• Privacy Policy
  • Terms
  • About us
  • Contact Us
  • Staff Email
Thursday, August 28, 2025
  • Login
TheMattersPress
  • Home
  • News
  • Features
  • Thematterspress
  • Multimedia
    • Audio
    • Photo
    • Video
  • About us
  • Contact Us
No Result
View All Result
  • Home
  • News
  • Features
  • Thematterspress
  • Multimedia
    • Audio
    • Photo
    • Video
  • About us
  • Contact Us
No Result
View All Result
TheMattersPress
No Result
View All Result
Home Economy/Technology

Dollar shortage hinders Kenyan firms’ expansion capacity

Kenya

The Matters Press by The Matters Press
February 9, 2023
Reading Time: 2 mins read
0
Swiss Bank expects profit of $50bn

Kenyan firms have cited dollar shortage among a string of domestic challenges that have obstructed their expansion capacity and impacted revenues.

RELATED POSTS

‎TMSG welcomes halt in oil theft on pipelines taking crude to export terminals

‎Group dismisses Obasanjo’s labelling of Tinubu’s administration as inefficient

Tinubu succeeding where Obasanjo failed woefully, says TMSG

This comes as the country’s foreign reserves hover below the statutory four months import cover, with the shilling plummeting to a record low of Ksh124 against the US dollar.

The latest Central Bank of Kenya (CBK) survey shows that financing, lingering supply chain issues and foreign exchange challenges on importation are constraining firms’ expansion plans.

Other key factors impacting operations of businesses in Kenya include high freight costs, inflation, energy prices, and low demand for certain products as buyers become cautious of spending on “luxuries”.

The survey that was carried out in November sought to establish domestic and external factors that drive business expansion and that could constrain growth over the next one year as well as mitigating factors.

According to the findings, most firms are operating below capacity and could increase production if there was an increase in orders.

Expansion into new markets, talent management and technological innovations will the key drivers of growth over the next year, the survey noted.

Businesses are banking on a stable economy, stability of the local currency and global economic recovery.

The Kenya shilling has fallen to a record low of Ksh124 to the US dollar as foreign exchange reserves fell to $ 7 billion (3.92 months of import cover) as at January 26. However, CBK noted that the reserves continue to provide adequate cover and a buffer against any short-term shocks in the market.

According to the International Monetary Fund’s World Economic Outlook update report for January, most economies have prioritised achieving sustained disinflation.

“With tighter monetary conditions and lower growth potentially affecting financial and debt stability, it is necessary to deploy macro prudential tools and strengthen debt restructuring frameworks,” the IMF said.

CBK data shows that Kenya’s public debt increased to Ksh8.89 trillion ($71.69 billion) in November from Ksh8.7 trillion ($70.16 billion) in September as the William Ruto administration borrowed Ksh137.36 billion ($1.1 billion) in the first three months of assuming office.

Last week, Central Bank’s Monetary Policy Committee (MPC) maintained its policy rate at 8.75 percent to rein in inflation, noting that the impact of the tightening of its monetary policy in November 2022 was still transmitting in the economy.

The MPC noted that recently announced measures by the government to allow limited duty-free imports on specific food items are expected to moderate prices and further ease domestic inflationary pressures.

According to the IMF, fiscal support should be better targeted at those most affected by elevated food and energy prices, and broad-based fiscal relief measures should be withdrawn.

“Stronger multilateral cooperation is essential to preserve the gains from the rules-based multilateral system and to mitigate climate change by limiting emissions and raising green investment,” the IMF said.

The East African

Tags: Kenya
ShareTweetPin
The Matters Press

The Matters Press

Related Posts

Nigeria regains top crude oil production spot in Africa
Energy

‎TMSG welcomes halt in oil theft on pipelines taking crude to export terminals

August 28, 2025
Who is lying, Obasanjo or NAN?
News

‎Group dismisses Obasanjo’s labelling of Tinubu’s administration as inefficient

August 28, 2025
Obasanjo campaigns for AfCFTA
News

Tinubu succeeding where Obasanjo failed woefully, says TMSG

August 28, 2025
Tinubu explains mission as he marks second year in office
Economy/Technology

‎Tinubu in fresh ideas to grassroots-development using 8,809 wards initiative – TMSG ‎

August 9, 2025
Obi, PDP candidate advises Buhari to increase tempo
Economy/Technology

‎Obi’s One-Term Proposal, a gambit to grab power at all costs -Group ‎

August 7, 2025
Importers face delays, higher costs on Red Sea woes
Economy/Technology

National Single Window initiative, a major step for efficient cross-border trade – TMSG

August 4, 2025
Next Post
NCC urges CSOs to safeguard telecoms infrastructure

NCC urges CSOs to safeguard telecoms infrastructure

2023 maritime, shipping outlook force experts to call for aid

2023 maritime, shipping outlook force experts to call for aid

Recommended Stories

Befitting honour for former President Buhari commendable – TMSG

Group commends Tinubu’s exceptional honour to late President

July 20, 2025
Fraud in banking sector, mostly insider instigated

Customs hits dealer banks over non-remittance of duties, charges

September 8, 2023

Customs appoints 5 DCGs, 15 ACGs

May 20, 2023

Popular Stories

  • Rising prices of goods cause protests in Morocco

    Rising prices of goods cause protests in Morocco

    0 shares
    Share 0 Tweet 0
  • NLNG not responsible for gas supply shortfall, price hike

    0 shares
    Share 0 Tweet 0
  • NCC sets fresh operational fees, spectrum prices for telecom operators

    0 shares
    Share 0 Tweet 0
  • Hoarding causes hike in prices of grains

    0 shares
    Share 0 Tweet 0
  • Prices of Petrol, diesel increase in November

    0 shares
    Share 0 Tweet 0
TheMattersPress

We bring you the best news update in Nigeria

LEARN MORE »

Recent Posts

  • ‎TMSG welcomes halt in oil theft on pipelines taking crude to export terminals
  • ‎Group dismisses Obasanjo’s labelling of Tinubu’s administration as inefficient
  • Tinubu succeeding where Obasanjo failed woefully, says TMSG

Categories

  • Agriculture
  • Economy/Technology
  • Energy
  • Entertainment/sports
  • Features
  • Foreign
  • Multimedia
  • Natural Resources
  • News
  • Oil and Gas
  • Photo
  • Politics
  • Security
  • Thematterspress
  • Uncategorized
  • Video

© 2025 Domo Tech World - Powered by Thematterspress.

No Result
View All Result
  • Home
  • News
  • Features
  • Thematterspress
  • Multimedia
    • Audio
    • Photo
    • Video
  • About us
  • Contact Us

© 2025 Domo Tech World - Powered by Thematterspress.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Call Us