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Dr.Kamau Thugge,CBK Governor,
The Kenya Shilling remained stable against major international and regional currencies during the week, ending June 26.
It exchanged at Sh 129.29 per US dollar on June 26, compared to Sh 129.28 per US dollar on June 19.
Foreign Exchange Reserves
The usable foreign exchange reserves remained adequate at USD 10,887 million covering 4.9 months of import as of June 26.
This meets the CBK’s statutory requirement to endeavour to maintain at least 4 months of import cover.
Money Market
The money market stayed liquid during the week, with open market operations remaining active.
Commercial banks’ excess reserves stood at KSh 0.49 billion in relation to the 3.25 percent cash reserves requirement (CRR).
The average interbank rate was at 9.73 percent on June 26 compared to 9.72 percent on June 19.
During the week, the average number of interbank deals increased to 34 from 14 in the previous week, while the average value traded increased to Sh 21.7 billion from Sh 5.3 billion in the previous week.
Government Securities Market
The Treasury bill auction of June 26 received bids totalling Sh 14.5 billion against an advertised amount of Sh 24.0 billion, representing a performance of 60.4 percent.
Interest rate on the 91-day, 182-day and 364-day Treasury bills declined.
Equity Market
At the Nairobi Securities Exchange (NSE),the NASI, NSE 25 and NSE 20 share price indices increased by 3.6 percent 2.8 percent and 3.4 percent, respectively.
Market capitalization also increased by 3.6 percent while equity turnover and total shares traded decreased by 67.7 percent and 52.4 percent, respectively.
Bond Market
Bond turnover in the domestic secondary market increased by 8.0 percent.
In the international market, yields on Kenya’s Eurobonds decreased by 14.3 basis points on average.
Yields for Angola and Côte d’Ivoire Eurobonds also decreased.
Global Trends
During the week inflation concerns eased, with Nigeria inflation easing to 23.0 percent in May from 23.7 percent in April 2025.
The Central banks of Turkey, Czech Republic, and Hungary held their policy rate in line with market expectations.
The advanced economies equity markets edged higher as financial conditions volatilities moderated following Iran-Israel ceasefire.
The U.S. Dollar Index weakened by 1.8 percent, during the week.
International oil prices declined, with Murban crude price falling to USD 68.32 per barrel on June 26, from USD 75.23 on June 19, following easing of geopolitical risk premium due to de-escalation of tension in the Middle East.
