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Kenya's Economy under Uhuru Kenyatta is in Limbo


I am not an economist myself. What I know is that every good economist (forget the neoliberal imperial boys from the IMF and the World Bank serving in Emperor Kenyatta's inept and thieving regime) has consistently warned that Kenya’s economy is on very bad rails. I long lost the count on David Ndii’s warnings or Kwake Owino et al. Recently, one Ephraim Njega argued that Uhuru’s government has economically plundered every single sector of Kenya's economy, including Nyamakima traders and he advised those who are yet to feel the said plunder to simply hang on as Uhuru is surely coming for them soonest. Now, reading this report which has just been released by Amana Capital titled “Kenya’s Economic Puzzle-Putting the pieces together.” It is chilling how Kenya is using the Central Bank of Kenya (CBK) to literally cheat both the world and Kenyans about its fiscal and financial rot. For instance, examination of 6 key indicators: debt, balance of trade, employment, fiscal policy, currency and interest rates, the researchers have found out and reported how the CBK has overvalued the Kenyan shilling by 30%. For pedestrians like myself, the simplest way to know that this is true is the fact that Kenya shilling against the dollar has traded at 100 for almost 5 years yet Kenya has been on a borrowing spree. Another way is that truly what you bought for 100 shillings a year ago has already probably doubled. The shilling has lost value over time. You can feel it in your bones yet the CBK numbers have remained stable. Now. This is not a good thing for you and me. Because as the report warns “the country’s Ksh.5.2trillion debt has shifted from being productive to unproductive and Kenyans risk being taxed even more.” The report further states that “in 2018, for every Ksh.100 of tax collected, Ksh.25 went to paying interest on debt and as at June 2018, for every Ksh.100 in revenue, Ksh.34 was used to service total debt obligations.” It is an upward and worrying trend. Some of the real economic and financial risks that Kenya is facing the study reveals is that “the country faces a risk of pushing exporters to seek other alternatives since Kenyan products may become too expensive for them in the short run” meaning that “export earnings will then decrease and the Kenyan economy may slow down significantly.” Unfortunately few Kenyans consume expert knowledge and that is the tragedy of my lifetime.

Kenya's Economy under Uhuru Kenyatta is in Limbo Kenya's Economy under Uhuru Kenyatta is in Limbo Reviewed by Ibrahim Magara on May 10, 2019 Rating: 5

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