Kenya? President Suluhu chides East African country ‘begging’ her for forex reserves
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President Samia Suluhu reveals the forex reserves crisis in the East Africa Community
President Samia Suluhu reveals the forex reserves crisis in the East Africa Community.
Tanzanian President Samia Suluhu on Wednesday, March 8 revealed that a member of the East African Community (EAC) was facing an imminent crisis after depleting its forex reserves.
Speaking on International Women’s Day, President Suluhu told Tanzanians to appreciate the state of their economy which was better compared to her neighbouring countries.
While assuring Tanzanians that they were on the right path economically, Suluhu cited an example of an unnamed country that she said does not have forex reserves to last a week.
She further revealed how she was being approached every day to lend a helping hand.
“Economically, we are the best in EAC, while everyone else is complaining of lack of forex reserves, we have enough for four months.
“One of our neighbours here does not have even for one week,” she told her electorate.
On how the situation was dire in the said country, she explained, “We are getting requests to guarantee them so that they can be loaned fuel.”
The Tanzanian Head of State revealed that she was playing hardball when asked for help from EAC member states.
“When they come to us for help, I tell them we are in the same situation although our economy is stronger,” she remarked.
President Suluhu’s comments come days after reports that commercial banks in Kenya had run out of dollars and had resorted to borrowing from Tanzania.
The report added that the Central Bank of Kenya (CBK) has directed commercial banks to ration dollars following a shortage of the currency and the race to protect reserves.
“We are now scavenging for dollars. Only half of every six banks we call daily for dollars will have something for us. Three of the banks will ask us to check later,” a top executive of a manufacturing firm who sought anonymity for fear of reprisals from the Central Bank of Kenya (CBK), was quoted as saying.
The comments also come after a section of Kenyans decried fuel shortage with some fuel pumps running dry.
Energy and Petroleum Regulatory Authority (EPRA) responded by explaining that the shortage was being caused due to artificial hoarding by a section of oil marketers.
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EPRA’s statement was backed by Martin Chomba, the Chairman of the Petroleum Outlets Association of Kenya (POAK).
“There’s enough petroleum products to run the country so there is no need for alarm or panic. Manageable hitches in payment modes logistics with some Oil Marketing Companies (OMCs) notwithstanding.
“There is enough stocks to last the country over 16 days and more vessels are scheduled to discharge,” he assured Kenyans on Tuesday, March 7.
Chomba further revealed that the sector was being hit by a shortage of dollars.
“There is sufficient fuel at the depots but the major oil companies are not evacuating it because they do not have sufficient dollars,” he explained the impact of dollar shortage.
According to Central Bank of Kenya (CBK) data, the shilling exchanged at an average of 128.3618 against the dollar on Wednesday, March 8 and forex reserves dropped to Ksh845.46 billion on March 2 from Ksh878.76 billion on February 23.
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