The Kenyan shilling is set to extend its recent stable run after traders reported weakening demand for the U.S. dollar, easing pressure on the local currency despite continued global economic uncertainty.

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A survey of currency traders found that the shilling is expected to remain broadly stable next week, supported by lower demand for dollars and continued inflows from investors buying Kenyan government bonds.

Commercial banks quoted the shilling at Ksh129.39/45 against the dollar on Friday, compared to Ksh129.20/40 a week earlier, reflecting little movement in the exchange rate.

"We are not seeing much strong demand (for dollars). The view is that it is going to be stable," one trader told Reuters , pointing to subdued demand for the greenback in the local market.

📌 What You Need to Know

The latest outlook comes as Kenya continues to benefit from foreign investor interest in government securities, with traders saying the inflows have helped cushion the shilling against external market pressures.

Unlike several African currencies expected to face mixed fortunes next week , traders projected that Kenya's currency would remain broadly steady, alongside those of Nigeria and Ghana.

The survey comes days before the Central Bank of Kenya's Monetary Policy Committee meets on August 11 to review the benchmark lending rate.

Ahead of the meeting, the Kenya Bankers Association has called on the CBK to retain the Central Bank Rate at 8.75 per cent, saying the current policy has supported exchange rate stability and kept inflation within the target range.

The bankers argued that inflation remains largely contained despite a slight increase to 6.5 per cent in July, adding that price pressures have mainly been driven by higher food and transport costs.

According to the association, Kenya's economy has remained resilient , growing by 5.3 per cent in the first quarter of 2026, supported by stronger performance in manufacturing, construction, tourism and other service sectors.

📰 Source: Kenyans.co.ke