These days, when there is plenty in one part of the world, there is scarcity in the other part.Eathquakes,tramours and volcanic eruptions, calmness in the other part, war in the Arab world, peace in the non-Arabic nations and many more.
Here in Kenya, it’s not any different thanks to global warming, the onset of ‘long’ rains last week came as a great relief to many. It was not long however before there was wailing and teeth gnashing in many parts f the country because powerful downpours were causing flooding and extensive damage. The result of this is that the rains are going to finish off what the preceding drought had started, not unlike what happened in northern Kenya when sudden downpour killed off livestock that had been weakened by lack of water and pasture. What is wrong with this country?
Tuesday, March 22, 2011
Saturday, March 19, 2011
Baringo County Thug Of War Uneconomical
After past weeks’ wrangles over the head quarters of this county, sought the in-depth meaning of the name Baringo, the answer I got was a shocker, in the local language; Bar (Kill) and Ingo (a brother), in short the name Baringo means kill a brother. The wrangles which nearly got physical at some point between to Mps, Hon. Cheptumo and Hon. Sambili reflects how volatile the ground rily is, cattle rustling and killings at its best.
Baringo county is located at the heart of the rift valley, it has a rich history and holds a special place in the annals of not only Kenyan politics but also economy. From the political angle parse, it produced a record serving president who ruled Kenya from 1978-2002 (24 years), while in the economic arena, its terrain and amazing scenery contributes billions to the exchequer each financial year through tourism. However despite this massive contribution to the national coffers, it’s ranked among the poorest region with hunger killing hundreds each year, cattle rustling also adds to this death toll.
The motherland of honey, aloe vera,sisal and diverse culture is at the cross roads in finding a suitable administrative centre to the newly established county which covers 5 constituencies(Baringo central,Baringo east,Eldama ravine,Baringo East and Mogotio) .It’s heartbreaking that politics is taking a centre stage in the issue instead of a feasibility study to ascertain a ‘prime’ location and one is left with more questions than answers in the ‘contentious’ issue, Why do we have evaluation officers?, why do the county leadership fear a county mass survey? And is political muscle the first and last option?.Kabarnet or marigat?, the voting might skew to the later but is this feasible?.From my point of view, marigat is a food basket and a tourist attraction region with the location of 2 lakes; Lake Baringo and Bogoria (with glaciers).
Environmental economists will concur with me that its infeasible to construct an industrial town near a lake without environmental impact assessment and cost benefit analysis, due to pollution and relatively poisoning of aquatic.Tourism ought not be used as a reason to crowd marigat because these persons need some privacy and therefore need a vicinity outside a commercial centre. In short commercial(industrial center) and tourism are two sides of the same coin, they add value to the coffers of the county,yes,but you have to differentiate them if maximum revenue is to be derived.Marigat therefore needs road expansion, tourist amenities and conservation if the county is to flourish.Kabarnet which is relatively established, with an estimated infrastructural value of 20 billion should be kept for administrative purposes and resources from the central government channeled to revenue generating activities but not mere administrative infrastructure.
Baringo county is located at the heart of the rift valley, it has a rich history and holds a special place in the annals of not only Kenyan politics but also economy. From the political angle parse, it produced a record serving president who ruled Kenya from 1978-2002 (24 years), while in the economic arena, its terrain and amazing scenery contributes billions to the exchequer each financial year through tourism. However despite this massive contribution to the national coffers, it’s ranked among the poorest region with hunger killing hundreds each year, cattle rustling also adds to this death toll.
The motherland of honey, aloe vera,sisal and diverse culture is at the cross roads in finding a suitable administrative centre to the newly established county which covers 5 constituencies(Baringo central,Baringo east,Eldama ravine,Baringo East and Mogotio) .It’s heartbreaking that politics is taking a centre stage in the issue instead of a feasibility study to ascertain a ‘prime’ location and one is left with more questions than answers in the ‘contentious’ issue, Why do we have evaluation officers?, why do the county leadership fear a county mass survey? And is political muscle the first and last option?.Kabarnet or marigat?, the voting might skew to the later but is this feasible?.From my point of view, marigat is a food basket and a tourist attraction region with the location of 2 lakes; Lake Baringo and Bogoria (with glaciers).
