In the first half of 2024, the Nigerian Naira was rated the worst-performing currency, while the Kenyan Shilling was named the best performer. This means that the value of the Naira dropped significantly compared to other currencies, whereas the Shilling did very well and became stronger.

The Naira’s decline can be attributed to several factors. One of the main reasons is Nigeria's economic challenges. The country has been facing high inflation, which means that the prices of goods and services have been rising quickly. This makes life more expensive for people and reduces the purchasing power of the Naira. Additionally, Nigeria has been dealing with a shortage of foreign exchange. Foreign exchange refers to the money from other countries, such as dollars or euros, which is needed for international trade. When there is not enough foreign exchange, it becomes difficult to import goods, which can further hurt the economy.

Another factor affecting the Naira is political instability. Nigeria has experienced political uncertainty and security issues, which can make investors nervous. When investors are unsure about the future, they are less likely to invest in the country. This can lead to less foreign investment, which is essential for economic growth and stability. The lack of investment can weaken the Naira even more.

On the other hand, the Kenyan Shilling performed very well in the first half of 2024. Kenya has managed to maintain a relatively stable economy compared to Nigeria. One reason for this is Kenya’s strong agricultural sector. The country produces and exports a lot of agricultural products, such as tea, coffee, and flowers. These exports bring in foreign exchange, which helps strengthen the Shilling.

Additionally, Kenya has been successful in attracting foreign investment. The country has a more stable political environment, which makes it a more attractive destination for investors. Foreign investments help boost the economy and support the value of the Shilling. Moreover, Kenya has been making efforts to diversify its economy by investing in sectors like technology and tourism. This diversification helps create more economic opportunities and reduces reliance on a single industry.

Kenya’s central bank has also played a crucial role in maintaining the stability of the Shilling. The central bank has been implementing policies to control inflation and manage the supply of money in the economy. By keeping inflation in check and ensuring there is enough money in circulation, the central bank helps maintain the value of the Shilling.

In contrast, Nigeria’s central bank has struggled to keep the Naira stable. Despite efforts to manage the currency, the economic challenges and lack of foreign exchange have made it difficult to prevent the Naira from falling. The central bank has also had to deal with issues like currency speculation, where people buy and sell the Naira in large amounts to make a profit, which can further destabilize the currency.

The performance of these currencies has a significant impact on the people living in these countries. In Nigeria, the declining Naira means that people have to spend more money to buy the same goods and services. This can lead to a lower standard of living and increased poverty. Businesses also suffer because they have to pay more for imported goods, which can increase their costs and reduce profits.

In Kenya, the strong Shilling benefits the economy and the people. A stronger currency means that imported goods are cheaper, which can help lower the cost of living. It also makes it easier for businesses to import materials and equipment needed for production. Additionally, a stable currency attracts more foreign tourists, which boosts the tourism industry and creates jobs.