The Kenya Shilling remained broadly stable during the week ending July 24, exchanging at KSh 129.26 per US dollar, a slight change from KSh 129.24 the previous week, reflecting continued confidence in the currency.
Foreign exchange reserves stood at USD 10.75 billion, equivalent to 4.7 months of import cover, comfortably above the Central Bank of Kenya’s (CBK) statutory requirement of 4 months.
In the money market, liquidity conditions remained favourable. Commercial banks held KSh 8.7 billion in excess reserves relative to the 3.25% cash reserve ratio, while the average interbank rate eased marginally to 9.62% from 9.64%.
Interbank trading volumes rose to KSh 13.7 billion, up from KSh 12.4 billion, with deal counts remaining stable.
The Treasury bill auction on July 24 was oversubscribed, attracting KSh 40.0 billion in bids against KSh 24.0 billion offered — a performance rate of 166.7%. Interest rates on the 91-day, 182-day, and 364-day bills fell slightly.
At the Nairobi Securities Exchange (NSE), all major indices posted gains: NASI rose 1.6%, NSE 25 climbed 1.2%, and NSE 20 gained 1.4%. Market capitalization grew by 1.6%, while equity turnover surged 48.8% and total shares traded increased 4.4%.
Conversely, the bond market saw a 25.4% decline in turnover. In international markets, Eurobond yields for Kenya, Angola, and Côte d’Ivoire dropped, with Kenya’s falling 47 basis points on average.
Globally, inflation jitters persisted. The Euro Area’s inflation edged up to 2.0% in June, while the European Central Bank kept interest rates steady at 2.15%.
Meanwhile, the US Dollar Index weakened by 1.4%. Murban oil prices dipped to USD 69.56 per barrel, amid renewed hopes of a U.S.-EU trade deal.
