Nairobi — Deputy President Rigathi Gachagua has cautioned financial speculators hoarding dollars to release them or prepare for losses.
Gachagua, a self-styled ‘honest man’ also referred by zoomers as ‘Riggy G’, said President William Ruto’s efforts to de-dollarize the economy were gaining traction and that these interventions would result in a significant reduction of exchange rates.
Speaking at the Port of Mombasa on Thursday when he formally received two oil tankers from the gulf, Gachagua warned that the dollar may not be marketable in the near future as the government has devised ways to reduce its demand.
“We ask all those Kenyans, business people, investors, who have been hoarding US dollars for the purpose of speculation, please offload those dollars to the market today (Thursday) and tomorrow (Friday). It is very honest advice from a truthful man,” he said.
“With what has happened freeing USD500 million to purchase fuel every month, the demand for the dollar will come down and shilling will gain and we do not want Kenyans to lose their money,” he added.
“So those who have been hording dollars everywhere hoping that it will go up, it will go down,” Gachagua asserted.
A dollar shortage has hit local commercial transactions despite having eased in recent weeks. Commercial banks have as a result raised their rate to as high as Sh145.5 per unit as of Thursday evening, in a move that has led to the proliferation of more black-market deals.
Imports-driven demand
Shortage of dollars has been due to the demand for dollars by traders and the national government to pay for imports and service its external loans.
On March 22, President Ruto disclosed that his administration’s plan to fix the dollar shortage promising a return to normalcy in a matter of weeks.
Ruto added that his administration had implemented creative measures to lessen the impact of the market’s dollar availability.
He singled out a fuel supply deal with oil producers in from the United Arab Emirates in a Government-to-Government that will see Kenya secure supply on a six-month credit basis as local oil markers pay for their stock in shillings.
“I want to assure those in Kenya who were facing challenges of access to dollars that we have taken steps to ensure dollar availability in the next couple of weeks are going to be different because our fuel companies will now be paying for fuel in Kenya shillings,” Ruto said.
Ruto noted that the six-month supply deal would ease the surge in demand hitherto recurring every month.
“They do not have to look for dollars every month because we have to ensure we ease the burden on people who want to realize their returns in dollars.”
