Kenya's apex bank says "ready" for Britain's exit from EU

The Central Bank of Kenya (CBK) has said it is ready to intervene in the financial markets to stem disruptions caused by the exit of Britain ("Brexit") from the European Union.

Britain on Thursday voted to leave the European Union, an outcome that has sent shock waves across financial markets in the world.

The CBK said on Friday the threat of the Brexit has caused jitters in the global financial markets due to the uncertainty it portends for the British economy.

"The Central Bank of Kenya stands ready to intervene in the money and foreign exchange markets to ensure their smooth operation following the exit. Other major central banks have also announced their readiness to intervene to minimise disruption in their markets," said the CBK.

On Friday, the shilling was trading against the Sterling Pound at 149.7, a drop from 144.3 at the close of last week.

Several countries in Africa, including Kenya, trade with the European Union, thus Britain's exit has several ramifications.

Britain is Kenya's third largest destination of exports after Uganda and Netherlands. In the first quarter of this year, Kenya exported to Britain products worth 107 million U.S. dollars, at par with Uganda.

Kenya's exports to Britain include flowers and fresh produce like vegetables and fruits. Kenya also receives hundreds of tourists from Britain every year, its top traditional source.

CBK Governor, Patrick Njoroge, told journalists on Tuesday that Kenya had over 5.6 billion U.S. dollars in foreign exchange reserves that can be used to cushion the Kenyan shilling from volatility against other major currencies. Endit