Forex reserves slide as Iran war tests Kenya economy firepower

Rising global oil prices and market tensions putting pressure on Kenya’s foreign reserves. [File, Standard]

Kenya’s foreign reserves dropped by about $800 million (Sh103 billion) in five weeks up to late April, as the Central Bank of Kenya (CBK) used them to support the shilling during rising global oil prices caused by Middle East tensions, which have strained households and businesses.

CBK data reviewed by The Standard shows dollar reserves stood at $13.226 billion (Sh1.71 trillion) as of April 29, equivalent to 5.6 months of import cover, down sharply from a record $14.022 billion (Sh1.81 trillion), a six-month import buffer reported on March 26 following the completion of a dual‑tranche Eurobond and Kenya Pipeline Company privatisation receipts.