Rants, Raves & Reviews
An article by Wshington Gikunju titled "Foreign currency reserves slip below minimum" makes little sense!
I quote "The worsening of import cover position means that Kenya, a net importer, may face commodity shortages as importers struggle to obtain dollars to clear outstanding import bills."
There is no 'struggle' to obtain dollars. It's simply a question of paying for KShs for the US$. Furthermore, Kenya also imports from other countries e.g. Japan, Korea & the UK which can be paid in their own currencies & may have depreciated vs the US$.
Kenya has been importing foodstuffs among other non-essentials. These imports will be pricier thus benefiting local producers. Why do we import cereal (Weetabix is pretty good), eggs (crazy!), milk products like butter & cheese?
Fewer bags of grapes, apples & lychees isn't going to cause Kenyans much harm!
Fewer bottles of imported liquor, wine and beer will be good for KWAL, EABL & Keroche.
I quote "CBK could also be forced to limit its supply of dollars to the priority sectors of the economy such as oil, food and medicine importers. "
Huh? Did the guy say food? Except for wheat... there are few 'essential' foods that Kenya needs to import! Anyway, we should be encouraging production of sorghum & millet. Yes, these are much better 'foods' than wheat or maize.
Furthermore, in the long-term Kenyan importers will only import what Kenyans can afford. After all... they are businessmen...
As much as I shake my head at the silliness of importing cereals & eggs... at some point these will be too expensive to import & Kenyans will turn to local products.
I think Nation needs to hire someone with some sense of economics to review what these 'journalists' put out... Some of these comments/opinions create a sense of panic even though there is no need to be overly concerned!
BTW... in typical Kenyan style... when someone becomes 'powerful' the sycophancy starts! So Kogelo, a back water village will soon have electricity, piped water & adequate security!