By Andrew Kariuki

The Central Bank of Kenya has released its Weekly Bulletin for April 30, 2026, outlining key developments across Kenya’s monetary and financial sectors, with data pointing to moderate inflation, stable exchange rates, and evolving market conditions.

Inflation rose to 5.6 percent in April 2026, up from 4.4 percent recorded in March 2025, reflecting increased pressure largely driven by non-core items such as food and fuel. Core inflation remained relatively contained at 2.8 percent, suggesting underlying price stability despite external shocks.

Exchange rate data indicates that the Kenya shilling remained largely stable against major international currencies during the review period. The shilling averaged approximately Ksh129.26 against the US dollar, Ksh174.49 against the British pound, and Ksh151.23 against the euro for the week ending April 30.

Foreign exchange reserves stood at about USD 13.23 billion as of April 29, providing an import cover of approximately 5.6 months, a level considered adequate in supporting external stability.

In the money market, interbank activity showed a slight decline in volumes, with the Kenya Shilling Overnight Interbank Average (KESONIA) rate remaining stable at around 8.75 percent, reflecting balanced liquidity conditions in the banking sector.

On the government securities market, Treasury bill auctions recorded mixed performance. The 91-day paper saw strong demand, while the 182-day and 364-day tenors recorded relatively lower subscription levels. Interest rates edged upward across all tenors, indicating cautious investor sentiment.

The bulletin also highlights movements in the bond market, with yields showing gradual upward adjustments across different maturities, as reflected in the government securities yield curve.

Sectoral data on economic growth shows that services remained the main driver of GDP expansion, while agriculture experienced slower growth. Industry sectors, particularly construction and electricity, posted notable improvements, pointing to ongoing recovery in productive sectors.

The Central Bank notes that overall economic conditions remain stable, supported by prudent monetary policy, but cautions that global developments and domestic cost pressures will continue to shape inflation and market trends in the coming months.