NAIROBI, Kenya, Dec 10 – Central Bank of Kenya (CBK) governor Kamau Thugge has reiterated that Kenya’s exchange rate remains fully market-driven, pushing back against claims that the apex bank has been manipulating the shilling’s value against the US dollar.
Speaking during the final Monetary Policy Committee (MPC) meeting of 2025, Thugge said recent currency stability reflects improved fundamentals rather than administrative action.
“It is our stance that this exchange rate is market driven,” he said.
“We stick to our long held stance of non interference.”
The shilling has held within a narrow range of Sh129-130 to the US dollar for nearly a year, trading at about Sh129.30 in early December.
Thugge attribute the stability to strong inflows from exports, diaspora remittances and foreign-denominated debt proceeds, which have helped rebuild the reserve position and ease pressure in the forex market.
CBk disclosed that Kenya’s foreign exchange reserves have risen sharply over the year, strengthening the external position and providing a buffer against global volatility.
The reserves, which opened 2025 at about $9–9.4 billion, have grown steadily through the year. Between July and September they ranged between $10.7 billion and $11.2 billion, before climbing further in October and November to reach $12.0–12.3 billion.
As of December 8, reserves stood at $12 billion,equivalent to 5.3 months of import cover.
