The Kenya Shilling has started 2026 on a solid footing, defying global volatility to trade at a stable KSh 129.03 against the US Dollar. In its latest weekly bulletin, the Central Bank of Kenya (CBK) painted a picture of a resilient economy, bolstered by a war chest of foreign exchange reserves.

According to the data, usable foreign exchange reserves have surged to USD 12,477 million (approximately KSh 1.6 trillion). This provides a comfortable cushion of 5.4 months of import cover, well above the statutory requirement of 4 months. For "Wanjiku," this stability is critical in keeping the cost of imported fuel and electricity in check.

Interbank Stability

The pulse of the banking sector remains steady. The interbank rate—the interest charged on short-term loans between banks—averaged 9.00% this week.

• Liquidity: Money market liquidity was high, with banks holding excess reserves of KSh 26.5 billion.
• Government Debt: Investor appetite for government paper remains voracious, with the latest Treasury Bill auction recording a 128.4% performance rate.

Why It Matters

In an era where emerging markets are crumbling under debt and currency depreciation, Kenya's stability is an outlier. However, analysts warn that with the global "Greenland Crisis" and Middle East tensions escalating, the CBK must keep its finger on the pulse to protect these gains.