Kenyan banks face biting shortage of US dollars

US dollar

The Kenyan economy is facing a dollar shortage due to difficult economic times. PHOTO | FILE | NMG

The Kenyan economy is facing a biting dollar shortage as the shilling dropped to a record Ksh123 against the greenback during the festive season.

The International Monetary Fund (IMF) revealed in its Country Report that Kenya is experiencing a period of tight forex demand, accompanied by reduced liquidity in the interbank foreign exchange market and a depreciation of the local currency following the war in Ukraine.