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February 3, 2026
2d ago

Experts Reveal Why the Shilling Could Weaken in 2026

Experts Reveal Why the Shilling Could Weaken in 2026

A weaker shilling would have immediate implications for the Kenyan economy, with import costs, including fuel, machinery, and food staples, rising and pushing up inflation...

✨ Key Highlights

S&P Global Ratings warns that Kenya's rising debt could weaken the Kenyan shilling, as the country is among several African nations facing significant external debt pressures.

  • External debt repayments across Africa are projected to exceed Ksh11.61 trillion (USD 90 billion) in 2026, more than triple the 2012 level.
  • The increased demand for foreign exchange to service hard-currency obligations is expected to strain the shilling, potentially pushing it closer to Ksh134 per dollar.
  • Kenya faces substantial debt obligations, including a USD1 billion Eurobond maturing in February 2028, alongside domestic maturities exceeding Ksh1.09 trillion for the 2025/26 fiscal year.

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