The Kenyan shilling remained under pressure as of today July 21, 2025 trading at approximately Ksh 129.20 per US dollar, holding near the week’s low from July 14 (Ksh 129.20) to the recent high on July 15 (Ksh 129.25).
Despite the global dollar strength, volatility has been muted, with intraday swings of just a few centavos, signaling cautious sentiment in the foreign exchange market.
Data from Trading Economics confirms that the shilling closed flat at Ksh 129.20 on July 18, maintaining that level through July 21.
Historical data shows the rate has hovered tightly within a narrow band between Ksh 129.15 and Ksh 129.25 underscoring the currency’s stability amid broader global currency fluctuations.
With cross-border comparisons, the shilling stood at about Ksh 150.7 per euro, reflecting modest depreciation, and Ksh 172–173 per British pound, aligning with weakening trends in those currencies.
Analysts cite sustained import demand especially for fuel, machinery, and pharmaceuticals as a key factor anchoring the shilling near current levels despite overall stability.
Market watchers warn the shilling’s calm masks underlying vulnerabilities.Without an uptick in foreign exchange inflows from remittances, exports, or foreign direct investment, the currency could come under pressure if import financing picks up.
The Central Bank of Kenya may need to intervene to cushion the shilling if inflows don’t materialize.Businesses dependent on imports continue to face cost uncertainty. The narrow trading range offers short-term predictability, but long-term risks persist.
A sustained strengthening in export receipts or diaspora remittances could provide relief, but until then, Kenyan companies and consumers may grapple with elevated import costs and inflationary pressures.
In summary, the shilling remains stable in a tight range but faces a delicate balance between persistent import demand and limited foreign currency inflows a dynamic that will be keenly watched in the weeks ahead.
Written By Ian Maleve
