Mbona Hakuna Pesa Nairobi - Why the Circulation of Cash in our Economy is Slowly but Surely Diminishing

An old friend asked me today over lunch what my thoughts are regarding the unprecedented reduced money circulation in our economy. Kusema ukweli hakuna pesa Nairobi, most businesses in the city are barely just getting by; even bars and entertainment hotspots. In fact, juzi tu our very own Vera Sidika Shikuku Shikwekwe was struggling to settle the rent for her beauty parlour ( plus pay her workers ); as her ex-kigongi Otile Brown confirmed to Netizens.:D:D After analysing some of the factors that have contributed to one of the harshest economic times in recent history, these are some of my thoughts on the issue, feel free to share yours too.

  1. Interest rate capping has reduced credit to the private sector
  2. Government spending is reducing/stagnating as focus shifts to debt repayments - Naskia Gatheca ako China saa hii, Umbwa yeye!
  3. Reduced foreign investment as investors exit capital markets
  4. Unstable Government policies are killing enterprise
  5. Over taxation is shifting revenues from households to government
  6. Delayed payments by government to suppliers
  7. Government over borrowing from commercial banks hence crowding out private sector including households
  8. People are being laid off and businesses are shutting down hence declining incomes and aggregate demand for goods and services, latest casuality is Telkom Kenya.
  9. Increase in Non Performing Loans are making banks cautious in lending
  10. Reduced consumer confidence makes people spend less and hold onto cash once again reducing aggregate demand.

Wadau Nikubaya, by 2022 nashuku most ‘mbirrioneas’ today in ktalk will be paupers if this trend continues.

what metric did he use to measure reduced money circulation volumes and speed? Isn’t normal for business to slow down in November?

Businesses are struggling to stay afloat left, right and center. Kama a giant like Athi River mining inacollapse kama kibanda what do u think is happening to your estate posho mill?

and yet billionaires are cropping up daily!

Sure, one billionaire crops up while thousands of poor people sleep hungry every day in this town.

Perhaps having a government under threat of death upon failure will be best for humans. It works fine here in Nibiru

you are using a muhindi business as a standard (yes i know they are publicly quoted…)?

Edit- the metric

thats just an example, but the truth is that most people are growing poorer by the day

I see all your possible reasons are meant to be the government’s errors of omission or commission. where do you place the crackdown on counterfeits and substandard goods?

In unreasonable policies by the govt, Uhuru has shafted us, and he will continue shafting mpaka 2022

Probably we have been feeding off corruption and other dirty money to fund other business. Now that there is a crack down, most corrupt mbirrionaires are using the mattress account. Hence wanaspend pesa kidogo sana ndio wasimulikwe.

hapo ndio tunaachania kama unataka tuimbe lamentations badala ya kuchambua economics. byyyyye.

it is true. ICD is a graveyard of broken dreams. but some people will never know since the only thing they have ever imported is a naive village girl. Rotich is really an economics dwarf

Is this the same government that is getting rave reviews from international bodies on matters doing business,GDP growth and is hailed as a powerhouse on way to bigger things in Africa?

Nowadays after end month boom in business by date 10 ni slow biz mpaka end month tena. In btw mtu huskia kufunga ata biashara, always playing cat and mouse na suppliers but somehow we maintain to stay afloat. Kukiendelea hivi business growth itakua ngumu sana.

Nini mbaya huko ICD?

[SIZE=5]Importers lose Sh20.7 million to container delays at Nairobi ICD[/SIZE]

The stakeholders blamed the Kenya Revenue Authority (KRA) and KPA for delayed cargo clearance which has affected their businesses. Mr Ojonyo said he had written to the KRA severally but the taxman had declined to address the issue.
“KRA is now making it difficulty by targeting cargo and demanding 100 per cent verification. There is also a value dispute which is becoming rampant and causing delays,” he said.
Mr Ojonyo said that since the cargo is no longer taken to container freight stations (CFS), it is impossible to clear it out of the ICD within the four-day grace period. He said that 98 per cent of cargo at the ICD incurs demurrage charges.

Importers lose Sh20.7 million to container delays at Nairobi ICD - Business Daily

ulikosa hii thread ya akina @Soprano wakilia Small time importers, what is killing us besides kuchomewa mizigo - Business - Kenya Talk

Pesa hakuna Kenya… Already thinking of relocating bizna to somewhere else… But ukienda tz na Uganda utapiga magoti ushukuru mungu Kenya iko sawa:D

Kwanza hiyo unstable and unpredictable govt policies has dealt me a big blow. How do u force entrepreneurs to automate their process. I thought automation should be driven by the need for better efficiencies. The govt banned plastic bags now they are eying the plastic bottles that superpowers like the US have not banned. Imagine buying your dasani/keringet water in a glass bottle!!!