Kenyan Bankers Deny Rationing Dollar Supply

Kenya Bankers Association (KBA) has denied claims members have been asked by the Central Bank of Kenya (CBK) to ration dollar supply in the market.

In a statement, the bankers’ lobby said it is in constant talks with the regulator to resolve the dollar shortage.

“We would like to inform the market that there has been no such direction from CBK in writing or verbal,” said KBA CEO Habil Olaka, adding that the dollar supply is well balanced in the market.

He further stated that the situation differed at the individual bank level, leading some banks experiencing shortage to make individual decisions to service customers.

Olaka attributed the increase in dollar demand to the move by companies to remit dividends to meet overseas supplier obligations in the wake of the Covid-19 pandemic.

“The industry is in constant discussion with the Central Bank to ensure that the current imbalances are addressed as quickly as possible to bring the market back to normalcy,” said Olaka.

The shilling posted its lowest intraday level of 116.04 to the dollar on Tuesday.