This archive report was first published on 16 June 2020.
Kenya's economy has received a significant boost as the country's foreign exchange reserves inch closer to the Sh1 trillion mark.
According to the Central Bank of Kenya (CBK), the usable foreign exchange reserves have increased to Sh991.59 billion ($9,302 million) in the week ending June 11, 2020.
This significant increase is attributed to the high foreign fund disbursements to support the country against the adverse effects of the coronavirus pandemic.
CBK data shows that the reserves have increased by Sh4.37 billion from Sh987.22 billion ($9,261 million) from the previous week.
The CBK's statutory requirement to maintain at least four months of import cover has been met, and the East African Community (EAC) region's convergence criteria of 4.5 months of import cover has also been achieved.
Analysts have attributed the rise to previous loans and grants by international bodies as a cushion from the pandemic, which has led to job losses and a reduction of export income.
Churchill Ogutu, head of research at Genghis Capital, noted that the disbursement of the African Development Bank loan in the order of Sh22.51 billion ($225 million) helped in offsetting settlement of external debt obligations made.
Published on June 16, 2020.
