The Central Bank of Kenya (CBK) has reported that the country’s foreign exchange reserves remain adequate at USD 12,387 million, equivalent to 5.3 months of import cover, comfortably exceeding the statutory target of four months.

In its Weekly Bulletin released on February 6, the CBK noted that the Kenya Shilling held steady against major currencies during the week ending February 5.

The local currency closed at Ksh 129.02 per US dollar on February 5, marginally stronger than Ksh 129.03 recorded on January 29.

“The Kenya Shilling remained stable against major international and regional currencies during the week ending February 5, 2026. It exchanged at Ksh 129.02 per U.S. dollar on February 5, compared to Ksh 129.03 per U.S. dollar on January 29.”

The shilling also remained stable against other key currencies, averaging Ksh176.73 to the Sterling Pound, Ksh152.82 to the Euro, and Ksh83.08 to the Japanese Yen (100 units) over the same period.

Regional currencies showed minimal fluctuations, with the Ugandan, Tanzanian, Rwandan, and Burundian shillings trading within narrow bands against the Kenya Shilling.

Reserves maintain strong buffer

CBK highlighted that reserves rose slightly from USD 12,334 million on January 29 to USD 12,387 million, maintaining the 5.3 months import cover. “This buffer continues to provide resilience against external shocks and supports exchange rate stability,” the bulletin noted.

The money market remained liquid, with commercial banks holding excess reserves averaging KSh 8.9 billion above the 3.25 percent Cash Reserve Ratio requirement.

However, the Kenya Shilling Overnight Interbank Average Rate (KESONIA) edged up to 9.99 percent on February 5 from 8.99 percent the previous week, reflecting tighter short-term liquidity conditions. Interbank transactions averaged 14 deals worth Ksh 6.7 billion, down from 21 deals worth Ksh 12.5 billion in the prior week.

Strong demand for govt securities

Investor appetite for government securities remained strong. The February 5 Treasury bill auction attracted bids worth Ksh 64.3 billion against an advertised Ksh 24 billion, achieving an oversubscription rate of 267.9 percent.

Market analysts attribute the shilling’s firmness to sustained dollar inflows from remittances, tourism recovery, and horticultural exports, combined with prudent CBK interventions. The stable reserves and controlled domestic liquidity indicate continued macroeconomic stability amid global uncertainties.

Interest rates on 91-day, 182-day, and 364-day papers declined marginally to 7.630 percent, 7.788 percent, and 9.200 percent respectively.