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Fact check: Kenya has US dollar shortage, but won't stop using American money

Hannah Hudnall   | Paste BN

The claim: Kenya is getting rid of the US dollar

A March 27 Instagram post features a video of Kenyan President William Ruto talking about the U.S. dollar.

"For the people who work numbers, I am giving you free advice, that those of you who are holding dollars you shortly might go into losses," Ruto says in the video. "You better do what you must do because this market is going to be different in a couple of weeks."

The on-screen text reads: "KENYAN PRESIDENT TO GET RID OF U.S. DOLLAR."

The post garnered more than 100,000 likes in three weeks. Similar versions of the post have been shared on Facebook and Instagram.

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Our rating: False

Kenya is not getting rid of the dollar. The full video of the president's speech shows him announcing that Kenyan fuel distributors will begin purchasing oil with shillings, instead of dollars, to combat the recent dollar shortage. 

Kenya not getting rid of dollar

Kenya is dealing with a dollar shortage, according to the German news outlet Deutsche Welle. The Kenyan shilling has also lost about 10% of its value relative to the dollar in the last year, Kenyan outlet Citizen Digital reported.

Because Kenya relies on foreign currency for import purchases, its oil and fuel importers are struggling to purchase fuel with the depleting reserve of dollars. This has led to fuel shortages across the country, according to Deutsche Welle.

The Instagram post features a March 22 speech where Ruto announced how the country would be combatting these problems.

He didn't say it's getting rid of the dollar, however.

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Following the remarks shown in the Instagram post, Ruto said the country's fuel distributors would begin purchasing fuel from importers with shillings instead of dollars.

"I just want to ensure those in Kenya who are facing challenges of access to dollars… that dollar availability in the next couple of weeks is going to be very different because our fuel companies will now be paying for fuel in Kenya shillings," Ruto said in his speech. "They do not have to look for dollars every month."

Tobias Rasmussen, an International Monetary Fund Resident Representative in Kenya, told Paste BN Kenya will still be utilizing dollars.

Rasmussen said the country's new import deal with the United Arab Emirates and Saudi Arabia allows fuel importers to purchase fuel from exporters with a six-month credit system. 

"Kenya has a new oil import arrangement where fuel is imported on credit," Rasmussen said in an email. "Fuel suppliers will continue to be paid in (dollars) but after six months rather than upon delivery.” 

There aren't any announcements or reputable reports that Kenya has gotten rid of the dollar.

Paste BN reached out to the user who shared the post for comment and did not receive an immediate response.

The claim has also been debunked by PolitiFact and AFP.

Our fact-check sources:

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