The Central Bank of Kenya reported that the shilling remained stable against major international and regional currencies in the week ending September 24, 2026. Kenya's foreign exchange reserves stood at KSh 1.95 trillion, covering 6.1 months of import requirements. This is despite a KSh 6 billion drop in forex reserves. The stability of the shilling is a positive indicator for the Kenyan economy.
The Central Bank of Kenya's weekly bulletin reported that the Kenyan shilling traded at KSh 129.48 against the US dollar on September 24, 2026, edging up from KSh 129.62 recorded on September 17. The shilling's performance against the US dollar is a key indicator of the country's economic stability. The CBK's bulletin also noted that the exchange rates are market-determined indicative figures.
Within the East African Community, the shilling posted a mixed showing. It gained ground against the Tanzanian shilling, moving from 20.40 to 20.46 units per Kenyan shilling, a strengthening of 0.29%. Against the Rwandese franc, the rate shifted from 11.35 to 11.37, reflecting a 0.18% gain, while the Burundi franc moved from 23.10 to 23.13, marking a 0.13% appreciation for the Kenyan unit.
However, the shilling lost modest ground to its Ugandan counterpart. The rate dipped from 30.19 to 30.14 units of the Ugandan shilling per Kenyan shilling, a decline of 0.17%. This slight decline against the Ugandan shilling is a notable trend in the region. The CBK's data provides valuable insights into the shilling's performance against regional currencies.
Kenya's foreign exchange reserves came in at KSh 1.95 trillion, sufficient to cover 6.1 months of imports. This figure comfortably clears the CBK's statutory threshold, which requires the bank to maintain a minimum of four months of import cover. A week earlier, reserves stood at KSh 1.96 trillion. The current reserves provide a comfortable cushion for the economy.
In other news, seven African currencies recorded stronger gains than the Kenyan shilling against the US dollar in September 2026. The Seychellois rupee posted the biggest increase at 6.44%, while the Kenyan shilling remained relatively stable at around KSh 129.50 to the dollar. Nigeria’s naira also gained ground as the country’s foreign exchange reserves climbed to an 18-year high of $54.13 billion.
The developments came amid a US Federal Reserve interest rate hike, adding pressure on African currencies and fuelling concerns over the shilling’s stability. Despite these challenges, the Kenyan shilling has remained relatively stable. The CBK's data and analysis provide valuable insights into the shilling's performance and the overall state of the economy.
Key points
- The Kenyan shilling remains stable against major currencies despite a drop in forex reserves.
- The shilling posted a mixed showing against East African currencies, gaining ground against the Tanzanian shilling, Rwandese franc, and Burundi franc.
- Seven African currencies recorded stronger gains than the Kenyan shilling against the US dollar in September 2026.
