Kenya Shilling Makes Slight Gains against US Dollar, Tanzania, Uganda, Other EA Currencies

• Central Bank of Kenya data showed the shilling strengthened marginally to KSh 129.25 per US dollar on May 15, up from KSh 129.27 on May 8
• The local currency also appreciated against the Tanzanian shilling, Ugandan shilling, Rwandese franc, and Burundian franc during the review period
• The shilling remained steady against major global currencies, including the Sterling pound, Euro, and Japanese Yen, despite global currency volatility
• Kenya’s foreign exchange reserves stood at USD 10.164 billion (approximately KSh 1.313 trillion) as of May 15, providing 4.5 months of import cover

Elijah Ntongai, a journalist at TUKO.co.ke, has over four years of financial, business, and technology research and reporting experience, providing insights into Kenyan and global trends.

The Kenya shilling registered marginal gains against the US dollar and key East African currencies in the week ending May 15, reflecting continued stability in the foreign exchange market.

According to data from the Central Bank of Kenya (CBK), the shilling strengthened slightly to exchange at KSh 129.25 per US dollar on May 15, up from KSh 129.27 on May 8.

"The Kenya shilling remained stable against major international and regional currencies during the week ending May 15. It exchanged at KSh 129.25 per US dollar on May 15, compared to KSh 129.27 per US dollar on May 8," CBK reported.

It also appreciated against the Tanzanian shilling, Ugandan shilling, Rwandese Franc, and Burundian Franc.

Against the Tanzanian shilling, the Kenyan currency averaged TZS 20.85 on the week between May 9-15 from TZS 20.77 in the week between May 2-8.

The Kenyan shilling also averaged 28.31 Uganda shillings for the week that ended on May 15 from 28.30 UGX on the previous week that ended on May 8.

The Kenyan shilling also held steady against major global currencies, including the Sterling Pound, Euro, and Japanese Yen, underscoring the broader stability of the local unit despite the global currency volatility.

How much is Kenya's US dollar reserve?

According to the latest CBK bulletin, Kenya’s foreign exchange reserves remained adequate at USD 10.164 billion (about KSh 1.313 trillion), equivalent to 4.5 months of import cover as of May 15.

"The usable foreign exchange reserves remained adequate at USD 10,164 million (4.5 months of import cover) as of May 15," CBK reported.

This exceeds the statutory threshold of four months, reinforcing the country’s buffer against external shocks.

Kenya's stock market performance

In other news, Kenya’s stock market experienced a strong rally driven by improved investor sentiment and broad gains across key indices during the week ending on May 15.

The CBK reported that the NSE All Share Index rose 5.7% and market capitalisation surpassed KSh 2 trillion. Equity turnover surged 56.9% to KSh 2.24 billion, and shares traded nearly doubled to 168.66 million units, reflecting heightened market activity.

In the bond market, domestic turnover grew 14.3% to KSh 42.3 billion, while Kenya’s Eurobond yields dropped by an average of 43.2 basis points, signalling increased investor confidence internationally.

Proofreading by Jackson Otukho, copy editor at TUKO.co.ke.

Source: TUKO.co.ke