By Andrew Kariuki

The Central Bank of Kenya has reported relative stability in the Kenyan Shilling and sustained liquidity in the financial system, according to its Weekly Bulletin released on April 24, 2026, outlining recent monetary and financial developments.

The Shilling remained largely steady against major international and regional currencies during the week ending April 23, exchanging at approximately Ksh129.21 per US dollar, compared to Ksh129.18 the previous week.

Foreign exchange reserves stood at USD 13,239 million, equivalent to about 5.6 months of import cover, remaining above the statutory minimum requirement of four months.

In the money market, liquidity conditions remained stable, supported by active open market operations. Commercial banks recorded excess reserves averaging Ksh71.4 billion, well above the 3.25 percent Cash Reserve Ratio requirement. The interbank rate remained unchanged at 8.76 percent, although the average value of interbank transactions declined to Ksh9.6 billion from Ksh11.2 billion the previous week.

Activity in the government securities market showed mixed performance. The Treasury bill auction of April 23 attracted bids worth Ksh13.8 billion against an advertised Ksh24 billion, reflecting a performance rate of 57.4 percent. Interest rates on the 91-day and 182-day Treasury bills rose slightly, while the 364-day rate declined marginally.

In the bond market, turnover in the domestic secondary market increased by 13.37 percent during the week. On the international front, yields on Kenya’s Eurobonds rose by an average of 9.44 basis points, mirroring global trends.

At the Nairobi Securities Exchange, key indices recorded declines, with the NASI, NSE 25, and NSE 20 indices falling by 0.55 percent, 0.63 percent, and 0.79 percent respectively. Market capitalization also dropped by 0.55 percent. However, trading activity improved significantly, with total shares traded rising by 167.39 percent and equity turnover increasing by 59.24 percent.

Globally, inflationary pressures remained elevated, driven largely by rising energy prices amid ongoing geopolitical tensions. Oil prices increased during the week, with Murban crude rising to USD 92.38 per barrel from USD 89.61 the previous week.

The Central Bank noted that these developments reflect a stable domestic financial environment, even as global economic conditions continue to exert pressure on markets.