CBK Reports Stronger Cushion as Forex Reserves Hit 12 Billion Dollars

The Central Bank of Kenya (CBK) says the country’s foreign exchange reserves have climbed to 12 billion dollars, marking one of the strongest positions Kenya has recorded in recent years.

The latest figures show that the reserves can now cover more than five months of imports, offering a stronger buffer against global and domestic economic pressures.

Governor Kamau Thugge released the update during the final Monetary Policy Committee meeting of 2025. He noted that the steady rise in reserves reflects consistent foreign currency inflows and improved external conditions.

“The foreign account reserves have increased quite significantly, as of December 8, reaching 12 billion dollars, equivalent to 5.3 months of import cover,” he said. “We believe that these levels of reserve provide adequate cover and a buffer against any short-term shocks.”

Kenya began 2025 with reserves between 9.0 and 9.4 billion dollars. The levels gradually improved through the year. Between July and September, they ranged from about 10.7 to 11.2 billion dollars, providing 4.7 to 4.9 months of import cover. A sharper increase was recorded in October and November when reserves rose to between 12.0 and 12.3 billion dollars. This pushed import cover to about 5.3 to 5.4 months.

Thugge explained that several factors have supported the buildup, including stronger export earnings, higher diaspora remittances, and proceeds from foreign currency loans. These inflows have helped stabilise the shilling and rebuild the country’s foreign exchange cushion after earlier pressures tied to high import needs and tight global financial markets.

The increase in reserves comes at a time when Kenya is facing elevated import demand and significant external debt obligations. With more than five months of import cover, the central bank says the country is better protected from sudden external shocks and remains above the statutory minimum requirement. The improved buffer also sends a positive signal to investors about Kenya’s ability to manage its external position.

The Monetary Policy Committee said it will continue monitoring the situation to ensure that the reserve levels remain adequate. The central bank maintains that a strong reserve position is essential for maintaining currency stability and supporting broader economic resilience.