The Kenyan Shilling has fallen to its lowest recorded level against major international currencies, raising fresh concerns over the country’s economic direction amid rising trade deficits and global financial instability.

According to the Leading Economic Indicators Report released by the Kenya National Bureau of Statistics (KNBS) on June 30, 2025, the shilling weakened against nearly all key trading currencies in April, except the South African Rand and the Tanzanian Shilling.

“The depreciation reflects sustained pressure from international market dynamics and internal trade imbalances,” the agency stated.

Against the US Dollar, the currency declined from Sh129.33 in March to Sh129.51 in April.

It also lost ground against the Euro, Pound Sterling, and Japanese Yen. However, it gained slightly against the Rand, rising from Ksh7.07 to Ksh6.86 during the same period.

Economic analysts warn that the continued depreciation is likely to drive up the cost of living, as fuel prices, imported goods, and foreign loan repayments become more expensive.

Treasury Cabinet Secretary John Mbadi, speaking earlier in March, downplayed concerns over the currency’s slide, defending the strategy as necessary to cushion exports and protect the country's foreign exchange reserves.

“A stronger shilling may seem attractive, but it could hurt exports and undermine our ability to repay foreign debt,” Mbadi said.