Kenyan Shilling Strengthens as Diaspora Remittances Surge
The Kenyan shilling (KES) gained strength against major crosses in the foreign exchange market last week, reflecting the absence of significant pressure on the local currency amidst growing diaspora remittances.
KES held well against the US dollar (USD), the European single currency (Euro), and the British pound (GBP) despite a slide in the country’s foreign exchange reserves.
The Kenyan shilling strengthened by 0.1% week on week to average at KES 129.19 against the US dollar, investment bank Pergamon said in its morning brief shared with investors on Monday.
Analysts said KES also appreciated by 0.4% against the Japanese yen and traded stable against the pound and the euro at KES 174.13 and KES 150.99, respectively.
The investment firm told investors that Kenya’s foreign exchange reserves declined slightly by 0.1% or USD 13 million to USD 13.23 billion from USD 13.24 billion in the previous week.
Despite the dip, reserves remain adequate at 5.6 months of import cover, against 4.0 months.
Forex reserves remain well cushioned by diaspora remittances and agricultural export inflows, although external debt service obligations continue to exert some pressure, according to Pergamon.
Analysts said diaspora remittances amounted to USD 450.3 million in March 2026, marking a 9.1% month-on-month increase from USD 412.7 million recorded in February 2026.
On a rolling 12-month basis, cumulative inflows rose by 2.2% to USD 5.08 billion, up from USD 4.97 billion in the corresponding period last year. MTN Nigeria Tops N19trn as Investors Bet on Earnings
