Kenya Shilling Holds Steady Against Dollar as Global Oil Prices Fall

The Kenyan Shilling remained stable against the US dollar during the week ending August 27, 2026, even as global oil prices declined, according to the Central Bank of Kenya (CBK).

The update was contained in the CBK Weekly Bulletin released on Friday, August 28, 2026, which showed that the Shilling traded at Ksh 129.47 against the US dollar on August 27, compared to Ksh129.49 on August 20.

“The Kenya Shilling remained stable against major international and regional currencies during the week ending August 27, 2026,” CBK said.

The stability came as global crude oil prices fell during the week. Murban crude oil declined to USD 81.78 (Ksh10,578.37) per barrel on August 27, from USD 84.76 (Ksh10,964.00) on August 20.

CBK attributed the decline to increased oil flows through the Strait of Hormuz and expectations of improved supply conditions.

Kenya’s Forex Reserves Remain Strong

Kenya’s foreign exchange reserves stood at USD14.934 billion (Ksh1.932 trillion) as of August 27, providing the country with 6.2 months of import cover.

Also Read: Global Oil Prices Rise as EPRA Raises Electricity Costs for Kenyans

The level remains above the CBK’s statutory requirement to maintain at least four months of import cover.

The reserves provide a cushion for the country to meet its international payment obligations and support stability in the foreign exchange market.

Money Market Remains Liquid

The domestic money market remained liquid during the week, with commercial banks holding average excess reserves of Ksh 25.5 billion above the 3.25% Cash Reserve Ratio requirement.

The Kenya Shilling Overnight Interbank Average (KESONIA) remained stable at 8.75%.

Interbank activity also increased during the week. The average number of transactions rose to 26 from 23 in the previous week, while the average value traded increased to Ksh19.1 billion from KSh17.6 billion.

Strong Demand for Treasury Bills

Investors continued to show strong demand for government securities.

During the Treasury bill auction held on August 27, bids worth Ksh 56.7 billion were received against an advertised amount of Ksh 28 billion.

Also Read: Kenyan Motorists Brace for Possible Fuel Price Hike After Global Oil Surge

This represented a performance of 202.6%.

CBK also reported that interest rates on the 91-day, 182-day, and 364-day Treasury bills declined during the week.

At the Treasury bond auction held on August 24, the 10-year Treasury switch bond attracted bids worth Ksh 22.6 billion against an advertised amount of Ksh15 billion, representing a performance of 150.6 %.

Nairobi Securities Exchange Records Gains

The Nairobi Securities Exchange (NSE) also recorded gains during the week.

The NSE All Share Index (NASI) rose by 0.78%, while the NSE 25 and NSE 20 indices increased by 0.89 per cent and 1.65 per cent, respectively.

Market capitalisation also increased by 0.78%.

However, the total number of shares traded fell by 50.53%, while equity turnover declined by 50.17 per cent.

Bond turnover in the domestic secondary market also dropped by 5.37%.

CBK attributed the rise in gold prices to safe-haven demand and expectations of lower interest rates.

Follow our WhatsApp channel for instant news updates.

Central Bank of Kenya Office Building in Nairobi. PHOTO/CBK