The state of the economy in the country continues to worry many Kenyans as the shilling dropped further in value versus the US Dollar and other major currencies .
Central bank rates indicate that the dollar is buying at 109.95 shillings and selling at 110.15 shillings .
The local currency has come under pressure in recent months as demand for dollars surged in a period that has seen supply of dollars get squeezed by lack of tourists and a reduction in exports of other commodities.
Monday’s run marked the eleventh straight day of trading the shilling has lost ground against the dollar since touching 108.83 on November 2 and has shed Sh6.81 since March 13 when Kenya reported its first Covid-19 case.
Analysts link the weakening shilling to increased dollar demand and dim outlook for exports in the wake of renewed lockdowns in Europe following a second wave of Covid-19 infections.
Countries such as France, Austria, Germany, Portugal and Sweden have implemented a second wave of lockdowns to battle fresh Covid-19 infections, raising fears it could hit the export of items such as flowers, fruits and vegetables.
The sustained weakening of the Kenyan currency raises the prospects of pushing up living costs in a country that largely depends on imports for its consumer and capital goods, especially fuel and industrial raw materials.
The shilling has been unstable since mid-March when Covid-19 struck, ushering in major economic disruption as the government moved to control spread of the infectious virus.