Forex reserves seen rising to 6.2 months of import cover after Safaricom sale
NAIROBI, Kenya, Jan 22 – The Central Bank of Kenya (CBK) has projected that the proposed partial sale of the government’s stake in Safaricom PLC to Kenya breaking news | Kenya news today |..
✨ Key Highlights
The Central Bank of Kenya (CBK) projects a significant increase in Kenya's foreign exchange reserves to KSh 1.84 trillion by 2026, driven by the proposed partial sale of the government's stake in Safaricom PLC to Vodacom. This transaction aims to boost import cover to 6.2 months, enhancing macroeconomic stability and reducing reliance on domestic borrowing.
- The sale is expected to generate over KSh 240 billion, plus an additional KSh 39.86 billion in upfront payments.
- CBK Governor Kamau Thugge stated that the increased reserves would support a stable exchange rate and contain imported inflation.
- The proposal faces criticism from the Consumer Federation of Kenya (COFEK), citing concerns over foreign control of a strategic national asset, particularly the M-Pesa platform, despite assurances from Treasury Cabinet Secretary John Mbadi and Safaricom CEO Peter Ndegwa.
Continue Reading
Read the complete article from Capital Business
Part of the Day's Coverage
Kenya Proposes VAT Cut and Safaricom Stake Sale; ODPC Confirms Worldcoin Data Deletion - January 2026
The Kenyan government's Finance Bill 2026 proposes an 8 percent reduction in input VAT for agricultural exporters, cutting the rate from the current 16 percent to alleviate costs. Separately, the Central Bank of Kenya (CBK) projects a significant increase in the country's foreign exchange reserves to KSh 1.84 trillion. This boost is driven by the proposed partial sale of the government's stake in Safaricom PLC to Vodacom, which aims to increase import cover to 6.2 months. In a regulatory action, the Office of the Data Protection Commissioner (ODPC) confirmed the complete deletion of all biometric data collected from Kenyan citizens by Worldcoin's parent company, Tools for Humanity.
