Kenyan Shilling Rallies Against Major World Currencies
The Kenyan shilling posted a strong start in 2025, recording gains against all major global and regional currencies in the first three months, according to the latest figures from the Central Bank of Kenya (CBK) and the Kenya National Bureau of Statistics (KNBS).
An analysis of CBK data shows the shilling closed Q1 2025 with a 14% year-on-year gain against the US dollar. The currency appreciated by 16.3% against the Euro, 14.2% against the Pound Sterling, and 13.6% against the dollar compared to Q1 2024.
“In addition, the Kenyan shilling strengthened against the Japanese Yen and the South African Rand by 15.9% and 11.7%, respectively,” the Q1 GDP report noted. It also gained 16.7% against the Tanzanian shilling and 9.6% against the Ugandan shilling.
The local currency’s performance cements its place as the best-performing currency in Africa in 2024. The World Bank’s Africa Pulse report in April revealed that the shilling appreciated by 20% against the dollar that year — the highest regional gain.
The report attributed this to reduced financial restrictions and the benefits of foreign exchange market reforms. As of April 2025, the Kenyan shilling had maintained strong momentum and stability despite global pressures.
The CBK data shows that the shilling averaged an exchange rate of 129.34 to the dollar in Q1 2025, compared to 149.74 during the same quarter in 2024. It has maintained an average of 129 for 11 consecutive months, showing resilience since it began recovering from a record low of 160 in early 2024.
CBK quoted the shilling at 129.23 on Friday, indicating ongoing stability even amid global disruptions, such as the Israel-Iran conflict, which impacted oil and commodity markets.
Market observers credit strong remittance inflows, improved foreign exchange reserves, and tighter CBK monetary policies for anchoring the shilling.
The currency’s appreciation is seen as a positive sign for macroeconomic stability and investor confidence. It has also helped reduce the cost of imports — a significant benefit for a net importer like Kenya.
However, experts warn that global risks and economic uncertainties could challenge the currency’s resilience in the coming months.
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Kenyan Shilling Rallies Against Major World Currencies