This means that businesses in Kenya are more likely to be on shaky grounds on importing goods outside the Country as the currency continues to depreciate.
The continued weakening however is set to hit manufacturers who have raised the alarm of dollar shortage and struggle to settle payments to oversee suppliers on time.
Central Bank of Kenya (CBK) reported that the current shilling exchange at 118.0941 is marking a depreciation of 4.37 per cent since January 1st.
As of January 1, 2022, the shilling exchange was at 113.1459 against the US dollar.
In a period of six months, the dollar is now costing SH.4.9482 more.
Consumers in the country are expected to feel this ultimate pain despite being already burdened by the high cost of living because businesses will continue to factor the cost in their pricing.
This impact will also be felt by the taxpayers more when servicing external debts denominated in the US dollar, meaning more money will be used to pay back the debts.
The country spends billions importing a wide variety of goods, including petroleum products, wheat, second-hand clothes, motor vehicles, vegetable oils and industrial machinery, whose costs are rising as the shilling weakens against the dollar.
These products including those made from imported raw materials are expected to rise in the wake of the shilling weakening.
According to the latest figures from the treasury, 68 per cent of the 4.2 trillion external debts Kenyan owes creditors are denominated in the US dollar.
Back in April Kenya Association of Manufacturers (KAM) said their members had faced strained relations with suppliers due to dollar liquidity in the market.
Competition for raw materials has intensified globally due to rising demand amid lingering supply chain constraints.