Kenya shilling overvalued by 30pc, report claims

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joto la jiwe said:

Hahahahaha, elimu yenu zaidi ya ukabila na kiingereza hamna mnachofundishwa zaidi. Sema wewe ulivyofundishwa, GDP ya nchi inapatikanaje?

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Y= C+I+G+(X-M)

Yes the kenyan shilling is very strong since it has held its own against the dollar while other currencies are falling. This is due to the market not the GOK. There has been little demand for dollars by importers while diaspora remittances have soared, Horticulture exports have increased. Kenya does not control its currency value it leaves the market to decide. Also now we have an all time high dollar reserve, that is why Kenya told the IMF we might not need any emergency fund in the near future. When demand for dollars rise the value of the shilling will fall, that is how the market works

Overstating the currency is one of salient features of non exporting economy. Because this act makes the exports more expensive, hence less customers.

A report titled ‘Kenya’s Economic Puzzle-Putting the pieces together’ insinuates that the CBK has not been operating a free float currency.

Kevin85ify said:

Yes the kenyan shilling is very strong since it has held its own against the dollar while other currencies are falling. This is due to the market not the GOK. There has been little demand for dollars by importers while diaspora remittances have soared, Horticulture exports have increased. Kenya does not control its currency value it leaves the market to decide. Also now we have an all time high dollar reserve, that is why Kenya told the IMF we might not need any emergency fund in the near future. When demand for dollars rise the value of the shilling will fall, that is how the market works

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The policy is on papers, but not in practice.

Kenya shilling overvalued by 30pc, report claims
By Citizen Reporter For Citizen Digital
Published on: May 8, 2019 11:26 (EAT)


The Central Bank of Kenya has been accused of managing the shilling and overvaluing it by up to 30 percent.
A report titled ‘Kenya’s Economic Puzzle-Putting the pieces together’ insinuates that the CBK has not been operating a free float currency.
“…the value Ksh.100 could buy in January 2009 can only buy 50percent of that now,” said the statement from Amana Capital, the firm behind the report.
On Wednesday, Reuters reported that the Kenya shilling weakened due to increased dollar demand from oil importers.
As at 0649 GMT, commercial banks quoted the shilling at 101.05/25 per dollar, compared with 100.95/101.05 at Tuesday’s close.
However, the Amana Capital report indicates that the shilling should actually be trading at approximately 131 per dollar.
Also Read:

1. Kenyatta image on new Ksh.1K notes sparks controversy
2. New CBK directive targets top gov’t officials, politicians in anti-graft purge
3. Kenyans have until October to exchange old Ksh.1K notes: CBK

The study says devaluation of purchasing power is at 50percent, meaning that the figures presented by CBK may not represent the current circumstances of the economy.
The study further warns that the country faces a risk of pushing exporters to seek other alternatives since Kenyan products may become too expensive for them in the short run.

Export earnings will then decrease and the Kenyan economy may slow down significantly.
Last year, CBK Governor Patrick Njoroge locked horns with the International Monetary Fund (IMF) after they issued a report saying the shilling was overvalued by 17.5percent.
Njoroge accused IMF of ‘miscalculation’ and using the Kenya shilling as an ‘experimentation tool’.
On Wednesday, Reginald Kadzuty, Amana Capital’s Chief Investment Officer, said their report studied six factors contributing to the performance of the economy.
These include debt, balance of trade, employment, fiscal policy, currency and interest rates.
The report further notes that the country’s Ksh.5.2trillion debt has shifted from being productive to unproductive and Kenyans risk being taxed even more.
“In 2018, for every Ksh.100 of tax collected, Ksh.25 went to paying interest on debt and as at June 2018, for every Ksh.100 in revenue, Ksh.34 was used to service total debt obligations,” the study said.

eliakeem said:

Kenya shilling overvalued by 30pc, report claims
By Citizen Reporter For Citizen Digital
Published on: May 8, 2019 11:26 (EAT)


The Central Bank of Kenya has been accused of managing the shilling and overvaluing it by up to 30 percent.
A report titled ‘Kenya’s Economic Puzzle-Putting the pieces together’ insinuates that the CBK has not been operating a free float currency.
“…the value Ksh.100 could buy in January 2009 can only buy 50percent of that now,” said the statement from Amana Capital, the firm behind the report.
On Wednesday, Reuters reported that the Kenya shilling weakened due to increased dollar demand from oil importers.
As at 0649 GMT, commercial banks quoted the shilling at 101.05/25 per dollar, compared with 100.95/101.05 at Tuesday’s close.
However, the Amana Capital report indicates that the shilling should actually be trading at approximately 131 per dollar.
Also Read:

1. Kenyatta image on new Ksh.1K notes sparks controversy
2. New CBK directive targets top gov’t officials, politicians in anti-graft purge
3. Kenyans have until October to exchange old Ksh.1K notes: CBK

The study says devaluation of purchasing power is at 50percent, meaning that the figures presented by CBK may not represent the current circumstances of the economy.
The study further warns that the country faces a risk of pushing exporters to seek other alternatives since Kenyan products may become too expensive for them in the short run.

