The Kenyan shilling gained marginally against the US dollar on Thursday, buoyed by an unexpected policy shift from US President Donald Trump. Traders attributed the currency’s rise to Trump’s decision to temporarily pause most of his recently imposed tariffs, easing global market tensions and cooling dollar demand in emerging markets.
By mid-morning, at 10:52 am East Africa Time, commercial banks were quoting the shilling at 129.30/80 per dollar, strengthening slightly from Wednesday’s close of 129.50/130.00. The data, provided by the London Stock Exchange Group, reflects a mild but notable appreciation of the Kenyan currency, reversing some of the pressure seen earlier in the week.
Market analysts noted that earlier volatility had been fueled by heightened global uncertainty, as companies braced for potential impacts of new US tariffs. “Markets were a bit active for most of the week because of the tariffs,” said a trader at a leading commercial bank in Nairobi. “Some offshore companies were exiting the market and buying dollars, but that seems to have cooled, so today there’s not so much activity.”
The temporary relief in market pressures follows a global sigh of relief, particularly in emerging economies that are sensitive to US trade policy and dollar flows. The suspension of tariffs though not permanent provided some breathing room for currencies like the Kenyan shilling that had faced downward pressure due to increased demand for the US dollar.
Kenya’s central bank has not intervened directly in recent days, signaling confidence in market stability. However, the broader macroeconomic context remains cautious, with Kenya still navigating inflationary pressures, high import costs, and a persistent current account deficit.
Still, the shilling’s modest gain is a positive signal for importers and investors, suggesting temporary relief in currency markets. Analysts will now be closely watching global developments, particularly any new statements or policy reversals from the Trump camp, to assess whether the current calm in foreign exchange markets will hold or prove short-lived.
