The Kenyan shilling showed a mixed but generally stable performance against a basket of major currencies on August 5, 2025. The local currency traded at 129.20 against the US dollar, marking a slight increase of 0.04 percent from the previous session.
Over the past month, the shilling has remained relatively flat, though it has depreciated by 0.16 percent over the last year, reflecting ongoing economic pressures and global market trends.
Against the euro, the shilling strengthened modestly, trading at 150.91, up 0.25 percent for the day and showing a 5.54 percent gain over the year. Similarly, the British pound exchange rate rose to 174.06, a 0.25 percent daily increase and a 2.79 percent rise year-to-date. These movements indicate a degree of resilience in the shilling amid fluctuating global currency markets.
The shilling’s performance against other currencies was varied. It appreciated slightly against the Australian dollar and New Zealand dollar, trading at 84.55 and 75.80 respectively, while it weakened marginally against the Chinese yuan, standing at 0.0552. The Swiss franc and Mexican peso also saw minor declines against the shilling, reflecting broader global currency shifts.
Kenya’s ongoing efforts to diversify its foreign exchange reserves, including plans to convert some US dollar-denominated debt to Chinese yuan, are expected to influence the shilling’s future trajectory.
This strategic move aims to reduce interest payments and lessen reliance on the US dollar, potentially stabilizing the shilling in the medium term.
Economic indicators such as Kenya’s inflation rate, which rose to 4.5 percent in August 2025, and the central bank’s interest rate at 9.5 percent, continue to impact the shilling’s exchange rate dynamics.
Analysts predict the currency will trade around 129.47 against the dollar by the end of the quarter, with a slight depreciation expected over the next year.
Source:Exchange Rates
Written By Ian Maleve
