Kenya Shilling vs Dollar: A 5-Year Look at What Changed

The Kenya shilling–U.S. dollar exchange rate changed sharply over the past five years. The annual average moved from about KSh109.60 per US$1 in 2021 to KSh139.70 in 2023, before the shilling strengthened to an average of KSh134.80 in 2024 and KSh129.30 in 2025. By September 24, 2026, the Central Bank of Kenya (CBK) reported an indicative rate of KSh129.48 per US$1.

For a Kenyan household, business, student, importer, freelancer, or recipient of diaspora funds, the difference between KSh110 and KSh160 per dollar affects the local cost of international goods, software subscriptions, school fees, foreign debt, travel, and imported fuel-related products.

This article explains what changed, how to calculate the impact, and which economic factors influenced the Kenya shilling against the dollar.

Last Updated: September 26, 2026

Kenya shilling versus dollar: the five-year figures

The most useful way to compare the currencies is to examine the average rate for each calendar year, followed by the latest available indicative rate.

CBK defines its published foreign-exchange figures as market-based indicative rates reflecting the average buying and selling rates of major market participants. Therefore, the rate available to a customer at a bank, card provider, mobile-money service, or forex bureau may differ because of transaction spreads and charges.

The overall five-year movement

Using the 2021 annual average as the starting point and the September 24, 2026 rate as the latest reference:

[ \text{Change} = \frac{129.48 - 109.60}{109.60} \times 100 ]

The dollar became approximately 18.1% more expensive in Kenya shillings over that comparison. Put differently, the shilling’s quoted value against the dollar declined by roughly the same proportion when measured as KSh per US$1.

This does not mean that every product increased by 18.1%. Retail prices also reflect taxes, freight, local wages, supplier margins, competition, energy costs, and other factors.

What happened each year?

2021: gradual pressure after the pandemic

The Kenya shilling averaged KSh109.60 per dollar in 2021, compared with KSh106.50 in 2020. CBK attributed the weakening partly to the effects of COVID-19 on global financial conditions.

The United States later entered a period of monetary tightening, and expectations of higher U.S. interest rates supported the dollar internationally. For Kenya, a stronger dollar increased the local-currency cost of imported goods and dollar-denominated obligations.

A business importing equipment worth US$10,000 would have valued the shipment at approximately:

• 2021 annual-average calculation: US$10,000 × KSh109.60 = KSh1,096,000
• This excludes shipping, insurance, taxes, bank charges, and other landed costs.

2022: the dollar strengthened globally

The annual average moved to KSh117.90 per dollar in 2022, up from KSh109.60 in 2021. CBK reported that the shilling weakened against major international currencies, partly because of U.S. monetary-policy tightening and a stronger dollar.

The difference between the two annual averages was:

[ 117.90 - 109.60 = KSh8.30 ]

For a US$10,000 payment, that represented an additional:

[ 10,000 \times 8.30 = KSh83,000 ]

compared with the 2021 annual-average conversion.

2023: the sharpest depreciation in the period

The annual average reached KSh139.70 per dollar in 2023, compared with KSh117.90 in 2022. CBK’s banking-sector report records the same broad movement, describing the shilling as averaging KSh139.7 against the dollar in 2023.

The 2023 movement reflected several pressures, including:

• A stronger U.S. dollar and tight global financial conditions.
• Demand for foreign currency to pay for imports and external obligations.
• Concerns surrounding external debt-servicing requirements.
• Reduced availability of foreign exchange relative to demand.
• Higher global energy and commodity costs.
• Elevated inflation and interest-rate adjustments.

The annual-average difference from 2022 was KSh21.80 per dollar. A US$10,000 invoice therefore converted to:

This is an exchange-rate difference only. It does not represent a complete import-cost calculation.

2024: a sharp recovery from the January low

The shilling experienced a major reversal during 2024. Kenya’s National Treasury reported that the exchange rate averaged KSh160.80 per dollar in January 2024 and KSh129.40 in June 2024, an appreciation of approximately 19% between those monthly averages.

