Kenya's Dollar Reserves Hit KSh 1.45t as Shilling Remains Bullish Against USD
- The Kenyan shilling remained bullish against the US dollar and other international currencies in the second week of July 2025
- The Central Bank of Kenya (CBK) reported a strong growth in US dollar reserves for the seven months since January 2025
- CBK governor Kamau Thugge said the foreign currency reserves will support more than four months of imports
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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.
Kenyan traders and importers will not face challenges related to dollar shortages anytime soon.
Source: Twitter
The Central Bank of Kenya (CBK) reported an increase in US dollar reserves for the second week of July 2025.
Why Kenya keeps strong US dollar reserves
CBK governor Kamau Thugge explained that the $11.201 billion (KSh 1.45 trillion) recorded on July 10, 2025, will support more than four months of importation.
"The usable foreign exchange reserves remained adequate at USD 11,201 million (4.9 months of import cover) as of July 10. This meets the CBK’s statutory requirement to endeavour to maintain at least 4 months of import cover," said Thugge.
The foreign currency reserves increased from $11.089 billion reported in the last week of June 2025.
According to CBK, the move is aimed at reducing pressure on the Kenyan shilling, which has remained stable for the last six months.
The shilling traded at KSh 129.24 per US dollar in the first and second week of the month, compared to KSh 129.29 reported in the last week of June 2025.
Why the Kenyan shilling remains stable
Source: Getty Images
CBK further highlighted growth in diaspora remittances to the country to $423 million (KSh 54.7 billion) in June 2025, up from $372 million (KSh 48.1 billion) in June 2024.
This represented a 13.8% increase in diaspora remittances in the month of June.
The total remittance inflows for the past 12 months increased by 12.1% to $5.084 million (KSh 656.8 million) from $4.535 million (KSh 585.9 million) during a similar period, which the regulator said supports balance payments.
"The steady growth in remittance inflows remains a key source of foreign exchange earnings and continues to support the balance of payments," read the CBK report in part.
In an exclusive interview with TUKO.co.ke, geopolitical economist Ally Khan Satchu explained that the Kenyan shilling will remain stable in the foreign exchange market as remittances continue to increase the US dollar reserves.
Satchu said that the US dollar will remain Kenya's main source of diaspora remittances, despite Donald Trump's new tax.
He also noted that the continued trend where the greenback is weakening in the forex market will give the Kenyan shilling an upper hand.
"The Kenyan shilling is not going to depreciate soon. The dollar is weak overall, and I expect that trend to continue and as the shilling appreciates," said Satchu.
How weak US dollar will benefit Kenya
Meanwhile, the Standard Chartered Bank released its Global Market Outlook 2025, projecting a further depreciation of the greenback.
The report showed that emerging markets like Africa and especially countries like Kenya are set to benefit.
Investors will be poised to reposition portfolios with greater international diversification.
Source: TUKO.co.ke
