Kenya Shilling Set for Further Gains as Traders Shift From Dollar to Yuan

China's decision to remove tariffs on imports from 53 African countries starting May 1 is accelerating trade between Kenya and China. Kenyan traders are increasingly using the Chinese yuan for transactions, reducing demand for the US dollar and supporting the Kenyan shilling, which traded at around Ksh129.55 against the dollar on June 18, 2026. A local international bank has started issuing yuan-denominated letters of credit, and Kenya converted three Chinese railway loans from dollars to yuan, saving about Ksh27.8 billion annually in interest costs. Avocado exports to China have surged from 10-20 containers per week in 2022 to about 200 containers now, with projections of 1,000 containers weekly by 2030.