Kenya’s shilling is expected to strengthen against the U.S. dollar over the coming week, supported by steady inflows from diaspora remittances that continue to provide the country with a reliable source of foreign exchange.
Currency traders said remittance inflows are likely to improve dollar liquidity in the local market, helping the shilling extend its recent stability after trading largely unchanged over the past week. The currency was quoted by commercial banks at 129.15/129.35 per dollar on Thursday, compared with 129.20/129.40 a week earlier.
Remittances have become one of Kenya’s most dependable sources of hard currency, helping to support the balance of payments while easing pressure on foreign exchange reserves. The continued flow of funds from Kenyans living abroad has also helped cushion the economy against swings in export earnings and external financing conditions.
The positive outlook for the Kenyan currency contrasts with expectations across several other African markets, where domestic demand for foreign exchange and softer export receipts are weighing on local currencies.
In Ghana, traders expect the cedi to continue its gradual depreciation as demand for dollars from businesses remains elevated. Market participants said persistent foreign exchange demand, particularly from corporate customers, continues to outstrip available supply despite regular central bank auctions.
Officials noted that recent foreign exchange auctions have attracted bids well above the amounts offered, highlighting sustained demand for hard currency. Traders said there are few signs that these pressures will ease in the near term, with energy and services companies expected to remain significant buyers of dollars.
Uganda’s shilling is also forecast to weaken over the next week as foreign currency inflows from key commodity exports, including coffee, slow while demand from fuel importers remains strong. Dealers said tighter export proceeds have reduced dollar supply even as import-related demand continues to rise.
Nigeria’s naira, by contrast, is expected to remain broadly stable. Traders attributed the outlook to continued dollar sales by the Central Bank of Nigeria and sustained foreign portfolio inflows encouraged by attractive treasury yields. The currency traded at about 1,374 per dollar in the official market, little changed from the previous week, while it exchanged at roughly 1,395 per dollar on the parallel market.
In Zambia, analysts expect the kwacha to hold near current levels as tax-related payments, including Value Added Tax and withholding tax obligations, increase demand for the local currency. Those seasonal inflows are expected to offset broader pressures in the foreign exchange market and provide temporary support for the kwacha.
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Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
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