Shilling steady near KSh 129.7 as reserves ease to US$14.93bn, two days before the MPC meets
The CBK weekly bulletin of 2 October put the shilling at KSh 129.71 to the dollar on 1 October, up from 129.48 a week earlier, and called it stable. Rio Times reported about KSh 129.76 on Friday. Usable reserves stood at US$14.93 billion (6.1 months of import cover), against about US$15.04 billion the week before (Kenya Times). The overnight interbank rate held at 8.75 percent; average daily interbank deals fell to 14 from 27 and value traded to KSh 9.5 billion from KSh 14.5 billion. The MPC meets on 7 October.
A stable shilling and reserves above the four-month target take pressure off import prices and debt servicing. The MPC decision this week will show whether the central bank sees room to move.
A steady shilling keeps imported fuel, cooking oil and electronics from getting dearer through the exchange rate. Loan holders will watch the Wednesday decision on the Central Bank Rate.
Stable currency and reserves show confidence and give the central bank room to hold rates.
A small fall in reserves and thinner interbank trading are reminders that stability depends on external payments staying manageable.
The numbers are calm. The risk this week is an oil shock from the Gulf feeding into the import bill. DailyDrop will report the MPC decision as soon as it is out.
DailyDrop Kenya edition No. 1 · Morning · MON., OCT. 5, 2026