CBK’s Foreign Reserves Drop By Ksh11.77 billion, Weakens Shilling
Despite a minor reduction in remittance inflows and a slight depreciation of the Kenyan shilling relative to other major currencies, the country’s foreign reserves fell by Ksh11.77 billion this week.
The reserves were reduced from USD 13.240 billion the week before to USD 13.149 billion, according to data from the Central Bank of Kenya (CBK).
The reserves are still more than the required minimum of four months of import cover, according to CBK, notwithstanding the decline.
The decrease coincides with the government’s efforts to close accounts for the fiscal year 2025–2026 within the next ten days.
CBK FX Reserves Slip to US$ 13.1 Bn, Reversing Prior Week’s Gain
➠ Down US$ 91 Mn (KSh 11.79 Bn) W-o-W
➠ Import cover steady at 5.6 months for seven straight weeks
➠ Reserves US$ 1.448 Bn below the March 5 peak. https://t.co/FryY4w67Ra pic.twitter.com/DV7bg2uKsJ— Kenyan Wall Street (@kenyanwalstreet) June 20, 2026
At the same time, remittances in May fell by 0.9 per cent to Ksh50.98 billion from Ksh51.45 billion in April.
The Ksh470 million decline saw the 12-month cumulative inflows to May 2026 drop by 0.5 per cent to Ksh647.7 billion from Ksh650.94 billion in the same period in 2025.
“Remittance inflows remain a key source of foreign exchange earnings and continue to support the balance of payments,” CBK asserted.
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- CBK’s Foreign Reserves Drop By Ksh11.77 billion, Weakens Shilling
According to the 2025 Remittances Household Survey Report by the Kenya National Bureau of Statistics, about 50,000 Kenyans working abroad returned home for various reasons, including expired contracts.
This perhaps offers a window into the declining remittances, although neither the CBK nor the KNBS report points to this directly.
Meanwhile, the Kenyan shilling marginally weakened against the US dollar, trading at Ksh129.55 on Thursday compared to Ksh129.48 on June 11.
The shilling also lost ground against the pound, euro and Japanese yen over the week.
CBK data shows the shilling traded at an average of Ksh173.79 against the pound, down from Ksh173.35 the previous week.
Against the euro, it slipped to Ksh150.16 from Ksh149.77, while against the Japanese yen it edged down to Ksh80.84 from Ksh80.79.
CBK’s Foreign Reserves Drop By Ksh11.77 billion, Weakens Shilling
