Kenya Shilling Remains Bullish Against US Dollar, British Pound and Euro on Strong Reserves

• Kenya shilling remained stable against major international currencies in the foreign exchange market
• In the week to May 2025, the shilling beat the US dollar, British Pound and Euro as Kenya’s foreign currency reserves remained steady
• The Central Bank of Kenya (CBK) reported KSh 1.3 trillion worth of US dollars in foreign currency reserves, supporting up to 4.4 months of import cover

TUKO.co.ke journalist Wycliffe Musalia has over six years of experience in financial, business, technology, climate and health reporting, which offers deep insights into Kenyan and global economic trends.

Kenya shilling reported a four-month high against the US dollar and other international currencies since US President Donald Trump’s inauguration.

Data from the Central bank of Kenya (CBK) showed the shilling remained stable against the greenback, British Pound and the Euro.

What the value of Kenya shilling?

CBK reported that the shilling exchanged at KSh 129.54 per US dollar as of Thursday, April 24, compared to KSh 129.79 reported in the previous week.

During the same week, the local currency remained stable against the British pound at KSh 171.9 compared to KSh 172.7 in the previous week.

The shilling exchanged at KSh 146.6 per Euro during the same period under review, compared to KSh 147.8 in the previous week.

The shift in the exchange rate came amid President Trump’s trade policies and orders affecting the exchange market in the first quarter of 2025.

CBK noted that the US Dollar Index strengthened by 0.1% during the week as the country’s growth forecast dropped to 1.8% in 2025, down from 2.8% in 2024, reflecting lower domestic demand.

Why Kenya shilling remains bullish

CBK registered strong foreign currency reserves in the period to May 2025.

The regulator said foreign currency reserves remained adequate at $9,805 million (KSh 1.3 trillion), which will support up to 4.4 months of import cover.

“The usable foreign exchange reserves remained adequate at USD 9,805 million (4.4 months of import cover) as of April 24. This meets the CBK’s statutory requirement to endeavour to maintain at least 4 months of import cover,” read CBK report in part.

Changes in foreign currency reserves

Earlier in April 2025, the CBK reported a significant drop in the foreign exchange reserves, exerting slight pressure on the value of the shilling.

The regulator said the value of the reserves dropped to $9,729 million KSh 1.26 trillion, down from $9,936 million KSh 1.29 trillion as of April 10. 2025.

This saw the shilling trade at KSh 129.67 per US dollar, during the same period under review, sliding from KSh 129.25.

Although the reserves dropped from 5.1 months of import cover to 4.4 months, they remained adequate within the CBK’s statutory requirement of maintaining at least 4 months of import cover.

This came despite an increase in the value of diaspora remittances to KSh 54.88 billion reported in March 2025.

Source: TUKO.co.ke