Pwani Oil closure; CBK issues response
Pwani Oil closure; Central Bank of Kenya Governor, Patrick Njoroge responds after the closure of the cooking oil manufacturer.
The CBK has responded following the Pwani Oil closure due to the shortage of dollars from the Kenyan reserves.
In his statement to the press on Tuesday, June 7, Patrick Njoroge, maintained that the country has enough dollars.
He revealed that the CBK distributes USD2 billion every month which is enough to cover the needs of the manufacturing sector.
Addressing businesses that were considering shutting down, Njoroge claimed that they should be able to get dollars without difficulty because their demands are significantly less than the monthly dollar distribution.
“The market covers a lot. The market generates and distributes something like USD2 billion every month.
“If you have a sector that is importing USD90 million or USD100 million, I think that is nowhere near the USD2 billion that we are putting out there and they should understand that they are small in that sense and sort of go to the market in that sense,” explained Njoroge.
His response comes just a day after Pwani Oil, announced that it was temporarily shutting down its operations.
In a letter, the company argued that it was affected by severe negative impacts on global supply chains and faced challenges in its attempt to access US dollars from the reserves to pay for raw materials abroad.
Also read,
Dollar scarcity in Kenya as CBK issues “ration” sales to manufacturers, importers
The List of Top Best Insurance Companies In Kenya
Treasury increases debt ceiling By Ksh1 Trillion
IMF reach agreement on Kenya’s loan review, $244 million disbursement
Follow us
