The Kenyan shilling remained stable during the week ending June 25, 2026, supported by strong foreign exchange reserves and adequate liquidity in the banking sector, according to the Central Bank of Kenya (CBK) Weekly Bulletin released on June 26, 2026.

The latest CBK bulletin data showed minimal movement in the exchange rate, while the country’s foreign exchange reserves remained well above the statutory minimum required to cushion the economy against external shocks.

The Kenyan shilling traded at Ksh129.63 against the US dollar on June 25, 2026, compared to Ksh129.55 recorded on June 18, 2026, reflecting limited movement during the week.

According to the CBK, foreign exchange reserves stood at Ksh1.708 trillion as of June 25, 2026, equivalent to 5.6 months of import cover. The reserves remained above the statutory requirement of at least four months of import cover, providing a buffer against external risks and supporting the country’s external position.

The stable exchange rate coincided with continued demand for government securities, which contributed to sustained activity in the domestic financial market.

Banking sector records strong liquidity

The CBK said the money market remained liquid throughout the week as open market operations continued.

Commercial banks held excess reserves averaging Ksh16.7 billion above the 3.25 per cent Cash Reserve Ratio requirement. The Kenya Shilling Overnight Interbank Average Rate (KESONIA) remained unchanged at 8.75 per cent on June 25, 2026, the same level recorded a week earlier.

Interbank market activity increased during the review period. The average number of transactions rose to 28 from 15 recorded the previous week, while the average value traded increased to Ksh16.1 billion from Ksh5.6 billion.

The higher level of interbank activity reflected continued liquidity within the banking system as financial institutions accessed short-term funds through the market.

Financial markets remain steady

The latest CBK data came as government securities continued to attract strong investor demand, with recent Treasury bill and Treasury bond auctions recording oversubscription.

The stable exchange rate, adequate foreign exchange reserves and liquid money market coincided with positive performance across other financial market indicators, including the equities and domestic bond markets.

The Central Bank said it continued to manage liquidity through open market operations while monitoring developments in the financial system.

The unchanged KESONIA rate indicated stable short-term borrowing costs during the week, while the level of foreign exchange reserves remained above the statutory threshold required to support imports and cushion the economy against external shocks.

The latest figures point to continued stability in Kenya’s financial markets during the week under review, with the shilling maintaining its position against major international and regional currencies as liquidity conditions in the banking sector remained favourable.