The dollar shortage in the country has started affecting the operations of oil marketers who ship in refined petroleum products — the country’s single largest import item by value.
Rubis Energy Kenya disclosed the challenges in sourcing the foreign currency through which most international transactions are settled.
“The group’s exposure is mainly concentrated on the Ringardas (Nigeria), Rubis Energy Kenya, and Dinasa (Haiti) subsidiaries due to difficulties in sourcing USD,” French multinational Rubis said of the challenges facing its subsidiaries in its latest annual report as quoted by a local news agency.
The revelations by Rubis highlight the growing fears among manufacturers and importers who are facing increased costs of shipments and doing business.
Rubis and its sister company, Gulf Energy control a combined share of 11.3 per cent in the Kenyan market behind TotalEnergies (16.4 per cent) and Vivo — a retailer of Shell-branded products (21.7 per cent).
Manufacturers and other traders have also decried the dollar shortage, which has slowed down commercial transactions.
Kenya Bankers Association has blamed the dollar shortage crisis on the strong demand for dollars being felt in the market due to elevated demand over the last month as companies remit dividends and meet their overseas supplier obligations in the wake of the strong post-Covid– 19 recovery.
Currently, the Kenyan shilling is trading at a rate of kes 115.89 against the U.S Dollar.
Read also; KBA Assures Sufficient Dollar Supply in the Market.
