Dollar shortage crisis: Why Kenya is at risk of going the Sri Lanka way

The shortage of dollars is triggering the emergence of parallel exchange rates. [iStockphoto]

Kenya's reserves of foreign currencies have continued to decline, raising fear that the country might find itself in a financial crisis like the one facing Sri Lanka.

At the beginning of September, Kenya's foreign exchange reserves had reduced to $7.38 billion (Sh885.6 billion), enough to cover the country's imports for four-and-a-half months.