Kenya has a fully market-determined exchange rate system where there are no controls on foreign exchange. The country is involved in international trade. Fluctuation in the exchange rate of the Kenyan shilling has therefore always had its effects on the country’s economy. This article examines the exchange rate trend of the Kenyan shilling against the US dollar from the year 2005 to 2019. It also covers the factors affecting the foreign exchange rate and how they have contributed to the general trend in the Kenyan forex market. The data obtained was from the Central Bank of Kenya Forex statistics.