Kenyan Shilling Loses Big Against Euro, Pound in 2025, Holds Versus US Dollar
- The Kenyan shilling has depreciated by 11.14% against the euro in 2025, falling from KSh 134.72 in January to KSh 149.73 on August 22
- The shilling has remained stable against the US dollar, with exchange rates holding between KSh 129 and KSh 130 for the last eight months
- Analysts warn that the US Federal Reserve’s stance at the Jackson Hole Symposium could influence the rates further
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Elijah Ntongai, an editor at TUKO.co.ke, has over four years of financial, business, and technology research and reporting experience, providing insights into Kenyan, African, and global trends.
The Kenyan shilling has recorded major depreciations against the euro and the sterling pound.
Source: UGC
In 2025, the shilling has been on a losing streak against the euro and the sterling pound.
According to the latest bulletin by the CBK, the shilling has recently held stable against major global and regional currencies.
Kenyan shilling versus euro
The shilling has depreciated from KSh 147.65 on August 1 and hit a year low of KSh 151.38 on August 18 against the euro.
Notably, the shilling made a slight recovery against the euro to close the week at an indicative rate of KSh 149.73 on August 22.
Since January 2025, the shilling has depreciated by 11.14% against the euro, from KSh 134.72 on January 2, to KSh 149.73 on August 22.
Kenyan shilling versus Sterling pound
The shilling has also recorded significant depreciation against the sterling pound.
The shilling has shed almost 7% to the pound, depreciating from KSh 162.19 on January 2 to KSh 173.089 on August 22.
Kenyan shilling holds against the US dollar
In contrast to the euro and the pound, the shilling has held relatively still against the US dollar in 2025.
The US dollar indicative exchange rate has remained within KSh 129-130 for the last eight months.
In August alone, the dollar rate has remained unchanged, at KSh 124.2, despite the slight gains in the Dollar Index (DXY Index).
According to Terence Hove, the senior financial markets strategist at Exness, the DXY has remained firm within the past month and recovered from the lows in July l.
Hove, however, noted that the dollar could gain further in the coming days if the US Fed officials hinted at higher Fed rates during the Jackson Hole Symposium held in the US.
"If Fed officials suggest higher US rates or flag inflation risks during the Jackson Hole Symposium, emerging market currencies like the Kenyan shilling and South African rand (ZAR) could weaken against the USD. Conversely, a dovish tone could strengthen these currencies as the USD weakens. Both KSh and ZAR are sensitive to the global US dollar direction," Hove told TUKO.co.ke.
Source: Twitter
Projected currency performance
The African Development Bank’s 2025 Africa Economic Outlook projected that 21 African currencies will weaken against the US dollar due to geopolitical tensions and market volatility.
Notably 25, including Kenya’s shilling, were expected to appreciate against the US dollar.
The Kenyan shilling is forecast to strengthen by over 3%, potentially reaching KSh 120 per dollar, driven by what geopolitical economist Aly Khan Satchu described as “muscular and stable” performance, possibly supported by Gulf Cooperation Council backing.
However, Satchu warned that the shilling remains vulnerable to global shocks.
The Moroccan dirham and currencies in the CFA franc zone were also expected to gain. In contrast, currencies in Egypt, Nigeria, Ethiopia, and Ghana were predicted to fall by at least 6%.
Source: TUKO.co.ke
