The Central Bank of Kenya (CBK) announced on Friday that the country has accumulated approximately one billion U.S. dollars in foreign exchange reserves over the past few weeks, bringing the total to a record high of 8.49 billion dollars.
This milestone marks the highest level of reserves seen in over two years.
As of Thursday, the new reserves provide an import cover of 4.4 months, a significant increase from the 7.5 billion dollars reported at the start of September, which only covered 3.8 months of imports. This resurgence in reserves is particularly notable, as the last time Kenya’s forex reserves exceeded four months of import cover was in July 2022.
In a remarkable week, the country’s reserves grew by 192 million dollars. According to the CBK, this increase is a crucial buffer for the Kenyan economy, ensuring stability for the local currency in the face of potential market volatility.
Governor Kamau Thugge attributed the rise in reserves to the bank’s proactive purchases of dollars from the local market. Despite fluctuations in reserves, the Kenyan shilling has maintained stability, averaging an exchange rate of 129 to the dollar throughout the week.
This boost in foreign exchange reserves is expected to fortify Kenya’s economic position while fostering investor confidence and supporting ongoing development initiatives.
