Kenya's foreign exchange reserves dropped by Ksh 47.5 billion to USD 13.656 billion, providing 5.8 months of import cover, the Central Bank of Kenya announced. The decline comes amid export disruptions from the Iran war and looming fuel shortages. Officials say the reserves still meet statutory requirements.
The Central Bank of Kenya announced in its weekly bulletin released on April 2 that foreign exchange reserves stood at USD 13,655.70 million as of April 1, down from USD 14.02 billion the previous week.
The Iran war, which began on February 28, has stalled tea and meat exports to the Middle East, with shipments stuck at Mombasa Port. Tea farmers are losing an estimated Ksh 1 billion weekly as a result.
Kenya awaits fuel imports from the Middle East, with the government insisting on a 16-day fuel cover. An oil shipment is expected next week, but many petrol stations are already hoarding fuel amid uncertainty.
The reserves remain above the statutory minimum of 4 months of import cover. They serve to meet international debt obligations and stabilize the Kenyan shilling during volatility.
