CBK Downplays Need for IMF Loan as Forex Reserves Hit $15B

The Central Bank of Kenya (CBK) has played down the immediate urgency for a new International Monetary Fund (IMF) lending programme as the country’s foreign exchange reserves remain close to $15 billion, providing a stronger buffer against external financial pressures. The improved reserves position comes as Kenya continues discussions with the IMF over a possible new programme following the conclusion of its previous $3.6 billion arrangement in April 2025.

CBK data showed foreign exchange reserves stood at $14.702 billion as of October 2026, equivalent to 5.9 months of import cover. The level remains comfortably above the central bank’s statutory requirement to maintain at least four months of import cover.

The reserves have remained around the $15 billion mark in recent months. Data released earlier in September showed reserves reaching $15.253 billion, equivalent to 6.3 months of import cover, before easing in subsequent weeks.
The stronger external position gives Kenya greater capacity to meet international payment obligations and manage temporary pressure on the shilling without relying immediately on fresh external borrowing.

Kenya has been seeking a new IMF programme after its previous financing arrangement expired in April 2025. CBK Governor Kamau Thugge said in August that an IMF team was expected to visit Nairobi for consultations, with discussions expected to include a possible new fund-supported programme.

The IMF’s latest records show Kenya continues to have outstanding obligations to the Fund following its previous programmes. The country also has scheduled payments to the IMF during the remainder of 2026.

Meanwhile, CBK said Kenya’s current account deficit was estimated at 3.1 percent of GDP in the 12 months to August 2026, compared with 2.1 percent during the same period in 2025. The deficit is projected to widen to 3.2 percent of GDP by the end of 2026, mainly due to higher imports and increased international oil prices.

Despite these pressures, the central bank said the country’s reserves continue to provide adequate cover and a buffer against short-term domestic and external shocks.