- The Central Bank of Kenya indicated the Kenyan shilling’s exchange rate against the US dollar, highlighting its stability
- The Kenyan government’s banking regulator noted that the value of foreign exchange reserves increased over the last week
- The CBK reduced the base lending rate to enhance economic growth through access to cheaper loans ahead of Christmas
TUKO.co.ke journalist Japhet Ruto has over eight years of experience in financial, business, and technology reporting, offering insights into Kenyan and global economic trends.
The Kenyan shilling has appreciated slightly against the US dollar in the last week.
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This is according to the Central Bank of Kenya (CBK), which published its weekly bulletin highlighting the monetary and financial developments in the country.
What is the value of the Kenyan shilling?
In its report, the banking regulator noted that the shilling exchanged at 129.16 against the greenback on Thursday, December 11, compared to 129.41 on Thursday, December 4.
“The Kenyan shilling remained stable against major international and regional currencies during the week ending December 11, 2025. It exchanged at KSh 129.16 per US dollar on December 11, compared to KSh 129.41 per US dollar on December 4,” the CBK stated.
The improvement in the shilling’s value came following an increase in foreign exchange reserves.
According to the bank, the reserves rose to USD 12,065 million (KSh 1.56 trillion) on December 10 from USD 12,030 million (KSh 1.55 trillion) on December 4.
“The foreign exchange reserves remained adequate at USD 12,065 million (5.24 months of import cover) as of December 10. This meets the CBK’s statutory requirement to endeavour to maintain at least four months of import cover,” it announced.
Why did the CBK cut the lending rate?
At the same time, the CBK’s Monetary Policy Committee cut the base lending rate from 9.25% to 9%.
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CBK governor Kamau Thugge explained that the move aimed to stimulate economic activity and enhance access to affordable credit for millions of borrowers.
This signals cheaper loans for Kenyans as the Kenya Commercial Bank and Equity Bank reduced their interest rates in line with the Central Bank Rate (CBR).
Equity Bank did point out that by February 28, 2026, local currency variable-rate loans that are now priced using the Equity Bank Reference Rate (EBRR) will transition to the Central Bank Rate (CBR).
On the other hand, KCB stated that until the conclusion of the CBK-mandated transition period (February 28, 2026), all existing local currency variable-rate loans obtained before Monday, December 1, 2025, will continue to be subject to the present terms.
What is Kenya’s inflation rate?
Elsewhere, higher tomato, maize flour and sugar prices drove Kenya’s inflation to 4.5% in November 2025.
According to the Kenya National Bureau of Statistics (KNBS), over the course of the year, the prices of goods in the categories of food and non-alcoholic beverages (7.7%), transportation (5.1%), housing, water, electricity, gas, and other fuels (1.9%), and transportation (5.1%) increased.
Over 57% of the total weight across the 13 major spending categories is accounted for by these three divisions combined.
Source: TUKO.co.ke
