Ugandan traders at the Arubaine border market in Busia Municipality expressed concerns over the rate at which Kenyan traders are shunning their goods.
Reports stated that the traders were forced to throw away oranges at the border after their Kenyan counterparts opted to deal directly with farmers to avoid incurring more costs.
In defence of their decision, the Kenyan traders alleged that the Ugandan shilling had picked against the Kenyan currency, thus affecting the value and quantity of goods.
According to Kenyan businessmen, Ksh20,000 was equivalent to Ush700,000 a few months ago, but the same amount of money can only fetch them goods worth Ush450,000 to 489,000 as per the current valuation.
A photo of one hundred shilling notes
Photo
Xpress Money
Joseph Muduwa, a Ugandan trader, told the Daily Monitor that they were assessing their options as the orange business was no longer lucrative.
“Orange business was booming, but that is no longer the case. I have been forced to throw away sacks of Oranges after they started rotting,” Muduwa lamented.
Maureen Nafula added that the decision by Kenyan traders to drive and buy goods from the farmers was detrimental as they were all competing for the same market.
Bank CEOs predicted a worse economic outlook in 2024, warning that the shilling may fall past the Ksh153.90 mark
The CEOs, in the survey conducted by the Central Bank of Kenya (CBK), warned that the local currency may be affected by Kenya’s maturing debt and persistent dollar demand by importers.
Reduced foreign direct investments was also highlighted as a major cause of the shilling losing value against the dollar.
However, others differed that increased diaspora remittances would reduce pressure on the demand for hard currencies
Nonetheless, a report by the London Stock Exchange Group (LSEG) warned that Kenyans in the diaspora were demanding higher exchange rates to part with their dollars, posing a threat to the shilling.
LSEG thus projected the shilling to fall further against the dollar.
An undated image of Times Tower which houses Kenya Revenue Authority offices.
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