Kenya's forex reserves hit a four-week low on the week ending February 27th on account of the shilling losing ground to major currencies. Additionally, rising dollar demand from importers accelerated to the decline in the country's forex reserves.

According to the Central Bank of Kenya (CBK) update last week, forex reserves declined by $200 million (KES25.8 billion) to $9.06 billion, down from $9.25 billion reported on February 20.

CBK said the reserves were equivalent to 4.6 months of import cover. Kenya's foreign exchange hit highest level $9.37 billion on February 13 this year before it started to decline.

The apex bank, however, stated the reserves "remain adequate, meeting CBK's statutory requirement to endeavor to maintain at least four months of import cover."

During the week under review, the Kenyan Shilling sustained pressure from the US dollar and other major currencies, losing ground to trade at 129.64 against the greenback on Friday, down from 129.2 earlier.

Equally, the local currency lost ground against the British pound and the euro, exchanging at 163.8 and 139.7 units, respectively, the CBK noted.

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