Stronger Shilling Boosts Business Outlook as AGOA Deadline Looms

By Irine Chebet

Kenyan businesses are off to a positive start today, thanks to favorable shifts in key exchange rates. The US dollar now trades at Ksh 129.76, the Euro at Ksh 147.86, and the British Pound at Ksh 172.75 — all showing slight drops that signal potential savings for importers.

The US dollar fell by Ksh 0.04, while the Euro — vital for flower and other agricultural exports — dropped by Ksh 1.87. The British Pound declined by Ksh 1.33 compared to yesterday's rate of Ksh 174.08.

Other notable rates include the Chinese Yuan at Ksh 17.76 and the South African Rand at Ksh 6.99.

Despite the improved currency outlook, businesses are closely watching a more serious development: the upcoming expiration of the African Growth and Opportunity Act (AGOA) in September.

AGOA, a key U.S. trade program, allows eligible African countries — including Kenya — to export goods to the U.S. duty- and quota-free. Kenya’s apparel sector has especially benefited, becoming a major source of foreign exchange.

The end of AGOA could deliver a significant economic blow, threatening jobs and reducing export income at a critical time for Kenya’s economy.