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Kenya to withstand Brexit shock - FM

Kenya to withstand Brexit shock - FM

Kenya

Kenya has adequate foreign exchange reserves to take appropriate action if there is any economic fallout after Britons voted to leave the European Union, its finance minister Henry Rotich has said.

“Just to assure you the government and the country has sufficient forex resources. We will take appropriate action should there be any impact,” Rotich said.

Earlier on Friday, Kenya’s Central Bank said it was ready to intervene and minimize disruption in money markets, as global stocks reacted negatively to the EU exit.

The decision has sparked uncertainty given that Britain is Kenya’s third largest export market and a key ally.

“The Central Bank of Kenya stands ready to intervene in the money and foreign exchange markets to ensure their smooth operation” the regulator said after Britons voted to leave the economic bloc.

World financial markets dived as results showed the exit camp had won with the Sterling plunging to its biggest one-day fall of more than 10 percent against the dollar after hitting a 31-year low on market fears the decision will hit investment in the world’s 5th largest economy.

Results from Thursday’s landmark referendum showed an outcome that sets Britain on an uncertain path and deals the largest setback to European efforts to forge greater unity since World War Two.