NAIROBI, Kenya, Mar 7 – Kenya’s foreign exchange reserves have increased to $14.59 billion (Sh1.88 trillion), providing 6.2 months of import cover, according to the latest update by the Central Bank of Kenya.
In its weekly bulletin released Friday, the regulator said the reserves remain well above the statutory requirement of at least four months of import cover, signalling a stable external position.
The increase follows proceeds from the government’s recent Eurobond issuance, which strengthened the country’s external buffers and boosted its capacity to support the Kenyan Shilling and meet international financial obligations.
According to the CBK, the reserves stood at $14,597 million as of March 5, up from $12.53 billion about a week earlier.
“The foreign exchange reserves remained adequate at USD 14,597 million (6.2 months of import cover) as of March 5,” the CBK said in the bulletin.
“This meets CBK’s statutory requirement to endeavour to maintain at least four months of import cover.”
Meanwhile, the Kenyan shilling remained relatively stable during the week. The currency traded at Sh129.20 per US dollar on March 5, compared to Sh129.02 on February 26, according to the CBK.
The money market also remained liquid, with commercial banks holding excess reserves averaging Sh57.9 billion above the 3.25 percent cash reserve requirement.
However, activity at the Nairobi Securities Exchange declined during the week, with key share indices including NASI, NSE 25 and NSE 20 posting losses. Market capitalization and equity turnover also fell.
Globally, the CBK noted growing inflationary pressures linked to escalating tensions in the Middle East, which pushed international oil prices higher to $76.25 per barrel, up from $69.73 a week earlier.
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