- CEO urges Kenyans to safeguard savings and use fuel prudently amid Gulf crisis.
- Rising fuel prices are shrinking household savings, business profits and borrowers’ creditworthiness.
- Financial institutions say they can only advise members as they await government intervention.
Kenyans have been urged to utilize their savings and fuel reserves prudently to navigate the economic hardships occasioned by the ongoing Gulf crisis.
Yetu Sacco Chief Executive Officer (CEO) Dennis Kirimi stated that the geopolitical tension between the United States of America (USA) and Iran can only be resolved amicably at the state level, noting that financial institutions have no control over the conflict.
Speaking during a press briefing at the Yetu Sacco headquarters in Nkubu town, South Imenti constituency, Meru County, Kirimi emphasized that the role of financial institutions during such times is to educate and advise members on how to manage their resources wisely.
“I urge our members to utilize their savings and remaining fuel reserves wisely in order to survive the difficult economic times occasioned by the Gulf crisis. The entire country, and indeed the world, is going through economically unstable times,” said the CEO.
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Kirimi regretted that members’ disposable savings have shrunk due to skyrocketing fuel prices, leaving a majority unable to secure credit from banking institutions.
He noted that the best financial institutions can do under the circumstances is guide their members on survival strategies while waiting for the national government to provide direction.
The fuel crisis has disrupted business operations nationwide. As the cost of doing business rises, profit margins shrink, directly lowering the creditworthiness of borrowers. Higher costs of living leave members with little to no money to save.
“The Gulf war fuel crisis has directly affected our operations. Oil regulation falls under the national government since the conflict involves the Iran and US governments. However, when the cost of fuel goes up, it directly impacts our members’ savings,” Kirimi explained.
“This means trading volumes shrink and the cost of doing business rises. Creditworthiness also goes down. As we watch this crisis unfold, I strongly advise our members to manage their savings with utmost prudence,” the CEO concluded.
By John Majau
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