Kenya’s Forex Reserves Recover as Global Oil Prices Jump

Kenya’s foreign exchange reserves recovered to Ksh1.97 trillion in the week ending September 10, 2026, reversing a three-week decline recorded in the previous weeks.

According to the Central Bank of Kenya (CBK) weekly bulletin, the reserves stood at USD15.25 billion, equivalent to approximately Ksh1.97 trillion, providing 6.3 months of import cover.

The figure was an improvement from Ksh1.93 trillion, recorded on September 3, when reserves provided 6.1 months of import cover.

CBK stated that the latest position remains above its statutory requirement to endeavour to maintain at least four months of import cover.

“The foreign exchange reserves remained adequate at USD 15,253 million (6.3 months of import cover) as of September 10. This meets CBK’s statutory requirement to endeavour to maintain at least 4 months of import cover,” CBK stated.

CBK Says Shilling Remains Stable as Middle East Tensions Push Oil Prices Higher

According to the bank, the recovery in reserves came as the Kenyan shilling remained broadly stable against major international and regional currencies.

The shilling traded at Ksh129.45 against the US dollar on September 10, compared with Ksh129.48 on September 3.

Also Read: CBK Reveals Banks With Lowest Interest Rates as of July 2026

In addition, the local currency remained relatively stable against other major currencies during the week, trading at Ksh175.48 against the British pound and Ksh23.12 against the euro.

Meanwhile, global oil prices recorded a sharp increase during the week amid renewed concerns over supply disruptions linked to developments in the Middle East.

Murban crude oil prices rose to about Ksh12,350 per barrel on September 10, up from approximately Ksh11,135 per barrel on September 3.

The increase came as concerns over oil supply risks intensified following renewed disruptions in the Middle East.

Treasury Bill Demand Nearly Doubles Target

Furthermore, CBK noted that investor demand for government securities remained strong during the week.

This is after the Treasury bill auction held on September 10 received bids worth Ksh55.5 billion against an advertised amount of Ksh28 billion, representing a performance of 198.2%.

However, interest rates on the 91-day, 182-day and 364-day Treasury bills declined during the week.

Also Read: CBK Reveals Three Major Forces Driving Food Prices in Kenya

A Treasury bond auction held on September 9 also attracted strong demand, with the 10-year Treasury switch bond receiving bids worth Ksh13.5 billion against a Ksh10 billion target, representing a performance of 135.25.

The CBK also said the money market remained liquid during the week, with open market operations remaining active.

Commercial banks’ excess reserves averaged Ksh 21.3 billion above the 3.25 % Cash Reserve Ratio requirement, while the Kenya Shilling Overnight Interbank Average (KESONIA) remained stable at 8.75%.

Interbank activity also increased, with the average number of transactions rising to 23 from 16 in the previous week, as the average value traded increased to Ksh11.4 billion from KSh9.6 billion during the previous week.

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Image of a fuel pump. PHOTO/File