NAIROBI, Kenya, Feb 23 – Kenya’s foreign exchange reserves are set to strengthen in the coming weeks following inflows from the government’s partial stake sale in Safaricom and a fresh Eurobond issuance in international capital markets.
According to the latest bulletin from the Central Bank of Kenya (CBK), reserves stood at Sh1.63 trillion ($12.66 billion), equivalent to 5.5 months of import cover as of February 19—well above the statutory minimum requirement of four months.
Last week, the government raised Sh290.3 billion ($2.25 billion) through a Eurobond sale. Part of the proceeds will finance a Sh64.5 billion ($500 million) buyback of existing Eurobonds under a liability management exercise, while the remainder will support budgetary needs and reinforce external buffers.
Under the tender offer, Kenya is seeking to repurchase up to $350 million of its 8 percent amortizing notes due in 2032 and up to $150 million of its 7.25 percent notes due in 2028.
Further support is expected from the Safaricom stake sale, which generated approximately Sh206.4 billion ($1.6 billion) from the disposal of a 15 percent shareholding, alongside an upfront dividend payment of Sh39.9 billion ($309 million).
The additional dollar inflows are expected to ease pressure on the shilling and enhance external stability. CBK data shows the currency remained stable at Sh129.02 per US dollar during the review period, while money market liquidity remained adequate, with the Kenya Shilling Overnight Interbank Average (KESONIA) at 8.77 percent.
