Kenya's Foreign Exchange Reserves Soar to 3-Month High Amid Strong Shilling

A CBK report indicated that Kenya's foreign exchange reserves increased to $10,001 million (KSh 1.3 trillion) in March 2025.
CBK said this represents 5.1 months of import cover, supporting importers' demand for US dollars
The Kenyan shilling retained its stability, exchanging at KSh 129.38 for each U.S. dollar.

The Ameribuzz.co.ke journalist Wycliffe Musalia possesses more than six years of expertise in covering finance, business, technology, and climate issues, providing significant understanding of both Kenya’s and the world's economic patterns.

Kenya's foreign exchange reserves have reached their highest level in three months starting from January 2025.

According to data provided by the Central Bank of Kenya (CBK), foreign reserves reached $10,001 million (KSh 1.3 trillion, using the present exchange rate).

How rising foreign reserves impact Kenya

This figure rose to $8,877 million (KSh 1.1 trillion), up from what was reported in January 2025.

The CBK observed that the increase in foreign exchange reserves will be sufficient for approximately 5.1 months of import coverage.

"As of March 20, the available foreign exchange reserves were sufficient at USD 10,001 million (equivalent to 5.1 months of imports), which satisfies the Central Bank of Kenya’s legal obligation to strive for maintaining a minimum of four months’ worth of import coverage," stated the CBK report partly.

In February, the foreign exchange reserves amounted to $9,142 million (KSh 1.2 trillion), which was sufficient to cover approximately four months of imports.

What is the worth of the shilling?

The document indicated consistency in the shilling’s value over the quarter leading up to March 2025.

As of March 20, 2025, Kenya's currency, the shilling, was trading at KSh 129.38 for each US dollar, which is an improvement from the KSh 129.43 recorded at the beginning of the month.

In January 2025, the shilling traded at KSh 129.31 for each US dollar, notwithstanding fluctuations in the foreign exchange markets.

The US dollar maintained stability throughout the month, preceding the inauguration of President Donald Trump; however, the shilling stayed bullish.

How CBK is maintaining shilling stability

In March 2025, the Kenyan shilling reached its highest point in six months relative to the US dollar when the Central Bank of Kenya implemented strategies aimed at stabilizing it.

Following reports of heightened demand in February 2025, the regulatory body offloaded dollars to dealers.

The reserves held by the CBK, conversely, dropped from KSh 1.19 trillion ($9.256 billion) to KSh 1.16 trillion ($9.057 billion) the previous week, partly due to dollars flowing out of the CBK’s treasury.

The sale was prompted by a rise in dollar inflows, notably from the recently issued infrastructure bond.

What additional steps does CBK take to reinforce the shilling?

In February 2025, the regulatory body called for tenders for Treasury bonds as part of an effort to secure KSh 25 billion through local borrowing.
In March, CBK additionally urged investors to lend the government KSh 70 billion for budgetary assistance through the newly launched bond offering. The bank stated that the subscription period would be open from March 18, 2025, until March 26, 2025, with the bidding day set for March 27, 2025.