Kenya’s economy showed signs of resilience this past week as the shilling held steady, remittance inflows surged, and investor confidence remained high in Treasury securities, according to a report by the Central Bank of Kenya (CBK) released on July 11, 2025.
The Kenya Shilling exchanged at KSh 129.24 to the US dollar on July 10, unchanged from the previous week, reflecting relative stability in the foreign exchange market. This performance, the CBK notes, is underpinned by solid foreign exchange reserves and robust diaspora remittances.
As of July 10, usable foreign exchange reserves stood at USD 11.2 billion, equivalent to 4.9 months of import cover. This meets the statutory requirement for a minimum of four months’ cover, ensuring a stable buffer against external shocks.
In a particularly positive development, remittance inflows for the month of June 2025 rose to USD 423 million, marking a 13.8 percent increase from USD 372 million recorded in June 2024.
Over the 12 months to June 2025, total inflows amounted to USD 5.08 billion, up from USD 4.54 billion in the same period last year. The CBK highlighted this as a key driver of foreign exchange earnings and household support.
In the money market, the report stated that liquidity remained adequate. Commercial banks’ excess reserves stood at KSh 10.7 billion, well above the 3.25 percent cash reserve ratio requirement.
The average interbank rate eased slightly to 9.61 percent on July 10, down from 9.67 percent the previous week. Interbank trading remained active, with the average number of daily deals holding at 13 and the average daily traded value rising to KSh 8.5 billion.
In the government securities market, investor interest remained strong. The Treasury bill auction conducted on July 10 received bids worth KSh 22.8 billion against a target of KSh 24 billion, reflecting a 94.9 percent subscription rate. Interest rates for the 91-day, 182-day, and 364-day T-bills remained stable.
Meanwhile, the Treasury bond auction held on July 9 was oversubscribed. The CBK report shows that KSh 76.9 billion was raised from the reopened 20-year and 25-year bonds, against an advertised amount of KSh 50 billion, resulting in a 153.8 percent performance rate. Analysts view this as a sign of sustained investor confidence in long-term government debt.
On the Nairobi Securities Exchange, the NSE 20 share index rose by 1.7 percent, while NASI and NSE 25 posted modest gains of 0.1 percent each. However, equity turnover and shares traded declined by 30 percent and 35 percent, respectively, suggesting cautious investor sentiment.
The bond market saw a 21.9 percent decline in turnover, while yields on Kenya’s Eurobonds rose by 25.6 basis points, even as peer nations such as Angola and Côte d’Ivoire experienced a drop in yields.
