Kenya eyes Bank of England for gold storage as CBK moves to diversify foreign reserves portfolio

Kenya is in discussions with the Bank of England (BoE) to store part of its planned gold reserves as the country moves to diversify its foreign assets portfolio.

Central Bank of Kenya (CBK) Governor Dr. Kamau Thugge confirmed that preliminary talks had been held with the British central bank to explore how and where the gold will be securely stored once purchased.

“We’ve talked to the Bank of England and other banks to see how we go about it where it will be stored and other operational details,” Dr. Thugge revealed in an interview with Bloomberg.

He added that the process could begin “as soon as is practical” as Kenya finalizes its acquisition plans.

The CBK’s strategy comes amid soaring gold prices now topping Ksh542,640 per ounce driven by investor speculation over potential interest-rate cuts in the US and rising debt levels in developed economies.

However, Dr. Thugge cautioned that Kenya would adopt a measured approach to avoid losses should global gold prices drop.

“Those who got in early have made a killing,” he said. “Those who get in late can also be killed. So we must hold a level where, should there be a reversal, it doesn’t have a huge impact on our holdings.”

Kenya currently holds foreign reserves worth about Ksh1.4 trillion ($11 billion). The governor clarified that the move to buy gold is not meant to move away from the dollar but to strengthen and diversify Kenya’s overall reserve base.

The Bank of England, founded in 1694, serves as the United Kingdom’s central bank. It manages monetary policy, ensures financial stability, and oversees foreign reserves on behalf of governments and global institutions a role that could soon include Kenya’s bullion stockpile.