It is clear that the Treasury and CBK have failed Kenyans. The Governor blamed the treasury for failure to manage its fiscal policies. Similarly the Minister says its the work of speculators (including commercial banks)- meaning he blames CBK for not whipping the concerned banks.
And on record, it is said that both were proponents of weak shilling (can someone confirm this?)

It is well understood that Fiscal and monetary policies are intertwinned. Both must support each other for a stable economy. The CBK is under finance docket and also acts as Government Banker. CBK also directly advises the treasury on fiscal issues.

This are the two key institutions in Kenya's financial system. It is time for both to step down. They have failed in their duties and its not over yet.

If you asked me, they should be arraigned in court for failure to act, also the entire MPC should be on the dock with them.

We have had this wrong assumption that we Kikuyus are the only ones who can manage Kenya's economy.
Hopefully this duo has knocked that idea off for good.

Economics is a complex subject and in most successful economies, you appoint a mixture of non-ideological intelligent economists and successful business people. Neither of these can claim to be either.
Finally, it was silly of General to keep Muigai as FinMin when he has the ICC thing hanging over him...

Wacheni witch hunting. Didn't u enjoy the monetary expansion? Bought cars, plasmas, holidays, plots e.t.c now its cooling off time. Review ur lifestyle. only you can do it.

We are in very tough economic times. Some time back only the poor were feeling the pinch, now most of us are feeling it. If Kibaki really cares about his legacy, he should personally take charge or people will associate his reign with high cost of living

@Mainat
I do not believe this mess should be blamed on the two Kikuyus as you prefer to call them. I agree with earlier sentiments on total overhaul of our political and economic thinking. Unfortunately, we are soon getting to an election year and things are likely to get worse. Just do your part and do it well and pray God that all will be fine with the 2012 elections otherwise the worst is yet to come. Let us choose our leaders wisely coz we are united when we cannot afford unga, mafuta and sukari but come elections, we all get divided and retract to our tribal cocoons.God help Kenya

Guys I expect rational thinking and balanced comments from Wazuans not this tribal and mudslinging show.

First we need to understand what factors affect the rise and fall of the shilling Vs the dollar before commenting on anything about this topic.
All over the world things are getting tougher and the nations that will survive are those exporting goods more than what they are importing. See what’s happening to Greece, Spain, Poland, Italy and even the US.

Infact the fall of the shilling is a blessing to exporters, we need to use this opportunity to add value to our coffee, tea, milk products, hides and only export finished products paid in dollars otherwise how can Uhuru and Ndungu stop the shilling from falling yet the fall is influenced by factors beyond our borders.

Read these views from M7 - http://www.newvision.co....ing-national-exams.html

[quote=FUNKY]A bit of good news

http://af.reuters.com/ar...s/idAFL5E7LH1BZ20111017[/quote]


hmm...story says nada about cbk selling?

I think we need to even look at the bigger picture and the bigger picture goes way back 6 yrs. Before we had a sliding shilling the inflation was picking up speed and I put the blame squarely on poor economic and financial policies and for that reason it is fundamentally right to call for resignation of the responsible parties.

First we started financing our budget by privatization of public companies, so we had unsustainable source of fund financing long term projects and when there were no more public companies to sell we had no option but to find other means to keep the projects going, the options included the expansion of money supply.

Secondly, there is corruption, when a country is loosing billions of money through known corruption deals, there is no way that country can pull itself up. If a budget can have a Ksh 5 billion error twice then how many more money are we loosing that we do not know?

The excuse that this problem is associated with the world financial system cannot hold water, unlike US,UK, EU, Canada, Japan and Australia, we manipulate our currency, the shilling is not free to fall based on the free market principles, Central Bank of Kenya buy and sell Shilling and dollars everyday to try to smoothen the shilling so by the time the shilling fall this far, there is a fundamental problem with our economy that cannot be corrected by currency manipulation. Money is the derivative of the economy so look no further than shortage of food supply, IDPs, Corruption and Insecurity, the basic elements of a sound government.

Lastly, people will come in with different opinions about the cause of all these, some will blame it on the climate( weather), some will blame it on world financial system but until you and I recognize the fact that corruption is the biggest cause of these and start looking closely at the people we're lining up for the next leadership, Kenya will just be like it is now.

We're net importer so we're negatively affacted by depreciating shilling, but if you're listening to Museveni then you probably won't get it, I understand!