The Central Bank of Kenya (CBK) has explained why global oil prices increased in the week ending October 24, 2025.

In its weekly bulletin, CBK said global oil prices have risen again, driven by escalating geopolitical tensions and supply challenges that have overshadowed earlier worries about weakening global demand.

CBK said oil prices increased from USD 63.32 (Ksh8177.78)per barrel on October 16 to USD 66.85 (Ksh8633.68) per barrel on October 23.

“International oil prices rebounded as renewed geopolitical tensions and supply disruptions offset earlier concerns about slowing global demand,” CBK said.

“Murban oil rose to USD 66.85 (Ksh8633.68) per barrel on October 23, from USD 63.32 (Ksh8177.78)per barrel on October 16.”

CBK Exchange Rates

CBK said the Kenyan shilling remained stable against major international and regional currencies during the week ending October 24, 2025.

It exchanged at KSh 129.24 per U.S. dollar on October 23, unchanged from KSh 129.24 on October 16.

Foreign Exchange Reserves

The foreign exchange reserves remained adequate at USD 12,080 million (5.3 months of import cover) as of October 23.

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

Money Market

CBK stated that the money market remained liquid during the week ending October 23. Open market operations remained active.

Commercial banks’ excess reserves stood at Ksh7.8 billion in relation to the 3.25 percent cash reserves requirement (CRR).

The Kenya Shilling Overnight Interbank Average (KESONIA) remained relatively stable at 9.26 percent on October 23 compared to 9.23 percent on October 16.

During the week, the average number of interbank deals increased to 30 compared to 16 in the previous week, while the average value traded increased to Ksh14.5 billion from Ksh8.0 billion in the previous week.

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Government Securities Market

The Treasury bill auction of October 23 received bids totalling Ksh25.4 billion against an advertised amount of Ksh24.0 billion, representing a performance of 105.9 percent.

Interest rate on the 91-day, 182-day, and 364-day Treasury bills declined marginally.

Equity Market

At the Nairobi Securities Exchange, the NASI, NSE 25, and NSE 20 share price indices increased by 1.37 percent, 2.10 percent, and 1.61 percent, respectively, during the week ending October 23.

Market capitalization and equity turnover increased by 1.36 percent and 56.73 percent, while total shares traded decreased by 4.8 percent, respectively.

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Bond Market

Bond turnover in the domestic secondary market increased by 27.2 percent during the week ending October 23, 2025.

In the international market, yields on Kenya’s Eurobonds decreased by 4.13 basis points on average. Yields for Angola increased while Côte d’Ivoire decreased (Chart 2).

Global Trends

According to the IMF’s October 2025 World Economic Outlook (WEO), global growth is expected to slow down from 3.3 percent in 2024 to 3.2 percent in 2025 and 3.1 percent in 2026, citing persistent inflationary pressures and ongoing policy uncertainties.

UK inflation held steady at 3.8 percent in September, unchanged from August. Slower food price growth offset higher transport and energy costs, while core inflation eased slightly to 3.5 percent.

The U.S. Dollar Index appreciated during the week, supported by safe-haven demand and expectations that the Federal Reserve would maintain a cautious monetary stance amid fiscal uncertainty.

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CBK weekly report for the week ending on Friday, October 24, 2025. PHOT/CBK.