The Kenya Shilling remained stable against major international and regional currencies during the week ending September 10, 2026, trading at KSh129.45 against the U.S. dollar, according to the latest monetary and financial developments report by the Central Bank of Kenya (CBK).
The shilling strengthened marginally from KSh129.48 per dollar recorded on September 3, reflecting continued stability in the foreign exchange market.
Kenya’s foreign exchange reserves also increased to USD15.253 billion as of September 10, equivalent to 6.3 months of import cover. The reserves remain above the CBK’s statutory requirement to endeavour to maintain at least four months of import cover.
Money Market Remains Liquid
The domestic money market remained liquid during the week, with commercial banks’ excess reserves averaging KSh21.3 billion above the 3.25 percent Cash Reserve Ratio requirement.
The Kenya Shilling Overnight Interbank Average (KESONIA) remained unchanged at 8.75 percent.
Activity in the interbank market increased, with the average number of transactions rising to 23 from 16 the previous week. The average value traded also increased to KSh11.4 billion from KSh9.6 billion.
Strong Demand for Government Securities
The Treasury bill auction held on September 10 attracted bids worth KSh55.5 billion against an advertised amount of KSh28 billion, representing a performance rate of 198.2 percent.
CBK reported that interest rates on the 91-day, 182-day and 364-day Treasury bills declined during the auction.
Meanwhile, the 10-year Treasury switch bond auction held on September 9 attracted bids totalling KSh13.5 billion against an advertised KSh10 billion, representing a performance of 135.2 percent.
NSE Records Weekly Decline
The Nairobi Securities Exchange recorded a weaker performance during the week, with the NASI, NSE 25 and NSE 20 indices declining by 3.06 percent, 2.49 percent and 2.57 percent respectively.
Market capitalisation fell by 3.06 percent, while total shares traded and equity turnover declined by 35.62 percent and 27.95 percent.
In contrast, domestic secondary market bond turnover increased by 9.89 percent.
CBK also reported that yields on Kenya’s Eurobonds increased by an average of 25.10 basis points amid persistent global inflation and energy-price concerns.
