Kenya’s Forex Reserves Drop to $9,371 Billion

The Kenyan shilling held steady against major international and regional currencies during the week ending Sept. 17  in quiet trade from importers.

Kenya’s forex reserves declined by $250 billion to stand at $9,371 billion in the week ended July 23, CBK data showed on Friday.

This represents 5.73 months of import cover.

“This meets the CBK’s statutory requirement to endeavour to maintain at least 4 months of import cover, and the EAC region’s convergence criteria of 4.5 months of import cover,“ the regulator said.

The drop is attributed to a Ksh 35.2 billion payout to China by the National Treasury.

This is the first repayment of the loan used to build the Standard Gauge Railway (SGR) from Nairobi to Naivasha.

Initially, it was to be made in January before it was deferred for six months under the Debt Service Suspension Initiative (DSSI).

The payment includes the principal amount of $183.5 million (KSh19.8 billion) and interest of $142.2 million (KSh15.4 billion), according to data from the World Bank.

In the previous week ended July 16, the reserves had increased by $31 million to a high of $9,621 million.