Kenya holds shilling in ~KSh128.9–130 band as talks with IMF on new programme continue

On September 4, 2026, the Kenyan shilling was trading inside a narrow KSh128.9–130 band, while Kenyan authorities continued talks with the IMF on a new fund‑supported programme, with an IMF mission described as expected to visit Nairobi in coming weeks (announced in August 2026).

A tightly managed KSh128.9–130 trading band can temporarily mute FX volatility, but without a confirmed IMF programme liquidity and creditor confidence risks concentrate on Kenya’s US$‑denominated external debt and the ‘belly’ of the domestic KES curve. Programme clarity (staff agreement/Board approval) would reduce rollover and premium risk; absent that, spreads and local yields could be more sensitive to reserve moves or external shocks.

IMF mission to Nairobi / staff‑level agreement (expected following the August 12, 2026 comments); monitor for a staff‑level deal or published mission dates.