Kenya’s shilling remained broadly stable at the start of 2026, supported by a rise in foreign exchange reserves and sustained central bank intervention, according to data released by the Central Bank of Kenya (CBK).
In its latest weekly bulletin, published on January 2, the CBK said the local currency showed little movement against the US dollar and regional currencies during the final week of 2025.
The shilling traded at 129.01 to the dollar on December 31, compared with 129.00 a week earlier, reflecting minimal volatility despite continued global dollar strength and pressure on emerging-market currencies.
“The Kenyan shilling remained stable against major international and regional currencies during the week ending December 31, 2025,” the CBK said.
Against East African Community (EAC) currencies, the shilling recorded modest gains. It strengthened against the Tanzanian shilling, trading at 19.03 on December 31 compared with 19.23 the previous week. The Kenyan currency also held firm against the Ugandan shilling, exchanging at 28.06, compared with 27.94 earlier, while remaining unchanged against the Burundian franc at 22.93.
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The shilling traded at 11.29 against the Rwandan franc during the period, the CBK added.
The currency’s stability has been underpinned by a notable increase in Kenya’s foreign exchange reserves. The central bank said reserves rose by $226 million in the final week of December, climbing from $12.17 billion on December 23 to $12.39 billion by December 31.
At current levels, Kenya’s reserves provide import cover of about 5.3 months, comfortably above the CBK’s statutory minimum requirement of four months.
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“The foreign exchange reserves remained adequate,” the central bank said, noting that the buffer strengthens its ability to smooth currency volatility and meet external obligations.
Kenya’s currency has shown relative resilience over the past year following a period of sharp depreciation in 2023 and early 2024, when high external debt servicing costs, elevated imports, and reduced capital inflows weighed heavily on the shilling.
Authorities have since tightened monetary policy, stepped up foreign exchange market interventions, and secured external financing, including multilateral support, to stabilise the currency and rebuild reserves.
The CBK has said it will continue to intervene in the foreign exchange market as necessary to curb excessive volatility, while allowing the shilling to move in line with market fundamentals.
Kenya’s economic outlook remains mixed, with easing inflation offering some relief to households, even as high taxes and debt servicing obligations continue to constrain fiscal space.
