Effect of Real Exchange Rate Volatility and Selected Macroeconomic Variables on Trade Exports Performance in Kenya

Kenya’s export performance is still constraint by high level of inflation, high-interest rates, low savings, investments, and fluctuating exchange rates. Generally, exports have performed dismally in the recent past. It not yet clear as to whether this poor can be attributed rate volatility since, existing empirical evidence show mixed findings. The study sought establish impact on for period 1974 – 2018. Autoregressive Distributed Lag model (ARDL) with bounds test was estimated it found that ARCH term t-ratio significant which indicated volatile. volatility, terms trade, inflation money supply trade openness were significant. Based these results, recommended government should reconsider policies will prevent fluctuations, suggests monetary authorities Kenya come up policy strategies help drive economy better are necessary economic expansion, maintain its market determined implement a aimed at confining levels par or lower than those trading partners, review take advantage reap from liberalization. further realized interdependence between stability, macroeconomic stability hence makers need consider degree likely effects while designing, developing implementing Kenyan Economy.