Kenya’s foreign exchange reserves declined by approximately KSh25.2 billion in one week, as the Kenyan shilling traded at KSh129.94 against the US dollar.
The country’s foreign exchange reserves fell from USD 14,930 million to USD 14,736 million, according to the Central Bank of Kenya (CBK) Weekly Bulletin dated October 9, 2026, on October 8.
However, the reserves remained above the statutory minimum of four months of import cover.
“The foreign exchange reserves remained adequate at USD 14,736 million (5.9 months of import cover) as of October 8. This meets CBK’s statutory requirement to endeavour to maintain at least 4 months of import cover,” CBK noted.
Exchange Rates against Major Currencies
On October 8, the Kenyan shilling exchanged at KSh129.94 to the US dollar, up from KSh129.71 a week earlier, a depreciation of 23 cents against the dollar.
However, the Kenyan shilling weakened against the US dollar. Still, it strengthened against the British pound, euro and Japanese yen during the week ending October 8, 2026, according to the Central Bank of Kenya.
The pound declined from KSh172.28 to KSh171.62, while the euro fell from KSh147.30 to KSh145.37 over the same period.
Further, the shilling also strengthened against the Japanese yen, with 100 yen declining from KSh82.65 to KSh82.15.
Following the forex exchange decline, Kenya’s import cover also reduced from 6.1 months to 5.9 months over the same period.
Also Read: Kenya’s Forex Reserves Fall to $14.93 Billion As Shilling Remains Stable
Rising Oil Prices Add to External Sector Watch
International crude oil prices also increased during the October 1 to October 8 period.
According to CBK, Murban crude oil rose from USD95.76 per barrel on October 1 to USD101.67 on October 8, an increase of approximately 6.2 per cent.
The price crossed the USD100 mark during the reporting period, adding another development to the external economic indicators the CBK tracks.
According to the bank, the increase was due to supply concerns with ongoing geopolitical tension in the Middle East.
“Murban crude oil prices increased to USD 101.67 per barrel on October 8 from USD 95.76 per barrel on October 1, driven by supply concerns associated with ongoing geopolitical tensions in the Middle East,” CBK explained.
Over the same period, spot gold prices declined to USD4,133.93 per ounce from USD4,177.76 per ounce.
Also Read: Investors Inject KSh80.6 Billion into Treasury Bonds, Exceeding Govt Target
Kenya Banking and Money Market Rates
The CBK noted that commercial banks’ excess reserves averaged KSh23.3 billion above the Cash Reserve Ratio requirement of 3.25 per cent during the week ending October 8, 2026.
Additionaly the Central Bank Rate remained at 8.75 per cent following the Monetary Policy Committee meeting on October 7, while the Kenya Shilling Overnight Interbank Average (KESONIA) stood at 8.75 per cent.
“The Kenya Shilling Overnight Interbank Average (KESONIA) remained stable at 8.75 per cent,” the bank stated.
The average number of interbank transactions increased to 17 from 14 in the week ending October 1.
However, the average value traded declined to KSh5.9 billion from KSh9.5 billion, according to CBK.
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