Interesting take on the governor.. I would suggest that his term be renewed nobody would understand his strategy!!! He needs to get us out of our mess. We talk of low inflation yet the reality is different. We calculate our inflation without factors such as fuel yet more than 50% of inflation is dependant on fuel /energy prices. We continue to borrow very expensively from the local markets. Why borrow locally at expensive rates yet rates are lowerfrom external institutions. This will maintain high interest rates as banks would rather have risk free government instruments. If you looked through CBK website, local borrowing is at an all time high. Our children and grandchildren will pay this debt. Invariably taxes mus rise.
I suppose he could advise the government on prudence and better debt control. Considering that part of our budget is funded by borrowing, things can only get worse.
On the contrary, if you have loads of cash to invest and avoid taxes or own a bank, he is a magnificient governor. The figures of inflation of about 5% are random numbers like a population of 1 million in kibera, at best fantasy.

Mate, local funding for govt debt is always the best option. It's exactly identical to HSBC's strategy for all their lending to be backed by bank account deposits, almost exclusively (or Japan's 80-90% dependence on domestic lending for its bonds). Local borrowers are the most likely to understand the true cost of money, the risks with lending to the government and when to cut and run...because, surprise-surprise, they live there, work there, etc.!
Your assertion about inflation is understandable..everyone disagrees with inflation stats because the basket of goods used to calculate inflation differs from each individual's view. (eg, I may spend less on transport and more on Kenchic and pricey imported spirits than the average Kenyan of which there are 30 Million plus, excluding companies). Lesson, nobody experiences the average price rises because the average is a combination of millions of buyers!

he was re-appointed again for another 4 year term.
This is good to kenyans and hoping some hooligans wont start politicking

The re-appointment was not done appropriately as the premier was not consulted....This is another show of impunity.

I am very pleased @ his re-appointment. 3 cheers for Obaks for his wisdom.

@kizee1 - private powerful central bankers is why we find ourselves in boom-bust economy cycles.

A US president was able to successfully shutdown the central bank in 1836 and gave very deep quotes that relate to the corruption that money honchos propagate if not put in check and act against public interest. Right now we face serious global food inflation. While the poor suffer from being unable to afford food, some investors are making serious gains in bets as the inflation accelerates. When BAT makes profits and gives big dividends we as investors are happy, but don't see the health side effects. And the list goes on. When will we stop and think that this money system needs to be rectified towards integrity...

Some quotes from Andrew Jackson.

The bold effort the present (central) bank had made to control the government ... are but premonitions of the fate that await the American people should they be deluded into a perpetuation of this institution or the establishment of another like it.

and

I am one of those who do not believe that a national debt is a national blessing, but rather a curse to a republic; inasmuch as it is calculated to raise around the administration a moneyed aristocracy dangerous to the liberties of the country.

and my favourite...

Gentlemen, I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves.

More quotes here - http://quotes.liberty-tr...uotes_by/andrew+jackson

This video will teach you something about the fractional reserve money mechanics and why national debts globally are spiralling out of control -
http://video.google.com/...05277695921912&hl=en