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• Wed Jun 11 2025

The Kenyan shilling started strong against the Ugandan shilling but the rate declined and hit a one-year low of 27.8943 UGX on June 11

The Kenyan shilling also weakened against the Tanzanian shilling, continuing a losing streak that began in late May

Economist Daniel Kathali told TUKO.co.ke that indicative exchange rates are non-binding estimates meant for planning and may differ from actual transaction rates

Elijah Ntongai, a journalist at TUKO.co.ke, has over four years of financial, business, and technology research and reporting experience, providing insights into Kenyan and global trends.

In the second week of June, the Kenyan shilling has recorded losses against the Ugandan and Tanzanian shillings.

Picture of Kenyan currency (c), Tanzanian President Samia Suluhu and Uganda's Yoweri Museveni used for illustration. Photo: Samia Suluhu/Getty Images/ Yoweri Museveni.

Source: UGC

At the close of the week that ended on June 5, the Central Bank of Kenya reported that the Kenya shilling remained stable against major international and regional currencies.

After ending the week on a strong note against the Uganda shilling (UGX), the Kenya shilling began the week on the same note, with an indicative rate of KSh 1 = 28.0488 UGX as announced by CBK on June 9.

The CBK indicative exchange rate declined on June 10 before hitting a one year low point on June 11, dropping below 28 UGX.

On Wednesday, June 11, the CBK reported an indicative exchange rate of 27.8943 UGX, the weakest position for the Kenyan shilling in over a year as shown in the chart below.

A chart showing the UGX exchange rates for KSh 1 from June 1, 2024, to June 11, 2025. Source: Elijah Ntongai/CBK Data.

Source: UGC

Kenya shilling versus Tanzanian shilling

In December 2024, the Kenya shilling experienced a sharp decline against the Tanzanian shilling, hitting a record low of 18.06 TZS for KSh 1.

However, since then, the KSh has been gaining against the TZS before another decline began in late May. The CBK reported an indicative exchange rate of 20.4081 TZS on June 10 after a losing streak from 20.74 TZS on May 28.

A chart showing the TZS exchange rates for KSh 1 from June 1, 2024, to June 11, 2025. Source: Elijah Ntongai/CBK Data.

Source: UGC

Daniel Kathali, an economist, explained that the indicative rates announced by the CBK are guidelines and not final rates in the banks and forex bureaus.

"It is not a final exchange rate. This is just a reference or approximate rate used to estimate the value of one currency against another and it primarily serves as a guideline rather than a final or guaranteed transaction rate. Since it is non-binding, the actual rate received may differ due to market fluctuations, the size and timing of the transaction, or additional fees imposed by the exchangers," he explained.

Currency forecasting

Earlier, TUKO.co.ke reported that the African Development Bank (AfDB) forecasts that in 2025, 21 African currencies will weaken due to financial market volatility and geopolitical tensions, while 25 may appreciate.

The currencies expected to weaken include those of Egypt, Ethiopia, Ghana, and Nigeria.

Notably, the Kenyan shilling is projected to strengthen by over 3% against the US dollar, potentially reaching 120 per unit, according to economist Aly Khan Satchu, although it remains vulnerable to global shocks.

The Moroccan dirham and currencies in the CFA franc zone are also expected to gain against the US dollar.

Proofreading by Jackson Otukho, copy editor at TUKO.co.ke.

Source: TUKO.co.ke