Kenya’s foreign exchange reserves fell by Ksh11.77 billion during the past week. New data from the Central Bank of Kenya shows reserves dropped to USD13.149 billion.
The reserves stood at USD13.240 billion a week earlier. Despite the decline, the stock remains above the required import cover level.
The Central Bank said the reserves can support more than 5.6 months of imports. This remains above the legal minimum requirement of four months.
The decline comes as the government prepares to close accounts for the 2025/26 financial year. Treasury agencies have less than two weeks to complete the process.
Remittances Fall in May
Money sent home by Kenyans abroad also declined during May. Remittance inflows dropped to Ksh50.98 billion from Ksh51.45 billion in April.
The decline represents about Ksh470 million in reduced inflows. Annual remittances also fell slightly compared to the same period last year.
Data shows cumulative inflows reached Ksh647.7 billion by May. The figure stood at Ksh650.94 billion during the same period in 2025.
A recent KNBS survey showed about 50,000 Kenyans working abroad returned home. Many cited expired employment contracts and other personal reasons.
Neither KNBS nor CBK directly linked the trend to lower remittances. However, the figures emerged during the same period.
Shilling Weakens Against Major Currencies
The Kenyan shilling posted small losses against several global currencies this week. It traded at Ksh129.55 against the US dollar on Thursday.
The exchange rate stood at Ksh129.48 a week earlier. The local currency also weakened against the pound and euro.
CBK data placed the pound at Ksh173.79 from Ksh173.35 previously. The euro rose to Ksh150.16 from Ksh149.77.
The shilling also slipped against the Japanese yen. The currency traded at Ksh80.84 compared to Ksh80.79 the previous week.
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