Convert your Kenya currency to Naira
Nigeria vs. Kenya Economic Indicators
| Indicator | Nigeria | Kenya |
|---|---|---|
| Interest Rates | 26.25% (May 2024) | 12.75% (Aug 2024) |
| Exchange Rates | NGN 1490/$ | KES 129/$ (Kenyan Shilling) (Aug 2024) |
| Inflation Rate | 33.95% (May 2024) | 4.3% (July 2024) |
| Unemployment Rate | 5% | 4.9% (Dec 2022) |
| GDP Growth Rate | 2.85% | 1.1% (2024) |
| Savings Rate | 6.28% (March 2024) | 3.6% (2022) |
Discussion:
- Interest Rates: Nigeria has a significantly higher interest rate, likely due to factors like controlling inflation or attracting foreign investment.
- Exchange Rates: The Nigerian Naira (NGN) is weaker than the Kenyan Shilling (KES). This makes Nigerian exports cheaper but imports from Kenya more expensive.
- Inflation Rate: Both countries are experiencing inflation, but Nigeria’s rate is currently higher.
- Unemployment Rate: Kenya has a much lower unemployment rate.
- GDP Growth Rate: Kenya has had a higher GDP growth rate in recent years, although Nigeria’s economy is still larger.
- Savings Rate: Kenyans have a significantly lower savings rate than Nigerians.
The Evolution of Kenyan Shilling
Introduced in 1966, the Kenyan Shilling marked a significant milestone in the nation’s economic sovereignty, replacing the East African Shilling. This transition coincided with Kenya’s independence, underscoring the currency’s role as a symbol of national identity.
Over the decades, the Kenyan Shilling has evolved, with the Central Bank of Kenya overseeing its issuance and monetary policy. The currency’s design has undergone transformations, reflecting the country’s cultural heritage and economic progress. Notably, the removal of portraits from banknotes in 2010 aligned with constitutional provisions, emphasizing the nation’s democratic principles.
While challenges such as inflation and exchange rate fluctuations have impacted the Kenyan Shilling, it remains a vital component of the country’s economy. The currency’s stability is crucial for domestic trade, foreign investment, and overall economic growth.
Related Currency Pairings
African Currencies
Asians Currencies
The Evolution of the Kenyan Shilling
The Kenyan shilling (KES) has been the national currency of Kenya since 1966, replacing the East African shilling. Its history reflects the country’s economic development, political stability, and tourism industry.
Early Years and Currency Union: Before independence, Kenya was part of the British East African colonies and used the East African shilling. After gaining independence in 1963, Kenya continued to use the East African shilling until 1966, when it was replaced by the Kenyan shilling.
Economic Challenges and Currency Volatility: Kenya has faced a number of economic challenges throughout its history, including political instability, drought, and fluctuations in the tourism industry. These factors have put pressure on the Kenyan shilling and contributed to its volatility.
Currency Reforms and Floating Exchange Rate: In 1993, Kenya abandoned the fixed exchange rate with the US dollar and allowed the Kenyan shilling to float freely on the foreign exchange market. This move gave the country greater flexibility in managing its monetary policy.
Recent Developments: In recent years, Kenya has experienced economic growth, driven by increased investment, trade, and tourism. The Kenyan shilling has appreciated against the US dollar, reflecting the country’s strong economic performance. However, Kenya remains vulnerable to external shocks, such as fluctuations in commodity prices and political instability.
Sources:
World Bank
Central Bank of Nigeria
Trading Economics
Central Bank of