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The Central Bank of Kenya appeared to rebuke the country\u2019s new deputy president Rigathi Gachagua, after it rejected the latter\u2019s claims the East African nation lacks enough foreign exchange to import oil. According to the bank, all the foreign exchange used in private transactions and for oil imports is sourced from commercial banks. <\/strong><\/p>\n The Kenyan central bank has pushed back against remarks made by the country\u2019s deputy president Rigathi Gachagua which implied the East African nation lacks foreign exchange reserves to import fuel. In a statement<\/a>, the bank said it \u201cdoes not supply foreign exchange for transactions other than for the national government.\u201d<\/p>\n According to the bank, all the foreign exchange used in private transactions and for oil imports is sourced from commercial banks. This has been the case since the complete liberalization of the foreign exchange market in the 1990s, the bank\u2019s statement added.<\/p>\n<\/p>\n In addition, the Central Bank of Kenya (CBK) insisted that it is mandated to adhere to the requirements of the country\u2019s central bank act. Known as the Central Bank of Kenya Act (26), the law requires:<\/p>\n [The CBK] at all times use its best endeavours to maintain a reserve of external assets at an aggregate amount of no less than the value of four months\u2019 imports as recorded and averaged for the last three preceding years.<\/p>\n<\/blockquote>\n According to the CBK, Kenya\u2019s import cover stood at 4.64 months as of September 26, 2022. The statement also revealed that the CBK had usable foreign exchange reserves valued at $7.42 billion as of September 29, 2022.<\/p>\nCentral Bank Only Sources Forex for the Government<\/h2>\n
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Kenya\u2019s Bleak Prospects<\/h2>\n