The Kenyan-Uganda border in Busia town is always a beehive of activities. Thousands of people are leaving and coming into the country and businesses are booming. At the core center of these businesses is the currency exchange business.
For a long time, the Kenyan shilling (Ksh.) has remained strong and stable over the Ugandan shilling (Ugx) and businessmen have been reaping big at the border due to the stability of the Kenyan shilling. At such times Kenyan traders would cross to the Ugandan side to source for commodities, especially foodstuffs at cheaper prices and bring them to the Kenyan market, hence having high-profit margins.
A number of Ugandans also decided to explore the opportunity. One such trader is Namboso Lona, a Ugandan businesswoman vending fruits in Busia town Kenya. She admits that it is the stability of the Kenyan shilling in the past that lured her to Kenya to expand her business.
“In the past one would come to Kenya and even carry bananas on a tray, sell them, and make profits. I thought the situation would remain the same. So I decided to have a stall,” Namboso told us.
Over time the situation started changing. The stability that the Kenyan shilling was enjoying over the Ugandan started weakening day by day. In 2018, one Kenyan shilling would be exchanged for thirty-eight Ugandan shillings. Today a Kenyan shilling is only twenty-six Ugandan shillings. Francis Makonjo, the chairperson of the association of money changers at the Kenyan-Uganda border in Busia town says as the Kenyan economy continues to deteriorate, the Kenyan shilling also continues to weaken.
“Since the last quarter of 2022, the Kenyan shilling has been losing its value over other foreign currencies daily. This has affected us so much.”
Many small-scale cross-border traders in Busia town who cross to Uganda to buy goods in bulk have since been affected by the weak Kenyan shilling, many of whom are contemplating quitting the business. And even worse, some are now threatening to move to the Ugandan side from Kenya for fear of continued losses in their business ventures.
“I only come to Kenya because I can’t hawk these fruits. Today’s Kenya has lost its business sweetness and am even thinking of going back to Uganda,” said Namboso.
Two months ago, while in Bujumbura Burundi, the East African Community Monetary Committee extended the deadline for the adoption of the common currency among the member states from 30th November 2023 to December 31st, 2031. Money changers at the Busia border believe that the adoption of the currency may stabilize the forex market and therefore give back life to their dying businesses.
