- David Basalirwa from Uganda favours purchasing textiles from Kenya due to their comparatively lower prices
- In the past, Kenyans flocked to Uganda to buy clothes, but the trend has changed following the depreciation of the Kenyan shilling, which made goods cheaper
- The local currency has lost KSh 11 of its value against the Ugandan shilling within a year, forcing Ugandans to troop to Kenya
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TUKO.co.ke journalist Japhet Ruto brings over eight years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.
Ahead of the Christmas holidays, numerous Ugandans are crossing the Busia border into Kenya to take advantage of the affordable prices, particularly for textiles, when purchasing goods.
According to David Basalirwa, a trader residing in the Bugiri district in eastern Uganda, he favours purchasing textiles from Kenya due to their comparatively lower prices compared to his local trading hub in Iganga district and other towns in Uganda.
"I buy a lot of clothes in Kenya with KSh 1,000 (USh 24,304), but with the same money in Uganda, I will buy only one cloth," Basalirwa said, as reported by the East African.
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The trader explained that since clothes were cheaper in Kenya, he reaped profits back home after reselling them.
Why are goods cheaper in Kenya than Uganda?
In the past, Kenyans flocked to Uganda to buy clothes but the trend has changed following the depreciation of the Kenyan shilling which made goods cheaper in Kenya compared to Uganda.
According to Daily Monitor, the Kenyan currency has lost KSh 11 of its value against the Ugandan shilling within a year.
In 2022, KSh exchanged at 35 against USh, but this has since fallen to 24.
Deborah Babirye, who journeyed from Namayingo District to the border town of Busia on Monday, December 18, to acquire curtains from Kenya, explained that the attractive affordability of the goods was compelling traders to invest in clothing during the festive season for lucrative returns.
Babirye disclosed she purchased two pairs of curtains for KSh 400 (USh 9,700) and anticipated selling them in Namayingo for USh 10,000 each (KSh 411).
Which is Kenya's largest export market?
Earlier, TUKO.co.ke reported that the United States overtook Uganda as Kenya's largest export market.
Kenya became the largest exporter of goods from the East African region to major retailers in the US.
US ambassador to Kenya Meg Whitman confirmed the trade deal was supported by the country's growth in technological advancement.
Whitman said the Africa Growth and Opportunities Act (AGOA) played a huge role.
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