Kenya’s Forex Reserves Hover Near Ksh1.96 Trillion, Import Cover Stable

Kenya’s foreign exchange reserves stood at Ksh1.96 trillion as of August 20, 2026, according to the Central Bank of Kenya (CBK) Weekly Bulletin. This level provides the country with 6.3 months of import cover, comfortably above the statutory minimum of four months.

The reserves dipped slightly from Ksh1.97 trillion the previous week but have consistently remained above Ksh1.9 trillion in recent weeks. The Kenyan shilling showed stability against major currencies, trading at Ksh129.49 to the US dollar, Ksh176.41 to the British pound, and Ksh151.07 to the euro.

Stable Currency and Liquid Money Market

The shilling also held steady against regional currencies, exchanging at 28.72 Ugandan shillings, 20.42 Tanzanian shillings, 11.35 Rwandese francs, and 23.09 Burundian francs. The money market remained liquid, with commercial banks holding an average of Ksh45.9 billion in excess reserves beyond the 3.25 percent Cash Reserve Ratio.

The Kenya Shilling Overnight Interbank Average Rate (KESONIA) remained unchanged at 8.75 percent. However, interbank transactions declined slightly in number and value during the week.

Robust Demand for Government Securities

Demand for Treasury bills remained strong, with the auction on August 20 attracting bids totaling Ksh71.7 billion against an offer of Ksh28 billion, achieving a performance rate of 255.9 percent. Interest rates on the 91-day, 182-day, and 364-day Treasury bills all declined.

• The 91-day bill received Ksh37.67 billion in bids, with Ksh32.44 billion accepted at an average rate of 8.77 percent.
• The 182-day paper attracted Ksh18.57 billion in bids; Ksh9.75 billion was accepted at 8.95 percent.
• The 364-day bill saw Ksh15.41 billion in bids, all accepted at 9.04 percent.

Market Performance and Commodity Prices

At the Nairobi Securities Exchange, the NASI index rose by 2.72 percent, while the NSE 25 and NSE 20 indices increased by 2.90 percent and 2.24 percent respectively. Market capitalization grew to Ksh4.10 trillion, with equity turnover surging by 253.81 percent and bond turnover in the secondary market climbing by 128.90 percent.

Global commodity prices experienced upward movement amid geopolitical tensions. Murban crude oil prices increased to approximately Ksh10,975 per barrel, influenced by US-Iran tensions and supply concerns. Spot gold prices also rose to about Ksh584,900 per ounce, supported by a weaker US dollar and increased safe-haven demand.

According to the CBK, the US Dollar Index weakened by 1.0 percent due to uncertainties around the US fiscal outlook and Treasury bond buybacks. Meanwhile, UK inflation edged up to 2.9 percent in July, and China’s economic growth showed signs of moderation with slower industrial output and retail sales.