By John Ikani
Kenya’s Trade Minister Moses Kuria, has admitted that the current dollar shortage in the country has surpassed the government’s control.
While addressing MPs, Mr. Kuria, acknowledged that the shortage was a global issue, but also criticized Kenya’s tendency to import goods that could be produced locally.
“You cannot be crying that we have problems with dollars when we are importing everything,” he emphasized.
In an effort to address the issue, he urged for incentives to be put in place to encourage local manufacturing and safeguard domestic producers from foreign competition.
According to local media outlets, the Central Bank of Kenya, (CBK) has instructed commercial banks to ration dollars in response to the currency shortage.
Many analysts have pointed fingers at the CBK for the crisis, claiming that the regulator’s strict regulations in the interbank currency market have exacerbated the situation.
However, the CBK has repeatedly insisted that Kenya’s foreign currency reserves are adequate to meet demand.
Unfortunately, the weakening Kenyan shilling, which has lost 9% of its value against the dollar over the past year, has led to a surge in living costs.
The situation is particularly difficult for those who rely on imports to make a living, as the scarcity of dollars has made it difficult to access the necessary foreign currency.
