How the Trump–Iran Tensions Drove Oil Prices This Week

Tension between US President Donald Trump and Iran greatly affected the global oil prices during the week ending on February 6, 2026.

Central Bank of Kenya (CBK) said the prices of murban oil increased from $68.46 (Ksh 8831.65) per barrel on January 29 to $68.50 (Ksh 8836.82) per barrel.

“International oil prices increased marginally ahead of planned U.S-Iran talk. Murban crude oil traded at USD 68.50 per barrel on February 5, from USD 68.46 per barrel on January 29,” CBK said.

Exchange Rates

The Kenya Shilling remained stable against major international and regional currencies during the week ending February 5, 2026.

It exchanged at Ksh 129.02 per U.S. dollar on February 5, compared to Ksh 129.03 per U.S. dollar on January 29.

Foreign Exchange Reserves

The foreign exchange reserves remained adequate at USD 12,387 million (5.3 months of import cover) as of February 5.

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

Money Market

The money market remained liquid during the week ending February 5, with open market operations remaining active.

Commercial banks’ excess reserves averaged Ksh 8.9 billion above the 3.25 percent Cash Reserve Ratio (CRR) requirement.

The Kenya Shilling Overnight Interbank Average Rate (KESONIA) increased to 9.99 percent on February 5 from 8.99 percent on January 29.

During the week, the average number of interbank transactions decreased to 14 from 21 in the previous week while the average value traded decreased to Ksh 6.7 billion from Ksh 12.5 billion.

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Government Securities Market

The Treasury bill auction of February 5 received bids totalling Ksh 64.3 billion against an advertised amount of Ksh 24.0 billion, representing a performance of 267.9 percent.

Interest rate on the 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 3.72 percent 2.45 percent and 1.37 percent, respectively, during the week ending February 5.

Market capitalization increased by 3.73 percent, while equity turnover and total shares traded decreased by 0.68 percent and 9.74 percent, respectively.

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Bond Market

Bond turnover in the domestic secondary market decreased by 5.14 percent during the week ending February 5.

In the international market, yields on Kenya’s Eurobonds decreased by 3.65 basis points on average. Yields for Angola decreased while those of Côte d’Ivoire stabilized.

Global Trends

Inflation concerns in the advanced economies eased during the week ending February 5.

The Euro Area headline inflation fell to 1.7 percent in January 2026 from 1.9 percent in December 2025, driven by decline in energy prices, while core inflation decreased to 2.2 percent.

The European Central Bank, and Bank of England held their policy rates.

The U.S. Dollar Index strengthened by 1.60 percent during the week ending February 5, reflecting rising market sentiments following the announcement of the new Fed chair Kevin Warsh.