The Kenyan shilling demonstrated notable stability against major currencies during the week ending December 24, 2025, according to the Central Bank of Kenya (CBK), reflecting resilience in the local currency despite international pressures.

Exchange rate stability

The CBK’s weekly bulletin reported that the shilling closed at Ksh 129.00 per U.S. dollar on December 24, a marginal depreciation from Ksh 128.94 recorded the previous week.

“The Kenya shilling remained stable against major international and regional currencies during the week ending December 24, 2025,” the bulletin stated.

The stability comes amid a weakening U.S. Dollar Index globally, influenced by easing inflation concerns in advanced economies and narrowing interest rate differentials. Euro area headline inflation was confirmed at 2.1 per cent in November, unchanged from October, according to the report.

Foreign exchange reserves and liquidity

Kenya’s foreign exchange reserves provided a solid buffer, standing at USD 12,168 million as of December 23, equivalent to 5.3 months of import cover, comfortably above the statutory minimum of four months.

“The foreign exchange reserves remained adequate at USD 12,168 million (5.3 months of import cover),” the report affirmed, signalling continued strength in the external sector. Liquidity in the money market was maintained through active open market operations, with commercial banks holding excess reserves averaging Ksh16.5 billion above the Cash Reserve Ratio requirement.

The Kenya Shilling Overnight Interbank Average Rate (KESONIA) edged up slightly to 9.01 per cent from 8.98 per cent.

“The Kenya Shilling Overnight Interbank Average Rate (KESONIA) increased marginally to 9.01 per cent on December 23 from 8.98 per cent on December 18. During the week, the average number of interbank transactions increased to 20 from 15 in the previous week, while the average value traded decreased slightly to Ksh10.1 billion from Ksh11.3 billion.”

Govt securities and global pressures

Participation in the Treasury bill auction was subdued, with bids totalling Ksh 5.4 billion against an advertised Ksh24.0 billion, though interest rates on the 91-day and 364-day papers declined.

International oil prices rose due to geopolitical tensions, with Murban crude reaching USD 62.90 per barrel. These developments collectively point to a cautiously positive outlook for Kenya’s monetary environment as the year closes, supported by adequate reserves and stable exchange rates amid evolving global conditions.