Wadau wa econ, kindly explain like I’m highschool dropout. Why is our going getting weak that fast
ati imefika 110 peasants wa ku import gari saa hii wataumia kiasi
One ninja,Wolfgang Fengler,aptly put it as the “economic aeroplane” .
The main reason is that Kenya’s economy is increasingly imbalanced:the country is importing too much and exporting too little. This makes it vulnerable to shocks. The gap between imports and exports needs to be financed by financial inflows other than export earnings.
Picture you’re flying and one of the engines on your plane isn’t working properly.What if you then found out the other engine was overheating? Now suppose the captain announces that you should buckle-up because the plane is about to meet an approaching thunder storm …thats what kenya’s going through
That gap between imports and exports, also called current account deficit, now stands at above 4.7% of GDP. This reflected low oil imports, increased exports of tea and horticulture, and improved diaspora remittances while exports remained stagnant.
Back to the plane,kenyas weak engine is manufacturing,saa hii Kenya’s growth ni services, particularly transport and telecommunications,usisahau KQ imedinywa tayari,imports need dollars as fuel ,exports ndio lifeline but hatuna mingi just flowers and tourism and /or investors ,now forget that due to covid everyone pulls out and that becomes our overheating engine
High inflation causes additional pressure on the Shilling. If investors, local and international, think their money will lose its value in Kenya very quickly – which happens when inflation is high – they tend to move it to countries where it will hold its value…Rwanda,TZ and ethiopia are currently doing better if not good
Now we are in a bladi hurricane called covid ,one engine is failing, the other one is overheating, with the plane tilting, and a mega hurricane is approaching,adopting price controls or establishing parallel currency (long explanation but Zim tried and failed) markets, which have proven to be disastrous hazitasaidia for now.
So ,now your plane’s going down,fast, If I were in that plane, I would want Baba Jayden to bring it down quickly and safely. While on the ground, the engines could be repaired and adjusted, as the hurricane passes by; it will take you longer to get home, but you will live to reunite with your family…increase interest rates to control inflation thus cooling the economy,saa hii kila mtu anaaford kununua kaduduu na kujenga ka pigsty because of low interest rates,pesa inazunguka mtaani tu ka maliar. Hakuna pesa inatoka from mayolos .It is a short-term control which postpones a problem but doesnt address it.
Kabla nisahau,the cabin crew of your plane wanalipwa pesa mingi ya bure ,zingine wameiba wakiongozwa na jambazi sugu wa madeni. Time to sing “Baby i love you,dont live me a-loan”. Happy landings
Umesahau kadere ni mlevi kupindukia na donda ni jambazi sugu
Hii ndege inaanguka aki ya nani:D:D:D:D
It should be lower but its being manipulated to stay competitive
To be specific, it closed at 110.05
Live Kenyan Shilling (KES) Exchange Rates Today With Best Rate Comparison on International Money Transfers, Remittances and Travel Money | Exchange Rates UK
Economy has slowed.
They run out money to keep manipulating it. That’s the reason for the drop. 100 was an artificial level.
Asande, and how do the pilot bring down the plane to cool the engine?
Where would one get those rates, really? The real buying rate is around 114 now
Let it glide,use the aelerons,flaps and rudder to roll,bank pitch and turn. In aza words konyagi 1 atulize kuomba omba pesa kila kona hadi vatican ,regulate banks to woo investors back,subsidize the farming sector for self sustainance sio kununua oranges tz na achunguze tax kiasi vile inamaliza mraia na hana kazi,make people spend more. It is a short term solution,might fail as well but it is the torniquet of the country