Environmental economists will concur with me that its infeasible to construct an industrial town near a lake without environmental impact assessment and cost benefit analysis, due to pollution and relatively poisoning of aquatic.Tourism ought not be used as a reason to crowd marigat because these persons need some privacy and therefore need a vicinity outside a commercial centre. In short commercial(industrial center) and tourism are two sides of the same coin, they add value to the coffers of the county,yes,but you have to differentiate them if maximum revenue is to be derived.Marigat therefore needs road expansion, tourist amenities and conservation if the county is to flourish.Kabarnet which is relatively established, with an estimated infrastructural value of 20 billion should be kept for administrative purposes and resources from the central government channeled to revenue generating activities but not mere administrative infrastructure.
Thursday, March 17, 2011
Is The Central bank of Kenya to blame?
I must admit it ain’t easy at any time to be a policy maker, an individual or corporate decision affects millions of people whether positively or otherwise. Political instability, oil crisis and weak government policies are to blame for the current economic phenomena. It’s therefore apparent that several factors are to blame for the weakening of the shilling and the runaway inflation. In my today writing allow me to single out government policies (both Fiscal and Monetary) which have brought us to this ugly state.
I woke up to peruse the business news as usual and was disappointed to see inflation has it a rapid high of 6.54 %.It’s disturbing to see the local investor unable to thrive in forex due to the daily souring of the shilling. An importer in Kenya today equals a speculator, with the fluctuation of the local currency. Many economists will argue that inflation is good for economic growth but what about a runaway one? .In the short run inflation might increase the GDP but that also affects the welfare of the general population negatively in accordance with the domestic consumption. Families moreover will channel more of their resources in purchase of basic consumption good and missing out on investment because of the savings dent.
When the regulator (CBK) reduced bank rate to 6.5% it was apparent that the economy would flood with liquid money. To highlight how this comes about let me illustrate it with the mushrooming infrastructure and growth of commercial banks portfolio. The additional currency in circulation is due to the rapid developments engineered by government (Fiscal policies),i.e. the channelling of resources to improve the road and housing network throughout the country, the profits released recently by commercial banks doesn’t amuse me either, when I see a commercial bank add a shilling from her final output,i see an extra shilling in circulation which demand an extra quick policy. With the public having a lot of liquid money (due to fiscal and monetary policies) in their coffers, demand for ‘needs’ highten, affecting the supply (due artificial shortage of goods). This therefore in line with the principle of demand and supply subsequently increases prices.
The Kenyan shilling hitting a high of 86 per dollar is a plus to the external economies, who are now able to import our good and services cheaply while it gags our forex players. The central bank of Kenya bonds with a coupon rate of 12% are indeed okay in mobbing some of the excess money in circulation but why drain a dam when it still has other tributaries to feed it?, With this reality hitting the public, its time policy makers rush to save the hoi polloi and investors from this crisis through rapid but feasible policies.
I woke up to peruse the business news as usual and was disappointed to see inflation has it a rapid high of 6.54 %.It’s disturbing to see the local investor unable to thrive in forex due to the daily souring of the shilling. An importer in Kenya today equals a speculator, with the fluctuation of the local currency. Many economists will argue that inflation is good for economic growth but what about a runaway one? .In the short run inflation might increase the GDP but that also affects the welfare of the general population negatively in accordance with the domestic consumption. Families moreover will channel more of their resources in purchase of basic consumption good and missing out on investment because of the savings dent.
When the regulator (CBK) reduced bank rate to 6.5% it was apparent that the economy would flood with liquid money. To highlight how this comes about let me illustrate it with the mushrooming infrastructure and growth of commercial banks portfolio. The additional currency in circulation is due to the rapid developments engineered by government (Fiscal policies),i.e. the channelling of resources to improve the road and housing network throughout the country, the profits released recently by commercial banks doesn’t amuse me either, when I see a commercial bank add a shilling from her final output,i see an extra shilling in circulation which demand an extra quick policy. With the public having a lot of liquid money (due to fiscal and monetary policies) in their coffers, demand for ‘needs’ highten, affecting the supply (due artificial shortage of goods). This therefore in line with the principle of demand and supply subsequently increases prices.
The Kenyan shilling hitting a high of 86 per dollar is a plus to the external economies, who are now able to import our good and services cheaply while it gags our forex players. The central bank of Kenya bonds with a coupon rate of 12% are indeed okay in mobbing some of the excess money in circulation but why drain a dam when it still has other tributaries to feed it?, With this reality hitting the public, its time policy makers rush to save the hoi polloi and investors from this crisis through rapid but feasible policies.
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