Kenya shilling remains stable as Treasury bill rates decline
By Faith Lagat, March 28, 2026The Kenyan shilling remained broadly stable against major international and regional currencies during the week ending March 26, 2026, even as Treasury bill interest rates declined, according to the Central Bank of Kenya’s (CBK) Weekly Bulletin released on March 27.
The shilling exchanged at Ksh129.72 per US dollar on March 26, compared to Ksh129.52 on March 19. The marginal change of 20 cents indicated limited volatility in the foreign exchange market during the period under review.
The local currency also held steady against other major currencies, including the Sterling Pound and the Euro, as well as regional currencies such as the Ugandan and Tanzanian shillings.
Foreign exchange reserves remain adequate
CBK data shows that Kenya’s foreign exchange reserves stood at Ksh1.82 trillion as of March 26, equivalent to 6.0 months of import cover.
“The foreign exchange reserves remained adequate at USD 14,022 million (6.0 months of import cover) as of March. This meets CBK’s statutory requirement to endeavour
to maintain at least 4 months of import cover,” read the CBK X post in part.
The level remains above the CBK’s statutory requirement to maintain at least four months of import cover, providing support for the stability of the shilling and the country’s external payments position.
The reserves have remained within a similar range throughout March, fluctuating between 6.0 and 6.2 months of import cover.
Treasury bill rates decline
Treasury bill interest rates declined during the March 26 auction.
According to CBK data, the auction received bids worth Ksh10.9 billion against an advertised amount of Ksh24.0 billion, representing a performance of 45.5 percent.
Interest rates on all three tenors declined during the auction. The average interest rate on the 91-day Treasury bill fell to 7.426 percent from 7.568 percent recorded the previous week.
The 182-day Treasury bill eased to 7.829 percent from 7.840 percent, while the 364-day Treasury bill declined to 8.282 percent from 8.345 percent.
“The Treasury bill auction of March 26 received bids totalling Ksh 10.9 billion against an advertised amount of Ksh 24.0 billion, representing a performance of 45.5 percent. Interest rates on the 91-day, 182-day and 364-day Treasury bills declined.”
Data from the CBK also shows that domestic debt stood at about Ksh7.14 trillion as of March 20, with Treasury bills and Treasury bonds accounting for the largest share of government securities. Financial corporations, particularly commercial banks, continued to hold the majority of the securities.
Liquid money market
The money market remained liquid during the week under review, with open market operations remaining active. Commercial banks’ excess reserves averaged Ksh9.6 billion above the 3.25 percent Cash Reserve Ratio requirement.
During the period, the Kenya Shilling Overnight Interbank Average Rate (KESONIA) increased slightly to 8.73 percent on March 26 from 8.68 percent recorded the previous week.
The average value of interbank transactions rose to Ksh13.4 billion, compared to KSsh13.2 billion recorded in the previous week. However, the number of deals declined to 18 from 24.