Kenyan Manufacturers Urged To Reduce Import Bill Amid U.S Dollar Shortage

Kenyan manufacturers have been urged to reduce their import bills and incorporate locally produced products into their business model in the wake of the US dollar shortage which was been occasioned by increased demand.

Kenyan economist, Ken Gichinga from Mentoria economics told Capital FM Business that the pent-up demand for the dollars which has led to the depreciation of the Kenyan shilling could likely trigger job losses as more manufacturing firms struggle to meet their obligations.

“Businesses should explore reducing their import bill and incorporate locally produced products into their business model,” he urged.

Barely a week after the Kenya Association of Manufacturers (KAM) warned that most of its members are facing challenges accessing the dollar, Pwani oil, the manufacturer behind the Salit Oil, Mpishi Poa, and Fresh Fry cooking oil products has announced a temporary halt of its operations citing dollar shortage which has hindered it from sourcing key commodities.

“If the situation remains unresolved, the business community involved with importation (e.g manufacturers, car dealers), will be largely affected and might lead to further closure and job losses,” he said.