Kenya’s Dollar Shortage Out Of Our Control - Minister
Kenya’s Trade Minister Moses Kuria has said the dollar shortage in the country is beyond government’s control. Mr Kuria told MP on Wednesday said the shortage was a global issue but also blamed Kenya’s culture of importing things that can be manufactured locally. “You cannot be crying that we have problems with dollars when we are importing everything,” he said.
He called for incentives to encourage local manufacturers and protect them from foreign competitors. The Central Bank of Kenya (CBK) has directed commercial banks to ration dollars following a shortage of the currency, local outlets report. Analysts have blamed the CBK for the dollar crisis, saying the regulator introduced tough rules in the interbank currency market.
But the regulator has repeatedly maintained that Kenya has sufficient foreign currency reserves to meet demand. The Kenyan shilling has lost 9.0% against the US dollar in over a year, pushing up the cost of living.