The U.S. dollar yesterday reached a new record high against the Kenyan shilling, which is at an all-time low in its purchasing power. Major online foreign exchange platforms and national banks gave an average of 142.98 shillings to one dollar, while the euro returned above 157, but without reaching its peak, which was 158.7 about a month ago.

The problematic situation of the Kenyan currency, which seemed to have stopped its hemorrhaging a week ago after a seven-month overhang that saw it go from 123 to over 140, will force the trade sector to make new sacrifices and the import sector in particular to revise prices and earnings, while the government will have to deal with all the large imports that the market demands to be paid for in dollars, first among them fuel and electricity.

Fuel, of course, affects the prices of any product, including domestic ones, because it increases the cost of transportation, while electricity increases the cost of producing anything.

Those who can find comfort in this situation, however, are exporters of products that are priced by international markets not in shillings but already in dollars on sale in Kenya, particularly tea, coffee and flowers.
The tourism sector that works with prices in foreign currencies may also benefit, as long as Kenyan inflation does not catch up with the widening gap between the shilling and other currencies.

According to experts at the economic research center Efg, the shilling will continue to lose strength against the dollar until at least the end of the year, when it is expected to reach 150.
The euro, which usually rises by an average of 50 cents per dollar, could then exceed 160.