NAIROBI, Kenya, July 15 – The Central Bank of Kenya (CBK) has assured Kenyans that the shilling will remain stable as the country receives fresh inflows of US dollars from recent government asset sales.
CBK Governor Kamau Thugge said the foreign exchange reserves are expected to remain strong, providing enough buffer to shield the economy from both domestic and external shocks.
“We expect the exchange rate to remain relatively stable and for us to have reserves covering anywhere between 5.5 months to 6 months of import cover,” Thugge said.
“I think that is sufficient for us to be able to address any of the domestic shocks, whether it’s the El Niño that may come in towards the end of the year or if the Middle East situation escalates beyond where we are now.”
The CBK expects the country’s foreign exchange reserves to rise to about Sh2.1 trillion (nearly $16 billion) once proceeds from the government’s sale of its Safaricom stake are received.
The additional inflows are expected to lift Kenya’s import cover to about seven months, strengthening the country’s ability to meet external payment obligations and support exchange rate stability.
Thugge said the stronger reserve position would help cushion the economy despite ongoing geopolitical tensions.
“In short, we still expect a fairly strong balance of payments position this year, notwithstanding what is happening in the Middle East.”
