Kenya to Benefit from Weak US Dollar, Stable Oil Prices in 2025

According to the Standard Chartered Bank Global Market Outlook 2025, emerging markets like Kenya and Africa are set to benefit from the weakening US dollar
Kenya shilling remains stable against major international currencies, including the US dollar, trading at KSh 129.24
The report also predicted stability in oil prices despite the ongoing tension in the Middle East

Kenya and Africa are among emerging markets that will benefit from trends in the global equity markets.

Standard Chartered Bank projected further decline od US dollar. — From L-R: Standard Chartered team Ouma Orero, Edith Chumba and Manpreet Gill during the release of the bank’s H2 2025 Global Market Outlook. Photo: Standard Chartered Bank.
Source: UGC

A report by Standard Chartered Bank indicated that a softer US dollar, resilient global equity markets, and improving prospects for emerging-market assets present an opportunity for investors.

How weak US dollar will support Kenya’s economy

The lender projected that the greenback will weaken over the next 6 to 12 months on upgraded Asia (ex-Japan) equities and Emerging Market (EM) local-currency bonds to overweight.

The report stated that global equities also remain an overweight position across portfolios, supported by healthy earnings, easing trade tensions, and controlled inflation.

Standard Chartered Managing Director and CEO, Kenya and Africa, Kariuki Ngari, said Kenyan investors are well-positioned to capitalise on these emerging opportunities.

“A weaker dollar historically supports returns across risk assets, particularly in emerging markets, which have long been core components of regional portfolios,” said Ngari.

Ngari added that a weak dollar will make Nairobi markets more attractive to investors as the shilling continues to stabilise.

“We will leverage this trend to support economic development and provide innovative financial solutions for our customers,” she added.

Chief Investment Officer of Africa, Middle East and Europe, Manpreet Gill, said that adjustment to the weak dollar in the global market allows Kenyans and investors in the emerging markets to reposition portfolios with greater international diversification.

“Asset classes such as emerging market bonds and equities across major regions (including non-US equities) are well-placed to help investors navigate volatility, capture income, and enhance portfolio resilience in today’s shifting landscape,” said Gill

The report further maintained a preference for dollar-denominated bonds in the 5–7-year maturity range, citing them as the most attractive in terms of risk-adjusted returns.

The report came as the Kenyan shilling remained bullish in the forex market, hitting an average of KSh 129.24 per US dollar as of Thursday, July 4, 2025.