Kenya’s financial markets showed firm resilience in the week ending Friday, January 23, 2026, with the shilling holding its ground and healthy reserves underlining stability. These trends are signs of strength amid ongoing global volatility.

The Central Bank of Kenya (CBK) reported the Kenyan shilling remained stable against major currencies in the week ending January 23, 2026. It traded at Ksh129.02 per US dollar, a negligible change from Ksh129.03 the previous week.

The country’s foreign exchange reserves stood strong at $12,219 million as of January 22, 2026. This figure provides a solid buffer, covering an estimated 5.3 months of imports. It comfortably exceeds the CBK’s minimum requirement of four months’ cover, shielding the economy from external shocks.

“This meets CBK’s statutory requirement to endeavour to maintain at least 4 months of import cover,” CBK stated in their weekly bulletin.

Domestic money market liquidity remained healthy. Commercial banks held excess reserves averaging Ksh13.7 billion above the mandatory level. The key overnight interbank lending rate (KESONIA) saw a slight dip to 8.98 per cent.

Markets send mixed signals

In government securities, results were mixed. An auction for Treasury bills attracted Ksh18.3 billion in bids against a target of Ksh24 billion. Interest rates on the 91-day bill rose, while those on longer-term bills eased. However, a separate 15-year Treasury bond switch auction performed strongly, receiving bids worth KSh 26.5 billion against an advertised Ksh20 billion.

Trading at the Nairobi Securities Exchange saw modest gains. Key share price indices-the NASI, NSE 25, and NSE 20-all rose by between 0.30 per cent and 0.47 per cent over the week. Market capitalisation grew 0.32 per cent, although the volume and value of shares traded declined.

Internationally, Kenya’s Eurobond yields fell by an average of 7.10 basis points, suggesting sustained investor confidence. The global backdrop offered some relief; the US Dollar Index weakened, while oil prices softened slightly. The International Monetary Fund projects steady global growth of 3.3 per cent for both 2025 and 2026.

Overall, the data paints a picture of an economy navigating global pressures effectively. Robust reserves and stable currency markets are providing a foundation for growth, with investors now watching upcoming government auctions for further direction.