Kenya’s currency market remained calm in the week ending November 20, 2025, with the shilling showing steady performance despite the global strengthening of the US dollar.
The Central Bank of Kenya (CBK), in its weekly bulletin released on November 21, noted that the local unit traded within a very narrow band throughout the period, pointing to relative stability supported by strong reserves and adequate liquidity in the banking system.
According to the bulletin, the shilling closed the week at Ksh 129.96 per US dollar, a slight weakening compared to Ksh 129.25 recorded on November 13.
While this shows a minor depreciation, the movement remained contained and did not signal unusual pressure on the currency. The CBK emphasised this in its report, stating, “The Kenya shilling remained stable against major international and regional currencies during the week ending November 20, 2025. It exchanged at Ksh 129.96 per U.S. dollar on November 20, compared to Ksh 129.25 per US dollar on November 13.”
For most of the week, the shilling held within a tight range, with the average exchange rate standing at Ksh 129.61, slightly higher than the previous week’s Ksh 129.24.
This type of consistency often reflects a market where supply and demand are balanced, supported by incoming remittances and moderate import demand. Analysts also noted that the absence of major shocks in the global commodities and energy markets contributed to the stability seen locally.
The shilling’s performance against other key global currencies was mixed but stable. It strengthened slightly against the British pound, moving from an average of Ksh 170.22 the previous week to Ksh 169.67 on November 20. The euro, however, gained marginally against the shilling, with the November 14–20 average at Ksh 150.18.
These movements mirror broader global trends in the foreign-exchange market, where both the pound and euro experienced mild shifts during the same period.
Within the East African region, the Kenyan shilling continued to trade steadily against neighbouring currencies, including the Ugandan and Tanzanian shillings as well as the Rwandan and Burundian francs.
Regional currency markets remained quiet, with minimal fluctuations reported throughout the week. Economists attributed this to generally stable trade flows in the region and a slowdown in demand for hard currency by importers.
A major factor supporting the shilling during this period was the country’s foreign-exchange reserve position. CBK data shows that usable reserves stood at USD 12,009 million as of November 20, translating to 5.2 months of import cover.
Although this marked a slight decline from USD 12,292 million the previous week, the reserve level remained comfortably above the CBK statutory requirement of at least four months of import cover and the East African Community benchmark of 4.5 months.
The central bank reaffirmed this in its bulletin, saying, “The foreign exchange reserves remained adequate at USD 12,009 million (5.2 months of import cover) as of November 20. This meets the CBK’s statutory requirement to endeavour to maintain at least 4 months of import cover.”
The domestic money market also remained well supplied with liquidity. Commercial banks held excess reserves averaging Ksh 17.2 billion above the 3.25 per cent cash reserve ratio requirement. With liquidity remaining strong, the Kenya Shilling Overnight Interbank Average Rate (KESONIA) edged up only slightly from 9.23 per cent on November 13 to 9.25 per cent on November 20.
This minor adjustment indicates that money-market conditions tightened only marginally and remained within normal range.
Interbank activity slowed during the week, a trend that often appears when banks are sufficiently liquid and do not need to borrow aggressively from each other.
The number of transactions dropped from 26 the previous week to 18, while the total value traded fell from Ksh 13.9 billion to Ksh 10.0 billion. Market analysts say the reduced volumes suggest banks were comfortable with their liquidity positions and faced fewer short-term funding pressures.
Overall, the combination of strong foreign-exchange reserves, adequate domestic liquidity, steady remittance inflows and moderate importer activity helped keep the shilling stable in a period when many emerging-market currencies faced pressure from a firming US dollar.
The CBK’s measures, investor confidence and controlled interbank borrowing conditions all contributed to cushioning the shilling from external volatility.
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