The Central Bank of Kenya (CBK) will add platinum and silver to its reserves as it looks to diversify from foreign currency and gold, which is the only commodity in its vaults.
The Central Bank of Kenya (Amendment) Bill, 2026, sponsored by the Finance and National Planning Committee Chairperson Kuria Kimani has proposed to allow the apex bank to accumulate other precious metals beyond the gold bullion.
Silver and platinum have emerged as gold substitutes to hedge against inflation and currency devaluation with central banks in Russia, Saudi Arabia, China and India, adding the metals to their reserves, to sit alongside gold.
Section 27 of the CBK Act will be amended in part one to factor the expansion of precious metals held as reserves.
“The bank may buy, sell, import, export, transfer, hold, refine, or otherwise deal in gold, gold coins and bullion, silver, platinum, and any other precious metals or foreign exchange under such terms and conditions as it shall determine,” reads the CBK Amendment Bill of 2026.
Silver and platinum are significantly cheaper than gold but have been tied to booming industries such as green energy, electronics and automotives as key raw materials.
Gold was quoted at $4,558.50 per ounce (Sh590,097 per 28.3 grams) on Tuesday while silver and platinum prices were comparatively cheaper at $76.60 (Sh9,915.87) per ounce and $1,995.40 per ounce (Sh258,304) as per data from Bloomberg.
Prices for the two commodities soared across 2025 on the backdrop of global economic uncertainties, supply constraints and robust demand.
Leading global derivatives marketplace CME Group observed that silver and platinum prices surged significantly from mid-June 2025, outpacing gains made by gold in the period.
Both silver and platinum have benefited from strong industrial applications, which have set them apart from gold’s primarily monetary and safe-haven role.
Silver is a critical component in electronics, solar panels and data centres, sectors currently experiencing rapid growth from the renewable energy push and digital infrastructure.
The resurgence in platinum has been driven by its essential role in catalytic converters for internal combustion engine vehicles, with demand remaining strong due to stricter emissions standards and a rebound in automotive production.
Chinese jewellery demand for platinum has also increased as high gold prices push consumers and jewellers to seek more affordable alternatives.
“Gold has historically been the most popular precious metal for investors seeking a perceived haven and a hedge against economic uncertainty. But the first half of 2025 has seen a shift in the market, with silver and platinum taking the spotlight. A combination of structural and cyclical factors has led investors to increasingly favour these metals,” the CME Group said in a note.
Central banks hold gold to diversify their foreign reserves, protect against inflation and serve as a hedge against political and financial risks.
Gold, a finite physical commodity whose supply cannot be added to, acts as a natural hedge against inflation while it carries no credit or counterparty risks.
CBK has been buying, selling, exporting, holding and dealing in gold or foreign exchange under terms and conditions set by it.
The apex bank also holds balances, denominated in foreign currencies, with foreign central banks or with agents or correspondents abroad.
CBK is allowed to invest such balances in marketable foreign securities denominated in convertible currencies.
The value of gold held by CBK jumped at the fastest rate 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.
Gold holdings by the bank rose 63.9 percent from Sh188.9 million held in December 2024.
This was the fastest rise over a single year in at least a decade and coincided with the soaring of gold prices amid global economic uncertainties.
CBK has recently anticipated further gold purchases and has held talks with international financial institutions, including the Bank of England, on the logistics of acquiring and storing gold.
African countries including the Democratic Republic of Congo, Rwanda and Namibia have been looking to buy the precious metal as a way of diversifying their reserve holdings.
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.
The share of gold in Kenya’s reserves is, however, still way under one percent, as Kenya’s 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 to settle payments for some countries, according to the Official Monetary and Financial Institutions Forum-an independent think tank for central banking, economic policy and public investment.
