Forex trading slows down as year nears end

Exporters on the other hand will receive greater value for their products for with the strengthening of local currency.

For a country whose primary imports are petroleum products and machinery, the short term strengthening of the Kenya Shilling leads to higher production costs for manufacturers and industries reliant on imported inputs.

Among the biggest losers as the year draws to a close are importers of new and second had vehicles keen on beating the Kenya Revenue Authority’s directive barring the importation of cars older than eight years.

Market players say that second hand motor vehicle importers from Japan – Kenya’s largest source of imported vehicles- are keen on offloading vehicles before the time period elapses.

Kenya is a net importer- meaning that Kenya imports more than she exports- with machinery and oil making the bulk of the import commodity basket.

2009 was a mixed year for importers who brought in goods to the country due to a strong Shilling against the US Dollar.

Additional reporting by Reuters