President William Ruto now says that wealthy persons hoarding dollars locally will soon incur losses since his administration has put in place measures that will ensure that demand for foreign currency will lessen in the coming weeks.
Speaking in Nairobi on Wednesday, during the listing of Laptrust Imara (REIT) at the Nairobi Securities Exchange (NSE), President Ruto noted that one of these measures involved the State finalising an arrangement that will allow oil importers to purchase the commodity using shillings instead of dollars.
Petroleum imports account for up to 30 per cent of Kenya’s annual import bill.
The sector needs close to Ksh.64 billion ($500 million) every month to import diesel, petrol and kerosene and meet the country’s growing demand for the products.
Foreign currency fluctuation is a significant factor in the landed cost of petroleum products for which Kenya is a net importer.
“We just concluded a market-driven arrangement in our fuel sector that will see Kenya access all our fuel needs on a deferred six-month credit that will eliminate a demand of USD 500 million dollars every month from this market,” said President Ruto.
“I am giving you free advice that those of you who are hoarding dollars shortly might go into losses. You better do what you must do because this market is going to be different in a couple of weeks.”
He also added that the State is engaging with the Central Bank of Kenya (CBK) to reinstate the interchange exchange market so as to further address the dollar crisis.
“I am happy that the players in that sector including our banks are coming forward and they are participating and working with the Central Bank so that we can again take charge of our market so that it is not distorted by brokers,” said President Ruto.
“We have done what we must do as the government to ensure that we ease the burden on people who want to realize their returns in dollars.”
