Kenya's forex reserves hit record $15.4bn on Safaricom sale

Kenya's foreign exchange reserves surged to an all-time high of 15.4 billion US dollars in the final week of July 2026, the Central Bank of Kenya (CBK) reported, driven by capital inflows from the government's partial divestiture of telecommunications giant Safaricom. The shilling held firm through the week, trading within a narrow band against the dollar and regional currencies.

The reserves jumped by a record 1.55 billion dollars in a single week, up from 13.85 billion dollars the previous week, according to the CBK's weekly financial markets update on August 1. In local currency terms, reserves climbed from approximately Ksh1.79 trillion on July 23 to Ksh1.99 trillion on July 30, an increase of more than Ksh193.4 billion in seven days.

Contents

01

What drove the record surge

02

How the shilling performed

03

Import cover well above the legal floor

04

Money market stability

What drove the record surge

The primary engine was the government's partial sale of its Safaricom stake, which funnelled substantial foreign capital into the central bank's coffers.

CBK Governor Kamau Thugge projected reserves would climb further in coming weeks. An additional inflow of roughly 855 million dollars is expected from South Africa's Nedbank, which is acquiring a 66 percent stake in a local Kenyan bank.

How the shilling performed

The Kenya Shilling remained stable against major international and regional currencies during the week ending July 30. It exchanged at Ksh129.40 per US dollar on July 30, compared to Ksh129.53 on July 23, a marginal firming within a tight range.

Against other major currencies, the shilling held relatively steady against the British pound, euro, and Japanese yen. On the regional front, it showed only minor fluctuations against the Ugandan shilling, Tanzanian shilling, Rwandan franc, and Burundian franc. Over the full week of July 24 to 30, the shilling averaged Ksh129.53 against the dollar.

Import cover well above the legal floor

The updated reserve position now covers 6.4 months of imports, up from 5.9 months a week earlier. That places Kenya comfortably above the CBK's statutory requirement to maintain at least four months of import cover, a buffer designed to shield the economy from external shocks.

Kenya's dollar reserves have stayed above 12 billion dollars since January 2026, anchoring the shilling's relative strength against major world currencies.

Money market stability

The domestic money market also showed steadiness. The Kenya Shilling Overnight Interbank Average Rate, known as KESONIA, held at 8.75 percent, unchanged from the prior week. The CBK noted continued activity from both buyers and sellers in the foreign exchange market.

The combination of record reserves, a stable shilling, and calm interbank rates shows an external sector that has absorbed the Safaricom inflows without volatility. With the Nedbank transaction still to come, the CBK's reserve buffer looks set to widen further.