• In a statement on Thursday, the former majority leader accused the two of economic sabotage through poor policy measures.
• He dismissed Yatani's association of the crisis to external shocks saying Kenya's regional neighbours have relatively stable currencies.
Image: FILE
Garissa town MP Aden Duale has accused CBK Governor Patrick Njoroge and Treasury Cabinet Secretary Ukur Yatani over the dollar shortage in the country.
In a statement on Thursday, the former majority leader accused the two of economic sabotage through poor policy measures.
"Bad fiscal policies by the National Treasury and bad monetary policy and regulations by the Governor of the Central Bank constricting the inter-bank forex market have led to this US Dollar shortage crisis in the country," Duale said.
He dismissed Yatani's association of the crisis to external shocks saying Kenya's regional neighbours have relatively stable currencies.
"The Zambian Kwacha for example has gained against the US Dollar. These regional countries just like Kenya faced the external shocks of COVID-19 and the Russia-Ukraine Crisis," Duale said.
"Who is benefiting from this economic sabotage perpetrated by the Cabinet Secretary for the National Treasury and the Governor for the Central Bank? he paused.
The Kenyan shilling has lost its value against the dollar over the past one year to trade at Sh118.50 to the dollar from an average of Sh107.70 in June 2021.
The dollar shortage, first reported in May by the Kenya Association of Manufacturers, slowed down commercial transactions as the foreign currency is through which most international transactions are settled.
Manufacturers and other traders have decried the dollar shortage with local businesses now requiring days to weeks to obtain the dollars they need. Some banks have also resorted to rationing the hard currency.
Dollar shortage affects the retail price of imported commodities like fuel.
Duale said the shortage has not only worsened Kenya's inflation but also worsened the already high cost of living due to high production costs.
He said Kenyans are buying dollars at exaggerated prices of up to Sh130 in the black market and up to Sh128 in the commercial banks.
Some businesses have shut down operations for failing to get the currency.
"Why has the Governor not taken any action against commercial banks who are fleecing Kenyans and making huge profits from the wide spread between the prevailing bank rates and CBK's official rate of Sh118? Duale paused.
The legislator further took issue with the CBK boss over his continued denial over dollar shortage in the country.
"He is well aware that importers are forced to wait for up to one month to get US dollars worth Sh1 million," Duale said.