The Kenyan shilling remains firmly anchored around 129 against the U.S. dollar, reflecting a period of calm in the foreign exchange market.
Commercial bank data indicates the shilling is trading between 129.00 and 129.40 per dollar, a narrow range that signals predictability for importers, exporters, and policymakers alike.
This steadiness is not limited to the dollar. The shilling has shown improved performance across a range of major and regional currencies. In the first quarter of 2025, the shilling strengthened significantly compared to the same period in 2024.
It traded at around 129.24 per dollar, 151.95 per euro, and the equivalent of 89.13 per 100 Japanese yen. Regional exchange reflected similar resilience with rates such as approximately 27.75 against the Ugandan shilling, and 20.43 versus the Tanzanian shilling.
Further insight from real-time data sources shows the USD/KES exchange rate was stable at 129.20. Against the euro, the rate stood at about 151.16, while the British pound exchanged at approximately 174.23.
Other cross-rates include the Australian dollar at 84.92, Japanese yen roughly converting at 1.14 for one Kenyan shilling, Chinese yuan at 0.0555, and Indian rupee at 0.6656.
Market dynamics and policy decisions continue to underpin the shilling’s performance. The Central Bank of Kenya attributes stability to strong and diversified sources of foreign exchange inflows, including diaspora remittances, export receipts, and supportive offshore investment.
The bank also notes that both banks and non-bank financial participants expect the shilling to either remain stable or strengthen further.
Underlying fundamentals reinforce this outlook. Kenya accumulated substantial remittance inflows surpassing 400 million U.S. dollars monthly in several periods and had maintained foreign exchange reserves at robust levels, reaching approximately 10.47 billion dollars by mid‑2025.
Meanwhile, in early 2025, forex reserves exceeded four months of import cover, comfortably above statutory requirements.
The shilling’s recovery trajectory has been sharp. After reaching record lows of around 160 per dollar in early 2024, it rebounded by roughly 14 percent during the first quarter of 2025 granting importers considerable relief.
For instance, the average dollar purchase cost dropped by nearly 14 shillings compared to the prior year.
All told, Kenya’s currency landscape paints a picture of cautious optimism. Stable exchange rates are providing a buffer against external shocks, easing debt servicing pressures, and improving import cost predictability.
While global challenges such as commodity price volatility and external debt obligations remain, key indicators suggest the shilling should maintain its current steadiness in the near term.
Written By Ian Maleve
