EFFECT OF FOREIGN EXCHANGE RATE ON FINANCIAL PERFORMANCE OF LISTED MANUFACTURING COMPANIES IN KENYA

<p>The government of Kenya’s broad target for enhancing manufacturing is to increase the share gross domestic product from 8.4% 15% create more jobs but remains a mirage owing poor performance sector over years where instance, declined 3.5% in 2019 compared 4.4% 2018. Studies globally, regionally and locally have been conducted establish how macroeconomic variables affect profitability companies. However, mixed results reported pointing positive, negative, significant insignificant effects making it unknown economic growth, inflation exchange rates influence firms. The purpose this study was Interest on financial listed companies Kenya. guided by; efficient market hypothesis arbitrage pricing theory. This adopted descriptive correlational research design grounded panel data spanning 6 2015 2020 with 8 rate showed negative coefficients 0.358, 2.764 -1.532 respectively such that 1% growth increased by 0.358% 2.764% while decreased 1.532%. recommends formulation prudent policies including bailouts during pandemics geared towards firms as envisaged under Big four agenda Vision 2030 blueprint.</p><p> </p><p><strong>JEL</strong>: L60; O24; F31</p>