The Kenyan shilling gained 4.1 per cent against the U.S. dollar in 2025, easing from Ksh134.82 in 2024 to Ksh129.30.

This is according to the Kenya National Bureau of Statistics (KNBS) Economic Survey Report 2025, released on April 29, 2026, which tracked the performance of the local currency against major global and regional currencies throughout the year.

“The Kenyan Shilling sustained its recovery momentum in 2025, as reflected in the Trade Weighted Index (TWI), which improved from 130.0 in 2024 to 127.6 in 2025, indicating a strengthening of the currency in real effective terms,” the report read in part.

“It appreciated against the United States dollar by 4.1 per cent.”

According to KNBS, the shilling’s recovery was mainly fuelled by steadily improving foreign exchange conditions that built up across 2025.

This reflected on the country’s economic growth, where the report noted that the country’s economic growth grew by 4.6 per cent, with a slight drop from the previous year, which had a 4.7 per cent growth.

This growth failed to meet President William Ruto’s anticipated target by a shy of 1 per cent, on what he had set it at 5.6 per cent.

Beyond the dollar, the shilling also gained ground against the Pound Sterling, appreciating 1.1 per cent from Ksh172.27 in 2024 to Ksh170.40 in 2025, reducing the cost of cross-border transactions with the United Kingdom for Kenyan traders.

Against the Japanese Yen, the shilling gained 3.1 per cent, while it posted its sharpest performance against the Indian Rupee at 8.0 per cent, a significant boost for importers transacting with the Asian economies.

Within the East African Community (EAC), the picture was mixed, with Rwanda’s Franc gaining sharply against the shilling by 12.6 per cent and Uganda’s shilling edging ahead slightly, while Tanzania’s shilling lost ground against the Kenyan Shilling during the same period.

Over the last month, the Central Bank of Kenya Governor, Kamau Thugge, has been very sceptical of how the currency will behave against the dollar this year, with many global factors swaying the Kenyan shilling towards the losing side, particularly with the Middle East.

“We were waiting for this kind of shock. That is why we built up our reserves to the level where they are now,” he said, adding that exchange rate volatility remains manageable going forward.