Manufacturing, 2020

The central bank is maintaining a vice like grip on the Kenyan shilling. CBK is maintaining a defacto peg and the Kenyan shilling is not free floating.

This is unofficial policy and is confounding traders as the shilling is the official stress reliever for a troubled economy like Kenya.

Maintaining currency control can work to maintain a semblance of normalcy in a distressed economy but it can create long term instability and collapse of industries. As the Kenya currency remains very strong manufacturers find it exceedingly hard to compete due to a strong shilling and local industries fall like dominoes.

Importers love a strong shilling and will continue to be favoured through this unorthodox central bank policy.

Your pea brain haiwezi jua the kind of havoc a weak shilling can wreck .

vijana wa Taiwan wanatengeza toothpicks, zinangojewa kenya

Not necessarily weak but a shilling should be pegged on market forces…it should reflect the state of the local economy within the wider world economy…that kind of shilling would be good for our local industries…a government controlled strong shilling is only good for foreign loans repayments and for birrioneas like me to cheaply import luxury goods.

The biggest problem manufacturers face is high cost of power. The issue of a strong shilling is insignificant.

Ditto!

apart from labour the other factors of production are expensive

Manufacturers told us at a certain work shop that they don’t need government money to operate. Just predictability, affordable power cost, KRA waache umama and the government to improve infrastructure. The rest they can handle.

Strong shilling is a short term problem.

True, the gov should stick to creating an enabling environment