- The Kenyan shilling remained stable against major global and regional currencies
- The Central Bank of Kenya reported that the country’s foreign exchange reserves remained sufficient to cover 5.3 months of imports
- Diaspora remittances rose slightly to KSh 54.26 billion in September 2025, while cumulative inflows for the year increased to KSh 656.50 billion
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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 remained steady against major global and regional currencies in the week ending October 16, 2025, as the country’s foreign exchange reserves surpassed the KSh 1.5 trillion mark.
Source: UGC
According to data from the Central Bank of Kenya (CBK), the shilling traded at an average KSh 129.24 per US dollar on the week that ended on October 16, unchanged from a week earlier.
The stability reflects improved foreign exchange liquidity and steady inflows from key sources such as remittances and export earnings.
Kenya’s foreign exchange reserves
Kenya’s foreign exchange reserves stood at USD 12.07 billion (approximately KSh 1.56 trillion) as of October 15, providing 5.3 months of import cover.
“The foreign exchange reserves remained adequate at USD 12,072 million (5.3 months of import cover) as of October 15. This meets the CBK’s statutory requirement to endeavour to maintain at least 4 months of import cover,” the CBK said.
The reserves are crucial in cushioning the economy against external shocks, including rising import costs and global currency volatility.
Diaspora remittances
Meanwhile, diaspora remittance inflows continued to grow, with Kenyans abroad sending home USD 419.6 million (KSh 54.26 billion) in September 2025, up slightly from USD 418.5 million (KSh 54.12 billion) recorded in September 2024.
Cumulative remittances for the 12 months to September rose 7.6% to USD 5.08 billion (KSh 656.50 billion), compared to USD 4.72 billion (KSh 609.99 billion) during the same period in 2024.
CBK noted that remittances remain a vital source of foreign exchange, helping support the balance of payments and stabilise the local currency amid fluctuating global market conditions.
Sources of diaspora remittances
Earlier, Kenya’s diaspora community earned widespread praise for its growing contribution to the nation’s economy after remittances surged to KSh 433 billion (USD 3.35 billion) between January and August 2025.
According to CBK data, North America remained the dominant source of inflows, contributing USD 1.94 billion, followed by Europe at USD 0.6 billion and other regions at USD 0.8 billion.
Principal Secretary for Special Programmes Ismail Maalim lauded the diaspora for their “outsized role in powering the economy”, noting that remittances have now overtaken traditional exports such as coffee and tea as Kenya’s leading source of foreign exchange.
Speaking in Washington State during a meeting with Kenyans abroad, Maalim emphasised that their impact extends beyond financial support, citing their influence in uplifting families, building enterprises, and stabilizing the balance of payments.
Source: TUKO.co.ke
