Treasury, CBK marred in dollar shortage quagmire
The National treasury has refuted claims that the Central Bank of Kenya (CBK) has a hand in the current dollar shortage being experienced countrywide.
The shortage has affected several companies that rely on the dollar and thus plunging into a crisis.
The shortage that has been experienced in the past few months has made it impossible for the business involved in the importing trade and other cross-border related transactions that require the dollar.
Manufacturers have cited having issues with suppliers due to delayed payments. In contrast, oil companies have highlighted the need to have the government solve the issue as they cannot import raw materials.
Financial analysts suspect the CBK is hoarding the dollars to facilitate government debt servicing. The treasury refutes the claim that the CBK is holding on to the dollar reserve.
The dollar shortage has pushed the Kenya Private Sector Alliance (KEPSA) to ask the CBK to allow for equal access to foreign currency (FX) from banks to resolve the current shortage experienced countrywide.
The Informer has learned that the CBK will be meeting banks to ensure players in the market have equal access to forex.
The dollar shortage has been attributed to the rising global commodity prices, thus the pressure on businessmen to have more dollars to purchase products.
Data showed the reserves stood at Sh.959 billion ($8.2 billion), an equivalent to 4.88 months of import cover. The dollar stood at Sh.117.10 at the close of trading yesterday.
