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Growing shortages of foreign exchange on the interbank market have reportedly forced the Central Bank of Kenya to ask financial institutions to ration dollar purchases by Kenyan businesses. The shortages have forced Kenyan firms to seek greenbacks on alternative markets where the exchange rate is higher than the official government rate.

New Limits Curtailing Operations of Kenyan Firms

Kenya’s ongoing foreign exchange shortages have reportedly forced the Central Bank of Kenya (CBK) to instruct financial institutions to impose caps on the amount of forex that businesses and individuals can purchase. According to a Business Daily report, some financial institutions have imposed caps as low as $5,000 per day. The imposed limits make it difficult for Kenyan manufacturers and importers to meet their obligations.

The shortages, which reportedly began in mid-2022, suggest that the country’s foreign currency woes are worsening. In October of that year, a CBK statement denied Kenyan Deputy President Rigathi Gachagua’s claims that the country lacked foreign exchange to import oil. The central bank insisted at the time that all the forex used for oil imports is sourced from commercial banks.

Despite the CBK’s contention that the country had sufficient foreign reserves, an unnamed executive with a local manufacturing company suggested that the situation is getting worse.

“We are now scavenging for dollars. Only half of every six banks we call daily for dollars will have something for us. Three of the banks will ask us to check later,” the executive said.

The executive added that while some fortunate businesses have secured as much as $50,000, these funds are still far below what they need. 

Kenya’s Declining Foreign Exchange Reserves

Meanwhile, the report suggested that top Kenyan firms are now sourcing dollars from forex-rich firms such as those in the hospitality and aviation industry. Also, instead of using the official exchange rate of 127.39, the firms are reportedly using a higher rate of 137 shillings for every dollar.

Some Kenyan commentators have attributed the dollar shortages to tough rules introduced by the CBK that targeted illegal forex dealers. The commentators insist that the tougher rules have crippled the operations of the foreign exchange interbank market.

However, the CBK governor, Patrick Njoroge, is quoted in a January Reuters report asserting that Kenya has adequate reserves. Njoroge made the remarks after it was revealed that Kenya’s foreign exchange reserves had fallen below the statutory requirement of four months of import cover. By Terence Zimwara, Bitcoin.com

JUBA, MARCH 5, 2023 (SUDANS POST) – A senior member of the ruling Sudan People’s Liberation Movement (SPLM-IG) faction under President Salva Kiir Mayardit has ruled out any possibility for return of Angelina Teny as minister of defense.

Peter Lam Both, the SPLM-IG Secretary-General told Sudans Post that there is going to be a meeting between President Kiir and First Vice President Riek Machar on Monday, but ruled out possibility of any agreement that could guarantee Teny’s return.

“The two leaders will meet tomorrow. Let’s wait for the result of that meeting but I don’t think so. I don’t see any possibility for her to come back in that capacity. If the SPLM-IO want to bring her as minister of interior, then yes, she is welcome,” he said.

Kiir on Friday night sacked the SPLM-IO minister of defense Angelina Teny. He also sacked the SPLM-IG minister of interior and then issued yet another decree swapping the two ministries – giving the interior to the SPLM-IO and taking away the defense ministry.

The SPLM-IO reacted quickly to communicate to the public that the decision by Kiir was unilateral and so violates the revitalized peace agreement.

In a statement following a day-long meeting chaired by its leader Riek Machar on Saturday, the SPLM-IO condemned the removal of the minister of defense and urged the president to revoke his decision, but then reiterated its commitment to the implementation of the 2018 peace deal. - Sudans Post

French President Emmanuel Macron and President of Democratic Republic of Congo Felix Antoine Tshisekedi Tshilombo attend Kinshasa Economic Forum in Kinshasa, Democratic Republic of the Congo on March 04, 2023. ( Samy Ntumba Shambuyi - Anadolu Agency ) 

Former Interior and Coordination Cabinet secretary Dr Fred Matiang’i flew back to the country 15 days after he left the country on an Amsterdam, Netherlands-bound KLM plane.

Sources close to the former CS said that he jetted back on Saturday night.

Dr Matiang’i has been on the government’s radar with the Ethics and Anti Corruption Commission (EACC) and the Director of Public Prosecution (DCI) seeking to grill the former powerful CS. 

Last week, Dr Matiang’i was summoned by the DCI for investigation over what they alleged to be a possible fake raid at his Karen home. 

In a letter, detective Michael Sang directed Matiang’i to appear before him at Mazingira House at 9.30 am without fail.  However, Dr Matiang’i through his lawyers, responded that he was out of the country and could not attend the summoning

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  Matiang'i's woes deepen as EACC investigates his worth

“I have reasons to believe that you, Dr Fred Matiang’i, the former Cabinet Secretary, Ministry of Interior and National Co-ordination, is connected to the offence or have information which can assist me in my investigation,” the letter read. 

The detective’s letter follows a purported and widely reported raid at the CS’s home which the police said never occurred and sought CCTV footage from his home to verify the claims.  

A few days later, security officers forcefully entered the residence on February 15 and ransacked the house.

A senior officer at the DCI said that the summon was still on and they were only waiting for the former CS to come back.

Last week, Dr Matiang’i troubles deepened when it emerged that the anti-graft body was pursuing his wealth.

The EACC has written to the Head of Public Service seeking information on how much was Dr Matiang’i worth when he took office as Cabinet Secretary under former President Uhuru Kenyatta’s government in 2013.

In a letter dated February 27, 2023,  and signed by the EACC chief Executive Officer Twalib Mbarak noted that they were interested in the former CS’s wealth pursuant to Section 30(1)(4)(b) of the Public Officers Ethics Act. 

“The Commission wishes to request for Certified Copies of Declaration of Income, Assets and Liabilities forms for years 2012 to 2022, including the initial and final declarations,” reads Mbarak’s letter.

Mbarak said the Anti-corruption body was carrying out investigations on Dr Matiang’i. 

“The Commission is carrying out investigations involving Dr Fred Matiang’i, former Cabinet Secretary for Interior and Coordination of National Government,” said Mbarak.

The EACC boss said their officers Mr Abdul Low and Mr Paul Mugwe were available to collect the documents.

During the 10 years of Uhuru’s two terms, Dr Matiang’i served as CS for Information and Communications Cabinet Secretary in 2013.

He was later moved to Education, Science, and Technology in December 2015 having previously been in an acting capacity as the Cabinet Secretary for Lands.

He was later transferred to the Interior Ministry in 2017 and elevated a year later to chair of cabinet sub-committee meetings.

As the EACC was writing to him, another letter from the Immigration Department to the Director of Criminal Investigations (DCI) dated February 28, 2023, revealed details of when former Interior CS Fred Matiangi left the country and the triangulation of his travels in the recent past.

The letter signed by Emmanuel Simiyu, for the Director General of Immigration indicated that Dr Matiang’i left the country a week before he was summoned.

“The subject departed on February 19, 2023, through JKIA  on KLM flight number  KL566,” read the letter. By Jacob Ngetich, The Standard