Kenya’s foreign exchange reserves have risen to a record $14 billion (about Sh1.8 trillion), boosted by fresh funding from the World Bank, the Central Bank of Kenya (CBK) has said.
In its weekly financial markets update released on Friday, the CBK said the reserves increased by $874 million from $13.173 billion recorded the previous week.
The central bank attributed the increase mainly to the receipt of $750 million in World Bank financing to support governance reforms, strengthen public financial management and expand social protection programmes.
According to the CBK, the country’s foreign exchange reserves now provide six months of import cover, up from 5.6 months a week earlier.
The bank noted that the reserves remain well above the statutory requirement of maintaining at least four months of import cover, providing a strong buffer against external economic shocks.
Kenya has maintained foreign exchange reserves above $12 billion since the beginning of the year, helping to support the stability of the Kenyan shilling against major international currencies.
The CBK said the latest increase is expected to further strengthen the country’s external position and provide additional support for the shilling in the weeks ahead.
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