Although the Central Bank dollar exchange rate is currently at Ksh121, experts are gloomy that it will continue to rise in value over the next few days.
An financial expert predicted that “the dollar being sold at such a high price, inflation would spike immediately, driving up the cost of necessities.”
Tea, coffee, flower, and vegetable production are among the country’s most important agricultural sectors, and they are all likely to be impacted. The high bank dollar rates may also drive up the price of other non-agricultural products, such as clothing and minerals.
Even though exports will be cheaper, imports are expected to rise, which will hurt Kenyan business owners.
Due to the higher cost of purchasing U.S. dollars, Kenyan merchants will have to increase the prices at which they import goods, which will have an adverse effect on their operations.
Kirui, a financial expert, suggests two strategies for the continued success of Kenya’s import businesses. One is to charge more for their products or reduce production.
Consumers will have to shell out more cash because retailers will have to raise the price of imports to make a profit, in his opinion.