Kenya Shilling Steadies Near 129 to the Dollar as Diaspora Inflows Cushion the Trade Gap

The Kenyan shilling opened June trading near KES 129.55 to the US dollar, holding the relative stability it has shown since the dollar-shortage shocks of 2023–24. The Central Bank of Kenya credits aggressive monetary policy, recovering reserves, and resilient diaspora remittances, which remain the country’s single largest source of foreign exchange.

The remittance picture is nuanced. The CBK trimmed its 2026 projection after a slowdown tied to Saudi labour-law and tax changes, while the United Kingdom has overtaken Saudi Arabia as the second-largest source, signalling a shift toward higher-skilled migrants. The United States still supplies more than half of inflows.

For diaspora readers, the practical reads are a more predictable exchange rate and a government increasingly courting overseas Kenyans as investors, not just senders.

Source: Business Daily Africa; Central Bank of Kenya; streamlinefeed analysis.