Kenyan Shilling Holds Steady at 129 Levels as Forex Reserves Hit Record High

The Kenyan shilling remained unchanged against the U.S. dollar on Friday, maintaining Thursday’s levels, according to data from the London Stock Exchange Group (LSEG).

Commercial banks quoted the local currency at 129.00/129.50 per dollar.

This stability in the currency comes as Kenya’s foreign exchange reserves hit a historic high, driven by strong inflows and ongoing structural reforms in the foreign exchange market.

According to the Central Bank of Kenya’s (CBK) latest report, reserves surged to $10.95 billion (approximately Ksh.1.4 trillion) as of June 12—the highest ever recorded.

The CBK noted that the current reserves are sufficient to cover 4.8 months of imports, comfortably surpassing the statutory minimum of 4.5 months.

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“Foreign exchange reserves are at their highest levels and continue to provide adequate cover and a buffer against short-term shocks,” the CBK said in its June Monetary Policy Committee (MPC) report.

The shilling has remained relatively stable throughout June, supported by sustained forex inflows and key reforms.

Among the major contributors to foreign currency earnings are diaspora remittances, offshore investor receipts, and strong export performance—particularly in tea.

CBK attributes the improved market conditions to policy reforms, including the rollout of the Kenya Foreign Exchange Code (FX Code), the introduction of an Electronic Matching System (EMS) for interbank transactions, and the harmonization of exchange rates between CBK and commercial banks.

These reforms, CBK says, have enhanced transparency and efficiency in the FX market, reinforcing the shilling’s resilience.