Kenya's stock of foreign exchange reserved increased to record $15.4 billion (about KSh1.99 trillion) in the week ended July 31, attributable to receipt of proceeds on the sale of government stake in telco Safaricom PLC.

According to Central Bank of Kenya weekly update released on Friday, forex reserves edged up by $1.55 billion (about KSh200 billion) from $13.85 billion (about KSh1.79 trillion) recorded a week earlier.

At $15.4 billion, the National Treasury now has forex reserves enough to cover 6.4 months of imports, an increase from equivalent 5.9 months in the previous week, CBK noted.

"This meets CBK's statutory requirement to endeavor to maintain at least four months of import cover," CBK said.

According to CBK Governor Dr Kamau Thugge, the country's reserves could rise even higher in the coming weeks as the Treasury expects roughly $855 million in inflows from South Africa's Nedbank that is buying 66 percent stake in NCBA Group.

In a deal valued at at Ksh.204.3 billion ($1.58 billion), Vodacom has raised its stake in Safaricom PLC from 40 percent to 55 per cent, offering the South African telco majority control of East Africa's most profitable firm. 

In addition to the share sale proceeds, Kenya was set an upfront payment of KSh 40.2 billion ($311.5 million) from Vodacom in lieu of future dividends on its residual 20 percent stake, bringing total gross inflows to an estimated KSh 244 billion ($1.89 billion).

Meanwhile, July saw inflation increase marginally to 6.5 percent from 6.4 percent reported in June 2026. 

During the period under review, the Kenya National Bureau of Statistics said core inflation increased to 3.2 percent from 3.1 percent, driven by higher transport costs and prices of processed foods, particularly wheat and cooking oil. 

However, non-core inflation declined to 15.0 percent in July from 15.1 percent in June 2026.

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