Kenya's economy is likely to continue enjoying price stability on key imports such as fuel and consumer goods, following projections that the shilling will remain strong. The development came due to a dollar buying spree that has pushed the country's foreign exchange reserves to a record high.
The Central Bank of Kenya (CBK) had Ksh1.33 trillion (USD10.3 billion) as of May 8, surpassing the regional bloc's minimum target of four and a half months of import cover, according to the CBK's weekly bulletin published on Friday. "The usable foreign exchange reserves remained adequate at USD 10,291 million (4.6 months of import cover) as of May 8, 2025.
This meets the CBK's statutory requirement to endeavour to maintain at least 4 months of import cover," read part of CBK's bulletin. A photo of the Central Bank of Kenya Photo KO Associates According to Bloomberg, cash inflows from exports, remittances, and a Ksh64.5 billion (USD500 million) loan from Abu Dhabi and proceeds from a Eurobond also boosted Kenya's coffers.
In addition to these buffers, lower oil prices have helped "reduce Kenya's external funding needs and will support the shilling," Patrick Curran, a senior economist at Tellimer Ltd, told Bloomberg.
