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 .

The Central Bank of Kenya (CBK) continues to report an increase in foreign currency reserves as the shilling remains stable.,

CBK data showed US dollar reserves hit a 7-month high in the first week of July 2025.

According to the banking regulator, Kenya holds $11.091 billion in foreign currency reserves, equivalent to KSh 1.43 trillion.

CBK governor Kamau Thugge said the reserves can support up to 4.9 months of import cover.

"The usable foreign exchange reserves remained adequate at USD 11,091 million (4.9 months of import cover) as of July 3. This meets the CBK’s statutory requirement to endeavour to maintain at least 4 months of import cover," read the CBK report in part.

In June 2025, CBK registered $10.913 billion in foreign currency reserves.

The consecutive growth in foreign currency reserves has stabilised the value of the Kenyan shilling in the foreign exchange market.

CBK report showed that the shilling traded at KSh 129.24 per US dollar in the week ending July 3, 2025, compared to KSh 129.29 in the week ending June 26, 2026.

Kenyan shilling remained bullish for seven consecutive months since January 2025, as CBK continued to ease its monetary policy.

The Central Monetary Policy Committee (MPC) met in June 2025, announcing a drop in the Central Bank Rate (CBR).

The regulator lowered the base interest rate on bank loans by 25 basis points to 9.75% up from 10%.

CBK said the move was part of its commitment to continued easing of monetary policy to stimulate private sector credit and support economic recovery.

This is aimed at ensuring inflationary expectations remain firmly anchored and the exchange rate remains stable.

Meanwhile, President William Ruto applauded CBK, led by Kamau Thugge and his team, for maintaining strong forex reserves.

Ruto noted that for the first time in over a year, Kenya's exchange rate is stable, and inflation has remained managed.

The head of state thanked governor Thugge and the National Treasury for attaining reserves of over $10.3 billion (KSh 1.3 trillion), noting that it does not come easily.

According to him, Kenya boasts a stable economy, thanks to the stability of the exchange rate, noting that it will continue to stabilise.

Source: TUKO.co.ke