The Kenyan Shilling weakened slightly against the U.S. Dollar and the Euro in the week ending May 15, registering minor losses as global energy shocks reverberated through the local foreign exchange market.

🇰🇪 Breaking It Down

According to the Central Bank of Kenya's latest Weekly Bulletin released on May 15, the local currency closed the week exchanging at Ksh129.33 per U.S. Dollar, compared to Ksh129.19 on May 7, a marginal dip that nonetheless points to the mounting external pressure.

The U.S. Dollar Index strengthened by 0.5 per cent during the week as financial markets repriced expectations for Federal Reserve rate hikes in 2026, partly explaining the firmness of the greenback against emerging market currencies.

Against the Euro, the shilling slipped to Ksh151.24 on May 14 from Ksh151.80 a week earlier, while the Sterling Pound traded at Ksh174.69, down from Ksh175.77 over the same period.

📌 What You Need to Know

The weekly averages painted a similar picture, with the shilling averaging Ksh129.24 per dollar between May 8 and May 14, compared to Ksh129.19 in the preceding week of May 4 to May 7.

The Euro averaged Ksh151.66 during the second week, slightly stronger than the Ksh151.45 average recorded in the first week of May, reflecting subtle but persistent pressure on the local currency.

Against regional currencies, the shilling held firm, exchanging at 28.91 Ugandan Shillings, 20.06 Tanzanian Shillings, 11.31 Rwandese Francs, and 23.02 Burundi Francs on May 14.

The marginal slide comes against the backdrop of a historic fuel price increase, with global oil markets jolted by the ongoing U.S.-Israel-Iran conflict in the Middle East, which has driven up the cost of imports across the region.

Murban crude oil prices climbed to USD 94.84 per barrel on May 14, up sharply from USD 89.13 per barrel just a week earlier, a jump subtle but persistent pressure on the local currency.

The CBK noted that inflation concerns remained elevated globally during the week, with U.S. headline inflation rising to 3.8 per cent in April 2026 from 3.3 per cent in March, largely driven by service and energy sector cost pressures.

📰 Source: Kenyans.co.ke