Job Losses Loom in Kenya as U.S. Dollar Shortage Bites

Concerns have been raised that the dollar shortage in the country could trigger job losses as more manufacturing firms may be forced to shut down or suspend operations as they try to navigate cash flow problems.

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.

Kenya is already battling rising inflation which has heightened the cost of living with fuel and food prices rising.

The costs of producing goods and services remained at an 8-year high driven by rising fuel prices, higher taxes, and input shortages which forced many firms to scale back on output and employment levels.

The rise in output prices, in turn, led to a reduction in domestic demand as clients cut back on spending due to the rising cost of living.

InFocus

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