John Mbadi explains true value of Kenyan shilling after it maintains 12-month strength
- The Kenyan shilling maintained a 12-month high against other international and local currencies
- Data from the Central Bank of Kenya (CBK) showed that the shilling traded at KSh 129.24 per US dollar on Monday, August 25
- Treasury Cabinet Secretary (CS) John Mbadi revealed the true value of the Kenyan shilling after the 12-month strength
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Wycliffe Musalia has over six years of experience in financial, business, technology, climate, and health reporting, providing deep insights into Kenyan and global economic trends. He currently works as a business editor at TUKO.co.ke.
The Kenyan shilling has reached its true value in the foreign exchange market.
Source: Twitter
Data from the Central Bank of Kenya (CBK) showed that the local currency has maintained a 12-month high strength since 2014.
What's the true value of Kenyan shilling?
CBK reported that the shilling exchanged at KSh 129.24 per US dollar on Monday, August 25.
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Speaking during the launch of the budget-making process at the Kenyatta International Convention Centre (KICC), Mbadi said this is the true value of the Kenyan shilling.
"I hear some people say is this real?... Yes, it is real," said Mbadi.
The CS cited the value of the shilling early last year, which depreciated to almost KSh 165 per US dollar due to the market panic.
He pegged the panic on the fact that Kenya was likely to default on meeting its debt obligations.
"But because of what the government did and what it is continuing to do in managing liability and debts, the shilling appreciated to the current KSh 129.2 per dollar and has stayed at around KSh 128/130 for over one year," he added.
What defines true value of the shilling?
CS Mbadi shared key indicators of the strength of the Kenyan shilling. These are:
Forex reserves
The CS explained that if you want to know the true value of the shilling, you should look at the foreign currency reserves.
"The shilling would lose ground if there is a threat to the reserves... but current reserves are at 5.2 months of import cover up from 3.8 months a year ago," he noted.
Exports
Mbadi revealed that Kenya's exports, especially coffee and horticulture, have grown by 7.7% up from 2.6% in 2024.
"Another reason is that our exports grew by 7.7% of GDP from 2.6% of GDP in 2024. This means we have reduced the deficit by half," he said.
Mbadi also cited other factors, including an increase in diaspora remittances and early repayment of Eurobonds falling due in May 2026.
How Kenyan shilling is performing
Meanwhile, TUKO.co.ke reported that the Kenyan shilling registered a depreciation of 11.14% against the euro in 2025.
The shilling fell from KSh 134.72 per Euro in January 2025 to KSh 149.73 per Euro on August 2, 2025.
However, it remained stable against the US dollar, with exchange rates holding between KSh 129 and KSh 130 for the last eight months.
Source: TUKO.co.ke
