- PS Chris Kiptoo said a weak shilling has made Kenya a substantively cheaper destination to visit by tourists, who may bring in more dollars.
- Thugge said there was an urgent need for Kenyans to revitalise key sectors of the economy that have traditionally been foreign exchange earners.
- House Review: MPs grill Kiptoo, Thugge over weakening shilling
Image: FILE
National Treasury PS Chris Kiptoo and Central Bank Governor Kamau Thugge last week faced MPs over the state of the Kenyan economy and weakening of the shilling against major currencies.
The Public Investments Committee on Commercial Affairs and Energy was concerned that the dwindling fortunes of the shilling against the US dollar had occasioned a sharp spike in prices of fuel and household commodities.
Committee Vice Chairperson Lillian Gogo (Rangwe) regretted that the National Government had not availed adequate information to the public on corrective measures it had instituted to stabilise the shilling.
"Life is very hard for our electorate and without this information, it is becoming very hard to reassure our people that things will get any better," she said.
Kiptoo said the weakening shilling had been largely occasioned by external shocks, but indicated that Kenya could cash in on the same predicament in some sectors such as tourism especially in the upcoming festive season.
He said a weak shilling has made Kenya a substantively cheaper destination to visit for foreign tourists, who may bring in more dollars into the local market.
"We have a situation where Commercial Bank reserves of the dollar are higher than what we have in the public coffers. However we are rolling out measures to create more confidence in the forex market," said Kiptoo.
Thugge said the value of the shilling against the US dollar was largely determined by demand and supply.
He said there was an urgent need for Kenyans to revitalise key sectors of the economy that have traditionally been foreign exchange earners such as tourism, agriculture and manufacturing.
Committee chairperson David Pkosing (Pokot South) challenged the government to prioritise stabilisation of the Kenyan shilling over other ambitious undertaking.
In another meeting, the committee told East African Portland Cement Company (EAPCC) that disposal of idle land and partial privatisation could partly resolve its financial woes.
Members made the suggestions during a roundtable meeting with EAPCC's Managing Director Oliver Kirubai, Principal Secretary for Industry Juma Mukwana, Chris Kiptoo (National Treasury PS), the National Social Security Fund Managing Trustee David Koros and other stakeholders.
Pkosing noted that the company had been sitting on valuable assets including land.
"You need to occasion the land sales to raise revenue and you should seriously consider partial privatisation to turn around your business," Pkosing said.
Meanwhile, the Senate Committee on Trade, Industrialisation and Tourism led by the vice chairperson Esther Okenyuri is on a county visit in Busia to look into matters trade.
The visit started with a courtesy call to the Office of the Governor, Paul Otuoma.
From the meeting, it was noted that Busia has not been able to explore its full potential in terms of trade.
While it's the gateway to East and Central Africa, members were unanimous that the county has nothing much to show for it.
Busia County is among the 18 counties that have signed the Intergovernmental Partnership Agreement with the Ministry of Investment, Trade and Industry for the implementation of the County Aggregation and Industrial Parks (CAIPs).
The National Government shall transfer Sh250 million to Busia County Government as conditional Grants while the County Government shall allocate Sh250 million.