NAIROBI, May 16, 2025 — The Kenyan shilling is poised to weaken slightly against the U.S. dollar over the coming week, amid mounting importer demand, even as other regional currencies show varying trajectories, traders across Africa reported.
Kenya: Import Demand Puts Shilling Under Strain
The Kenyan shilling was trading at 129.00/129.50 per dollar on Thursday, mirroring last week’s closing levels. However, dealers warn of possible softening as demand for dollars grows, particularly from the food-processing and manufacturing sectors.
“We could see a slight weakening of the shilling, but not in a major way,” said one Nairobi-based trader.
Nigeria: Naira Vulnerable Despite Central Bank Support
In Nigeria, the naira showed signs of pressure on the official market, quoted around ₦1,596 to the dollar in intraday trade, compared to ₦1,608 a week earlier. The street rate was less flattering at about ₦1,630, reflecting continued demand from importers that may outpace central bank dollar interventions.
“Second-quarter import pressures could offset stabilisation efforts,” noted one trader.
Uganda: Shilling Stable on Low Demand, Exporter Inflows
The Ugandan shilling held steady at 3,645/3,655 per dollar, slightly firmer than last week’s 3,656/3,666 range. Traders attributed the stability to weak local demand and consistent inflows from commodity exports, forecasting minimal movement in the short term.
“Activity on the buying side is very slow, while inflows are quite significant,” a Kampala-based trader said.
Zambia: Kwacha Steady Ahead of Tax Season
The Zambian kwacha hovered at 27.00 per dollar on Thursday, weakening slightly from 26.50 a week earlier. However, analysts expect the local unit to stabilise, thanks to hard-currency sales from companies preparing for upcoming VAT obligations.
Ghana: Cedi Strengthens on Robust Inflows
Ghana’s cedi extended recent gains, strengthening to 12.40 per dollar from 13.15 the previous week, supported by easing corporate demand, continued central bank interventions, and strong foreign-currency inflows.
“We expect this trend to persist in the coming sessions,” said Chris Nettey, Head of Trading at Stanbic Bank Ghana.
While most currencies across Africa remain under familiar pressure from import needs and monetary constraints, Ghana’s cedi is bucking the trend, showing resilience thanks to strategic interventions and steady inflows.
By Kelly Were
