Treasury Cabinet Secretary John Mbadi has denied claims of government manipulation behind the Kenyan shilling's year-long stability against the U.S. dollar. He attributed the currency's resilience to strong economic fundamentals during a meeting with the Swedish ambassador. The International Monetary Fund recently expressed concerns that the stability might interfere with inflation targeting.
On Wednesday, November 5, 2025, Treasury Cabinet Secretary John Mbadi met with Swedish Ambassador to Kenya Håkan Åkesson in Nairobi. During the discussions, Mbadi addressed rumors of currency manipulation, emphasizing that the shilling's stability stems from prudent macroeconomic policies and rising investor confidence in Kenya's economy.
A statement from the meeting highlighted several factors supporting the shilling, which has averaged Ksh129 against the U.S. dollar over the past 15 months and fluctuated narrowly between Ksh128 and Ksh131 in the last year. These include an eight percent increase in diaspora remittances, improved export earnings, and reforms allowing fuel procurement through government-to-government arrangements that reduce reliance on the dollar, thereby easing foreign exchange pressures.
Mbadi also noted Kenya's economy growing at about five percent, with a government target of seven percent to boost employment and opportunities. This momentum aligns with the Bottom-Up Economic Transformation Agenda (BETA) under President William Ruto, driven by strong performances in key sectors.
The stability follows a turbulent period: the shilling weakened to over Ksh160 early in 2024, recovered to Ksh144 by mid-February, and reached Ksh127 by April before stabilizing.
Concerns arose from experts, including the IMF, which visited Kenya two weeks prior to November 4, 2025. Kenya Revenue Authority Chairperson Nderitu Muriithi told Citizen TV that the IMF flagged the exchange rate as 'too stable,' saying it interferes with monetary transmission and inflation targeting.
David Ndii, chair of President Ruto's senior economic advisors, dismissed such debates as 'witchcraft,' urging pragmatic policymaking amid economic uncertainties.