Kenyan importers can breathe a sigh of relief as the Central Bank of Kenya (CBK) reassures the nation of its substantial foreign reserves. According to a recent weekly bulletin from the exchequer, Kenya is equipped with enough foreign reserves to sustain the country for the next four months.
The bulletin discloses that CBK holds Ksh940 billion (USD 7,180M), a reassuring figure capable of covering imports for the specified period. CBK emphasizes that these reserves align with statutory requirements mandating a 4-month cover for imports.
“The usable foreign exchange reserves remained adequate at USD 7,180 million (3.8 months of import cover) as of May 9. This meets the CBK’s statutory requirement to endeavor to maintain at least 4 months of import cover,” stated CBK.
Moreover, within the bulletin, CBK notes that the Kenyan shilling has maintained stability, exchanging at Ksh131.25 on May 9, an improvement from the Ksh 133.20 rate earlier in the week.
Additionally, Kenyan reserves are expected to receive a boost from a World Bank disbursement of Ksh158 billion on April 30. Approved under the First Kenya Fiscal Sustainability and Resilient Growth initiative, this funding is reported to have bolstered the crucial dollar reserves.
“To promote efficiency, equity, and transparency of public finance; foster more competitive and inclusive product and labor markets; and strengthen climate action,” explained the World Bank regarding the proposed development objective of the loan.
In recent months of 2023, importers faced challenges due to depleted reserves, impacting the growth potential of firms and causing supply chain disruptions.
