The Central Bank of Kenya (CBK) has reported continued stability of the Kenyan shilling against both the US dollar and regional currencies, even after the International Monetary Fund (IMF) raised questions over its performance.
In its latest weekly bulletin, the CBK noted that the local currency remained unchanged at KSh 129.24 per US dollar as of Thursday, October 30, the same rate recorded a week earlier. The shilling’s resilience, the report explained, is supported by robust foreign exchange reserves, currently at $12.19 billion (KSh 1.58 trillion), sufficient to cover 5.3 months of imports, comfortably above the statutory minimum of four months.
Regionally, the Kenyan shilling maintained stability, trading at TSh 19.16 against the Tanzanian shilling, USh 26.88 against the Ugandan shilling, RWF 11.24 against the Rwandese franc, and BIF 22.82 against the Burundian franc. Against major international currencies, it exchanged at KSh 150.44 per euro and KSh 171.61 per British pound.
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Meanwhile, activity in the interbank market slowed slightly, with the average overnight rate steady at 9.26%, while the value traded fell to KSh 11.3 billion, down from KSh 14.5 billion the previous week.
Concerns arose in mid-October when IMF officials visiting Nairobi questioned why the shilling had remained unusually stable despite global currency fluctuations. According to Kenya Revenue Authority chairperson Ndiritu Muriithi, the IMF delegation sought clarity after Treasury Cabinet Secretary John Mbadi admitted that the government had intervened to prevent the currency from appreciating further.
CBK Governor Kamau Thugge assured that the country’s forex reserves remain healthy and that the local currency’s performance reflects underlying economic fundamentals rather than artificial support.
