CBK Governor Kamau Thugge says the Kenyan shilling is expected to remain stable in 2026, backed by strong forex reserves, remittances, and a healthy balance of payments.
The Central Bank of Kenya (CBK) has moved to calm growing speculation about the future of the Kenyan shilling, with Governor Dr. Kamau Thugge assuring the public that the currency is not under threat of a sharp slide.
Speaking during the Monetary Policy Committee briefing, Thugge dismissed claims that the shilling could weaken to KSh150 against the US dollar this year.
He said current economic indicators show a stable outlook supported by steady foreign inflows and disciplined fiscal management.
According to the governor, Kenya recorded a balance of payments surplus last year and projections indicate another surplus in 2026 and 2027.
This surplus, he explained, strengthens the country’s foreign exchange position and reduces pressure on the shilling.
The local currency has recently been trading around KSh129 to the dollar, a strong recovery compared to early 2024 when it dipped to nearly KSh165. CBK attributes the rebound to record foreign exchange reserves now standing at about USD 12.5 billion.
Diaspora remittances have also played a major role. Kenya received over KSh645 billion in remittance inflows last year, ensuring a consistent supply of hard currency.
At the same time, stronger earnings from agriculture exports and tourism have boosted dollar availability.
Thugge added that easing inflation currently around 4.4 percent alongside structured debt management, including Eurobond buybacks, has reinforced investor confidence and anchored exchange rate stability.
Addressing concerns about Kenya holding part of its reserves in Chinese yuan, the governor clarified