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Dollar Shortage Forces One of Kenya’s Largest Factories to Close

Kenyans should prepare for tough times after one of Kenya’s largest manufacturers of cooking oil announced that it was halting its production due to a shortage of dollars needed to procure raw materials.

By Derrick Okubasu | 6 June 2022

KENYANS NEWS — In a statement dated Monday, June 6, the company, which has its largest manufacturing plant in Mombasa, noted that it was forced to shut down its operations over severe negative impacts on global supply chains.

The company behind some of the country’s top brands also noted that it faced challenges in its attempt to access US dollars from the reserves to pay for raw materials abroad.

The situation has been worsened by the ongoing conflict between Ukraine and Russia – one that has made neighbouring countries such as Indonesia ban exports of food commodities.

“The global supply chains have been severely impacted by the ongoing conflict in Ukraine. In addition, some countries like Indonesia have suspended exports of crucial commodities like palm oil.

“Manufacturers here in Kenya have not been spared the aftershocks of this unprecedented disruption, coming in the wake of the prolonged Covid-19 crisis. Locally, the situation has been compounded by challenges faced by manufacturers in accessing US dollars used in paying for imports of crucial raw materials,” read the statement in part. […]

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