The Kenyan shilling is expected to strengthen against the U.S. dollar over the coming week, with forex traders attributing the anticipated gains to increased inflows of foreign currency through remittances.

🇰🇪 Breaking It Down

According to traders, the local currency is likely to edge higher against the dollar by next Thursday, making it one of the stronger-performing currencies in the region.

Forex experts now say the main driver behind the shilling's resilience is the steady flow of dollars sent home by Kenyans living abroad.

These remittances have continued to boost the country's foreign exchange reserves, increasing the supply of dollars in the local market and supporting the value of the shilling.

📌 What You Need to Know

As of Thursday, July 9, c ommercial banks traded the shilling at 129.15/35 per dollar, compared with last Thursday's close of 129.20/40, depicting continued stability in the local unit.

President William Ruto's administration has been keen on relying on Kenyans working abroad as a strategy to stabilise the shilling. The government has thus been sending more casual labourers to work in different countries across the world, hoping to increase remittances.

A report by the Central Bank of Kenya recently revealed that between June 2024 and June 2025, Kenyans in the diaspora sent in Ksh931.8 billion in remittances.

According to the report published on June 16, 2026, during the period under review, the US c ontributed an estimated Ksh405 billion, maintaining its position as the country’s largest source of diaspora inflows.

The Middle East also accounted for notable inflows, with Saudi Arabia, Qatar, and the United Arab Emirates providing significant contributions, pointing to a widening spread of Kenya’s remittance sources

A stronger shilling is generally viewed as a huge advantage for the country's economy as it helps lower the cost of imports such as fuel, machinery, pharmaceuticals, and other goods purchased in dollars.

📰 Source: Kenyans.co.ke