Shilling holds steady amid strong Treasury Bill demand – CBK
By Faith Lagat, March 21, 2026The Kenyan shilling remained stable against major currencies during the week ending March 19, 2026, supported by strong investor demand for government securities, according to the Central Bank of Kenya’s (CBK) Weekly Bulletin.
The local unit closed at Ksh129.52 per U.S. dollar on March 19, compared to Ksh129.30 on March 12, reflecting a marginal depreciation of 0.17 per cent.
The shilling also showed stability against other international and regional currencies, including the Sterling Pound at Ksh172.49, the Euro at Ksh149.16, and regional units such as the Ugandan and Tanzanian shillings. The performance comes amid sustained market confidence and stable foreign exchange conditions.
“The Kenya Shilling remained broadly stable against major international and regional currencies during the week ending March 19, 2026. It exchanged at Ksh 129.52 per U.S. dollar on March 19, compared to Ksh 129.30 on March 12.”
Treasury bills oversubscribed
Investor appetite for government securities remained strong, as reflected in the Treasury bill auction held on March 19. Total bids stood at Ksh 35.3 billion against an advertised amount of Ksh 24.0 billion, translating to a performance rate of 146.9 per cent.
Interest rates declined on the 182-day and 364-day papers to 7.84 per cent and 8.35 per cent, respectively, while the 91-day paper recorded a slight increase to 7.568 per cent. A Treasury bond switch auction conducted on March 16 also attracted bids worth Ksh22.2 billion against an offer of Ksh15.0 billion, representing a performance rate of 148.1 per cent.
“The Treasury bill auction of March 19 received bids totalling KSh 35.3 billion against an advertised amount of Ksh 24.0 billion, representing a performance of 146.9 percent. Interest rate on the 182-day and 364-day Treasury bills declined while interest rate on the 91-day Treasury Bill increased marginally.”
Meanwhile, the equities market recorded modest movement, with the Nairobi All Share Index rising by 0.11 per cent, even as trading volumes declined during the period.
Market stability
Foreign exchange reserves stood at Ksh1.85 trillion as of March 18, equivalent to 6.1 months of import cover, remaining above the statutory minimum of four months. The reserves continue to provide a buffer against external shocks and support exchange rate stability.
The money market remained liquid during the review period, with commercial banks holding average excess reserves of Ksh8.5 billion above the 3.25 per cent Cash Reserve Ratio requirement.
The Kenya Shilling Overnight Interbank Average Rate (KESONIA) was recorded at 8.68 per cent on March 18, compared to 8.66 per cent the previous week. Interbank transactions increased in number but slightly declined in value, reflecting ongoing liquidity management.