The Kenyan Shilling (KES) has rallied significantly against the US dollar since mid-February. While strengthening Shilling is good for the country, the positive shift in value is bad news for Kenyan freelancers and those in the diaspora.
In mid-February, the Shilling was exchanging at the historical high of 163.98 per 1 US dollar. Since then, the Shilling has been strongly bullish against the dollar, placed near the 127.00 mark on Monday. This is a change of around 28% in less than two months.
Kenyans are excited by the strengthening Shilling as goods imported to the country will be cheaper. Imported cars would all fall in price. For instance, a car that had a price tag of KES 1,640,000 in early February would now cost less than KES 1,300,000.
Apparently, a strong shilling is good for many Kenyans. But it’s not so good for others. Kenyans in the diaspora and freelancers who are paid in dollars will suffer as the income they get will reduce in value.
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A freelancer who was earning $1,000 per month in January received a lucrative KES160,000. However, the same income is exchanged for less than KES127,000 – that’s a KES 33,000 change. If the Shilling continues its appreciation trend, freelancers’ income will keep falling.
Kenyans working in Middle Eastern countries aren’t left out. When the Kenyan Shilling appreciates, it essentially gains against the currencies of countries like Saudi Arabia, Qatar, and UAE. For example, the KES is currently exchanging around 35.00 against the Qatari Riyal compared to the highest mark of 45.03 on February 4.
However, when the shilling gains against other currencies, then its purchasing power rises, too. Reduced prices for imported goods also leave Kenyan consumers with more disposable income.
