The Central Bank of Kenya (CBK) has revealed that the country’s foreign exchange reserves have increased. President William Ruto predicted the shilling would trade at 120 against the US dollar. What’s the value of Kenya’s forex reserves? In its weekly bulletin on Friday, September 28, the regulator noted Kenya’s foreign exchange reserves stood at $8,027 million (KSh 1.03 trillion), up from $7,856 million (1.01 trillion) a week ago. On the other hand, the Kenya shilling exchanged at 129.19 per US dollar on September 26, compared to 129.20 on September 19. “The usable foreign exchange reserves remained adequate at $8,027 million (4.1 months of import cover) as of September 26.
This meets CBK’s statutory requirement to endeavour to maintain at least four months of import cover,” CBK stated. Will the shilling continue to gain? In an exclusive interview with TUKO.co.ke, market analyst at FXPesa Rufas Kamau explained that there is a possibility of the continued strength of the shilling as the country receives more foreign funding. Kamau cited President William Ruto’s recent state visit to the US, during which Kenya signed multibillion-dollar funding agreements with the country. “Following President William Ruto’s state visit to the US, the Central Bank of Kenya (CBK) expect more US dollar inflows to revamp its foreign currency reserves.
This could strengthen the Kenya shilling further towards 120,” said Kamau.According to the National Treasury, the government spent a whopping KSh 1.24 trillion on debt repayment. How strong shilling has helped Kenya The Kenya shilling gained strength against the US dollar and major foreign currencies, ranking top among best-performing currencies globally. Data from the Controller of Budget (CoB) budget review report for the fiscal year 2023/24 showed that total public debt stood at KSh 10.42 trillion as of March 2024, with external debt declining to KSh 5.2 trillion. CoB Margaret Nyakang’o attributed the decline in external debt during the period under review to the strength of the Kenya shilling.
by Japhet Ruto
