A number of currency traders and importers says that banks have imposed a daily cap on dollar purchases. This is because firms struggle to obtain adequate forex to meet their obligations.
CBK has directed commercial banks to ration dollars following a shortage of the US currency. And the race to protect reserves, hitting manufacturers and general goods importers.
This has forced industrialists to start seeking dollars in advance. As the shortage puts a strain on supplier relations and the ability to negotiate favourable prices in spot markets.
A top CEO of an industrial conglomerate in three high-capital intensive industries, including cement manufacturing, says his business is restricted to a daily cap of $50,000 (about Sh5.78 million).