The Kenya Shilling remained stable against major international and regional currencies during the week ending June 18, 2026, as the country’s foreign exchange reserves remained adequate, according to the latest weekly bulletin by the Central Bank of Kenya (CBK).
The CBK reported that the Kenya Shilling exchanged at KSh129.55 per US dollar on June 18, compared to KSh129.48 recorded on June 11, reflecting stability in the foreign exchange market.
The local currency also maintained stability against other major global and regional currencies during the review period.
Forex Reserves Maintain 5.6 Months Import Cover
Kenya’s foreign exchange reserves stood at USD13.149 million as of June 18, equivalent to 5.6 months of import cover.
The reserves remain above the CBK’s statutory requirement of maintaining at least four months of import cover, providing a buffer to support external payments and market stability.
Remittance Inflows Drop Slightly in May
Diaspora remittance inflows declined marginally to USD394.2 million in May 2026 from USD397.8 million recorded in April, representing a 0.9 percent decrease.
The CBK said cumulative remittance inflows for the 12 months to May 2026 stood at USD5.008 million, down 0.5 percent from USD5.033 million recorded during a similar period in 2025.
Despite the decline, remittances continue to be a major source of foreign exchange earnings and support Kenya’s balance of payments.
Money Market Remains Liquid
The money market remained liquid during the week, with commercial banks holding excess reserves averaging KSh28 billion above the 3.25 percent Cash Reserve Ratio requirement.
The Kenya Shilling Overnight Interbank Average Rate (KESONIA) remained unchanged at 8.75 percent on June 18, the same level recorded on June 11.
However, interbank activity slowed, with average transactions declining to 15 from 25 the previous week, while the average value traded fell to KSh5.6 billion from KSh11 billion.
Strong Demand for Government Securities
The Treasury bill auction held on June 18 attracted bids worth KSh49 billion against an advertised amount of KSh24 billion, representing a performance rate of 204.1 percent.
Interest rates on the 91-day, 182-day, and 364-day Treasury bills increased marginally during the auction.
Meanwhile, the reopening of 20-year and 25-year Treasury bonds on June 17 attracted bids totaling KSh77.6 billion against an advertised amount of KSh60 billion, translating to a performance rate of 129.4 percent.
NSE Market Gains as Equity Activity Improves
Trading at the Nairobi Securities Exchange (NSE) strengthened during the week, with key indices posting gains.
The Nairobi Securities Exchange All Share Index (NASI), NSE 25, and NSE 20 share price indices increased by 2.57 percent, 3.68 percent, and 1.90 percent respectively.
Market capitalization, total shares traded, and equity turnover also rose by 2.57 percent, 35.81 percent, and 38.77 percent respectively.
Bond Market Records Higher Turnover
Domestic secondary bond market turnover increased by 14.91 percent during the week ending June 18.
In international markets, yields on Kenya’s Eurobonds declined by an average of 51.38 basis points, reflecting improved investor sentiment.
Global Markets React to Geopolitical Developments
The CBK noted that global inflation pressures eased during the week following the US-Israel-Iran ceasefire deal.
The Federal Reserve Bank and the Bank of England maintained their policy rates amid reduced geopolitical risks, although concerns over second-round inflation pressures remained.
The US Dollar Index strengthened by 0.8 percent during the week.
Commodity prices also declined, with Murban crude oil prices falling to USD74.41 per barrel from USD84.60 a week earlier.
Gold prices, however, increased slightly to USD4,239.13 per ounce from USD4,213.84, reflecting continued volatility in global foreign exchange markets