The Kenyan shilling maintained stability against major international and regional currencies during the week ending July 23, 2026, buoyed by solid foreign exchange reserves and balanced money market conditions, according to the Central Bank of Kenya's latest Weekly Bulletin.
On July 23, the shilling exchanged at Ksh129.53 per US dollar, a slight change from Ksh129.34 recorded a week earlier. Against other major currencies, it traded at Ksh173.36 per British pound and Ksh148.04 per euro, showing minimal volatility.
Foreign Reserves Above Statutory Threshold
CBK attributed the currency's steadiness to adequate forex reserves, which stood at approximately Ksh1.79 trillion, equivalent to 5.9 months of import cover as of July 23. Although this represented a minor decline from Ksh1.84 trillion the previous week, the reserves comfortably exceeded the minimum requirement of four months' import cover.
This strong reserve position supports Kenya's external obligations and helps maintain forex market stability.
Stable Money Market Liquidity
Liquidity in the money market remained steady, with commercial banks holding excess reserves averaging Ksh14.7 billion above the mandatory 3.25% Cash Reserve Ratio. The Kenya Shilling Overnight Interbank Average Rate (KESONIA) held firm at 8.75% during the review period.
CBK continued active open market operations to manage liquidity effectively.
External Factors and Outlook
- Global inflation concerns persist amid heightened geopolitical tensions in the Middle East.
- Murban crude oil prices rose to about Ksh11,147 per barrel from Ksh10,244 a week earlier.
- Spot gold prices increased to approximately Ksh524,639 per ounce.
Despite these external pressures, the Kenyan shilling remained within a narrow trading range, underpinned by robust forex reserves and stable domestic liquidity.
