The Kenya Shilling remained stable against major international and regional currencies during the week ending August 27, 2026, according to the Central Bank of Kenya (CBK).
The Shilling traded at KSh129.47 against the US dollar on August 27, compared with KSh129.49 on August 20, reflecting minimal movement in the exchange rate.
Forex Reserves Remain Strong
Kenya’s foreign exchange reserves stood at $14.934 billion, equivalent to 6.2 months of import cover, as of August 27.
The reserves remain above the CBK’s statutory requirement to endeavour to maintain at least four months of import cover, providing a buffer against external economic shocks and supporting stability in the foreign exchange market.
Money Market Remains Liquid
The money market remained liquid during the week, with open market operations continuing to support liquidity conditions.
Commercial banks’ excess reserves averaged KSh25.5 billion above the 3.25 percent Cash Reserve Ratio requirement. The Kenya Shilling Overnight Interbank Average (KESONIA) remained unchanged at 8.75 percent.
Interbank activity increased, with the average number of transactions rising to 26 from 23 the previous week, while the average value traded increased to KSh19.1 billion from KSh17.6 billion.
Strong Demand for Treasury Bills
The Treasury bill auction on August 27 attracted bids worth KSh56.7 billion, against an advertised KSh28 billion, representing a performance rate of 202.6 percent.
Interest rates on the 91-day, 182-day and 364-day Treasury bills declined.
At the August 24 Treasury bond auction, the 10-year Treasury switch bond attracted KSh22.6 billion in bids against KSh15 billion on offer.
NSE Indices Rise
The Nairobi Securities Exchange recorded gains, with NASI, NSE 25 and NSE 20 indices rising by 0.78 percent, 0.89 percent and 1.65 percent, respectively.
However, total shares traded and equity turnover fell by more than 50 percent.
Global Markets
Globally, US inflation remained elevated, while economic growth slowed to 1.5 percent in the second quarter.
Gold prices rose to $4,601 per ounce, while Murban crude oil declined to $81.78 per barrel.
