Many times, analysts have associated the volatility of the Kenyan shilling with the big gap between the values of the country’s imports and exports, the huge external debt as well as inflation. Even then, the extent to which these factors are linked to the movement in the value of the currency have been largely unknown.
Business Daily has unearthed the link with analysis of data stretching back to 10 years revealing that the import-export value gap and external debt have been more strongly linked with the volatility in the currency more than is the case for inflation.
