Kenyan President William Ruto unveiled a proposal Wednesday to address the dollar crisis that involves Kenya purchasing oil using shillings.
Ruto accused oil cartels of hoarding dollars in response to the dollar crisis which has caused a fuel shortage in Kenya.
He said his government will now purchase oil using Kenyan 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, things are going to be different because our fuel companies will now be paying for fuel in Kenya shillings,” Ruto said at the Nairobi Security Exchange.
Regarding how Kenya will use shillings to purchase oil, Ruto said: “We just concluded last week an arrangement in our fuel sector that will see Kenya access all our fuel needs in a differed six-month credit. That will eliminate a demand of 500 million dollars every month from this market.’
The president revealed that his administration implemented measures to address the scarcity of dollars, including a deal allowing Kenyans to acquire petrol on a six-month credit.
“I am giving you free advice that those who are hoarding dollars, you shortly might go into losses,” he said. “You better do what you must do because this market is going to be different in a couple of weeks,” warned Ruto.
The players in the sector, such as banks, were working with the central bank to resolve the issue, he said.
