With threats of terrorist attacks looming constantly looming over Kenya, the shilling is poised to dip to the lowest it has been since Nov. 16, 2011.

The Kenyan shilling has dropped to the lowest that it has been against the dollar in more than three years.

The dip in the shilling is expected to worsen after the country's recent deadly attack at the hands of Islamist militants, an event that has not been done in more than 16 years.

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The attack was carried out by Somalia's militant group, al-Shabaab, who targeted a university last April 2. Their attack left 147 people dead.

The group says that the attack is in retaliation for the 2011 deployment of troops to fight them in neighboring Somalia.

They continue to threaten Kenya with more violence. Due to this, tourism is starting to decline since the start of 2013.

Kenya is known for its bush safaris and beaches. However, the group's attacks that center on bars, churches, and malls effectively scare off any visitors.

Its decline will sap the East African nation's second largest source of foreign exchange, explains Rich Management Ltd.

Apart from the attacks though, the decline in the shilling also comes as a result of President Uhuru Kenyatta's administration problems with drought in key tea-growing areas.

Factories in the area are reporting lower deliveries of what is the country's biggest export.

On April 3, the shilling had dropped for a seventh day to 92.80 per dollar. Over the past six months, it declined 3.8 percent and by next year, may fall to 94.4

The increasing intensity of terrorist attacks is stifling any room for growth that Kenya has. Airlines, hotels, and other tourism-related businesses are set to suffer even more if the attacks are not addressed.

In the third quarter of 2014, Kenya's tourism industry contracted 14.6 percent. It had continued a trend that was increasing since the third quarter of 2013, the Kenya National Bureau of Statistics states.

TagsKenya, Al Shabaab, Shilling