Kenya’s Trade Minister Moses Kuria says the dollar shortage in the country is out of the government’s control. The shortage, according to Mr. Kuria, is a global problem, but Kenya’s tradition of importing goods that can be produced locally is also to fault.
He urged the creation of incentives to support domestic manufacturers and shield them from international rivals.
Following a shortage of the currency, the Central Bank of Kenya (CBK) has ordered commercial institutions to ration dollars, according to local media.
According to analysts, the CBK is to blame for the current dollar shortage because the regulator imposed strict regulations on the interbank currency market. The regulator, however, has consistently insisted that Kenya has enough foreign exchange assets to cover demand.
The expense of living has increased as a result of the Kenyan shilling’s 9.0% decline against the US dollar over the past year.