Daily Market Update
MARKET UPDATE FOR 12th May 2025
LOCAL MARKET
USD/KES
The Kenya shilling was broadly steady on Friday as foreign exchange supply from exporters met subdued dollar appetite.
Expected range today is 127.00 -132.00
| INDICATIVE FOREX RATES | ||||
| CROSS RATES | AGAINST KES | |||
| USD | 127.00 | 132.00 | ||
| GBP | 1.3125 | 1.3531 | 166.69 | 178.61 |
| EUR | 1.1066 | 1.1370 | 140.54 | 150.08 |
| JPY | 144.56 | 147.57 | 0.8606 | 0.9131 |
| ZAR | 16.730 | 19.735 | 6.44 | 7.89 |
| CHF | 0.8291 | 0.8393 | 151.32 | 159.21 |
| CAD | 1.3879 | 1.3984 | 90.82 | 95.11 |
| KES/UGX | 3605 | 3715 | 27.31 | 29.25 |
| KES/TZS | 2620 | 2775 | 19.85 | 21.85 |
MONEY MARKET
CBK analysis on Thursday showed excess liquidity in the market. The regulator was therefore in the market to mop up Kes 30Bn in 3 and 5 day repo in order to remain within the monetary policy path set by the MPC.
| LOCAL MONEY MARKET | |||
| TREASURY BILLS AND BONDS (MIO KES) | |||
| Tenor | 91-day | 182-day | 364-day |
| Amount Offered | 4,000.00 | 10,000.00 | 10,000.00 |
| Bids Received | 10,336.13 | 20,829.84 | 21,502.16 |
| Amount Accepted | 10,287.87 | 20,782.88 | 19,642.88 |
| Current Rate | 8.3815% | 8.6010% | 10.0098% |
| Previous Rate | 8.4058% | 8.6190% | 10.0058% |
GLOBAL MARKETS
Trump’s erratic trade policies have put the USD under pressure in recent weeks, though it gained some support last week when the Fed signalled it was in no rush to cut rates again. Trump still seems wedded to keeping broad tariffs in place no matter what, which will drag on economic growth and push up prices, but any trade progress could help dodge a sharp downturn.
The EUR/USD pair kicks off the new week on a weaker note amid a modest USD uptick, bolstered by the optimism over a US-China trade deal. Spot prices, however, manage to hold above the 1.1200 mark and a onemonth low touched last Thursday as traders await the US-China joint statement for more details about the agreement.
The GBP/USD pair kicks off the new week on a weaker note and reverses a part of Friday’s modest recovery from the vicinity of the 1.3200 mark, or over a threeweek low. Spot prices trade around the 1.3280-1.3275 region during the Asian session, down 0.20% for the day amid a broadly stronger USD. Investors might also opt to wait for speeches from BoE MPC members and influential Fed officials. Investors will look for cues about the future policy outlook which, in turn, will provide a fresh impetus to the GBP/USD pair.
Source: Reuters
| LOCAL AND INTERNATIONAL BENCHMARK RATES | |||
| Local Inflation | 4.1% | ||
| KES CBR | 10.00% | ||
| GBP BOE RATE | 4.25% | ||
| EUR ECB RATE | 2.90% | ||
| USD FED RATE | 4.50% | ||
| SOFR O/N RATE | 4.29%, 2.171%, 4.2100% | ||
| BRENT OIL ($/BARREL) | 64.35 | ||
| MURBAN CRUDE ($/BARREL) | 64.84 | ||
For firm quotes and more information on other treasury products kindly contact our treasury team
Treasury team: Milton Onyuna, Martin Githinji, Lorna Kageni, Musa Ongori,
Dennis Ingolo, Elizabeth Kiarie, Brian Gachanja and Oliver Kilonzo.
Telephone Contacts: 020 3275 XXX; EXT.244/558/257/185/378/245/221/526
Mobile Lines: 0703 058 XXX; EXT.244/558/257/185/378/245/221/526
Email: dealing@boakenya.com
Disclaimer
Whilst every care has been taken in compiling this market update, the Bank will not be responsible for any and shall be exempt from all liabilities in respect of any loss of any kind whatsoever, incurred by any persons as a consequence of relying on the above information or otherwise.