• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business Banking & Finance

Kenyan businesses struggle as banks run out of US dollars

2 years ago
in Banking & Finance, Business, Economy, Features, highlights, Home, home-news, latest News
1 min read
0 0
0
99
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

RelatedPosts

Government Orders Flags at Half-Mast as Nation Mourns Defence, Environment Ministers & Others in Helicopter Crash

Defence Minister and Environment Minister Among 8 Confirmed Dead in Military Helicopter Crash

Serie A Players Face 25% Pay Cut if Relegated Under New Agreement

Kenyan businesses struggle as banks run out of US dollars

Kenya’s commercial banks are facing a critical shortage of US dollars, resulting in some Kenyan firms turning to neighbouring countries, particularly Tanzania, to source the currency.

This shortage of dollars is having a significant impact on the country’s manufacturers and importers, making it difficult for them to meet their obligations. In response to this, the Central Bank of Kenya (CBK) has directed commercial banks to ration dollars to protect reserves.

According to multiple reports, the scarcity of dollars is worsening, despite earlier assurances from the banking lobby that it was temporary due to strong demand from companies remitting dividends and manufacturers importing components. The CBK has been blamed for the dollar crisis, with analysts citing its tough rules on the foreign exchange interbank market, which have crippled market operations.

This dollar crisis is having a considerable impact on Kenya’s economy, as it is affecting the ability of businesses to meet their obligations to overseas suppliers in a timely manner. The industrialists’ lobby has warned that the dollar crunch has strained relations with suppliers at a time when competition for raw materials has intensified globally amid lingering supply chain constraints.

The shortage of US dollars is also affecting Kenya’s ability to compete in the global market, as firms are forced to buy forex at higher rates, reducing their ability to negotiate favourable prices. Analysts have warned that this situation could discourage foreign direct investment (FDI), encourage rent-seeking and reduce the interbank FX market. The situation is compounded by the weakening of the shilling against the dollar, which means it costs companies a lot more to buy forex.

Analysts have urged CBK to take urgent action to address this dollar crisis by working with commercial banks to increase the supply of US dollars in the country. The CBK must also consider reviewing its tough rules on the foreign exchange interbank market to ensure that market operations are not crippled. This will help to ensure that Kenya’s economy remains competitive and that the country continues to attract foreign investment.

The situation is worrying for businesses in Kenya, but with the right actions, it can be addressed, and the economy can continue to grow.

No Result
View All Result

Highlights

Osaka and Keys Advance to Quarter-Finals at Canadian Open

Ghana Armed Forces Helicopter Crashes in Adansi Akrofuom, 8 Feared Dead 

Cedi Appreciation Triggers 50% Drop in Remittance Inflows

Inflation Drops 160 basis points to 12.1% in July, Lowest Rate Since October 2021

Kwaku Azar Writes: Is Another SML Brewing at GACL?

GRA Refutes NIA’s Debt Claims, Cites Lack of Regulatory Approval and Service Agreement

Trending

Features

Government Orders Flags at Half-Mast as Nation Mourns Defence, Environment Ministers & Others in Helicopter Crash

August 6, 2025

Government Orders Flags at Half-Mast as Nation Mourns Defence, Environment Ministers & Others in Helicopter Crash Ghana...

Defence Minister and Environment Minister Among 8 Confirmed Dead in Military Helicopter Crash

August 6, 2025

Serie A Players Face 25% Pay Cut if Relegated Under New Agreement

August 6, 2025

Osaka and Keys Advance to Quarter-Finals at Canadian Open

August 6, 2025

Ghana Armed Forces Helicopter Crashes in Adansi Akrofuom, 8 Feared Dead 

August 6, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.