The Central Bank of Kenya (CBK) today published its indicative interbank foreign exchangerates, revealing a broadly stable Kenyan shilling against major international currencies.
According to CBK’s daily release, the US dollar was quoted at KES 129.2418, the British pound atKES 173.6816, and the Euro at KES 150.9738 as of the morning trading session.
Macroeconomic Context
The update coincided with the publication of key monetary indicators:
- Central Bank Rate remains at 9.75% (set 10 June 2025),
- Interbank rate stood at 9.62% (as of 14 July)
- Discount window rate at 10.50%.
These interest rates continue to reflect the Monetary Policy Committee’s (MPC) cautious stance to support growth while keeping inflation in check.
Market Implications
- Stability in forex rates: The US dollar’s marginal gain this week suggests consistent foreign inflows and managed dollar demand within the interbank market.
- Trade & remittances: Exporters and remittance-dependent households benefit from this stability, reducing income unpredictability.
- Policy signal: Maintaining constant interest rates indicates the MPC is comfortable with the current inflation trajectory and exchange rate regime.
Looking ahead,as global markets adapt to shifting dynamics particularly in the eurozone and UK,the CBK’s strategy to maintain a stable monetary environment may come under increased scrutiny. Analysts will be closely observing future MPC decisions, inflation data, and 31‑July forex ratereleases to assess medium‑term currency trends.
Written By Ian Maleve
