Markets & Finance

Kenya endorses post-Brexit contingency measures

Kenya will cooperate with the rest of the world in ensuring the smooth running of financial markets in the wake of the UK’s Friday decision to leave the EU that has caused extraordinary political and economic upheaval in the currency markets and a possible global recession, CBK governor Patrick Njoroge has said.

A meeting of central bankers attended by Mr Njoroge over the weekend in Basel, Switzerland, was dominated by discussions about the implications of the UK referendum to leave the European Union, and the high volatility that was experienced in the global markets last Friday.

Britain is Kenya’s third largest export market after Uganda and Netherlands and the weak dollar value of the pound could hurt Britain’s uptake of Kenya’s exports.

READ: Treasury sees no short-term impact of Brexit on Kenya

Also read: Kenya to feel the pain of Britain's possible EU exit

"Central bank governors noted the contingency measures put in place by the Bank of England and other central banks, to limit volatility and support the smooth operations of financial markets," Mr Njoroge said in a statement posted Monday on the bank’s website.

“They have pledged to cooperate closely and take necessary action to ensure the orderly functioning of the financial markets,” the governor added.

"While the markets in Kenya operated normally last Friday, the CBK reiterates its readiness to intervene in the money and foreign exchange markets to ensure their smooth operations."