The Kenyan shilling firmed slightly against regional currencies in the week leading to Christmas.The Kenyan shilling has posted modest gains against the Ugandan shilling while holding relatively stable against the Tanzanian shilling. How did the Kenyan shilling perform against the Ugandan shilling? The indicative foreign exchange rates released by the Central Bank of Kenya (CBK) shows that between December 19 and December 23, the Kenyan shilling strengthened against the Ugandan shilling, with rising from USh 27.6998 to 27.9382 per KSh. This represented an appreciation of about 0.86% over the four-day period, driven by steady end-month demand and seasonal foreign exchange inflows. In the Christmas week, the shilling advanced from 27.7646 on December 22 to 27.9382 on December 23, underscoring a late-month uptick ahead of the holiday break. A line graph showing the fluctuation of the Kenyan Shilling to Ugandan Shilling exchange rate from December 1 to December 23, 2025. How did the Tanzanian shilling perform pre-Christmas? Against the Tanzanian shilling, movements were more muted in the days leading to the Christmas break. The KSh/TSh rate edged down slightly from TSh 19.3092 on December 19 to TSh 19.2303 on December 23, reflecting a marginal 0.4% softening over the period. From December 22 to 23, the shilling recorded a small day-on-day gain as the rate eased from 19.2335 to 19.2303, signalling limited volatility as markets headed into the festive season. A line graph illustrating the trend of the Kenyan Shilling to Tanzanian Shilling exchange rate from December 1 to December 23, 2025. Kenyan shilling in December Looking at the broader December trend, the Kenyan shilling showed resilience against both currencies. Against the Ugandan shilling, the exchange rate improved steadily from 27.8450 on December 2 to 27.9382 by December 23. However, the gradual strengthening over the month was characterised by intermittent fluctuations.
A similar pattern emerged against the Tanzanian shilling, where the shilling traded stronger compared to early December levels, improving from 18.9335 on December 1 to around 19.23 by December 23. Overall, December trading reflected a relatively stable Kenyan shilling against its neighbouring countries. Kenyan shilling versus US dollar Earlier, TUKO.co.ke reported that the Kenyan shilling had strengthened against the US dollar, hitting its strongest exchange rate of 2025 in mid-December. The shilling dipped below the KSh 129 mark for the first time in 2025 as sustained foreign exchange inflows and supportive monetary policy anchored currency stability. Central Bank of Kenya data showed the shilling traded at KSh 128.9334 on December 16, improving from KSh 128.9632 a day earlier, before settling at KSh 128.9474 on December 17. Economist Daniel Kathali attributed the shilling’s resilience to diversified forex inflows, particularly rising diaspora remittances alongside steady earnings from horticulture, tea exports, and tourism, which helped offset import demand. He also pointed to accommodative monetary policy, with the CBK cutting its benchmark rate from 10.75% earlier in the year to 9.00% by December, as well as favourable external conditions such as a softer US dollar and lower global oil prices.
By Elijah Ntongai
