NAIROBI, Kenya – Kenya’s foreign exchange reserves have surged to an all-time high of $12.07 billion (Sh1.56 trillion), buoyed by the government’s successful Eurobond issuance and the continued stability of the shilling against the US dollar.
The latest data from the Central Bank of Kenya (CBK) shows that usable reserves climbed past the $12 billion mark for the first time ever as of October 15, underscoring a strong rebound in the country’s external position.
The milestone represents a sharp turnaround from just a year ago, when Kenya faced tightening foreign currency supplies and growing pressure from debt repayments.
According to the CBK’s weekly bulletin, the reserves increased by $1.36 billion (Sh176 billion) in the first half of October alone — from $10.72 billion at the start of the month — raising the import cover from 4.7 to 5.3 months.
“The foreign exchange reserves remained adequate at USD 12,072 million (5.3 months of import cover) as of October 15. This meets the CBK’s statutory requirement to maintain at least four months of import cover,” the central bank said.
The sharp buildup was largely driven by proceeds from Kenya’s $1.5 billion (Sh193.7 billion) Eurobond issued earlier this month.
The bond, floated in seven- and twelve-year tranches, marked Kenya’s return to the international capital markets and was seen as a sign of renewed investor confidence.
Steady Remittances, New Reserve Strategy
Aside from Eurobond inflows, remittances remained steady at $419.6 million (Sh54.2 billion) in September, nearly unchanged from a year earlier.
Analysts say the stability in diaspora inflows helped reinforce the country’s external buffers.
The record reserves come after months of moderate drawdowns between July and September, when Kenya’s stock of reserves hovered near $10.8 billion, raising concerns about its ability to meet external obligations.
In a related development, CBK has announced plans to diversify Kenya’s reserve portfolio by acquiring and storing gold as part of efforts to hedge against global currency volatility and safeguard reserve value.
Governor Kamau Thugge told Bloomberg News that the bank is in discussions with international financial institutions — including the Bank of England — on logistics for securing vault facilities.
The move signals a shift from the country’s traditional reliance on foreign currencies and government securities, amid record-high gold prices and growing uncertainty in global markets.
