Business

CBK reports stable interbank rates as Kenya shilling holds steady

Saturday 17th January, 2026 07:56 AM| By Faith Lagat

The Central Bank of Kenya (CBK) has reported stability in the local currency against major international and regional currencies during the week ending January 15, 2026.

The Kenyan shilling exchanged at Ksh 129.03 per U.S. dollar on January 15, compared to Ksh 128.99 per U.S. dollar on January 8, reflecting minimal change in the foreign exchange market.

Foreign exchange reserves

Foreign exchange reserves remained adequate at USD 12,477 million, equivalent to 5.4 months of import cover, surpassing the CBK’s statutory requirement of at least four months.

Remittance inflows, a key source of foreign exchange, totalled USD 435.5 million in December 2025, a 2.2 per cent decline from USD 445.4 million in December 2024.

For the full year 2025, total remittances increased by 1.9 per cent to USD 5,037 million from USD 4,945 million in 2024.

“The foreign exchange reserves remained adequate at USD 12,477 million, equivalent to 5.4 months of import cover, as of January 15. This meets the Central Bank of Kenya’s statutory requirement to maintain at least four months of import cover.”

CBK X post. PHOTO/A screengrab by PD Digital@CBKKenya/X

Money market liquidity, interbank stability

The money market remained liquid during the week, with open market operations actively supporting banks’ funding needs. Commercial banks held excess reserves averaging Ksh 26.5 billion above the 3.25 per cent Cash Reserve Ratio (CRR).

The Kenya Shilling Overnight Interbank Average Rate (KESONIA) stayed largely unchanged at 9.00 per cent on January 15, compared to 8.97 per cent on January 8. Interbank activity increased, with the average number of transactions rising to 23 from 10, while the average value traded expanded to Ksh15.2 billion from Ksh7.5 billion.

In the government securities market, the Treasury bill auction on January 15 drew bids totalling Ksh 30.8 billion, exceeding the advertised amount of Ksh 24.0 billion, resulting in a performance rate of 128.4 per cent. Interest rates on the 182-day Treasury bill remained stable, while rates on the 91-day and 364-day bills recorded modest declines.