Kenyan Shilling Depreciates Against US Dollar Amid Drop in Foreign Exchange Reserves

The Kenyan shilling experienced a slight depreciation against the US dollar in the week ending July 23, due to a drop in foreign exchange reserves. The CBK reported that the reserves fell from USD 14,169 million (KSh 1.84 trillion) on July 16 to USD 13,854 million (KSh 1.79 trillion) by July 23, a decline of approximately USD 315 million or KSh 40 billion.

Despite this drop, the reserves remained above the statutory minimum and provided 5.9 months of import cover as of July 23, comfortably exceeding the required four months. The CBK described the shilling's overall performance during the review period as stable when measured against both major international currencies and regional ones.

The Kenyan shilling exchanged at KSh 129.53 per US dollar on July 23, compared to KSh 129.34 on July 16, reflecting a modest but measurable depreciation over the seven-day period.