The Kenyan shilling has surpassed the KSh 200 mark in foreign exchange rates against the British pound, marking a significant development for exporters in the horticulture industry. According to the Kenya National Bureau of Statistics (KNBS) report, Kenya’s currency has depreciated against major currencies, including the Euro, sterling pound, US dollar, and Japanese yen, by 30.3%, 29.7%, 20.6%, and 15.3%, respectively. It’s essential to note that the exchange rate in Kenya is market-driven, determined by the dynamics of supply and demand for foreign exchange, rather than being regulated by the Central Bank.
Horticultural exports, particularly to the UK and Europe, stand to benefit from this currency shift. With the increased conversion rates, exporters dealing in sterling pounds are expected to see higher profits. Kenya’s primary horticultural products, such as cut flowers, fruits, and vegetables, have proven lucrative, earning a substantial KSh 12,894.500 million in September 2023, as reported by the Central Bank of Kenya (CBK).
The horticultural sector in Kenya experienced a noteworthy recovery in 2023, rebounding during the first half of the year after a double-digit decline in 2022.
In additional developments, the Kenyan shilling faced a considerable depreciation against major international currencies in the third quarter (Q3) of 2023 compared to the same period in 2022. Notably, losses were observed against the South African Rand, Tanzanian shilling, and Ugandan shilling during Q3 of 2023. However, a KNBS report highlighted a robust 5.9% growth in Kenya’s economy in the third quarter of 2023, primarily fueled by a resurgence in the agricultural sector.
