NAIROBI, Kenya, Aug 13 – The Central Bank of Kenya (CBK) has commissioned a team to assess the feasibility of acquiring gold as part of the nation’s reserve assets.
CBK governor Kamau Thugge, speaking during the post-Monetary Policy Committee (MPC) on Thursday, said that the move is part of Kenya’s broader efforts to reduce reliance on traditional currencies like the U.S. dollar amid shifting global dynamics.
“There are teams that are visiting the country just to go and see the potential for gold, but I think, just to make a long story short. We intend to diversify our reserve position and to include some gold element,” he said.
“We are still analyzing the potential for us to acquire gold as a reserve to diversify our base of reserve assets.”
It comes on the back of a “gold rush” by African nations seeking to bolster their financial stability in the wake of geopolitical volatilities.
Ghana, Tanzania, and Nigeria, for instance, have expanded their gold reserves to stabilize their economies and reduce reliance on foreign currencies.
However, experts caution that while gold is a strategic store of value, it comes with risks such as price volatility and liquidity challenges.
A report by BMI, a unit of Fitch Group, highlights these potential risks for sub-Saharan African central banks that have recently increased their gold reserves.
As of June 2025, Kenya’s Central Bank (CBK) holds approximately 600 ounces of gold, valued at around $1.3 million (Sh169 million).
This modest holding is a significant reduction from the country’s previous gold reserves, which were sold off in 1998.
The decision to divest from gold in 1998 was part of a broader strategy to restructure Kenya’s foreign exchange reserves.
The CBK’s assessment team will focus on the quantity and quality of local gold resources, as well as the strategic advantages of holding gold as part of Kenya’s reserves.
The central bank’s exploration comes amid a broader push by African nations to diversify reserve assets and strengthen financial resilience against global shocks.
