ADVOKS GLOBAL · KENYA
Central Bank of Kenya Act
26. Reserve of external assets
Edition: 2026-07-24 · In force
26. Reserve of external assets
(1)The Bank shall at all times use its best endeavours to maintain a reserve of external assets at an aggregate amount of not less than the value of four months imports as recorded and averaged for the last three preceding years; and subject to subsection (3) the reserve shall consist of any or all of the following—(a)gold and any other precious metals;(b)convertible foreign exchange in the form of—(i)demand or time deposits with foreign central banks or with the Bank’s agents or correspondents outside Kenya;(ii)documents and instruments customarily used for the making of payments or transfers in international transactions;(c)convertible and marketable securities of, or guaranteed by, foreign governments or international financial institutions:Provided that if, at any time, the Bank is unable to maintain the reserve of external assets required under this subsection, it shall provide the Cabinet Secretary with a timebound remedial plan.(2)The Bank shall from time to time determine the type and form of convertible foreign exchange and the kinds of securities which may be held in the reserve of external assets pursuant to subsection (1).(3)The Bank may include in its reserve of external assets any liquid external asset not included in subsection (1), or any readily available international drawing facility, which the Bank, after consultation with the International Monetary Fund and with the approval of the Cabinet Secretary, considers suitable for inclusion in the reserve.