- Data from the Central Bank of Kenya (CBK) showed the shilling was valued at 129.45 Kenyan shillings per US dollar on Thursday, February 20, 2025.
- National Treasury Principal Secretary Chris Kiptoo stated that the shilling may continue to strengthen if the Central Bank of Kenya stops purchasing dollars.
- Market analyst at FXPesa Kenya Rufas Kamau explained to .co.ke that the strength of the local currency is a result of robust foreign currency inflows.
The National Treasury has suggested the true value of the shilling after a year of stability in relation to other global and regional currencies.
Treasury Principal Secretary (PS) Chris Kiptoo stated that the Kenyan shilling could be trading at KSh 100 per US dollar, a year after it began appreciating.
What is the current value of the Kenyan shilling?
The local currency strengthened against the US dollar from a high of KSh 160 per US dollar in January 2024 to an average of KSh 129 per US dollar in 2025.
The PS Kiptoo observed that the stability of the shilling could enable the Central Bank of Kenya (CBK) to discontinue purchasing dollars in the market.
"The shilling's value against the US dollar has appreciated from a low of KSh 160 to a current level of KSh 129. This stability has been sustained over the past year. The Central Bank has been purchasing dollars during the same period. If it hadn't done so, the shilling would likely be even stronger, possibly trading at KSh 100 per dollar," said Kiptoo.
Data from the Central Bank of Kenya showed that the shilling was valued at 129.45 Kenyan shillings per US dollar on Thursday, February 20, 2025.
Furthermore, the country's growing economic diversification has also contributed to the shilling's stability. The growth of the services sector, particularly in the IT and tourism industries, has helped to reduce the country's dependence on traditional industries
The Central Bank governor Kamau Thugge credited the shilling's resilience to the robust foreign currency reserves, which reached $9.4 billion (KSh 1.2 trillion) in February 2023.
Remittances sent back home from abroad in January 2025 reached $427.4 million (KSh 55.2 billion), a slight increase from the $412.4 million (KSh 53.3 billion) received in January 2024.
Rufas Kamau, a market analyst at FXPesa Kenya, stated that the local currency's strength is due to a significant influx of foreign currency.
"Inflows of US dollars, indicating robust remittances and enhanced foreign direct investment, could further boost the value of the Kenya shilling below KSh 120 per US dollar," said Kamau.
The significance of the shilling in Kenya's economy.
The Treasury Cabinet Secretary, John Mbadi, observed that the government has made significant progress in handling debt and ensuring long-term financial stability.
Mbadi stated that efforts to reduce the budget and strengthen the local currency led to an improvement in the present value of debt as a percentage of Gross Domestic Product (GDP) from 68.7% in 2023 to 63.0% in 2024.
The Kenyan Treasury stated that the Kenyan shilling appreciated from KSh 160.8 per USD in January 2024 to KSh 129.4 per USD in January 2025, stabilizing within the KSh 128-130 per USD range.