Kenya’s central bank has assured markets that the country holds sufficient foreign exchange reserves to cushion the economy against any currency volatility, following recent pressure on the shilling. Governor Kamau Thugge made the statement on April 9, 2026, noting that reserves currently stand at over $13 billion, providing a strong buffer against external shocks, as reported by Reuters.
The reassurance comes after the Kenyan shilling weakened by about 0.7 percent against the U.S. dollar in March, driven by global uncertainty linked to geopolitical tensions in the Middle East. However, the currency has since recovered much of its losses following easing tensions, highlighting the effectiveness of the country’s reserve position in stabilising exchange rate movements.
Speaking at a press briefing, Thugge emphasised that the reserves were deliberately built up to withstand such shocks, including potential declines in exports, remittances, and tourism receipts. “We have strengthened our buffers… that is why we built up our reserves,” he said, underscoring the central bank’s proactive approach to safeguarding macroeconomic stability, according to CNBC Africa.
The central bank also held its benchmark lending rate steady to assess the broader impact of rising global energy prices, signalling a cautious policy stance. The strong reserve position reinforces Kenya’s ability to manage external risks, maintain investor confidence, and stabilise its currency amid ongoing global economic uncertainty.
