Nairobi, May 13, 2025 — The Kenyan shilling gained slightly against the U.S. dollar on Tuesday, reflecting a modest improvement in the local currency’s performance in the foreign exchange market. According to data from the London Stock Exchange Group (LSEG), the shilling traded at 128.80/129.40 to the dollar, compared to Monday’s closing levels of 129.00/129.50.
Analysts attribute the slight appreciation to steady foreign exchange inflows from remittances and export earnings, coupled with cautious demand from importers. The Central Bank of Kenya has also maintained a tight monetary policy stance, which has helped stabilize the currency amid broader economic challenges.
The Kenyan shilling has faced sustained pressure in recent months due to external debt obligations, a widening trade deficit, and a strengthening U.S. dollar. However, recent government efforts to manage fiscal policy and attract investment have contributed to calming investor concerns and stabilizing the currency.
Despite this minor gain, financial experts caution that the shilling remains vulnerable to global market trends, particularly shifts in commodity prices and geopolitical developments that impact investor sentiment.
The Central Bank is expected to continue monitoring currency movements closely to ensure that inflation remains under control while supporting overall economic growth.
