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Businesses Start Charging in Dollars due to Weakening shilling

Popular restaurant in Gigiri, Nairobi County, surfaced online showing their meal prices in dollars due to the weakening Kenyan Shilling

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Dollars
Sample of the Dollar PHOTO/COURTESY

People reacted differently to this information after they posted their menu on Wednesday.

Reports have indicated that the restaurant owner effected a new policy. The policy requires all customers to pay for meals and services in dollars. This has been warranted by the weakening Kenyan shilling.

As of Wednesday, November 29, one dollar was exchanging for 152.73 units of the Kenyan Shilling. Business persons within Kenya continue to report an acute dollar shortage.

The restaurant owner, in a statement, mentioned that he made this decision to protect his business. According to him, the performance of the Shilling over the course of the year might hurt his business.

“We want a stable business, the shilling is not stable,” the entrepreneur remarked.

The owner then urged his customers to convert their currency to US dollars at the local forex bureaus. This according to him, ought to be done before walking into his business to have a meal.

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Meal Prices at the Restaurant

While commenting on the new policy enacted by the restaurant, Kenyans began to inspect the meal prices.

Some observers were shocked by the high food prices at the restaurant. According to the menu posted, chapati and a serving of beans would be charged at USD 10.99 (Ksh 1,600).

A section of Kenyans also shared similar experiences of being asked to pay for services in dollars at restaurants and stores as businesses move to cushion themselves from losses.

Meanwhile, Kenyans have continued to express concern over the weakening shilling which they pointed out is exercabating the high cost of living.

Many have called on the government to act to stop the Shilling from weakening further against the dollar.Highlighting how much of a challenge the situation is.

Kenya Power, for example, floated the idea of charging tokens in dollars earlier in the year as a means to arrest its losses.

Similarly, in September, a report by Knight Frank also showed how the dollar was affecting apartment and office space renting trends. According to the report, companies are avoiding office space because landlords are now insisting that tenants pay in dollars.

In addition to that, most citizens in Kenya are asking their employees to pay them in dollars. This is in hope that even after being paid, the possibility of money appreciating is high while it is in dollars and the contrary when it is in Kenyan Shillings.

Read Also : Kenyans To Pay Housing Levy Till January

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