NAIROBI,Kenya-A specialized team from the Central Bank of Kenya (CBK) is currently evaluating the feasibility of incorporating gold into the nation’s foreign exchange reserves.
Governor Kamau Thugge confirmed this initiative during a recent Monetary Policy Committee (MPC) press briefing, stating, “There are teams that are visiting the country just to go and see the potential for gold, but I think, just to make a long story short, it is our intention to diversify our reserve position and to include some gold element.”
This exploration aligns with a broader trend among African nations seeking to bolster their financial stability.
Countries like Ghana, Tanzania, and Nigeria have been increasing their gold reserves to hedge against global economic uncertainties and reduce dependence on foreign currencies.
However, experts caution that while gold is a strategic store of value, it comes with risks such as price volatility and liquidity challenges.
A report by BMI, a unit of Fitch Group, highlights these potential risks for sub-Saharan African central banks that have recently increased their gold reserves.
Currently, Kenya holds only 600 ounces of gold, valued at approximately $1.3 million (Sh201.5 million) having sold most of its holdings in 1998.
The CBK’s consideration to reintroduce gold into its reserves marks a significant shift in its monetary strategy.
The dedicated team assessing this potential acquisition is expected to evaluate the benefits and risks associated with integrating gold into the nation’s reserve assets.
As of June 2025, Kenya’s foreign exchange reserves reached a record high of approximately $10.94 billion (Sh1.67trillion) providing 4.8 months of import cover.
This increase has been attributed to robust diaspora remittances, a stable Kenyan shilling, and higher export earnings.
Governor Thugge emphasized that the current reserves offer a buffer against potential shocks in the foreign exchange market.
The CBK’s exploration of gold as a reserve asset reflects a growing interest among African nations, including Tanzania, Burkina Faso and Rwanda, to diversify their financial portfolios and enhance economic resilience.
While the outcome of Kenya’s assessment remains to be seen, the initiative underscores the nation’s proactive approach to strengthening its financial position in an increasingly complex global economic landscape.
