The Kenyan Shilling has plunged to its lowest level yet against major global currencies, deepening concerns over the country’s economic stability, according to a new report released by the Kenya National Bureau of Statistics (KNBS) 

The Leading Economic Indicators Report, published on Monday, June 30, 2025, shows that the shilling depreciated against all key international trading currencies except the South African Rand and the Tanzanian Shilling.

The report shows that in April 2025, the shilling weakened across nearly all major trading currencies, continuing a trend driven by global volatility and domestic trade imbalances.

“In April 2025, the Kenyan Shilling depreciated against all selected major trading currencies, except the South African Rand and the Tanzanian Shilling,” the report stated.

The currency fell slightly against the US Dollar, slipping from Ksh129.33 in March to Ksh129.51 in April, continuing its slow but steady decline.

At the same time, the shilling gained against the South African Rand, appreciating from Ksh7.07 to Ksh6.86.

“The Kenyan Shilling depreciated against the US Dollar (from 129.33 to 129.51) but appreciated against the South African Rand (from 7.07 to 6.86),” the report added.

KNBS attributed the weakening to persistent trade deficits and global market instability.

“The Kenyan Shilling’s depreciation reflects broader pressures from trade imbalances and global market volatility, though it strengthened marginally against regional peers like the Rand,” the bureau noted.

In addition to the dollar, the shilling lost value against other major currencies, including the Euro, Pound Sterling, and Japanese Yen.

Analysts warn that this continued depreciation is likely to push up the cost of fuel, imported goods, and foreign debt repayments.

Government position

Earlier this year, Treasury Cabinet Secretary John Mbadi defended the government’s stance on managing the shilling’s value.

Speaking in March, Mbadi said an overly strong currency would undermine exports, warning that a balance around Ksh130 per dollar is necessary to maintain economic competitiveness.

“We cannot allow the shilling to appreciate too much; we assess that the shilling at 130 units is the most reasonable for our economy because if you make the shilling too strong, you discourage exports,” Mbadi said.

He added that declining exports would erode Kenya’s foreign exchange reserves, making it harder for the country to meet its debt obligations.