I have recently traveled to a number of African countries. The story is the same....high inflation, unavailability of some commodities and the depreciation of local currency.

Due to the European economic crisis....most investors dumped the Euro and most other currencies and run for the dollar.

This resulted in huge demand for the Dollar in the whole world.....thus affecting many countries. High demand for USD is not only in Kenya.....
Why should the huge dollar suppliers sell USD to Kenyans & Africa when others in other continents can buy at better prices and with better stronger currencies? we had the raise the prices...


I am currently in Dar....the hottest news here is about....No sugar on the shops and the Tz shilling has dropped by 15% between 1st of October and today.....and who is to blame....their equivalent of Ndung'u.

I was so much against Ndungu before.....I was advocating for mass action to have him removed...due to personal losses I have incurred after depreciation of the shilling....

I guess all CBK governors do not know what hit them..... just like those airplanes that go down with experienced pilots.

For Kenya, the early effect most likely came due to other factors:

- South Sudan - some people may have repatriated part their wealth to south Sudan from Kenya after South Sudan became an independent country. This could have increased the demand for USD.

- Ocampo 6 case - remembering what happened in 2007/2008, re-living it .... and remembering the helpless of the situation then....may have triggered demand for USD - partly due to uncertainty that the case brought about 2012.... and the fact that some people would rather start keeping their wealth in USD form...as we approach 2012....just in case.