Gov’t clarifies dollar shortage after President Suluhu’s remarks of broke borrowing neighbors.
Gov’t clarifies dollar shortage; This come after Tanzanian president, Samia Suluhu stated that Tanzania is better off since surrounding dollar reserves have theirs all used up.
She stated,” We are at a better place compared to our neighbours. Their dollar reserves cannot last them a week.Our reserves can push us for four months.They are here begging us for guarantees so they can buy fuel.”
She stated that countries in the East African Community (EAC) were borrowing from them.
Appearing before the lawmakers, Treasury principal secretary, Chris Kiptoo stated that Kenya’s reserves were intact .
He clarified that the reserves have enough content, for the next four months, which will enable imports to the country, including fuel.
Kiptoo further revealed the government is expecting an amount 1 billion dollars from the World Bank in the coming weeks to bolster the reserves.
He stated,”The World Bank will be sitting down very soon to discuss the development value operations where we expect to get 1 billion dollars.”
“I want to assure Kenyans that we are not sitting pretty and we are working very hard and all shall be well,” he added.
He however, acknowledged that there has been dollar shortage, because of the war between Russia and Ukraine.
Underway plans to prevent a shutdown; He stated that they are working with the central bank of Kenya to address the dollar issue between banks and the private institutions.
Suluhu’s remarks come days after there was looming danger of Kenya facing another fuel shortage.
However, petroleum outlets of Kenya chairman Martin Chomba stated,”There is sufficient fuel at the depots but the major oil companies are not evacuating it because they do not have sufficient dollars.”