President William Ruto is optimistic that the dollar exchange rate will soon fall to Ksh.120, down from its current Ksh.134.

According to President Ruto, the government's ongoing efforts to strengthen the economy will significantly help to alleviate the shilling's weakness.

On Tuesday, Ruto stated that the drop would be supported by the plan to purchase oil goods in Kenyan shillings rather than dollars, which costs the country Ksh.66.8 billion ($500 million) monthly.

"Today, as a country, we can buy fuel in Kenyan shillings, which many people never imagined was possible." "All of our fuel marketers will be able to buy our fuel products in Kenya shillings beginning this month, which will relieve pressure on our dollars," added Ruto.


"Over the next month or so, you will see the dollar exchange rate drop dramatically." The exchange rate will fall below Ksh.120 or possibly Ksh.115 in the following months.

He was addressing the Kenyatta International Convention Centre (KICC) in Nairobi while delivering the report on the review of the performance of ministries, state enterprises, and postsecondary institutions for the fiscal year 2021/2022.

The President congratulated public officials for their outstanding efforts to handle the current economic crisis despite only being in office for a few months.

He committed to holding every ministry and public servant accountable for carrying out their mandates and providing better services to Kenyans.

"I will use my authority to direct and coordinate the functions of these ministries and government departments, ensuring that your effective performance meets the government's contractual obligations to the people."

On March 14, the government entered into an oil importation agreement with Saudi Aramco, the world's largest oil corporation. The state will import petroleum products on a six-month credit, possibly lowering fuel prices.


The government-to-government (G to G) agreement calls for diesel and Dual-Purpose Kerosene (DPK) to be advanced twice a month, with payment due six months following delivery.

Kenya seeks to reduce dollar strain by deferring payments for petroleum goods under the agreement, including Emirates National Oil Company Group (ENOC) supplying three cargoes of petrol each month.

Petroleum imports can account for up to 30% of Kenya's total import bill.