Kenyan households and businesses have increased their foreign-currency savings to a record Sh1.52 trillion as they seek to protect their money from economic uncertainty and prepare for possible changes in exchange rates.
Data from the Kenya National Bureau of Statistics (KNBS) shows that deposits held in dollars, euros and British pounds rose by Sh240.57 billion over the past year. The increase reflects growing demand for financial security as investors assess inflation, global economic shocks and the approaching 2027 General Election.
Companies account for the largest share of the savings because many depend on foreign currencies to pay suppliers for imported goods, including fuel, machinery and industrial raw materials. Businesses also remember the dollar shortage experienced in 2023, when many struggled to obtain foreign currency to purchase essential supplies from overseas markets.
Research analyst Melodie Ndanu of SIB says households and companies are building financial reserves to protect themselves against economic shocks.
“Corporates are likely beefing up buffers for their operational cash flows against potential currency swings, while households are likely treating forex deposits as a wealth-preservation shield,” Ndanu said.
Central Bank of Kenya (CBK) data for December 2025 shows that companies held Sh957 billion in foreign-currency deposits, compared with Sh386 billion held by households. Businesses therefore accounted for 71.3 per cent of the total, while households held the remaining 28.7 per cent.
Kenya’s foreign-exchange reserves have also risen above $15 billion, providing a cushion against external pressures that could affect exports, tourism earnings and remittances.
The US dollar continues to attract investors as expectations of higher American interest rates and persistent inflation risks support its strength against other currencies. Some businesses are also delaying expansion plans as they wait for greater clarity on economic and political developments.
Mentoria Economics chief economist Ken Gichinga says companies hold foreign currency partly to settle supplier invoices, while potential capital outflows could put pressure on the shilling.
The rising deposits have raised questions about whether companies should invest more of their available cash in business expansion or return some of the money to shareholders. Meanwhile, Kenyans living abroad sent home $451.8 million (Sh58.69 billion) in August 2026, up six per cent from the same month in 2025. However, total remittances over the 12 months to August fell by 1.3 per cent to $5.01 billion (Sh650.8 billion).
The figures highlight how households and businesses are prioritising financial security while weighing investment opportunities against economic risks.