The Kenyan shilling has weakened to Ksh130 against the US dollar, marking the end of a 20‑month period of relative stability around the Ksh129 mark.
The Central Bank of Kenya (CBK) quoted the currency at 130 to the dollar on Tuesday, April 7, signaling a gradual loss of ground after more than a year of relative stability at the lows of 129.
This is the first time the local unit has touched the 130-unit level since August 2024, on the back of consistent depreciation largely driven by the Middle East war.
Kenyan Shilling Hits 130 Mark After Long 129‑Range Stability
The Kenyan shilling remained broadly stable against major international and regional currencies in the week ending April 2, 2026.
According to the CBK Weekly Bulletin released on April 2, the shilling traded at Ksh129.99 against the US dollar, up from Ksh129.72 on March 26.
The local unit began retreating from the 130 mark in late July 2024 after a sustained strengthening streak from its historic low of 160 recorded in early February 2024.
In the first quarter of 2024, the Kenyan shilling took its worst hit, significantly depreciating against the US dollar to trade at over Ksh. 160 to the dollar in January, before gaining against the greenback to trade at Ksh. 144 by mid‑February and later down to Ksh. 127 in April 2024.
In 2024, the US dollar had risen from an average exchange rate of Sh125 against the shilling in the first quarter of 2023 to Sh162 posted in January.
On January 15, 2024, the shilling officially crossed 160 unit points against the US dollar, the lowest level on record.
The Central Bank of Kenya blamed the depreciation of the shilling on the $2 billion (Ksh300 billion) Eurobond.
The depreciation made imports more expensive while at the same time pushing up Kenya’s debt.
However, the country successfully issued a new Eurobond worth $1.5 billion (Ksh238 billion) to buy back the inaugural one due on June 24.
Also Read: Kenya Shilling Weakens Marginally as Dollar Gains Ground in Late March Trading
Why Kenyan Shilling Stood Stable at 129
The shilling has traded on a narrow range between Ksh129.22 and Ksh129.24 since the start of 2025, despite weakening against other major world currencies.
Experts argued that it was unusual for currencies to remain at the same level for a prolonged period.
It is this stability that was being called into question by the International Monetary Fund (IMF), which expressed concern over the Kenyan shilling’s unchanged value against the dollar, despite global shifts expected to strengthen the local currency.
IMF officials reportedly described the shilling as too stable during their recent staff visit to Kenya, which concluded on October 10 2025.
They noted that the prolonged stability of the exchange rate was interfering with the transmission of monetary policy and with inflation targeting.
Also Read: Kenyan Shilling Dips Toward 130: What Kenyans Need to Know
CBK Governor Kamau Thugge attributed the stability to diversified foreign exchange inflows from Diaspora remittances, offshore banks, coffee, and other export items.
Meanwhile, the National Treasury credited the shilling’s stability to sound macroeconomic management. Fiscal consolidation measures—such as tighter spending controls and stronger revenue collection—have eased domestic borrowing pressures and improved debt sustainability.
Why Kenyan Shilling Has Weakened
The depreciation of the Kenyan shilling is linked to a combination of global investor behavior, interest rate differentials, and Kenya’s external debt obligations.
Importers have been rushing to secure dollars in recent days amid fears of a limited supply in international markets due to the ongoing war in the Middle East.
A high demand for the US currency has put pressure on the exchange rates, thus causing the local unit to weaken.
The Institute of Economic Affairs (IEA) has warned that the Kenyan shilling could lose between eight and 30 percent of its value against the US dollar if the war involving the United States, Israel, and Iran persists.
The Institute explains that wars in the Middle East typically trigger a flight-to-safety effect, investors shift capital into safe-haven assets such as the US dollar during periods of global uncertainty.
Consequently, this strengthens the dollar and places downward pressure on riskier currencies such as the Kenyan shilling.