KNBS also reported that the shilling moved from an all-time high of approximately KSh159.69 per dollar at the beginning of 2024 to KSh129.36 by the end of the year.

The annual average was still KSh134.80, because the earlier high rates affected the full-year calculation. The recovery during the year did not erase the average impact of the first months.

CBK identified several factors supporting the 2024 strengthening:

• Increased foreign-exchange inflows.
• Monetary-policy measures.
• Foreign-exchange-market reforms.
• The government’s buyback and refinancing of part of the June 2024 Eurobond.
• Greater transparency in the interbank foreign-exchange market.

The Central Bank described the introduction of an electronic matching system, a foreign-exchange code for commercial banks, and the unification of previously different indicative and parallel rates as important market reforms.

The National Treasury reported that the government refinanced US$1.5 billion, representing 75% of the US$2 billion Eurobond due in June 2024.

2025: stronger average rate and relative stability

The shilling averaged approximately KSh129.30 per dollar in 2025, compared with KSh134.80 in 2024. CBK’s 2025 report described the shilling as strengthening against major currencies and recorded the 2025 dollar average at KSh129.3.

This was a substantial improvement from the 2023 average of KSh139.70:

[ 139.70 - 129.30 = KSh10.40 ]

A US$10,000 payment at the 2025 average required approximately KSh1,293,000, compared with KSh1,397,000 at the 2023 annual average. The difference was KSh104,000 before transaction charges.

CBK linked exchange-rate stability during this period to diversified foreign-exchange inflows, including diaspora remittances, tea exports, offshore inflows, and adequate foreign-exchange reserves. In June 2025, CBK reported 12-month remittance growth of 12.1% and reserves of US$10.828 billion, equivalent to 4.75 months of import cover.

2026: the rate remained near KSh129

By September 24, 2026, CBK reported an indicative rate of KSh129.48 per dollar, compared with KSh129.62 a week earlier.

The rate was broadly close to the 2025 annual average. The National Treasury also reported that the shilling averaged KSh129.50 per dollar in June 2026, compared with KSh129.30 in June 2025.

CBK reported a Central Bank Rate of 8.75% in August 2026 and an August inflation rate of 6.6%. These figures provide context for the monetary environment but do not guarantee that the exchange rate will remain unchanged.

Why does the Kenya shilling move against the dollar?

Demand for imported goods

Kenyan importers need dollars to pay foreign suppliers. When demand for dollars rises faster than available supply, the KSh-per-dollar rate can increase.

Common dollar-linked payments include:

• Petroleum and energy-related imports.
• Machinery and industrial equipment.
• Computer hardware and cloud services.
• International education and medical-related payments.
• Airline tickets and foreign travel.
• Some raw materials used by Kenyan manufacturers.
• External loan interest and principal repayments.

Export and service inflows

Kenya receives dollars through exports and services such as:

• Tea, coffee, horticulture, and other agricultural exports.
• Tourism.
• Transport and logistics services.
• Diaspora remittances.
• Foreign investment and external borrowing.
• Professional and digital services sold internationally.

When exporters, households, or institutions convert dollars into Kenya shillings, the supply of foreign currency can support the local currency. CBK has repeatedly identified remittances and other foreign-exchange inflows as factors supporting stability.

U.S. monetary policy

U.S. interest rates influence global demand for dollar-denominated assets. When U.S. rates rise, investors may prefer dollar assets, potentially increasing demand for dollars and placing pressure on emerging-market currencies.

This is one reason a Kenya shilling exchange-rate movement cannot be explained only by domestic events.

Inflation differences

Inflation affects purchasing power. Kenya’s annual average inflation rose from 6.1% in 2021 to 7.7% in 2022 and 2023, before easing to 4.5% in 2024, according to KNBS.

Lower inflation can reduce some pressure on the currency, although exchange rates also depend on interest rates, reserves, trade flows, public debt, investor confidence, and global conditions.

Foreign-exchange reserves

Reserves provide a buffer for external payments and market confidence. In August 2026, CBK reported foreign-exchange reserves of US$15.245 billion, equal to 6.3 months of import cover.

