Kenyan Shilling Edges Higher Against US Dollar Amid Mixed Regional Performance

The Kenyan shilling's performance against major currencies has been mixed in recent weeks. According to data from the Central Bank of Kenya (CBK), the shilling traded at KSh 129.53 per US dollar as of July 23, up from KSh 129.34 the previous week.

This slight appreciation comes despite a decline in the country's foreign exchange reserves, which fell by approximately KSh 40 billion between July 16 and July 23. However, the CBK noted that the reserve position remains sufficient to cover 5.9 months of imports, exceeding the statutory minimum of four months.

The shilling held steady against most regional currencies, with gains recorded against the Ugandan and Rwandan units. Against East African peers, the Kenyan shilling gained ground against the Ugandan shilling, with the exchange rate rising from 28.54 to 28.70 units per Kenyan shilling.

However, the picture was less favourable against Tanzania and Burundi, where the Kenyan shilling lost marginal ground against the Tanzanian shilling and eased slightly against the Burundian franc.