Kenya’s foreign exchange reserves reached a record high of $7.896 billion, as reported by the Central Bank in its weekly financial market update. This increase of $121 million from the previous week’s $7.775 billion comes shortly after Kenya fully settled its $2 billion Eurobond debt, which was originally incurred in 2014 and paid off using a loan from the World Bank.
The surge in foreign exchange reserves reflects the repayment of Sh72 billion (approximately $558.16 million) of the Eurobond debt before the June 24 deadline. In February, Kenya also successfully raised $1.5 billion through a Eurobond buyback offer, aimed at reducing the risk of defaulting on repayment obligations.
According to the Central Bank, the usable foreign exchange reserves of $7.896 billion represent 4.1 months of import cover, meeting the statutory requirement to maintain at least 4 months of import cover. This substantial reserve level allows the Central Bank to effectively support the Kenyan shilling against potential pressures from international currencies.
Despite economic fluctuations, the shilling has demonstrated stability against both regional and global currencies, trading at an average rate of 128.68 this week.
