Blow to Motorists as Global Oil Price Increase After EPRA Review

International oil prices increased in the week endings on May 14, 2026.

In the CBK weekly report published on May 15, crude oil increased from $89.13 (Ksh 11533.42) per barrel on May 7 to $94.84 (Ksh 12272.30) per barrel on May 14.

CBK said the increase is due to uncertainty arising from the ongoing war in the Middle East.

“International oil prices increased during the week ending May 14, reflecting heightened uncertainities arising from the conflict in the Middle East. Murban crude oil prices increased to USD 94.84 per barrel on May 14, from USD 89.13 per barrel on May 7,” CBK said.

Exchange Rates

The Kenya Shilling remained stable against major international and regional currencies during the week ending May 14, 2026. It exchanged at Ksh 129.33 per US dollar on May 14, compared to Ksh 129.19 on May 7.

Foreign Exchange Reserves

The foreign exchange reserves stood at $13,507 million (5.7 months of import cover) as of May 14. This meets CBK’s statutory requirement to endeavour to maintain at least 4 months of import cover.

Also Read: CBK Reveals Banks With Lowest Loan Interest Rates

Remittances inflows

Remittance inflows to Kenya totalled $397.8 million in April 2026, compared to $421.1 million in March 2026, a decline of 11.7 percent (Chart 1).

The decline reflected lower remittance inflows from key source markets. However, the 12-month cumulative inflows to April 2026 increased by 1.1 percent to $5,053 million, compared to $4,997 million recorded over the corresponding period in 2025.

Remittance inflows remain a key source of foreign exchange earnings and support to the balance of payments.

Money Market

The money market remained liquid during the week ending May 14, 2026, with open market operations remaining active. Commercial banks’ excess reserves averaged Ksh 27.3 billion above the 3.25 percent Cash Reserve Ratio (CRR) requirement.

The Kenya Shilling Overnight Interbank Average Rate (KESONIA) was 8.75 percent on May 14, the same level recorded on May 7.

During the week, the average number of interbank transactions decreased to 20 from 25 in the previous week. The average value traded increased to Ksh 10.7 billion, from Ksh 10.1 billion in the previous week.

Also Read: Pain at the Pump: EPRA Announces Sharp Fuel Price Hike Starting May 15

Government Securities Market

The Treasury bill auction of May 14, received bids totalling Ksh 26.4 billion against an advertised amount of Ksh 24.0 billion, representing a performance of 110.0 percent. Interest rate on the 91-day, 182-day and 364-day Treasury bills increased marginally.

Equity Market

At the Nairobi Securities Exchange, the NSE 25 and NSE 20 share price indices increased marginally by 0.20 percent, and 0.19 percent, while NASI decreased by 1.23 percent, respectively, during the week ending May 14, 2026.

Market capitalization, total shares traded and equity turnover decreased by 1.23 percent, 6.12 percent and 6.45 percent, respectively.

Bond Market

Bond turnover in the domestic secondary market increased by 99.08 percent during the week ending May 14, 2026.

In the international market, yields on Kenya’s Eurobonds increased by 5.20 basis points on average. Yields for Côte d’Ivoire and Angola also increased.

Global Trends

Inflation concerns remained elevated during the week ending May 14, driven by the high global energy prices attributable to the ongoing US-Israel-Iran war.

Headline inflation in the U.S. rose to 3.8 percent in April 2026 from 3.3 percent in March 2026, largely driven by higher cost pressures from service and energy sectors.

The US Dollar Index strengthened by 0.5 percent during the week, as financial markets repriced for Federal Reserve rate hikes in 2026 due to the oil price shock.