Kenya Increases US Dollar Reserves in First Week of June as Shillling Maintains Stability
- President William Ruto applauded the Central Bank of Kenya (CBK) for maintaining strong foreign currency reserves and shilling stability
- CBK's report in the first week of June 2025 indicated an increase in US dollar reserves, and the local currency remained bullish
- Geopolitical economist and market analyst Ally Khan Satchu explained to TUKO.co.ke that the strong reserves will continue to stabilise Kenya shilling
Wycliffe Musalia has over six years of experience in financial, business, technology, climate, and health reporting, providing deep insights into Kenyan and global economic trends. He currently works as a business editor at TUKO.co.ke.
The Central Bank of Kenya (CBK) has reported strong foreign currency reserves in the first week of June 2025.
Source: UGC
This came as Kenya shilling hit a five-month high against the US dollar, closing the month of May on a strong note.
How many dollars does CBK hold?
CBK reported an increase in foreign currency reserves to $10.58 billion, up from $10.46 billion reported in the last week of May 2025.
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The regulator said this will support more than 4 months of import cover, which is above statutory requirements.
"The usable foreign exchange reserves remained adequate at USD 10,589 million (4.7 months of import cover) as of June 5. This meets the CBK’s statutory requirement to endeavour to maintain at least 4 months of import cover," said CBK governor Kamau Thugge in a weekly bulletin.
Why CBK is holding more US dollars
Speaking exclusively to TUKO.co.ke, geopolitical economist and market analyst Ally Khan Satchu explained that the strong reserves will continue to stabilise Kenya shilling.
"Foreign currency reserves are a buffer and help stabilise the domestic currency," said Satchu.
According to the CBK report, Kenya shilling exchanged at KSh 129.22 per US dollar, up from KSh 129.26 in the previous week.
This came after the African Development Bank (AfDB) Economic Outlook 2025 projected strong growth of Kenya shilling.
The report noted that the shilling will appreciate by 3% or more by the end of the year.
The AfDB report indicated that other currencies on the continent are set for depreciation, apart from Kenya shilling and the Moroccan dirham.
What Ruto said about strong dollar reserves
Earlier in the month, President William Ruto applauded the Central Bank of Kenya (CBK) for maintaining strong foreign currency reserves and shilling stability.
Ruto noted that maintaining strong foreign currency reserves above $10.3 billion was not an easy task and thanked Governor Thugge and his team.
The head of state acknowledged that for the first time in over a year, the country's exchange rate is stable, and the inflation has been managed.
Kenya's economy growth
He noted that the measures employed by CBK and the National Treasury have been significant in stabilising the economy.
The Kenya National Bureau of Statistics (KNBS) reported a 4.7% growth in the country's economy.
The International Monetary Fund (IMF) projected that Kenya's economy will grow by 4.8% in 2025.
Proofreading by Mercy Nyambura, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
