Nightlife at Ugandan border takes hit as Kenya shilling tumbles

There are reportedly less and less Kenyans crossing over to buy cheap beers from the Ugandan side, thanks to the depreciating Kenyan Shilling.

For Kenyans, cross-border drinking in the towns of Busia and Malaba has been a big phenomenon over the past years, owing to the affordability of beers in Ugandan currency. 

But since the Kenyan Shilling started dropping this year, Ugandan bars dealing in both commercial beer and local brew no longer fill to capacity.

At the start of the year, the Kenyan shilling was worth 30 Ugandan shillings, meaning that if one crossed to Uganda with KSh1,000, they would exchange it for UGX 30,000. And with beers such as Nile Special and Club retailing at Ugx 3000, one would be able to get ten bottles from Ksh 1000.

But with their currency dropping in value, Kenyans have been less keen on taking the trip to Uganda. This week, the Kenyan Shillings was exchanging at some point around UGX 27.

More so, some bars along the border have reportedly decided to hike the price of beer to compensate for the drop in customer numbers.  

“It is a tough balancing act”, said one Benjamin Etyang, a local contractor, while talking to Kenyan News Paper, The Star.

“The economy is unstable and pay is not coming on time. To make matters worse, the shilling has lost value and this has pushed beer prices up. We may be forced to look for other options.”

Magdalene Akiru who hails from Kumi in Eastern Uganda and used to operate a local brew joint said she is folding up the business due to low customer numbers.

She plans to relocate to her hometown in Kumi where she intends to try her luck in the same business.

On April 6, the Kenya Shilling was ranked among the worst-performing currencies in Africa, having plunged heavily against major international currencies.