Kenya's Shilling Holds Steady at Two-Year Low of KSh129

Kenya's shilling has maintained a remarkable stability over the past two years, trading at around KSh129 against the US dollar. This calm period began in August 2024, after a tumultuous start to the year when markets feared Kenya might default on its Eurobond debt.

The government's decision to issue a new Eurobond and use it to buy back part of the old one helped to ease concerns, and foreign investors poured money into local infrastructure bonds. The shilling began to stabilize, losing around 20% of its value against the dollar in just two months.

So what has kept the shilling steady? Remittances from Kenyans living abroad have been a major source of dollars, hitting a record US$5.04Bn in 2025 and remaining high despite growth stalling this year. Tourism and exports have also contributed to dollar inflows, with tourism receipts expected at KSh560-650Bn this year.

The Gulf fuel deal has helped to spread dollar demand over time, reducing the need for large monthly injections of dollars. And the Central Bank of Kenya (CBK) has maintained a strong position, with reserves reaching US$15.25Bn in September and import cover at 6.3 months.