Kenyan businessmen can sigh in relief as the Central Bank of Kenya has stated that the country possesses enough foreign reserves.
In a weekly bulletin issued by the exchequer, the country’s foreign reserves will last the country the next four months.
More details reveal that CBK is in possession of Ksh940 billion (USD 7,180M) which is adequate to cover imports during the stated period.
Additionally, CBK stated that the reserves were in accordance with the statutory requirements which require a 4-month cover, for imports.
“The usable foreign exchange reserves remained adequate at USD 7,180 million (3.8 months of import cover) as of May 9. This meets the CBK’s statutory requirement to endeavour to maintain at least 4 months of import cover,” stated CBK.
Further, within the bulleting, CBK explained that the Kenyan shilling had remained stable within the week exchanging at Ksh131.25 on May 9.
The rate was a gain from the Ksh 133.20 that the shilling was trading at in the beginning of the week.
Additionally, Kenyan reserves were expected to be boosted by a World Bank Ksh158 billion advance disbursed on April 30.
The money which was approved on Tuesday, March 26, under First Kenya Fiscal Sustainability and Resilient Growth is reported to have soared the crucial dollar reserves.
“To promote efficiency, equity, and transparency of public finance; foster more competitive and inclusive product and labour markets; and strengthen climate action,” the World Bank explained the proposed development objective of the loan.
Importers in the recent months of 2023, were reported to experience tough times in their businesses after the reserves dipped.
Further, the economy was stated to lose out on the growth capacity of firms as most firms were faced supply chain issues.
