Nairobi, April 17 -- Shortly after Kenya's 2022 elections, the shilling depreciated rapidly against the US dollar - the country's main currency for international transactions - fuelling a wave of political discontent.

More than a year later, the Central Bank of Kenya (CBK), taking its cue from the International Monetary Fund (IMF), said that the run on the shilling was a market correction for a currency that had been overvalued by between 20 percent and 25 percent.

By early this year, the shilling recovered. Finance scholar Odongo Kodongo answers our questions about Kenya's exchange rate fluctuations.

How is the shilling's exchange rates determined?

Kenya operates a floating exchange rate regime. This means that the value of the shill...