Kenya’s foreign exchange market is enjoying a period of relative calm, supported by solid macroeconomic fundamentals, growing diaspora remittances, and steady export performance, according to Henry Kirimania of I&M Bank.
Kirimania described the Kenyan shilling’s stability over the past two years as authentic and rooted in strong fundamentals, pointing to sustained FX inflows and improved debt management.
He noted that policy measures, including the restructuring of external debt maturities, have helped ease volatility by avoiding large repayment spikes that previously unsettled the market.
The bank has introduced FX Direct, a digital trading platform designed to tackle inefficiencies and lack of transparency in Kenya’s fragmented forex market.
“Remittances alone brought in over $5 billion last year, while sectors such as tourism, horticulture, tea, and coffee have continued to generate solid foreign exchange earnings,” Kirimania said. He added that relatively stable global oil prices and prudent debt management have also helped stabilise reserves, reinforcing USD/KES stability.
With more than 38 licensed banks, upwards of 90 forex bureaus, and a host of digital payment providers, the market often leaves customers grappling with inconsistent pricing and patchy information. FX Direct, Kirimania explained, seeks to provide a single, reliable benchmark by offering real-time rates sourced from globally recognised data providers.
The platform allows users to access live exchange rates aligned with those used by major international financial institutions and regulators, reducing pricing distortions and enabling more informed decision-making.
A standout feature of FX Direct is its transparent pricing structure, with no transaction fees applied to currency conversions between customer accounts at I&M Bank.
“Clients can view the bid-offer spread clearly, with no hidden costs. What is quoted is exactly what is transacted,” Kirimania noted, adding that such clarity becomes especially valuable during volatile periods when opaque margins can quietly erode value.
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Beyond pricing, the platform enables real-time trading across devices, supports automated orders pegged to target exchange rates, and allows users to manage transactions remotely without visiting a branch.
Digital Push Gains Momentum
FX Direct forms part of the bank’s broader digital transformation agenda aimed at improving customer experience and boosting transaction volumes.
Kirimania said the lender is positioning itself as a leading digital bank both in Kenya and across its regional footprint, with increased digitisation driving higher engagement, stronger transaction flows, and deeper integration within its financial ecosystem.
He added that uptake of the platform has been encouraging, drawing interest from both existing and new clients seeking efficiency, transparency, and greater control over their foreign exchange dealings.
Outlook: Stability Tempered by Global Risks
While the domestic outlook remains largely steady, Kirimania warned that external risks could still unsettle the market. Geopolitical tensions affecting energy supply and global trade routes remain key concerns.
“Energy security, supply chain dynamics, and commodity price movements will be crucial in the months ahead,” he said, urging clients to stay alert and make use of tools like FX Direct to manage exposure effectively.
He also pointed to upcoming policy signals from the Central Bank of Kenya and global central banks as important indicators that could shape market direction as economic conditions continue to evolve.
