Find ways of ending biting dollar shortage

The government should seek ways of flushing out speculators who could be hoarding dollars anticipating higher returns. [iStockphoto]

The government needs to resolve the shortage of the US dollar in the market that has seen the shilling-dollar exchange rate spiral out of control. The Central Bank of Kenya (CBK) on Wednesday published a rate of Sh129 to the dollar, banks and foreign exchange bureaus were selling a dollar at Sh145, putting into a corner the different industries that are heavy users of the dollar.

The shortage of the greenback has also been blamed for the specks of fuel shortages experienced in the country over the past two weeks. This is as oil marketing companies, who at the moment pay importers in dollars, appear unable to find enough dollars and therefore cannot evacuate their products in good time.