The Central Bank of Kenya (CBK) has responded to Deputy President Rigathi Gachagua’s claims that the country lacks enough foreign exchange reserves to import oil.
Gachagua claimed on Citizen TV on Sunday evening that the country’s financial situation is so dire that there are no reserves to purchase oil from other countries.
“We have lacked foreign exchange, even yesterday at the Central Bank, we lacked enough foreign reserves to order for oil from foreign countries,” stated Gachagua.
CBK quickly responded to Gachagua’s comments, clarifying that they do not supply required foreign exchange and that all foreign exchange for private transactions is obtained from commercial banks.
“CBK does not supply foreign exchange for transactions other than for the National Government (i.e., government’s own imports or debt service payments) or CBK’s operations. Oil importers, therefore, obtain their requisite foreign exchange from the commercial banks and not CBK,” wrote CBK in a statement.
CBK further confirmed its foreign exchange cover is adequate as it monitors its usable foreign exchange reserves which stood at $7,424million (4.19 months of import) as of September 29.
“The Central Bank of Kenya Act (Section 26) requires that CBK at all times use its best endeavours to maintain a reserve of external assets at an aggregate amount of not less than the value of four months’ imports as recorded and averaged for the last three preceding year.’ This stood at 4.64 months of imports as at September 26, 2022,” added CBK.
It further made an assurance that its foreign exchange reserves continue to provide adequate cover and a buffer against shocks in the foreign exchange market.
