Jubilee saw Kibaki gava increase tax collection by expanding the economy and thought that it is an easy task and is the norm. shock on them. You must develop and grow the economy to generate revenue!!!

NSE20 closes for the month of October at 3868. 6.86% down from the open at 4153. In October NSE20 bulls were overpowered by bearish momentum and lost the 4000 psychological handle. That was one nasty support break. The market is quite oversold and a bounce is likely in November. However overheads resistance is now packed from 4000 all the way to 4500. For bulls to reclaim their pod 4900 - 5000 resistance level has to be broken down with a bang.

Their is likelihood to test the 2011 lows. I'd prefer this scenario since the bounce from that level will have more legs for a proper layering of a floor to force a double bottom.

http://www.reuters.com/article/2015/10/29/us-usa-fed-idUSKCN0SM0BJ20151029

"..nvestors quickly placed bets reflecting a higher chance the U.S. central bank will raise rates in December, with futures contracts implying a 43 percent possibility compared to 34 percent prior to the statement.

"The Fed is seriously considering a December rate hike," said Harm Bandholz, an economist at UniCredit in New York..."

The Fed's hike of 0.25% is a known known. It's about when not if. A 0.25% hike isn't devastating. In Kenya, we hike by 2% like it's nothing! We moved from 9% to 22% in months for 91 day T-Bills.

Very few will move their 'hot money' from Kenya to the US for a 0.25% increase in USD rates. The countries that will see a movement of significant funds are those with low rates e.g. Japan, UK, EU, etc...

@vvs, I am not an economist but I think that you have over-simplified the effect of federal rates rise.

Fed rate is the equivalent of our CBK rate, banks and other lending institutions can raise rates further based on this and other factors. (Though not in the haphazard way that our banks have done of late; read StanChart and Co.)

The near-zero Fed rates were introduced to counter the ravages of the GFC. The consensus is that Dollar investors have had lots of easy cash over the last few years.
This is the money that they would typically invest in high return ventures like KE NSE and Gov't securities.

The fear is the knock-on effect this would have both mathematically and mood-wise.
I'm thinking of less cash to put in our already ailing NSE.

My two cents...