Kenya has rebuilt its external buffers to their strongest level on record, with foreign exchange reserves held by the Central Bank of Kenya reaching US$12.477 billion (KSh 1.610 trillion) in the week ended Jan. 15, 2026.
- •The stockpile caps a sustained accumulation that added more than US$3.3 billion over twelve months and lifted import cover to 5.4 months, well above the statutory minimum of four months.
- •The latest level marks a clear break from conditions seen in early 2024, when reserves dipped close to US$6.9 billion and import cover fell below 3.7 months, intensifying pressure in the foreign exchange market.
- •Since then, reserves have risen almost uninterrupted, crossing US$10 billion in March 2025, US$11 billion by July, and US$12 billion by October, before setting successive records in late December and mid-January.
On a year-on-year basis, reserves are US$3.334 billion (KSh 430.1 billion) higher than the US$9.143 billion recorded in mid-January 2025, a 36.5 percent increase. Weekly data show a continued build into 2026, with holdings rising US$93 million from the prior week and surpassing the previous peak of US$12.394 billion recorded on Dec. 31, 2025.
Where The FX Is Coming From
The reserve build reflects sustained net foreign currency inflows across several channels. Diaspora remittances have remained a stable source of hard currency, supporting bank liquidity and easing demand pressure in the spot market. Tourism receipts also improved through 2025, adding to service export inflows as visitor arrivals recovered and average spending increased.
External financing conditions also improved. Public debt management operations over the past two years reduced near-term external redemptions and rollover risk, lowering precautionary demand for dollars and supporting market confidence. With fewer large FX obligations falling due in the near term, the central bank gained room to accumulate reserves during periods of net inflow.
While some traditional exports faced price volatility, aggregate export receipts and portfolio inflows provided additional FX supply during parts of 2025, allowing the central bank to purchase foreign currency without destabilising the market. The result has been a steady rise in usable reserves alongside relative stability in import cover, which has held between 5.2 and 5.4 months since October.
