Kenya has achieved a significant financial milestone, accumulating foreign exchange reserves of $8.49bn, the highest in over two years. The Central Bank of Kenya (CBK) revealed this record figure in an update released on Friday evening, highlighting the country’s strong economic position. The new reserves now cover 4.4 months of imports, offering greater stability and a buffer against market volatility.
This marks a notable increase from the $7.5bn in reserves recorded at the start of September, which provided 3.8 months of import cover. The last time Kenya’s reserves exceeded four months of imports was in July 2022, according to CBK data. In just one week, the country’s reserves grew by $192 million, underscoring the robust efforts by the Central Bank to strengthen the economy.
CBK Governor Kamau Thugge attributed the rise in reserves to the bank’s active purchase of dollars from the local market. This strategic move aims to bolster the Kenyan shilling against any potential market fluctuations.
Despite these changes, the Kenyan shilling remained relatively stable, maintaining an average exchange rate of 129 to the US dollar throughout the week. The increased reserves are expected to provide additional cushioning for the currency in the face of future economic challenges.
This surge in foreign exchange reserves reinforces Kenya’s financial resilience, positioning the country to better navigate global economic uncertainties. (Reuters)
