Kenyan exporters win big from battered shilling

Exporters are smiling all the way to the bank following the sustained weakening of the shilling against major world currencies. The local unit has been steadily losing ground against the dollar, the euro and the sterling pound since January this last year.

This has handed exporters foreign exchange gains of up to 15 per cent. The biggest beneficiaries include horticulture, tea and coffee farmers whose exports are paid in dollars, euros and sterling pounds. A strong euro, dollar or sterling pound means more shillings for local exporters given that they would receive dues in foreign currencies for the same value of goods in the Kenyan shilling exchanged.

Exports to Europe comprise mostly agricultural products including tea, coffee, fresh fruits and vegetables as well as cut flowers. The euro and the sterling pound have also been going in the same direction as the dollar.

Data from the Central Bank of Kenya (CBK) shows that the shilling has lost ground by about 15 per cent since January. This has seen exporters earn Sh160 for every sterling pound worth of exports sold up from the Sh138 for they earned in January. Most of the flowers from Kenya end up in the United Kingdom.

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