Kenyan Shilling Remains Stable as Forex Reserves Stay Above Required Level; CBK
Kenyan Shilling Remains Stable as Forex Reserves Stay Above Required Level; CBK
The Kenyan shilling was stable during the week ended June 25, 2026, supported by adequate forex reserves and the availability of liquidity in the banking sector, the latest Weekly Bulletin by the Central Bank of Kenya (CBK) said.
“The local currency saw a minor fluctuation against the US dollar, pointing to continued stability in Kenya’s foreign exchange market amidst ongoing global economic uncertainty, the report said.
Data from the CBK showed the shilling traded at Ksh129.63 to the US dollar on June 25, a marginal change from Ksh129.55 a week earlier on June 18.
The moderate movement is indicative of a relatively balanced foreign exchange market during the review period.
As of June 25, Kenya’s foreign exchange reserves remained healthy at Ksh1.708 trillion.
The reserves were enough to cover roughly 5.6 months of imports, well above the statutory minimum of four months.
The reserve position enhances the country’s resilience to external shocks in the economy and also maintains confidence in the stability of the local currency, CBK said.
In the week, the banking sector also maintained adequate liquidity. The CBK said its open market operations had continued to provide sufficient liquidity in the financial system for banks to meet their funding needs efficiently.
Commercial banks had excess reserves averaging Ksh16.7 billion over the mandatory 3.25 percent Cash Reserve Ratio (CRR) requirement.
The Kenya Shilling Overnight Interbank Average Rate (KESONIA), a gauge of short-term lending between banks, remained unchanged at 8.75 percent, hinting at steady short-term funding conditions.
Activity in the interbank market improved markedly during the week. The average number of daily transactions rose to 28 from 15 recorded in the previous week while the average value traded almost tripled to Ksh16.1 billion from Ksh5.6 billion.
The increase indicates that financial institutions kept borrowing short-term liquidity actively in the interbank market, while the banking system as a whole remained stable.
Demand for government securities was also strong. Recent auctions of Treasury bills and Treasury bonds have seen solid demand, with several issues oversubscribed.
The sustained interest points to investor confidence in government debt instruments and helps smooth domestic financial markets.
Apart from the money market, CBK noted positive performance in other parts of Kenya’s financial sector namely the domestic bond and equities markets.
A stable exchange rate, sufficient foreign exchange reserves and sufficient liquidity provided a conducive environment for financial market activity during the review period.
The Central Bank reaffirmed it will continue to manage liquidity via open market operations and to monitor developments in the financial system to preserve market stability.
The latest figures point to a generally healthy financial picture.
Kenya’s financial markets were stable in the week ending June 25, 2026, with the shilling largely unchanged, foreign exchange reserves comfortably above the legal threshold, and liquidity conditions remaining supportive.
