Global Prices Increase Ahead of EPRA Fuel Price Review

Global prices have increased ahead of the fuel prices review by the Energy and Petroleum Regulatory Authority (EPRA).

This is according to the Central Bank of Kenya (CBK) weekly bulletin released on September 12, 2025.

International oil prices rose reflecting potential supply disruptions from the conflict in the Middle East and the war in Ukraine even as concerns over weakening US demand and an expected oversupply from planned output increases by OPEC+ countries remain.

Murban crude closed at USD 69.39 (Ksh8,966) per barrel on September 11, from USD 67.69 (Ksh8,747) on September 5.

Exchange Rates

The Kenya Shilling remained stable against major international and regional currencies during the week ending September 11,2025.

It exchanged at KSh 129.24 per U.S. dollar on September 11, unchanged from KSh 129.24 on September 4.

Foreign Exchange Reserves

The usable foreign exchange reserves remained adequate at USD 11,170 million (4.9 months of import cover) as of September 11.

This meets the CBK’s statutory requirement to endeavour to maintain at least 4 months of import cover.

Remittance Inflows

Remittance inflows to Kenya totaled USD 426.1 million in August 2025 from USD 427.2 million in August 2024, a decrease of 0.2 percent.

The 12 months cumulative inflows to August 2025 increased by 9.4 percent to USD 5,079 million compared to USD 4,645 million in a similar period in 2024.

Remittance inflows remain a key source of foreign exchange earnings and continue to support the balance of payments.

Money Market

The money market remained liquid during the week ending September 11. Open market operations remained active. Commercial banks’ excess reserves stood at KSh 20.6 billion in relation to the 3.25 percent cash reserves requirement (CRR).

The overnight interbank rate has been officially named Kenya Shilling Overnight Interbank Average (KESONIA) from September 1, 2025.

The KESONIA was at 9.45 percent on September 11 compared to 9.48 percent on September 4. During the week, the average number of interbank deals increased slightly to 21 compared to 20 in the previous week, while the average value traded remained stable at KSh 11.4 billion.

Government Securities

Market The Treasury bill auction of September 11 received bids totaling KSh 38.8 billion against an advertised amount of KSh 24.0 billion, representing a performance of 161.5 percent. Interest rate on the 91-day, 182-day and 364-day Treasury bills declined.

Equity Market

At the Nairobi Securities Exchange, the NASI, NSE 25 and NSE 20 share price indices increased by 0.4 percent, 2.0 percent and 1.9 percent, respectively, during the week ending September 11, 2025.

Market capitalization, also increased by 0.4 percent while total shares traded and Equity turnover decreased by 15.8 percent and 30.8 percent, respectively.

Bond Market

Bond turnover in the domestic secondary market decreased by 21.0 percent during the week ending September 11,2025 (Table 6). In the international market, yields on Kenya’s Eurobonds decreased by 60.6 basis points on average. Yields for Angola and Côte d’Ivoire also decreased.

Global Trends

Inflation concerns remained during the week as U.S inflation rose in August, with headline CPI at 2.9 percent year-on-year from 2.7 percent in July, while core inflation held steady at 3.1 percent. The increase was driven mainly by higher shelter and food costs.

The European Central Bank (ECB) left interest rates unchanged, keeping the deposit facility rate at 2.00 percent, the main refinancing operations rate at 2.15 percent, and the marginal lending facility rate at 2.40 percent.

The U.S. Dollar Index weakened by 0.8 percent, reflecting concerns on US trade protectionist policies and persistent fiscal and trade deficits.