Kenyan Shilling To Remain Strong Against Major Currencies

The Central Bank of Kenya (CBK) reports that the Kenya Shilling remained largely stable against major international and regional currencies during the week ending April 17, exchanging at Sh129.79 per US dollar an improvement from Sh129.67 the previous week.

Foreign exchange reserves were recorded at USD 9,808 million, equivalent to 4.4 months of import cover, meeting the CBK’s statutory requirement of at least four months.

In the domestic money market, liquidity levels remained sufficient with commercial banks’ excess reserves standing at Sh11.7 billion.

The average interbank rate dipped slightly to 9.80 percent from 10.12 percent recorded on April 10.

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Meanwhile, the number of interbank deals dropped to 24, and the average deal value decreased to Sh9.0 billion from Sh18.0 billion.

On the bond front, the domestic secondary market saw a 19 percent decline in turnover, while yields on Kenya’s Eurobonds fell by 33.60 basis points, mirroring similar declines in yields for Angola and Côte d’Ivoire Eurobonds.

The CBK’s Treasury bill auction on April 17 attracted bids totaling Sh38.4 billion against a Sh24.0 billion target, reflecting an oversubscription of 160.1 percent.

At the Nairobi Securities Exchange, key share indices posted modest gains. The NASI, NSE 25, and NSE 20 climbed by 0.21, 1.47, and 0.80 percent, respectively.

Market capitalization rose by 0.21 percent, although total shares traded and equity turnover dipped by 18.51 and 21.22 percent, respectively.

Globally, inflationary pressures eased, with UK headline inflation dropping to 2.6 percent in March.

In China, GDP expanded by 5.4 percent in Q1 2025, buoyed by strong consumption and industrial output.

Meanwhile, the US Dollar Index weakened by 1.4 percent, and oil prices surged due to easing US, China trade tensions and favorable inventory data.