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Kenya's Central Bank is actively considering increasing its gold reserves as part of a broader strategy to diversify its financial assets and reduce reliance on the US dollar.
As of early 2025, Kenya holds approximately 0.02 tonnes (20 kilograms) of gold in its official reserves, according to the latest report by the World Gold Council.
This modest amount, valued at approximately Sh169 million (about $1.3 million), has remained unchanged since 2000.
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The Central Bank of Kenya (CBK)
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While this may seem minimal in comparison to other African nations, Kenya is making moves to strengthen its position in the global economic landscape.
For comparison, South Africa, Africa’s largest economy, holds over 125 tonnes of gold, while Algeria has around 174 tonnes in its reserves.
Kenya's gold reserves are minuscule in comparison, but this could change soon as the Central Bank explores opportunities to increase its holdings.
Diversification Away from the Dollar
In light of global economic volatility and a rising trend of de-dollarisation, the Central Bank of Kenya, under Governor Kamau Thugge, is evaluating the feasibility of boosting its gold reserves.
Governor Thugge has confirmed that a dedicated team is assessing how Kenya can benefit from a stronger gold reserve portfolio, though there is no set timeline for when this initiative might materialise.
“We have basically a group that is looking at the feasibility of doing it. And yes, it's something that we are actively considering,” he said during an interview in the U.S. in April,
The move is being seen as part of a broader strategy to reduce Kenya’s reliance on the U.S. dollar and protect its economy from currency fluctuations, global inflation pressures, and the unpredictability of the global market.
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Governor of the Central Bank of Kenya (CBK) Dr. Kamau Thugge has been honoured with the prestigious title of Central Bank Governor of the Year by the African Banker Magazine.
Gold, as a safe-haven asset, has attracted more attention from central banks around the world for these reasons.
Gold Processing Bill in the Pipeline
To support this initiative, the Kenyan government is also focusing on the domestic gold sector.
The National Assembly is currently reviewing a bill to establish a Gold Processing Corporation, aimed at formalising and regulating the country's gold industry.
The move seeks to reduce illegal mining and gold trade, increase local production, and ensure that a larger portion of the country’s gold resources are harnessed for national benefit.
The new corporation would help Kenya tap into its untapped gold potential, which has been undermined by the informal sector.
By bolstering production and reducing reliance on imports, Kenya hopes to enhance its financial stability and contribute to economic growth while keeping a firm grasp on the growing global gold market.
Gold bar
Gold Reserves in Africa
Africa is home to some of the world’s largest gold reserves, with South Africa leading the continent.
Holding over 8,000 tonnes of gold, South Africa has long been a major player in the global gold market.
Ghana follows with 31.37 tonnes, benefiting from its status as one of Africa’s top gold producers.
Algeria holds 174 tonnes, reflecting its strategy to bolster gold reserves as a hedge against global financial uncertainties.
Zimbabwe, with 22.5 tonnes, relies heavily on its gold mining sector, which plays a crucial role in the country's economy.
Meanwhile, countries like Sudan, Mali, and Tanzania are also growing their gold reserves. Sudan, for instance, holds 25.8 tonnes, and other African nations are increasingly turning to gold as a way to diversify their financial portfolios.
As the price of gold remains strong, these nations are positioning themselves to harness the full potential of this valuable resource, using it to ensure economic stability and resilience against global market fluctuations.