what should be done to avoid 110? your views please?

Ban imports that we can do without[/quote]
Good one , I was disturbed to find chinese with a stand at the Nairobi international show selling imported hawkers products.
what value do these products add to the economy?Some of these things can be produced locally and be of higher quality

It is however not CBKs job to ban imports.

See, we have a govt that's spending faster than the economy can keep up. This fiscal year (June 2011 to June 2012) they want to borrow 120B from the public. So far, as at end Sept, they are 60B behind in their borrowings. That means two things: either they're not paying the right rates, or there isn't enough money for them to borrow.

So, what now? lets see. 60B shortfall, where to find this money? Any guesses who might have 60B public money stashed away somewhere? Any educated guesses?

Ban imports? Lets see...if we take the import bill for July 2011 and break it down, this is how it looks:

Industrial supplies (non food) 34%
Fuel 22%
food and bev 10%
machinery and capital equipment 15%
transport 11%
other goods 8%

So now, what can we ban/levy higher taxes and replace with local goods? Food and bev I suppose. So we save 10% on our import bill, that's 10B.

Really, there isn't much of a solution in sight for this problem.

I'd only advocate a ban on food and beverages, the rest I think we can levy a higher tax so we earn a bit more.
The problem is that this may in the short-term translate to higher inflation.
The key is still proper fx controls for a period 6-12 months until the Europeans get their backsides in gear