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Samia Suluhu: Kenya’s economy is struggling

Tanzania President Samia Suluhu has suggested that the Kenyan economy is struggling.

As quoted by Jambo TV, Suluhu asked Tanzanians to appreciate the state of their economy which was better compared to neighbouring countries.

“Let no one lie to you (Tanzanians),” she said.

“We are at a better place compared to our neighbours. Their dollar reserves cannot sustain a week, our reserves can push us for four months. They are here begging us for guarantees so that they can buy fuel.”

Suluhu’s comments come weeks after Treasury Cabinet Secretary Prof. Njuguna Ndun’gu urged Kenyans to brace themselves for tough times in 2023.

Recently, The Citizen, a Tanzanian daily, reported that Commercial Banks in Kenya had run out of dollars and had resorted to borrowing from Tanzania.

The reported added that the Central Bank of Kenya (CBK) has directed commercial banks to ration dollars following a shortage of the currency and the race to protect reserves.

“We are now scavenging for dollars. Only half of every six banks we call daily for dollars will have something for us. Three of the banks will ask us to check later,” a top executive of a manufacturing firm who sought anonymity for fear of reprisals from the Central Bank of Kenya (CBK), was quoted by the paper saying.

“What is available at banks is between $5,000 and $10,000. One will be fortunate to get $20,000 and extremely lucky to get $50,000 from a single bank. This is crazy for a business that requires $1 million monthly for supplies and we are getting each dollar at Sh137,” he added.

Meanwhile, the Kenyan shilling has considerably depreciated to in recent times.

Although it remains the among the strongest currencies in the region, the shilling has depreciated by almost 10% to the dollar in the past month and is currently trading at Sh130.

The shilling also depreciated to the Uganda and Tanzania shillings, which have traditionally been weaker currencies.

This comes as President Ruto struggles to tame the soaring cost of living with prices of maize flour and fuel at an all time high amid pressure from the opposition. President Ruto has blamed the opposition for the poor economy.

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