By Benadeta Mwaura - Reporter
Kenya, June 25, 2026 - African currencies are expected to remain largely stable or come under mild pressure in the coming days as markets continue to assess global economic conditions, oil price movements, and month-end demand for foreign currency, according to a Reuters survey of traders across the continent.
For Kenya, the outlook remains relatively positive, with the shilling projected to maintain its recent stability against the US dollar despite ongoing global uncertainties. Currency dealers quoted the shilling at around 129.55/75 per dollar this week, largely unchanged from previous trading sessions.
The resilience of the Kenyan currency comes amid easing concerns over global oil supply disruptions following recent diplomatic progress involving the United States and Iran.
Earlier fears surrounding potential disruptions in the Strait of Hormuz, a critical route for global oil shipments, had weighed on emerging market currencies and increased pressure on oil-importing economies such as Kenya.
Kenya's currency has benefited from a combination of strong diaspora remittances, export earnings from tea and horticulture, improved foreign exchange reserves, and prudent monetary policy by the Central Bank of Kenya (CBK).
These factors have helped shield the shilling from the sharp volatility experienced by several African currencies over the past two years.
Across the continent, however, some currencies are expected to face headwinds. Ghana's cedi is forecast to come under slight pressure due to rising demand for dollars from energy companies and corporate importers, while Uganda's shilling may weaken modestly as manufacturers and other businesses increase foreign currency purchases ahead of month-end obligations.
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Zambia's kwacha could find support from hard-currency sales by local firms seeking to meet domestic payment requirements.
The latest projections suggest that while demand for dollars remains elevated in several African economies, most currencies are likely to trade within relatively narrow ranges rather than experience significant depreciation.
For Kenya, stability in the foreign exchange market remains critical as the country continues to manage external debt obligations, fuel import costs, and broader economic recovery efforts. The shilling's performance has also played a key role in moderating imported inflation, particularly for fuel, food, and industrial inputs.
The currency's outlook in the coming weeks will largely depend on global oil prices, capital inflows, export performance, and investor confidence in Kenya's macroeconomic reforms. A sustained decline in global crude oil prices could further ease pressure on Kenya's import bill and support the shilling's stability through the second half of the year.
While global uncertainties remain, including geopolitical tensions and fluctuating commodity markets, traders expect the Kenyan shilling to remain one of the more stable currencies in the region, supported by strong foreign exchange inflows and relatively balanced market conditions.