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A CBK report indicated that Kenya’s foreign exchange reserves increased to $10,001 million (KSh 1.3 trillion) in March 2025.
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CBK said this represents 5.1 months of import cover, supporting importers’ demand for US dollars
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The Kenyan shilling retained its stability, exchanging at a rate of KSh 129.38 per US dollar.
The LIFEHACK.co.ke correspondent Wycliffe Musalia boasts more than six years of expertise in areas such as finance, commerce, tech, and environmental issues. This background provides him with significant understanding of both Kenya’s and international economic patterns.
Kenya’s foreign exchange reserves have reached their highest level in three months starting from January 2025.
According to data from the Central Bank of Kenya (CBK), foreign reserves reached $10,001 million (KSh 1.3 trillion, using the present exchange rate).
How rising foreign reserves impact Kenya
This figure rose to $8,877 million (KSh 1.1 trillion), up from what was reported in January 2025.
The CBK observed that the increase in foreign currency reserves will be sufficient for approximately 5.1 months of import needs.
As of March 20, the available foreign exchange reserves were sufficient at USD 10,001 million (covering imports for 5.1 months). The Central Bank Report stated this fulfills the CBK’s legal obligation to strive for maintaining at least four months’ worth of import coverage.
In February, the foreign exchange reserves amounted to $9,142 million (KSh 1.2 trillion), which was sufficient to cover approximately four months of imports.
What is the worth of the shilling?
The report indicated that the value of the shilling remained steady over the three-month period ending in March 2025.
As of March 20, 2025, Kenya’s currency, the shilling, was trading at KSh 129.38 for one US dollar, down from KSh 129.43 recorded at the beginning of the month.
In January 2025, the shilling traded at KSh 129.31 for each US dollar, notwithstanding fluctuations in the foreign exchange market.
The U.S. dollar maintained stability throughout the month, preceding the inauguration of US President Donald Trump, whereas the shilling stayed bullish.
How CBK is maintaining shilling stability
In March 2025, the Kenyan shilling reached its highest point in six months relative to the US dollar when the Central Bank of Kenya implemented strategies aimed at stabilising it.
Following reports of heightened demand in February 2025, the regulator offloaded dollars to traders.
The reserves held by the CBK saw a decline from KSh 1.19 trillion ($9.256 billion) to KSh 1.16 trillion ($9.057 billion) over the previous week, partly due to dollars flowing out of the CBK’s treasury.
The sale was prompted by a rise in dollar inflows, notably from the recently issued infrastructure bond.
What other measures does CBK use to strengthen shilling
- In February 2025, the regulatory body called for tenders for Treasury bonds as part of an effort to secure KSh 25 billion through local borrowing.
- In March, CBK urged investors to lend the government KSh 70 billion through a newly launched bond offering aimed at providing budgetary assistance. The bank stated that the subscription window would be open from March 18, 2025, until March 26, 2025, with an auction planned for March 27, 2025.