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Kenya’s forex reserves plunge by Sh27.8 billion on loan repayment

Central Bank of Kenya Governor, Dr Patrick Njoroge, during a past press conference in Nairobi.

Kenya’s foreign exchange reserves have declined by Sh27.8 billion (about $254 million) since the start of March, pulled down by external loan repayments. The forex reserves fell from $7.605 billion at the end of February to $7.351 billion on March 11, the Central Bank of Kenya (CBK) said in its weekly update on financial markets released on Friday. Kenya’s external debt currently stands at $35 billion. One of the loan packages, whose interest payment was due in the past days, is the $2 billion Eurobond, which was borrowed in 2018. But despite the decline, the apex bank noted that the reserves were adequate to meet the country’s import bill and support the shilling if need arose. “The usable foreign exchange reserves remain adequate. This meets the CBK’s statutory requirement to endeavour to maintain at least four months of import cover,” said the apex bank. – nation.co.ke