The Kenyan shilling dropped to 106 against the US dollar on Monday, raising concerns among Kenyans of the dire consequences.
The new low is a shilling higher than the record 107, it had ever fallen to.
The shilling is struggling with the rising import bill - which has made it lose value - and a looming interest rate hike by the US Federal Reserve Bank
The poor performance of the shilling has also been attributed to the declining tourism industry.
Despite the optimism expressed recently, by Central Bank Governor Patrick Njoroge that the shilling would pick up after the Global Entreprenuership Summit, it has continued to drop.
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The fall raises fears of high consumer prices.
A recent report showed that despite the rate of inflation dropping from from 6.62 per cent in July to 5.84 per cent in August, Kenyans will still have to pay more for gas, electricity and housing.
Experts say that this is due to the state of the shilling, claiming that should it continue to weaken, Kenyans will have to face an inflation increase.
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