The US dollar is having its best run in years. That’s great news for Kenyans exporting overseas because a favourable exchange rate gives them more bang for the buck. It’s not such great news for international investors in local securities.
An unfavourable exchange rate takes a bite out of returns. This is because when they convert dollars into a depreciating shilling to buy local securities, it drives the daily net asset value of the fund lower. The solution: stay out (it's too late and too expensive to hedge anyway).
