Kenya’s dollar cover drops to 5.9 months after KSh 25 billion in CBK Foreign Exchange Reserves

• Kenya’s forex reserves decreased greatly in the week ending October 8, 2026, according to Central Bank of Kenya information
• The nation’s import cover slipped to 5.9 months from 6.1 months, continuing a four-week down pattern
• Increasing worldwide oil costs and external financial obligation maintenance responsibilities are amongst the essential aspects putting pressure on the reserves

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Elijah Ntongai is a skilled editor at TUKO.co.ke, with more than 4 years in monetary, service, labour and innovation research study and reporting. His work supplies important insights into Kenyan, African, and international patterns.

Kenya’s forex reserves fell by roughly KSh 25 billion in the week ending October 8, 2026, pressing the nation’s import cover to its least expensive level in a month, the Central Bank of Kenya (CBK) has actually reported.

CBK information programs reserves stood at USD 14,736 million(around KSh 1.915 trillion)since October 8, below USD 14,930 million (KSh 1.94 trillion )taped on October 1.

Import cover likewise dropped from 6.1 months to 5.9 months over the exact same duration.

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4 weeks of successive decrease

The weekly publication exposes that the disintegration has actually been continuous given that mid-September. Reserves stood at USD 15,253 million (KSh 1.982 trillion) on September 10, supplying 6.3 months of import cover.

By October 8, the cumulative loss had actually reached roughly USD 517 million (KSh 67.2 billion), with the steepest single-week drop taking place in the most current reporting duration.

Regardless of the continual decrease, the CBK explained the reserve position as “adequate”keeping in mind that 5.9 months of import cover stays well above the statutory flooring of 4 months.

The Kenyan shilling held reasonably consistent throughout the duration, trading at KSh 129.94 per dollar on October 8 compared to KSh 129.71 on October 1.

The CBK kept in mind in its publication that the shilling “remained stable against major international and regional currencies during the week ending October 8, 2026.”

What is driving the reserve drawdown

Numerous aspects seem weighing on Kenya’s external buffers. Worldwide oil costs rising above USD 100 per barrel have actually magnified need for United States dollars amongst energy importers, who need hard cash to settle petroleum import costs.

Kenya, as a net oil importer, is especially exposed to this dynamic.

External financial obligation maintenance likewise continues to soak up a considerable part of federal government income.

A current Moody’s forecast suggested that Kenya might invest roughly 35% of federal government income on interest payments alone by 2027, highlighting the scale of the nation’s financial obligation commitments.

The trajectory of the reserves will depend upon numerous variables in the coming weeks, consisting of the instructions of international oil rates, the efficiency of Kenya’s essential farming exports such as tea, coffee, and horticultural items, and the ongoing schedule of external funding from organizations such as the IMF and the World Bank.

Source: TUKO.co.ke