National Treasury Cabinet Secretary John Mbadi has defended the stability of the Kenyan shilling, saying the currency has held firm at around Ksh129 to the dollar for more than a year despite tough economic times.
Speaking on Monday during the launch of the 2026/27 budget preparation process, Mbadi said last year’s fears over a collapsing economy had been eased by government measures to manage debt and boost reserves.
“There was panic last year when the shilling weakened to about Ksh165 to the dollar. But because of the steps we took, including managing liabilities and debt, it appreciated to around Ksh129 and has stayed there for over a year,” Mbadi said.
He dismissed claims that the currency’s strength was artificial, pointing to healthier forex reserves. “If you want proof, look at our reserves. They are now at 5.2 months of import cover, up from 3.8 a year ago,” he said.
The Treasury boss also credited growth in exports, particularly coffee and horticulture, which expanded by 7.7 per cent. This, he noted, has narrowed the current account deficit from 2.6 per cent of GDP to 1.3 per cent.
Mbadi further highlighted strong diaspora remittances and the government’s early action to deal with a Eurobond maturing in 2027.
He said Kenya’s decision to restructure debt ahead of time helped calm markets.
“We were very timely. In fact, many countries are asking how we foresaw it. If we had delayed even a month, we wouldn’t have succeeded,” he added.
His remarks came just days after Central Bank Governor Kamau Thugge offered a similar assessment, saying market surveys also show confidence that the shilling may strengthen further.
