Kenyan businesses and households have piled a record Sh1.52 trillion into foreign-currency accounts, according to new data from the Kenya National Bureau of Statistics. The figure covers deposits held in US dollars, euros and British pounds, not just dollar accounts, and marks a jump of Sh240.57 billion from a year earlier. KNBS describes it as one of the largest annual increases in recent memory.
Kenyan businesses and households now hold a record Sh1.52 trillion in foreign-currency accounts—one of the largest annual jumps on record.
It's important to note this isn't proof that Sh1.5 trillion suddenly moved out of shilling accounts. It simply shows how much foreign currency banks are holding on behalf of customers.
Central Bank of Kenya figures offer a close, though not identical, picture. Its monthly series put foreign-currency deposits at Sh1,485.3 billion in July 2026, up from Sh1,427.1 billion in June and Sh1,249.8 billion a year earlier—an 18.8% annual rise. The CBK number sits just under the KNBS headline, a reminder that different measurement dates and methods can produce slightly different totals.
So who's holding this money? CBK data through December 2025 show corporates with Sh957 billion, or roughly 71.3% of the combined total, while households hold Sh386 billion, or about 28.7%. The news report cautions this split isn't exact but is close to reality.
Businesses have practical reasons for holding dollars. Importers need foreign currency to pay overseas suppliers for fuel, machinery and industrial inputs. Matching foreign currency income with foreign currency bills helps companies manage risk. Remittance firms, agriculture, travel and tourism businesses, foreign-owned companies and some public entities are among the biggest holders, often citing cash-flow planning and dividend buildup.
Analysts also point to caution. Kenya's 2027 General Election is creating uncertainty, and some firms may be holding cash rather than expanding until the political picture clears. Households, meanwhile, may be using dollar savings to protect their money's value against inflation. Currency positioning like this often tracks closely with interest rate differentials between countries, since investors and businesses alike tend to favor holding currencies that offer better returns or greater stability.
Still, the data alone can't say whether this reflects confidence or panic—that's an interpretation, not a fact.
On the inflow side, remittances hit US$451.8 million in August 2026, up 6% from US$426.1 million a year earlier, adding another layer to Kenya's foreign-currency picture. Markets will likely watch whether this dollar buildup continues as election season approaches.
