The Central Bank of Kenya (CBK) has reported that the Kenyan shilling remained stable against major international and regional currencies even as global oil prices continued to rise.
In its latest weekly monetary and financial developments report, released on Friday, October 30, CBK said the shilling traded at KSh129.96 against the US dollar on October 29, up from KSh129.91 on October 22.
“The Kenya Shilling remained stable against major international and regional currencies during the week ending October 29, 2026. It exchanged at KSh129.96 per U.S. dollar on October 29, compared to KSh129.91 on October 22,” CBK said.
The Central Bank’s daily exchange rates released on October 30 showed the shilling trading at KSh129.95 against the US dollar, KSh173.20 against the British pound, and KSh144.74 against the euro.
The local currency also exchanged at KSh82.31 for 100 Japanese yen. Against regional currencies, one Kenyan shilling was worth 33.43 Ugandan shillings, 20.32 Tanzanian shillings and 11.35 Rwandan francs.
The exchange rate against the South African rand stood at KSh7.80.
Kenyan Shilling Holds at KSh129 Against Dollar as Global Oil Prices Rise Above $110
The shilling’s performance comes as international crude oil prices continue to rise, increasing the cost of importing petroleum products.
According to CBK, Murban crude oil prices rose to $110.46 per barrel on October 29, up from $108.23 per barrel on October 22.
“Murban crude oil prices rose to USD 110.46 per barrel on October 29, up from USD 108.23 per barrel on October 22, as geopolitical risks remain,” the bank said.
Kenya relies on imported petroleum products to meet domestic demand, making international oil prices a key factor in the country’s fuel import costs.
The increase follows a rise in pump prices in the October pricing cycle, with CBK linking the adjustment partly to higher international oil prices.
Also Read: CBK Invites Kenyans to Invest in KSh50 Billion Treasury Bonds Paying Up to 12.5%
What a Stable Shilling Means for Kenya
A stable shilling helps businesses and importers plan their spending by reducing uncertainty over the cost of goods purchased from abroad.
It also helps limit the local currency needed to pay for imports such as fuel, machinery, and other essential products, as well as to service foreign-denominated debt.
However, a weaker shilling makes imports more expensive because businesses and the government need more Kenyan shillings to purchase foreign currencies for international payments.
The depreciation of the local currency can also affect households through higher prices of imported goods and products whose production depends on imported raw materials.
On the other hand, a weaker shilling can benefit exporters by making Kenyan goods and services cheaper for foreign buyers, potentially improving their competitiveness in international markets.
It can also encourage the consumption of locally produced goods as imported products become more expensive.
Also Read: CBK Summons Two Banks Struggling to Raise Capital
CBK Reports $14.7 Billion in Foreign Reserves
Despite the rise in global oil prices, CBK reported that Kenya’s foreign exchange reserves remained adequate at $14.74 billion as of October 29.
The reserves were equivalent to 5.9 months of import cover, above the statutory requirement for the Central Bank to endeavour to maintain at least four months of import cover.
The reserves provide the country with funds to meet external payment obligations, including imports, while helping cushion the economy against external shocks.
Meanwhile, the US Dollar Index strengthened by 0.22 per cent during the week ending October 29.
In the international commodities market, spot gold prices declined to $4,020.40 per ounce on October 29, from $4,023.90 on October 22.
CBK attributed the decline to expectations of a possible US Federal Reserve interest rate hike in December.
Follow our WhatsApp Channel and X Account for real-time news updates and subscribe to our YouTube Channel for in-depth interviews.
