The Kenyan shilling maintained stability against the US dollar last week while posting modest gains against the Euro and several regional currencies, reflecting sustained confidence in the country’s foreign exchange markets, according to a report by TUKO.co.ke.
Data covering the week ending February 26, 2026, shows the shilling exchanged at KSh 129.02 per US dollar, unchanged from the previous week. Analysts note that this stability suggests sufficient dollar liquidity in the economy and continued investor confidence in Kenya’s macroeconomic fundamentals. In USD terms, this rate implies that US$1 equalled approximately KSh 129.02, holding constant over a two-week period from February 13 to February 26.
Against the British pound, the shilling appreciated slightly. On February 19, the rate stood at KSh 175.18 per pound, improving to KSh 173.96 per pound by February 26. Over the two-week period, the shilling strengthened from KSh 175.53 per pound on February 13. The 0.68 percent gain indicates a mild boost in the shilling’s international purchasing power, particularly for imports invoiced in Sterling.
The shilling also recorded a marginal appreciation against the Euro, moving from KSh 152.12 per Euro on February 19 to KSh 151.94 per Euro on February 26. Over the two-week period, the currency strengthened by 0.73 percent, improving from KSh 153.05 per Euro on February 13. Analysts suggest that the modest gain reflects stable European demand for Kenyan exports and broader confidence in the domestic currency.
In the East African region, the shilling exhibited mixed performance. It strengthened against the Ugandan shilling, rising from UGX 27.62 per KSh on February 19 to UGX 27.84 per KSh by February 26, representing a 0.8 percent gain. Conversely, it weakened against the Tanzanian shilling, falling from TZS 20.07 per KSh to TZS 19.84, a marginal loss of about 1.15 percent. The shilling remained largely stable against the Rwandese franc and Burundi franc, posting minor fluctuations of less than 0.05 percent, indicating a broadly balanced regional exchange landscape.
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Currency experts attribute the shilling’s resilience to a combination of factors, including robust foreign exchange reserves, enhanced tax revenue collection, and ongoing monetary policy discipline. The Central Bank of Kenya has maintained a steady policy stance, while improved compliance in tax administration and digitalization of revenue collection continues to bolster government receipts, reinforcing the shilling’s stability against both international and regional currencies.
Market analysts note that while the shilling’s slight gains against the Euro and Sterling are modest, they are significant for importers and exporters. For instance, businesses importing raw materials from Europe may benefit from the slightly stronger shilling, which can reduce foreign currency costs, while exporters gain marginally enhanced competitiveness in Euro- and pound-denominated markets.
Despite regional volatility in East Africa, particularly in Uganda and Tanzania, the shilling’s overall performance reflects a cautious but optimistic foreign exchange environment, with no major shocks recorded in the period under review. The mixed regional performance also underscores the importance of diversifying export markets and maintaining sufficient reserves to navigate external currency pressures.
Overall, Kenya’s shilling demonstrates resilience amid global currency fluctuations, holding steady against the US dollar and showing minor appreciations against the Euro and regional currencies. Economists view the shilling’s stability as a key indicator of broader economic confidence, suggesting that the country’s macroeconomic framework continues to support sustainable growth and trade competitiveness.
