Increase in remittances by Kenyans living and working abroad, stronger export earnings and disbursements from the International Monetary Fund (IMF) have pushed up Kenya's forex reserves by USD191 million (about KES).

According to the Central Bank of Kenya, the country's forex reserves hit USD9.2 billion, which is equivalent to 4.7 months of import cover in the week ending December 27. Previously, the country's forex reserves were reported at USD9.01 billion for the week ending December 19.

Earlier in the week ending December 5, Kenya's forex reserves dipped to below nine billion USD. 

During his briefing on December 5 post the Monetary Policy Committee meeting, CBK Governor Dr. Kamau Thugge noted that the country's foreign exchange reserves were expected to increase by the end of 2024 by an average of US$2.23 billion.

The governor attributed the expected increase to rising earnings from exports, funding from the IMF and increasing remittances from Kenyans living and working abroad during the festive season.

Last month, the IMF advanced a total of KES78.4 billion (US$605 million) to Kenya in a deal that is set to come to an end in April next year.

At the same time, Kenyans living and working in the diaspora moved a record US$ billion bu October 2028 with North America and Europe being the key source markets for remittances.

What's more, earnings from exports have expanded by 12 percent in the year to October, powered by higher uptake of tea, vegetables and fruits in Kenya's overseas markets.

"The usable foreign exchange reserves remained adequate at 9.2 billion U.S. dollars, meeting the CBK's statutory requirement to maintain at least 4 months of import cover," the central bank said.

During the festive season, the Kenyan shilling strengthened against the USD, trading at an average of 129.29 on Monday, December 30, 2024.

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