Import cover is an estimate of how long reserves could finance imports at the relevant level. It is not a measure of household income and does not mean that every dollar in reserves is freely available for every transaction.

How to calculate KSh-to-dollar conversions

Converting dollars into Kenya shillings

Use:

[ \text{Kenya shillings} = \text{US dollars} \times \text{KSh per US$1} ]

Example:

• Amount: US$2,500
• Rate: KSh129.48 per US$1

[ 2,500 \times 129.48 = KSh323,700 ]

The indicative conversion is therefore KSh323,700, before bank fees, card charges, taxes, or provider spreads.

Converting Kenya shillings into dollars

Use:

[ \text{US dollars} = \frac{\text{Kenya shillings}}{\text{KSh per US$1}} ]

Example:

• Amount: KSh500,000
• Rate: KSh129.48 per US$1

[ 500,000 \div 129.48 \approx US$3,861.60 ]

The result is approximately US$3,861.60, before any charges.

Comparing the cost across years

Suppose a Kenyan company has a US$25,000 software and equipment invoice.

The 2023 annual-average rate produced a KSh752,500 higher conversion than the 2021 annual-average rate. This table isolates currency movement; it does not calculate the supplier’s price changes or other business costs.

What the exchange rate means for everyday users

Importers and businesses

A weaker shilling can increase the KSh cost of goods priced in dollars. The eventual retail price depends on how the business manages inventory, contracts, margins, taxes, and customer demand.

A business with dollar revenue may record more Kenya shillings when converting that revenue during a weaker-shilling period. However, the same business may also have dollar expenses, creating an offsetting effect.

Freelancers and exporters

A Kenyan freelancer paid US$1,000 would convert the gross payment as follows:

• At KSh109.60: KSh109,600
• At KSh139.70: KSh139,700
• At KSh129.48: KSh129,480

These are gross currency conversions. Payment platforms may use their own exchange rates and deduct service charges before settlement.

Families receiving remittances

A US$500 remittance converts to:

• KSh54,800 at KSh109.60.
• KSh69,850 at KSh139.70.
• KSh64,740 at KSh129.48.

The recipient’s actual amount depends on the remittance provider, transfer fees, applicable taxes, and the rate used at the time of conversion.

Travellers and students

Foreign tuition, accommodation, subscriptions, and travel costs are commonly quoted in dollars or other foreign currencies. Comparing the relevant rate date with the payment date helps explain why a Kenya-shilling budget changes even when the foreign-currency price stays constant.

Use a currency conversion tool

ToolBase’s Currency Converter can help you convert a dollar amount into Kenya shillings using the rate you enter. For a historical comparison, enter KSh109.60, KSh139.70, KSh134.80, KSh129.30, and KSh129.48 separately rather than treating one current rate as applicable to every past transaction.

You can also use the Percentage Change Calculator to measure the movement between two KSh-per-dollar rates:

[ \frac{\text{New rate} - \text{Old rate}}{\text{Old rate}} \times 100 ]

For example, the change from KSh109.60 to KSh129.48 is approximately 18.1%.

When a payment involves a bank, card, mobile-money service, or forex bureau, compare the provider’s final quoted rate with the CBK indicative rate. The difference commonly reflects spreads, commissions, settlement costs, and timing.

Conclusion

The Kenya shilling moved from an annual average of KSh109.60 per dollar in 2021 to KSh139.70 in 2023, then strengthened to KSh134.80 in 2024 and KSh129.30 in 2025. The main influences included global dollar strength, import demand, external debt payments, foreign-exchange inflows, monetary policy, reserve levels, market reforms, and the 2024 Eurobond refinancing. By September 2026, the CBK rate remained close to KSh129 per dollar, although daily market rates can change.

This article is for educational purposes only and does not constitute professional advice. Consult a qualified professional for your specific situation.

References

The exchange-rate figures are based primarily on Central Bank of Kenya annual reports, historical exchange-rate datasets, daily bulletins, and foreign-exchange publications.