Kenya’s foreign exchange reserves have shrunk to the point of breaching the regional statutory threshold as diaspora remittances — the country’s key source of forex — dry up in the wake of the Covid-19 pandemic, putting the shilling under intense pressure.
Central Bank data shows that the country’s forex reserves haven fallen 13 per cent in the past four months to $7.74 billion (4.66 months of import cover) in April, down from $8.88 billion (5.4 months of import cover) in January.
