Saturday 07th March, 2026 08:18 AM|
The Kenyan shilling remained largely stable against major international and regional currencies during the week ending March 5, 2026, reflecting confidence in the country’s financial markets.
The currency exchanged at Ksh129.20 per US dollar on March 5, a slight change from Ksh129.02 recorded on February 26. Regional peers, including the Ugandan and Tanzanian shillings, also showed minimal movement, underscoring the shilling’s resilience amid global market volatility.
“The Kenya Shilling remained relatively stable against major international and regional currencies during the week ending March 5, 2026. It exchanged at Ksh129.20 per U.S. dollar on March 5 compared to Ksh129.02 on February 26,” read the CBK X post.
Adequate reserves support market stability
Foreign exchange reserves stood at Ksh1.886 trillion as of March 5, equivalent to 6.2 months of import cover, well above the Central Bank of Kenya’s statutory requirement of four months.
This cushion provides a buffer against external shocks and reinforces investor confidence in the currency’s value. The money market remained liquid, with commercial banks holding excess reserves averaging Ksh57.9 billion above the 3.25 per cent Cash Reserve Ratio requirement.
The Kenya Shilling Overnight Interbank Average Rate (KESONIA) eased slightly to 8.72 per cent from 8.77 per cent the previous week, while the average interbank transaction value edged down to Ksh8.8 billion across 15 deals, compared with 18 the week before.
“The foreign exchange reserves remained adequate at USD14,597 million (6.2 months of import cover) as of March 5. This meets CBK’s statutory requirement to endeavour to maintain at least 4 months of import cover”
Treasury bill auction draws overwhelming interest
The standout development was the March 5 Treasury bill auction, which received bids totalling Ksh100.4 billion against an advertised Ksh24.0 billion, representing a 418.4 per cent performance rate.
Investors showed particular interest in longer-tenor instruments, with the 364-day bill attracting Ksh 83.3 billion in bids, the 182-day Ksh15.2 billion, and the 91-day Ksh1.95 billion.
The government accepted Ksh41.4 billion to refinance maturing debt and secure new funding. Interest rates moved slightly lower for the 91-day and 364-day bills, at 7.58 per cent and 8.64 per cent respectively, while the 182-day rate remained stable at 7.82 per cent.
Analysts note that the combination of strong demand for government securities, stable exchange rates, robust foreign reserves, and ample liquidity points to effective monetary management.