EV shift key to easing Kenya forex burden
It is important to note that we import roughly 100,000 used vehicles every year compared to...
In the week ending September 10, Kenya's foreign exchange reserves increased to approximately Ksh1.98 trillion, according to the Central Bank of Kenya (CBK). This rose to about USD15.253 billion, providing the country with 6.3 months of import cover, which met the CBK's requirement of at least four months. The shilling held steady at Ksh129.45 to the US dollar, providing some relief for importers.
However, the Nairobi Securities Exchange (NSE) experienced a decline of 3.06 percent in market capitalization, losing around Ksh131 billion in value during the week. Investors also pulled back from equities, contributing to the NSE's downturn. Meanwhile, yields on Kenya's Eurobonds rose, indicating higher returns demanded by investors for holding sovereign debt.
Despite these market fluctuations, demand for government short-term securities remained strong, with the September 10 Treasury bill auction receiving bids worth nearly double the advertised amount. The money market remained liquid, with commercial banks holding excess reserves above the statutory Cash Reserve Ratio requirement. However, the sharp increase in international oil prices posed a potential risk, as higher fuel costs could strain Kenya's foreign exchange reserves if the trend continues.
Written by urgent.news from People Daily Kenya's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Kenya’s forex reserves rise to Ksh1.98T as NSE loses Ksh131B in one week – CBK peopledaily.digital
