The Kenyan shilling ended the week almost unchanged, trading at Sh129.89 to the US dollar on Friday, October 16, 2026, according to the Central Bank of Kenya’s (CBK) daily exchange rates, as the dollar retreated from an 18-month high and the euro, pound and yen recovered some of the ground they lost earlier in the week, leaving the shilling slightly weaker against all of them.

Against the dollar, the shilling was 8 cents weaker than the Sh129.81 recorded on Thursday, its third small slip in a row since it touched Sh129.71 on Tuesday. Over the week, however, it moved within a narrow range of Sh129.71 to Sh129.89, and Friday’s rate is 2 cents stronger than the Sh129.91 recorded a week earlier.

The bigger changes came against the other major currencies. The pound rose to Sh172.74 from Sh171.30, a gain of 0.8%, and the euro to Sh145.81 from Sh144.43, a gain of about 1%. One hundred Japanese yen were worth Sh82.27, up from Sh81.70, while the South African rand rose to Sh7.89 from Sh7.81.

The reason lies in the United States. A hotter-than-expected inflation report on Wednesday pushed the dollar to an 18-month high and raised bets on a Federal Reserve interest rate hike this month. On Thursday, cautious remarks from Fed officials and a sharp fall in Treasury yields led traders to scale back those bets, and the dollar index slipped by about 0.5% to roughly 102.0.

The euro bounced from a 17-month low to around $1.12, and the dollar was on track for its first weekly fall in five weeks. Traders now see a 72% chance that the Fed holds rates when it meets on October 27 and 28.

Among regional currencies, the shilling regained some ground against Uganda’s shilling after Wednesday’s sharp rally in that currency. One Kenyan shilling bought 31.17 Ugandan shillings, up 2.3% from 30.46 on Thursday, although it is still below the 31.82 recorded on Wednesday. It also bought 20.36 Tanzanian shillings, up from 20.26 and 11.35 Rwandan francs, down a cent from 11.36.

For importers who pay in euros and pounds, Friday’s rates mean higher costs than on Thursday, while exporters to Europe and Britain earn more shillings per unit of foreign currency. The next test is the Fed’s meeting is on October 27 and 28.

However the CBK’s rates are indicative. Banks and forex bureaus quote their own buying and selling rates, which differ from the published figures.