As from last week, the kenyan shilling and the East african economy has been going down compared to the united states dollar. This has caused inflation locally to some goods and service industries e.g food prices and travel fares. considering that the usd/Kes has been playing at around 85kes to 1 dollar for as long as we can remember since 2012 the recent rise to 96kes to 1 dollar has businesses increase prices tremendously.
One of the Google solve for x startups which seeks to make food affordable for africans in their video seem surprised by the price of food in the open air markets.
In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.
The solution lies in the efficiency of the stock market and the balancing of the import and export market. currently the number of imports greatly surpass the goods that Kenyan private and government businesses export to the foreign countries.Looking at the travel industry the kenya airways(https://www.facebook.com/PrideofAfrica) performance on the Nairobi stock exchangeor NSE has been on the decline. The CEO Linus Kaikai has maintained his stand that the company doesn’t need bailing out.
Some industries like the agricultural industry are on the rise though, companies like sasini listed in the stock market, have made a big buck in the fall of the shilling against the dollar. kenchic are still around. the coffee prices are stable though the level of corruption in the coffee export industry is wanting. this begs one question… where are the derivates experts in the NSE and what are they doing about this opportunity of favorable weather and prices.
The list of the forex companies that were closed was released last month after the alshabaab attack in Garissa. This has caused a shortage of the amount of dollars in circulation. The CBK with its acting governor seems to be sleeping on job as Mobile money policies are still laging behind hindering other mobile money startups to get certified. The future seems narrow for non safaricom players in the mobile money transfer business.
Come to think of this rumour, I had some 100 dollars the other day… maybe just maybe… I should have waited for this windfall too. Raila keep up the good job with your Okoa Kenya campaign.
By Neville Mugambi