The value of gold held by the Central Bank of Kenya (CBK) jumped the fastest in over a decade to Sh309.71 million at the end of December last year, amid a rally in the global price of the precious metal.
The CBK's latest disclosures show that gold holdings rose 63.9 percent from Sh188.9 million held in December 2024.
This is the fastest rise in a single year in at least a decade and came in the period gold prices soared to record levels amid global economic uncertainty.
Kenya's central bank anticipates going into the purchase of gold, becoming the latest African country looking to buy the precious metal as a way of diversifying its reserve holdings, with some investors viewing it as safer than the dollar.
African nations topping up their reserves with gold include the Democratic Republic of Congo, Rwanda and Namibia.
CBK Governor Kamau Thugge earlier said the bank was in talks with international financial institutions, including the Bank of England, on the logistics of acquiring and storing gold.
Gold appreciated by over 66 percent last year to reach about $4,300 (Sh555,400) a troy ounce, in what marked the best year since 1979, partly as investors worried about inflation and soaring debt levels piled into the precious metal.
The precious metal extended gains to early this year, with a record 5,589.38 per troy ounce on January 28, 2026. Gold prices dropped to a two-month low of $4,385.32 per ounce last Thursday as the deepening uncertainty over the trajectory of the US-Iran war boosted the dollar and drove up oil prices.
CBK has been pushing to diversify the country’s foreign reserves amid global economic uncertainty. However, it is not clear if the 63.9 percent rise was driven solely by price gains or included fresh bullion purchases.
Dr Thugge said in April last year that the bank was “actively considering” adding gold to its reserves beyond the dollar and other currencies.
Central banks across emerging markets have been increasing gold holdings as a safeguard against geopolitical risks and currency depreciation.
Gold also allows central banks to diversify from assets such as dollar reserves. The metal, unlike foreign currencies or government securities, is not directly affected by policy decisions in major economies, making it an attractive store of value during periods of financial stress.
Central banks have accumulated over 1,000 tonnes of gold in each of the last three years, up significantly from the 400 to 500 tonnes average over the preceding decade, according to the World Gold Council, a London-headquartered international trade association for the gold industry.
“This marked acceleration in the pace of accumulation has occurred against a backdrop of geopolitical and economic uncertainty, which has clouded the outlook for reserve managers and investors alike,” said the Council in its 2025 Central Bank Gold Reserves survey conducted between February and May last year.
The share of gold in Kenya’s reserves is, however, still way under one percent, given that foreign exchange reserves closed in December last year at $ 12.39 billion (Sh1.604 trillion).
Geopolitical events have laid a solid foundation for gold to become prominent in the reserve portfolios of central banks, and as a way to settle payments for some countries, according to Official Monetary and Financial Institutions Forum— an independent think tank for central banking, economic policy and public investment.
