The Kenyan shilling has experienced a whirlwind year. The local currency dropped to record lows pushing up inflation (we import a lot e.g. petroleum products and they were more expensive because of the weaker shilling) and raising the cost of living. Interestingly though, tourism flourished with record tourist arrivals. Why? The weaker shilling made Kenya a cheaper destination (US Citizens for instance could get more shillings for their dollars) and exporters were smiling all the way to the bank as they were getting more since they are paid in dollars.
Below is a graph of the average Kenya shilling-US Dollar movements, from April 10 2011 when it closed at Kshs. 77.1708 per dollar to April 10 2012, where it closed at Kshs. 83.1031 per dollar, a significant improvement from the dark days of Kshs. 100 per dollar.
