By The Weekly Vision Reporter
Kenya’s foreign exchange reserves stood at KSh1.97 trillion as of 6 August 2026, equivalent to 6.3 months of import cover, providing the country with a substantial buffer against external economic shocks, according to the Central Bank of Kenya (CBK) Weekly Bulletin dated 7 August 2026.
The reserves remained comfortably above the statutory requirement of at least four months of import cover, while the Kenyan shilling remained largely stable against major international and regional currencies during the week ending 6 August. The shilling traded at KSh129.41 to the US dollar on 6 August, compared with KSh129.40 on 30 July, representing negligible movement against the US currency.
The domestic money market remained liquid during the week, with open-market operations continuing to support liquidity conditions. Commercial banks’ excess reserves averaged KSh17.7 billion above the 3.25 per cent Cash Reserve Ratio requirement.
The Kenya Shilling Overnight Interbank Average Rate (KESONIA) remained unchanged at 8.75 per cent on 6 August, the same level recorded on 30 July. Interbank activity increased during the week, with the average number of transactions rising to 21 from 17 the previous week. The average value traded also increased to KSh13.4 billion, up from KSh12 billion. Treasury Bills Attract Strong Demand, and the Government Securities Market also recorded strong investor interest. The Treasury bill auction held on 6 August attracted bids totalling KSh30 billion, against an advertised amount of KSh28 billion, representing a performance rate of 107 per cent.
According to the CBK, interest rates on the 91-day, 182-day and 364-day Treasury bills declined marginally during the week. NSE Records Mixed Performance. Trading at the Nairobi Securities Exchange (NSE) produced mixed results during the week ending 6 August. The NSE All Share Index (NASI) declined by 0.87 per cent, while the NSE 25 Share Index fell by 0.18 per cent.
The NSE 20 Share Index, however, gained 1.13 per cent. Market capitalisation declined by 0.87 per cent, although trading activity increased significantly. Total shares traded rose by 62.18 per cent, while equity turnover increased by 45.53 per cent. The domestic secondary bond market, however, recorded a 34.30 per cent decline in turnover during the week. Global Inflation and Geopolitical Risks. The CBK said inflation risks remained elevated in advanced economies amid renewed tensions along the Strait of Hormuz, which it said remained effectively closed.
In the Euro Area, inflation rose to 2.9 per cent in July, from 2.8 per cent in June, largely driven by higher energy prices. Core inflation also increased to 2.5 per cent. Despite these inflationary pressures, global economic activity remained resilient. The J.P. Morgan Global Composite Purchasing Managers’ Index (PMI) Output Index improved marginally to 52.6 in July.
The US Dollar Index strengthened by 0.07 per cent during the week. Oil Falls as Gold Hits Record High. Commodity markets recorded mixed movements during the week. Murban crude oil prices declined to US$72.54 per barrel on 6 August, from US$78.24 on 30 July, amid heightened tensions in the Middle East.
Gold moved in the opposite direction, with spot prices rising to a record US$4,240.41 per ounce, up from US$4,102.40 over the same period. The latest CBK data points to a relatively stable domestic financial environment, supported by strong foreign exchange reserves, a stable shilling and adequate liquidity in the banking system. However, global inflationary pressures, energy prices and geopolitical tensions continue to pose risks to the economic outlook.
