Oil Prices Increase Amid Closure of Strait of Hormuz

International oil prices remained high in the week ending on March 18, 2026.

In it’s weekly bulletin, the Central Bank of Kenya (CBK) said the increase was due to the closure of the Strait of Hormuz.

CBK said the prices of Murban crude oil rose from $92.13 ( Ksh 11935.44)

per barrel on March 12 to $95.91 (Ksh 12425.14) per barrel on March 18,

“International oil prices remained high amid closure of the Strait of Hormuz. Murban crude oil rose to $95.91 per barrel on March 18, compared to $92.13 per barrel on March 12,”. CBK said.

Exchange Rates

The Kenya Shilling remained broadly stable against major international and regional currencies during the week ending March 19, 2026. It exchanged at Ksh 129.52 per U.S. dollar on March 19, compared to KSlsh 129.30 on March 12.

Foreign Exchange Reserves

The foreign exchange reserves remained adequate at $14,294 million (6.1 months of import cover) as of March 18.

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 March 19, 2026, with open market operations remaining active. Commercial banks’ excess reserves averaged Ksh 8.5 billion above the 3.25 percent Cash Reserve Ratio (CRR) requirement.

The Kenya Shilling Overnight Interbank Average Rate (KESONIA) remained relatively stable at 8.68 percent on March 18 compared to 8.66 percent on March 12.

During the week, the average number of interbank transactions increased to 24 from 21 in the previous week, while the average value traded also decreased to Ksh 12.0 billion from Ksh 12.2 billion.

Government Securities Market

The Treasury bill auction of March 19 received bids totalling Ksh 35.3 billion against an advertised amount of Ksh 24.0 billion, representing a performance of 146.9 percent.

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

During the Treasury bond switch auction of March 16, the 15-year treasury bond received bids totaling Ksh 22.2 billion against an advertised amount of Ksh 15.0 billion, representing a performance of 148.1 percent.

Equity Market

At the Nairobi Securities Exchange, the NASI, NSE 25 and NSE 20 share price indices increased by 0.11 percent 1.19 percent and 0.50 percent, respectively, during the week ending March 18, 2026.

Market capitalisation, increased by 0.12 percent while total shares traded and equity turnover decreased by 60.45 percent and 63.25 percent respectively.

Also Read: EPRA Announces Fuel Prices for March-April Cycle

Bond Market

Bond turnover in the domestic secondary market. decreased by 21.46 percent during the week ending March 18, 2025.

In the international market, yields on Kenya’s Eurobonds increased by 9.39 basis points on average. Yields for Côte d’Ivoire also increased while for Angola decreased.

Global Trends

Global market uncertainty persisted during the week with the U.S. Federal Reserve and Bank of Canada holding their interest rates steady amid concerns over persistent inflation.

In Canada, annual inflation declined to 1.78 percent in February from 2.29 percent in January, signaling easing price pressures. In contrast, Eurozone inflation increased to 1.9 percent in February from 1.7 percent in January, reflecting slightly higher energy and service costs.

The U.S. Dollar Index strengthened by 0.86 percent during the week, largely driven by elevated geopolitical risks which increased demand for safe-haven assets

Also Read: Global Oil Prices Increase Ahead of EPRA Fuel Rate Review

Bond Market

Bond turnover in the domestic secondary market. decreased by 21.46 percent during the week ending March 18, 2025.

In the international market, yields on Kenya’s Eurobonds increased by 9.39 basis points on average. Yields for Côte d’Ivoire also increased while for Angola decreased.

Global Trends

Global market uncertainty persisted during the week with the U.S. Federal Reserve and Bank of Canada holding their interest rates steady amid concerns over persistent inflation.

In Canada, annual inflation declined to 1.78 percent in February from 2.29 percent in January, signaling easing price pressures.

In contrast, Eurozone inflation increased to 1.9 percent in February from 1.7 percent in January, reflecting slightly higher energy and service costs.

The U.S. Dollar Index strengthened by 0.86 percent during the week, largely driven by elevated geopolitical risks which increased demand for safe-haven assets.