Kenya Shilling Gains Ground as Forex Reserves Strengthen to $9.1B

NAIROBI, Kenya — The Kenyan shilling has posted its strongest performance in six months, appreciating against the US dollar as the Central Bank of Kenya (CBK) confirmed that the country's foreign exchange reserves have climbed to $9.1 billion — equivalent to 5.2 months of import cover.

The strengthening reserves, bolstered by remittance inflows, improved tourism earnings, and a successful Eurobond redemption strategy, have given the CBK greater room to stabilise the currency after a period of significant pressure in 2024 and early 2025.

"The reserve position is comfortable. We are in a much stronger position than we were eighteen months ago, and the fundamentals support continued stability."

— Dr. Kamau Thugge, CBK Governor

Market Response

The shilling traded at KSh 128.4 per dollar on Wednesday, compared to a historic low of KSh 162 in early 2024. Analysts attribute the recovery to improved macroeconomic management, a more favourable global interest rate environment, and Kenya's growing export earnings from horticulture, tea, and diaspora remittances.

The manufacturing sector has welcomed the stability, noting that predictable exchange rates reduce import costs and allow for better long-term planning. The tourism sector, which earns primarily in foreign currency, has also seen revenues increase as a result.