The dollar exchange rate is currently Ksh.134, but President William Ruto is optimistic that it will soon fall to Ksh.120.
President Ruto claims that the progress the administration is now making in boosting the economy will significantly help to stabilize the weak shilling.
Speaking on Tuesday at the Kenyatta International Convention Centre (KICC) in Nairobi during the release of the report on the evaluation of the performance of ministries, state corporations and tertiary institutions for the 2021/2022 financial year, the President stated that the plan to buy oil products using the Kenyan shilling rather than the dollar will aid in the drop.
According to the President, the plan will cost the country Ksh.66.8 Billion ($500 M) per month.
“Today as a country we can buy fuel in Kenyan shillings, something that many people never thought would be possible. From this month of April, all our fuel marketers will be able to buy our fuel products in Kenya shillings and it will reduce pressure on our dollars,” said Ruto.
“In fact, in the next one month or so you will see the dollar exchange rate coming down in a very phenomenal way. In fact, in my estimation, in the next couple of months, the exchange rate will come below Ksh.120, maybe Ksh.115.”
The Head of State then praised public servants for their outstanding efforts to manage the current economic crisis after only a few months in office.
He committed to make each ministry and public employee responsible for carrying out their duties in a way that ensured Kenyans received better salaries.
“I shall exercise my mandate to direct and coordinate the functions of these ministries and government departments, thereby ensuring that your effective performance satisfies the government’s contractual obligations with the people.”
On March 14, the government entered into an oil importation deal with Saudi Aramco, the world’s biggest oil company, that will see the state import petroleum products under a six months-credit and possibly lead to lower fuel prices.
The government-to-government (G to G) deal will see diesel and Dual-Purpose Kerosene (DPK) being advanced twice a month with the payment falling due six months after the deliveries.
Kenya hopes to relieve the dollar pressure by delaying the payments for petroleum products under the deal that will also see Emirates National Oil Company Group (ENOC) supply three cargoes of petrol every month.
