Kenya's Forex Reserves Decline Amid Stable Shilling

The Kenyan Shilling maintained its stability against major currencies despite a decline in foreign exchange reserves. According to data from the Central Bank of Kenya (CBK), the country's forex reserves fell by $221 million in the week ending August 27, 2026, to $14.934 billion.

This is still above the CBK's statutory requirement of maintaining at least four months' worth of import cover, which stands at 6.2 months as of August 27. The Kenyan Shilling exchanged at KSh129.47 against the US dollar on August 27, compared to KSh129.49 on August 20.

The CBK attributed the stability of the shilling to a relatively well-performing current account and increased foreign direct investment. However, some have raised concerns over the unusual exchange-rate stability, suggesting it may mask potential imbalances in the foreign exchange market.