Central Bank foreign reserves drop by Ksh11.77 billion

Kenya's foreign reserves fell by Ksh11.77 billion this week to USD 13.149 billion, the Central Bank of Kenya reported on 20 June 2026. The decline occurred as the government prepares to close its 2025/2026 fiscal year accounts.

Data from the Central Bank of Kenya showed reserves at USD 13.149 billion, down from USD 13.240 billion the previous week. The reserves still exceed the 5.6-month import cover requirement, above the statutory minimum of four months.

Remittances in May fell by 0.9 per cent to Ksh50.98 billion from Ksh51.45 billion in April. The 12-month cumulative inflows to May 2026 dropped by 0.5 per cent to Ksh647.7 billion.

The Kenyan shilling weakened slightly, trading at Ksh129.55 against the US dollar on Thursday compared to Ksh129.48 on June 11. It also lost ground against the pound, euro and Japanese yen.

“Remittance inflows remain a key source of foreign exchange earnings and continue to support the balance of payments,” the Central Bank of Kenya stated.

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Illustration of a Kenyan family receiving remittances from the United States, highlighting the Ksh931.8 billion inflows reported by KNBS.
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KNBS report reveals Ksh931.8 billion in remittances to Kenya

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The Kenya National Bureau of Statistics released its 2025 Remittances Household Survey Report on Tuesday showing total inflows of Ksh931.8 billion from June 2024 to May 2025. The United States accounted for 43.5 per cent of the total. Most funds went to household consumption rather than investment.

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.

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Central Bank of Kenya (CBK) Governor Dr Kamau Thugge has assured that the shilling will hold steady against the US dollar despite global pressures, citing a USD619 million balance of payments surplus and strong reserves. He expressed optimism amid Middle East conflict and US trade policy uncertainties. Talks with the IMF continue for a new program after the previous one expired.

Argentina's Central Bank acquired 328 million dollars on Wednesday, the largest purchase of the month so far. Gross international reserves reached 46.583 billion dollars.

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The Philippines posted a $131-million balance of payments surplus in May, ending a seven-month run of dollar deficits. The central bank data signals possible easing of external pressures, though analysts urge caution.

The official retail dollar closed at $1,460 on Friday, June 5, while the wholesale exchange rate rose $3.50 to $1,440.

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The World Bank will release a KSh96.9 billion loan to Kenya before the end of June after the country met required reform conditions.

 

 

 

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