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The exchange rate published by the Central Bank of Kenya is meant to help those exchanging currencies gauge the value of the shilling on any given day.
The exchange rate is calculated as the weighted average rate of the registered spot trades in the interbank foreign exchange market during the trading session within the trading platforms.
The Central Bank does not set the exchange rate; it is market determined based on supply and demand of foreign exchange. Individual forex bureaus and commercial banks set their own rates, which are held to reasonable levels of variance and margins due to competition in the market.
Typically, consumers looking to exchange smaller amounts will find more favourable rates at forex bureaus, while those looking to exchange larger amounts through foreign accounts will find better rates at commercial banks.
