The Central Bank of Kenya (CBK) on Friday, March 17, detailed that Ksh854 billion (USD 6.5 billion) in the foreign currency reserve would last over the next three months.
In its weekly bulletin, CBK noted that the Kenyan shilling was stabilising against the dollar even as the latter hit the 140 mark.
CBK noted that the reserves were adequate pursuant to the bank's regulations.
It was further explained that the sufficiency of the reserve will enable importers to continue with their business without any hindrance.
"The usable foreign exchange reserves remained adequate at USD 6,560 million (3.66 months of import cover) as of March 16. This meets the CBK’s statutory requirement to endeavour to maintain at least 4 months of import cover," read the statement in part.
According to CBK, it exchanged the dollar at Ksh129.76 to the banks. Various banks, on the other hand, sold the dollar at Ksh140.
CBK also noted that the reserves would be strengthened in the coming weeks as Kenyans living abroad remit money back home.
"Remittance inflows continue to support the current account and the foreign exchange market. The US remains the largest source of remittances into Kenya, accounting for 59 per cent," CBK stated.
The weakening of the Kenyan shilling has been occasioned by the high demand for importation - done in dollars amid the limited reserves.
Major imports to Kenya included fuel, cars, and other technological products.
Recently, there was concern over the shortage of the US dollar, which had been projected to affect the prices of a number of basic commodities, such as fuel.
Notably, during the review of fuel prices by the Energy and Petroleum Regulatory Authority (EPRA), the price of super petrol increased to Ksh2.
The increase was explained by the dominance of the dollar against the shilling.
