Prime Cabinet Secretary Musalia Mudavadi has attributed the dollar versus Kenya shilling challenges to global events.
Speaking on Monday, Mudavadi said Russia and Ukraine war has affected global supply chains.
"We are facing challenges in terms of the value of the shilling vis-à-vis the dollar. These pressures are coming through partly because of global events," he said.
"We are seeing a situation where the pressure in the bigger economy is coming to bear, interest rates are rising and the process of the issues of the dollar versus other currencies is beginning to bite."
He added that Kenya needs foreign currency coming into the country.
Mudavadi said Kenya's primary foreign exchange earners are agricultural exports and tourism.
"If our exports are not doing very well our fallback position is tourism and diaspora remittances," he said.
The CS added that Kenya must grow export earnings to have resources to bring the cost of living down.
In March 2023, Trade and Investments Cabinet Secretary Moses Kuria said the government is working to ease pressure on the shilling.
Kuria said that there are plans underway to see that in the near future, the dollar-shilling exchange rate will stand at Sh85.
He said this will come as an effect of the move by Energy and Petroleum CS Davies Chirchir to restructure the fuel supply chain.
"My distinguished colleague Davies Chirchir is working hard to restructure the fuel supply chain in order to ease the pressure on the Shilling," he said.
Recently, President William Ruto said the dollar exchange rate will be going down in the coming weeks.
The President said in his estimation, the dollar exchange rate will go down to below Sh120, in a very phenomenal way.
"Maybe Sh115, you never know," he stated.
