Trade Cabinet Secretary, Moses Kuria has unveiled President William Ruto’s plan to raise the Kenyan shilling against the dollar
Kuria, on Saturday, March 4, explained that Kenya Kwanza government will use the balance of trade and delayed debt payment as key instruments in lowering the exchange rates.
His Energy counterpart, Davies Chirchir, was at the center of the move to ensure that Kenyans get affordable fuel and the exchange rate is drastically reduced.
“My distinguished colleague Davies Chirchir is working hard to restructure the fuel supply chain in order to ease the pressure on the Shilling.
“He is imminently succeeding after which I see an exchange rate of Ksh85 to the dollar,” Kuria detailed.
By March 4, 2023, 1 US Dollar was trading at around Ksh128 when buying and Ksh137 when selling it within local financial institutions.
Energy Minister Davis Chirchir, on Monday, February 27, warned that the government was concerned with the rising pressure on the foreign exchange rate.
Kenya Kwanza government is seeking a year moratorium on imported oil instead of making payments immediately when the products are delivered at the port of entry.
Kenya’s useable foreign exchange reserves reportedly shrank below statutory requirements, which should be enough to cover four months of imports of all kinds.
“When products arrive in Mombasa (port) today, we pay about Ksh64 billion ($500) million within three days. That causes significant pressure,” Chirchir explained in an interview with Reuters.