Kenya’s foreign exchange market has entered a period of notable stability, underpinned by strong macroeconomic fundamentals, rising diaspora inflows, and resilient export sectors, according to Henry Kirimania, Director of Global Markets at I&M Bank.
- •In an interview with The Kenyan Wall Street, Kirimania said the relative consistency of the Kenya shilling over the past two years is “genuine and backed by Macros citing sustained foreign exchange inflows and improved debt management as key drivers.
- •He added that actions by policymakers, including the smoothing of external debt maturities have helped reduce volatility risks that previously weighed on the market due to large maturity concentrations.
- •I&M Bank has launched FX Direct, a digital trading platform to address inefficiencies and opacity in Kenya’s fragmented foreign exchange market.
“Remittances alone contributed over $5 billion last year, while tourism, horticulture, tea, and coffee exports have all delivered strong foreign exchange earnings,” Kirimania said. “At the same time, stable global oil prices past two years and prudent debt (foreign and local) liability management have eased pressure on foreign exchange reserves, supporting overall USD/KES currency stability.”
“With over 38 licenced banks, more than 90 forex bureaus, and numerous digital payment providers, customers are often faced with inconsistent pricing and misinformation,” Kirimania noted. “FX Direct introduces a single source of truth, real-time, credible pricing drawn from globally recognised data sources.”
The platform enables customers to access live exchange rates comparable to those used by major global financial institutions and regulators, eliminating margin noise and improving decision-making by businesses.
A key differentiator of FX Direct is its transparent pricing model and zero transaction fees on currency conversions between customer accounts at I&M Bank.
“Customers can clearly see the bid-offer spread with no hidden charges. There are no conversion fees, what you see is what you get,” Kirimania said. “This is particularly important during periods of volatility when opaque margins can become punitive.”
The platform also allows users to execute trades in real time across devices, place automated orders based on target exchange rates, and manage transactions without visiting a physical branch.
Digital Strategy Driving Growth
FX Direct forms part of I&M Bank’s broader digital transformation strategy aimed at enhancing customer experience and driving transactional growth.
“Our vision is to be a leading digital bank in Kenya and across our markets,” Kirimania said. “By digitising customer journeys and improving accessibility, we are seeing increased transaction volumes, stronger customer engagement, and deeper ecosystem integration.”
He noted that adoption of the platform has been strong, attracting both existing and new clients seeking efficiency, transparency, and control over their foreign exchange transactions.
Outlook: Stability with Emerging Global Risks
While the domestic outlook remains stable, Kirimania cautioned that emerging global risks, particularly geopolitical tensions affecting energy markets and supply chains, could introduce volatility.
“Energy security, trade logistics, and global commodity prices will be critical variables in the coming months,” he said. “We are advising customers to stay informed and leverage tools like FX Direct to manage risk proactively.”
He added that upcoming policy signals from the Central Bank and global monetary authorities will be closely watched as markets adjust to evolving economic conditions.
