Profiting for UK-Bound Horticulture Exporters

 

The Kenyan shilling has crossed the KSh 200 foreign exchange mark against the sterling pound. Kamau Thugge is the governor of the Central Bank of Kenya. P According to the statistics from the Central Bank of Kenya (CBK), the key indicative exchange rate for the sterling pound was recorded at KSh 202.456 on January 10, 2024. The increase in the exchange rate for the pound against KSh indicates the continued depreciation of the shilling against major global currencies. According to the report by the Kenya National Bureau of Statistics (KNBS), Kenya's currency ceded ground against prominent currencies such as the Euro, Pound Sterling, US Dollar, and Japanese Yen by 30.3%, 29.7%, 20.6%, and 15.3%, respectively. The Central Bank does not determine the exchange rate in Kenya; instead, it is market-driven, influenced by the supply and demand of foreign exchange. Individual forex bureaus and commercial banks set their rates within competitive bounds to maintain reasonable variance and margins. Horticultural exports earn more The UK and Europe are the largest destination for horticultural exports from Kenya. Exporters paid in sterling pounds are bound to earn higher profits following the increase in conversion rates. Kenya's main horticultural products are cut flowers, fruits, and vegetables, and according to the recently reported data by the CBK, horticultural products earned KSh 12,894.500 million in September 2023.  In 2023, Kenya's earnings horticultural sector experienced a rebound for the half-year period through June after experiencing a double-digit fall in 2022. Below is a graph of the earnings from horticultural exports as reported by the CBK and collated by CEIC. 

by  Elijah Ntongai