Ugandan, Kenyan Shillings appreciate against US dollar

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Currencies across the East African Community recorded mixed movements against the US Dollar in April 2026.

The Ugandan Shilling appreciated by 0.4%, while the Kenyan Shilling strengthened modestly by 0.1% against the dollar.

This is according to Uganda’s ministry of finance performance of the economy report for April 2026.

The Ugandan Shilling traded at an average mid-rate of sh3,716.70 per dollar from sh3,730.53 per dollar in March 2026, a rebound from the depreciations registered in the past two months.

This appreciation was mainly driven by increased foreign exchange inflows from exports and portfolio investors, which outstripped demand for the dollar from the manufacturing and energy sectors.

The appreciation of the Kenyan Shilling was largely supported by diversified foreign exchange inflows from exports and diaspora remittances, adequate foreign exchange reserves and increased confidence in the economy.

Conversely, the Tanzanian Shilling, Burundian Franc and Rwandan Franc depreciated by 1.1%, 0.2%, and 0.1%, respectively, as demand for the dollar outpaced its supply during the month.

The Central Bank Rate (CBR) remained unchanged at 9.75 percent in April 2026.

The CBR is the rate at which the Bank of Uganda (BOU) lends to commercial banks, which in turn lend to the public at interest.

BOU assessed that, although risks arising from the conflict in the Middle East could exert upward pressure on inflation, the current monetary policy stance remains appropriate and well aligned with prevailing macroeconomic conditions.

The weighted average lending rate on Shilling-denominated credit remained relatively stable, increasing marginally from 18.73% in February 2026 to 18.89 %in March 2026.

On the other hand, the weighted average lending rate on foreign-currency-denominated credit declined from 7.09% to 6.65% over the same period.