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Tags: International Oil, Iran, Trump
How Trump- Iran Nuclear Talks Made Countries Save Money in the Last Week of February
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The Central Bank of Kenya has explained why international oil prices decreased in the last week of February.
In it’s weekly bulletin, CBK said the oil prices fell from USD 70.76 (Ksh9128.81)
per barrel on February 19 to USD 69.73 (Ksh 8995.17) per barrel on February 26, 2026.
CBK said the decrease is due to the ongoing nuclear talks between the United States and Iran.
“International oil prices fell during the week, largely reflecting ongoing US-Iran nuclear talks despite heightened concerns about trade policy uncertainty. Murban crude oil traded at USD 69.73 per barrel on February 26 compared to USD 70.76 per barrel on February 19,” CBK said.
Equity Market
At the Nairobi Securities Exchange, the NASI, NSE 25 and NSE 20 share price indices increased by 2.10 percent, 2.43 percent and 1.49 percent, respectively, during the week ending February 26, 2026. Market capitalization and total shares traded increased by 2.10 percent, 28.97 percent, while equity turnover decreased by 5.58 percent respectively.
Bond Market
Bond turnover in the domestic secondary market increased by 36.94 percent during the week ending February 26, 2025 . In the international market, yields on Kenya’s Eurobonds increased by 1.68 basis points on average. Yields for Angola and for Côte d’Ivoire also increased.
Global Trends
The U.S labour market eased during the week ending February 21 with the initial jobless claims falling marginally than expected to 212,000. The U.S. Dollar Index weakened by 0.14 percent during the week, largely driven by policy uncertainty and market volatility after the U.S Supreme Court ruling on tariffs imposed by U.S Government.
Inflation
Headline inflation remained relatively stable at 4.3 percent in February 2026 compared to 4.4 percent in January 2026. Core inflation declined to 2.1 percent from 2.2 in January mainly on account of reduced inflation for processed food items. Similarly, non-core inflation eased to 10.1 percent from 10.3 percent in January largely driven by lower energy inflation.
Exchange Rates
The Kenya Shilling remained stable against major international and regional currencies during the week ending February 26, 2026. It exchanged at Ksh 129.02 per U.S. dollar on February 26, unchanged from February 19.
Foreign Exchange Reserves
The foreign exchange reserves remained adequate at USD 12,535 million (5.4 months of import cover) as of February 26. This meets CBK’s statutory requirement to endeavour to maintain at least 4 months of import cover.
Money Market
The money market remained liquid during the week ending February 26, 2026, with open market operations remaining active. Commercial banks’ excess reserves averaged Ksh 52.3 billion above the 3.25 percent Cash Reserve Ratio (CRR) requirement. The Kenya Shilling Overnight Interbank Average Rate (KESONIA) remained stable at 8.77 percent on February 26. During the week, the average number of interbank transactions declined to 18 from 26 in the previous week, while the average value traded also edged down to KSh 9.0 billion from Ksh 9.1 billion.
Government Securities Market
The Treasury bill auction of February 26 received bids totalling Ksh 58.5 billion against an advertised amount of KSh 24.0 billion, representing a performance of 243.9 percent. Interest rate on the 91-day and 364-day Treasury bills declined while interest rate on the 182-day Treasury Bill increased marginally.
A pump attendant fuels a vehicle at a petrol station. PHOTO/NATION
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