How Has the Shilling Performed Against the Euro in 2025?
The Kenyan shilling has taken a significant hit against the euro this year. On August 1, it was trading at KSh 147.65 but quickly dropped to a year low of KSh 151.38 by August 18. A slight rebound followed, with the shilling closing at KSh 149.73 on August 22. Since January, the currency has depreciated by 11.14% against the euro, sliding from KSh 134.72 on January 2. This sharp decline reflects mounting pressure on Kenya’s exchange rate stability, even as the Central Bank of Kenya (CBK) notes relative stability against other currencies.
What’s the Shilling’s Status Against the Pound?
The pound has also gained ground against the shilling. From KSh 162.19 on January 2, the rate weakened to KSh 173.08 by August 22, amounting to nearly 7% depreciation. This drop mirrors the broader struggles of the shilling in 2025, as the sterling pound remains strong in global markets.
Why Is the Shilling Holding Firm Against the US Dollar?
Unlike its performance against the euro and pound, the shilling has remained relatively stable against the US dollar throughout 2025. The dollar has traded within the KSh 129-130 range for most of the year, holding steady at KSh 124.2 in August despite slight movements in the Dollar Index (DXY).
Terence Hove, senior financial markets strategist at Exness, explained that global monetary policy remains the key driver. “If Fed officials suggest higher US rates or flag inflation risks during the Jackson Hole Symposium, emerging market currencies like the Kenyan shilling and South African rand (ZAR) could weaken against the USD. Conversely, a dovish tone could strengthen these currencies as the USD weakens. Both KSh and ZAR are sensitive to the global US dollar direction,” he said.
By Risper Akinyi