The Central Bank of Kenya (CBK) has announced that the Kenyan shilling maintained its stability against major international and regional currencies during the week ending September 18, 2025.

According to the CBK Weekly Bulletin dated September 19, the shilling exchanged at Ksh129.24 per U.S. dollar on September 18, unchanged from September 11. This performance highlights the currency’s steadiness amid ongoing global economic fluctuations.

“The Kenya shilling remained stable against major international and regional currencies during the week ending September 18, 2025. It exchanged at Ksh 129.24 per U.S. dollar on September 18, unchanged from September 11,” read the CBK report dated September 19, 2025.

Foreign exchange reserves

CBK attributed the shilling’s resilience to strong foreign exchange reserves, which stood at USD 10,861 million as of September 18. This level is equivalent to 4.8 months of import cover, surpassing the statutory requirement of at least four months. “The usable foreign exchange reserves remained adequate at USD 10,861 million (4.8 months of import cover) as of September 18,” the bulletin stated.

The bank noted that these reserves continue to provide a buffer against external shocks, helping to sustain currency stability in volatile international markets.

The previous week’s bulletin also reflected a steady performance. On September 11, the shilling traded at Ksh129.24 per U.S. dollar, unchanged from September 4, demonstrating consistent stability.

Money market

The CBK bulletin reported that the domestic money market remained liquid during the week ending September 18, supported by active open market operations.

Commercial banks’ excess reserves stood at Ksh11.1 billion in relation to the 3.25 per cent cash reserve requirement. In addition, the Kenya Shilling Overnight Interbank Average (KESONIA) rate edged up to 9.50 per percent on September 18 from 9.45 per percent on September 11, reflecting active management of short-term monetary conditions.

“The money market remained liquid during the week ending September 18. Open market operations remained active. Commercial banks’ excess reserves stood at KSh 11.1 billion in relation to the 3.25 per cent cash reserves requirement (CRR).”

“The overnight interbank rate has been officially named Kenya Shilling Overnight Interbank Average (KESONIA) from September 1, 2025. The KESONIA was at 9.50 per percent on September 18 compared to 9.45 per cent on September 11. During the week, the average number of interbank deals decreased to 14 compared to 21 in the previous week, while the average value traded decreased to Ksh 7.9 billion from Ksh 11.4 billion in the previous week.”

Global trends

According to the CBK, global factors also contributed to the shilling’s steady performance.

Inflation concerns in advanced economies eased slightly during the week, with headline inflation in the United Kingdom holding at 3.8 per cent in August 2025 while core inflation fell to 3.6 per percent from 3.8 per cent in July. The U.S. Federal Reserve’s decision to lower the federal funds rate by 25 basis points to a target range of 4.00–4.25 percent led to a 0.1 percent weakening of the U.S. Dollar Index.

International oil prices remained stable, with Murban crude priced at USD 69.95 per barrel on September 18 compared to USD 69.39 on September 11. The CBK’s bulletin notes that such trends, combined with robust reserves and an active money market, continue to anchor the Kenyan shilling.