The Kenyan shilling has climbed to its strongest level in 17 months, opening at 128.96 against the US dollar.
The shilling has been trading around the 129 mark for over a year, marking a rare stretch of stability after a turbulent period that saw it touch record lows.
The shilling began pulling back from the 130 level in late July 2024, extending a rally that started in early February when it slumped to an all‑time low of 160 against the dollar. At the current average of 128, the currency has gained about 32 units from its weakest point, translating to an appreciation of roughly 20 per cent.
The National Treasury has attributed the stability to stronger macroeconomic fundamentals, including steady foreign exchange inflows from diaspora remittances, robust export earnings and a rebound in tourism.
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These factors have helped shore up foreign exchange reserves, which have remained above $10 billion since May 2025, providing import cover of between 4.7 and 5.3 months, above the statutory minimum of four months.
A firmer shilling is offering some relief to importers, with lower dollar costs expected to ease pressure on the prices of imported goods. If the 128 average holds, importers will spend about Sh32 less for every dollar compared to the period when the shilling traded at 160.
This is also expected to ease debt service pressures, given that much of Kenya’s public debt is dollar‑denominated.
By Masaki Enock
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