Kenya's Dollar Import Cover Dips to 5.9 Months Amid Sh40 Billion Drain

The Central Bank of Kenya's foreign exchange reserves dropped by KES 40.6 billion in one week, reducing the country's import cover to 5.9 months amid debt pressures.

This sharp contraction in Kenya's macroeconomic buffer raises concerns about the stability of the shilling and highlights the mounting costs of servicing external sovereign debt.

The CBK Weekly Bulletin covering the period ending July 23, 2026, shows that the country's official forex reserves fell from KES 1.83 trillion to KES 1.79 trillion, resulting in a decline in import cover from 6 months to 5.9 months.

Financial analysts attribute the sharp decline to heavy sovereign debt repayments and the CBK's tactical interventions in the foreign exchange market to prevent the Kenyan Shilling from weakening against the US Dollar.