Kenyan Shilling Holds Steady Against US Dollar in August

The Kenyan shilling maintained its stability against the US dollar throughout August 2026, according to recent data from the Central Bank of Kenya. The currency traded within a narrow range between KSh 129.23 and KSh 129.54 per dollar during the period.

However, the shilling did weaken against other major currencies, losing 1.18% against the British pound by August 21, 2026, from a value of KSh 174.41 on August 3. The euro, meanwhile, saw the shilling depreciate by 1.27%, moving from KSh 149.31 on August 3 to KSh 151.20 on August 21.

Kenya's foreign exchange reserves have reached USD 15.245 billion as of mid-August, covering 6.3 months of imports and exceeding the Central Bank's statutory floor of four months. This stability is attributed to a combination of factors, including diaspora remittances, which rose sharply in July by 16.2% to USD 436.6 million.

Despite this steady performance, economist Daniel Kathali warns that risks persist for the currency. He notes that oil price volatility and disruptions to shipping routes could widen Kenya's import bill and pressure the exchange rate.