The Central Bank of Kenya (CBK) is considering setting the Chinese yuan (renminbi or RMB) as its reserve currency. With China holding well over half of Kenya’s bilateral debts, the decision to anchor Kenya’s currency to the renminbi was described by CBK governor Patrick Njoroge as ‘inevitable’. A member of the Macroeconomic and Financial Management Institute of Eastern and Southern Africa added that, “Most countries in the Macroeconomic and Financial Management Institute of Eastern and Southern Africa (MEFMI) region have loans or grants from China and it would only make economic sense to repay in renminbi”.
