The Kenya Shilling maintained its stability against major international and regional currencies in the week ending October 16, 2025, exchanging at KSh 129.24 to the U.S. dollar, unchanged from a week earlier, as the Central Bank of Kenya (CBK) reported steady market conditions.
Foreign exchange reserves remained strong at USD 12.07 billion, equivalent to 5.3 months of import cover, comfortably above the statutory requirement of four months. The stable reserves, supported by steady remittance inflows, have continued to anchor the currency.
Kenya received USD 419.6 million in remittances in September 2025, up 0.2 percent from the same month last year. Cumulative inflows over the past 12 months rose by 7.6 percent to USD 5.08 billion, underlining their critical role in supporting the balance of payments.
The money market remained liquid, with banks holding excess reserves of KSh 3.8 billion above the CBK’s 3.25 percent cash reserve ratio. The overnight interbank rate dipped slightly to 9.23 percent from 9.30 percent the previous week, reflecting modest easing in liquidity conditions.
Investor confidence was evident in the government securities market, where the October 16 Treasury bill auction achieved a 114.7 percent subscription rate, while the reopened 15-year and 20-year Treasury bonds drew KSh 118.9 billion in bids, more than double the KSh 50 billion on offer.
At the Nairobi Securities Exchange, the NASI and NSE 25 indices rose by 2.21 and 2.11 percent respectively, though trading volumes fell sharply. Meanwhile, bond market turnover slipped 10.2 percent, even as yields on Kenya’s Eurobonds eased slightly.
Globally, oil prices softened to USD 63.6 per barrel amid concerns over oversupply, while the U.S. Dollar Index weakened as investors anticipated a gentler policy stance from the Federal Reserve.
