The Central Bank of Kenya (CBK) has revealed why global oil prices decreased in the last week of October.

In its weekly bulletin, CBK said the prices of global oil prices decreased from $66.85 (Ksh8637.02) on October 23, to $65.51 (Ksh8463.89) per barrel on October 30.

CBK explained that the drop was due to oil inventories build-up.

Besides, the bank said the decrease is also brought by easing trade tensions following US trade negotiations with China and South Korea.

“International oil prices declined on account of oil inventories build-up and easing trade tensions following US trade negotiations with China and South Korea. Murban oil price decreased to USD 65.51 per barrel on October 30, from $66.85 per barrel on October 23,” CBK said.

Inflation

Headline inflation remained stable at 4.6 percent in October and September 2025, largely supported by easing prices of select food items.

Core inflation declined to 2.7 percent from 2.9 percent in September, while non-core inflation increased to 9.9 percent from 9.6 percent over the same period.

The increase in the non-core inflation was mainly driven by energy and transport costs.

CBK Exchange Rates

The Kenyan shilling remained stable against major international and regional currencies during the week ending October 30, 2025.

It exchanged at KSh 129.24 per U.S. dollar on October 30, unchanged from October 23.

Foreign Exchange Reserves

The foreign exchange reserves remained adequate at USD 12,194 million (5.3 months of import cover) as of October 30.

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

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Money Market

The money market remained liquid during the week ending October 30. Open market operations remained active.

Commercial banks’ excess reserves averaged KSh 12.4 billion above the 3.25 percent Cash Reserve Ratio (CRR) requirement.

The Kenya Shilling Overnight Interbank Average Rate (KESONIA) was stable at 9.26 percent on October 30, unchanged from October 23.

During the week, the average number of interbank transactions declined to 23 from 30 in the previous week, while the average value traded decreased to KSh 11.3 billion from KSh 14.5 billion.

Government Securities Market

The Treasury bill auction of October 30 received bids totalling KSh 24.3 billion against an advertised amount of KSh 24.0 billion, representing a performance of 101.1 percent.

Interest rate on the 91-day and 364-day Treasury bills declined while interest rate on the 182-day Treasury bill increased marginally.

Also Read: CBK Reveals Banks With Lowest Interest Rates in October 2025

Equity Market

At the Nairobi Securities Exchange, the NASI, NSE 25, and NSE 20 share price indices increased by 3.45 percent, 2.52 percent, and 1.92 percent, respectively, during the week ending October 30, 2025.

Market capitalization, equity turnover, and total shares traded also increased by 3.45 percent, 55.23 percent, and 105.83 percent, respectively.

Bond Market

Bond turnover in the domestic secondary market increased by 22.10 percent during the week ending October 30, 2025. In the international market, yields on Kenya’s Eurobonds decreased by 11.67 basis points on average. Yields for Angola and Côte d’Ivoire also decreased.

Global Trends

Inflation concerns in advanced economies eased during the week ending October 30.

The US Federal Reserve lowered the federal funds rate by 25 basis points to a target range of 3.75 -4.00 percent, reflecting elevated US inflation outcomes, subdued economic activity, and labour market weakness.

The Bank of Canada also cut its policy rate by 25 basis points to 2.25 percent while the European Central Bank and the Bank of Japan left their interest rate unchanged at 2.0 percent and 0.5 percent, respectively.

The U.S. Dollar index strengthened by 0.6 percent during the week after the US Federal Reserve’s press conference, as financial markets repriced expectations to rule out any further rate cuts at the December Fed meeting.

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CBK weekly report for the week ending October 30, 2025. PHOTO/CBK.