Kenyan shilling stays steady as CBK reserves remain robust
By Faith Lagat, July 26, 2026The Kenyan shilling remained stable against major international and regional currencies during the week ending July 23, 2026, supported by strong foreign exchange reserves and stable money market conditions, according to the latest Central Bank of Kenya (CBK) Weekly Bulletin.
The local currency exchanged at Ksh129.53 per U.S. dollar on July 23, 2026, compared with Ksh129.34 per U.S. dollar on July 16, 2026, reflecting minimal movement over the one-week period.
The bulletin stated: “The Kenya Shilling remained stable against major international and regional currencies during the week ending July 23, 2026. It exchanged at Ksh129.53 per U.S. dollar on July 23, compared to Ksh129.34 on July 16.”
The shilling also recorded limited changes against other major currencies, trading at Ksh173.36 against the British pound and Ksh148.04 against the euro on July 23, 2026. Regional currencies also posted only marginal movements against the Kenya shilling.
Foreign reserves remain above threshold
CBK attributed the currency’s stability to adequate foreign exchange reserves, which remained above the statutory import cover requirement despite a slight decline during the week.
The bulletin noted: “The foreign exchange reserves remained adequate at about Ksh1.79 trillion (5.9 months of import cover) as of July 23. This meets CBK’s statutory requirement to endeavour to maintain at least four months of import cover.”
The reserves declined from about Ksh1.84 trillion recorded a week earlier but remained equivalent to 5.9 months of import cover, exceeding the minimum four-month benchmark required to cushion the economy against external shocks.
The reserve position provides support for the country’s external obligations while helping maintain stability in the foreign exchange market.
Money market remains liquid
The weekly bulletin also showed that liquidity conditions in the money market remained stable during the review period.
Commercial banks’ excess reserves averaged Ksh14.7 billion above the 3.25 per cent Cash Reserve Ratio requirement, while the Kenya Shilling Overnight Interbank Average Rate (KESONIA) remained unchanged at 8.75 per cent.
CBK said open market operations remained active throughout the week to support liquidity management.
Global developments continued to shape the external environment. The bulletin noted that inflation concerns remained elevated following heightened geopolitical tensions in the Middle East, which pushed Murban crude oil prices to about Ksh11,147 per barrel, up from about Ksh 10,244 per barrel a week earlier. Spot gold prices also increased to about Ksh524,639 per ounce.
Despite the higher global oil prices and geopolitical uncertainty, the latest data show the Kenya shilling continued to trade within a narrow range, supported by adequate foreign exchange reserves and stable domestic liquidity conditions.