Export earnings will then decrease and the Kenyan economy may slow down significantly.
Last year, CBK Governor Patrick Njoroge locked horns with the International Monetary Fund (IMF) after they issued a report saying the shilling was overvalued by 17.5percent.
Njoroge accused IMF of ‘miscalculation’ and using the Kenya shilling as an ‘experimentation tool’.
On Wednesday, Reginald Kadzuty, Amana Capital’s Chief Investment Officer, said their report studied six factors contributing to the performance of the economy.
These include debt, balance of trade, employment, fiscal policy, currency and interest rates.
The report further notes that the country’s Ksh.5.2trillion debt has shifted from being productive to unproductive and Kenyans risk being taxed even more.
“In 2018, for every Ksh.100 of tax collected, Ksh.25 went to paying interest on debt and as at June 2018, for every Ksh.100 in revenue, Ksh.34 was used to service total debt obligations,” the study said.

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Kenya changed and we import more from east african neighbours, to the point that imports from uganda and tanzania rose 42% by january. Deficit in import value from none east african countries has fallen overtime putting less pressure on the kenyan shilling. Do not believe everything you see on kenyan media. They always talk as if kenya will be somalia the next minute. That is the price we pay for a freedom of expression but i would not have it any other way.

eliakeem said:

Kenya shilling overvalued by 30pc, report claims
By Citizen Reporter For Citizen Digital
Published on: May 8, 2019 11:26 (EAT)


The Central Bank of Kenya has been accused of managing the shilling and overvaluing it by up to 30 percent.
A report titled ‘Kenya’s Economic Puzzle-Putting the pieces together’ insinuates that the CBK has not been operating a free float currency.
“…the value Ksh.100 could buy in January 2009 can only buy 50percent of that now,” said the statement from Amana Capital, the firm behind the report.
On Wednesday, Reuters reported that the Kenya shilling weakened due to increased dollar demand from oil importers.
As at 0649 GMT, commercial banks quoted the shilling at 101.05/25 per dollar, compared with 100.95/101.05 at Tuesday’s close.
However, the Amana Capital report indicates that the shilling should actually be trading at approximately 131 per dollar.
Also Read:

1. Kenyatta image on new Ksh.1K notes sparks controversy
2. New CBK directive targets top gov’t officials, politicians in anti-graft purge
3. Kenyans have until October to exchange old Ksh.1K notes: CBK

The study says devaluation of purchasing power is at 50percent, meaning that the figures presented by CBK may not represent the current circumstances of the economy.
The study further warns that the country faces a risk of pushing exporters to seek other alternatives since Kenyan products may become too expensive for them in the short run.

Export earnings will then decrease and the Kenyan economy may slow down significantly.
Last year, CBK Governor Patrick Njoroge locked horns with the International Monetary Fund (IMF) after they issued a report saying the shilling was overvalued by 17.5percent.
Njoroge accused IMF of ‘miscalculation’ and using the Kenya shilling as an ‘experimentation tool’.
On Wednesday, Reginald Kadzuty, Amana Capital’s Chief Investment Officer, said their report studied six factors contributing to the performance of the economy.
These include debt, balance of trade, employment, fiscal policy, currency and interest rates.
The report further notes that the country’s Ksh.5.2trillion debt has shifted from being productive to unproductive and Kenyans risk being taxed even more.
“In 2018, for every Ksh.100 of tax collected, Ksh.25 went to paying interest on debt and as at June 2018, for every Ksh.100 in revenue, Ksh.34 was used to service total debt obligations,” the study said.

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This report is pure nonsense .If the currency was over valued by 30% it'd mean Kenya would be losing in the FDI wars to Tz and Uganda whose currencies value is "more normal" and thus favourable to investors. But in reality that is not the case coz Kenya is ahead in attracting FDI which means our costs of land,machinery , labour costs are not inflated by 30%....which stupid investor would pass up savings of 30% by picking Kenya instead of your "30% cheaper Tanzania"

Teargass said:

Mtaendelea kulilia GDP yetu but haitarudi chini. Nenda ukachape job msiangushe growth to 2% next year. Kenya next year itagonga $120B

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Itasonga mbele kwa kupika na sio halisi😆😆😆😆😆

Teargass said:

They sleep peacefully because hakuna kinachowasumbua hakili kama wewe. Wewe huezilala kwa amani because you know you can be kidnapped anytime.

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Mbona njaa inawaua😡😡😡😡

joto la jiwe said:

Sawa sawa kabisa, ndio sababu factors zote hizo zinakuwa included. In case of Kenya kwanza unatafuta "How much Kenya got for four years from 2014 to 2018 from growth rate of 5.6% per year, then you multiply by a factor( the strength of your money), this factor in our country is always either is number one(1), if its value in relation to $, is the same like previous year, or bigger than one, if the currency gained against $, or less than one (0.9) if it lost to $.

Now what happened with your GDP, after you got your true GDP from 5.6% of your $61.4B(your GDP 2014), you have been using constant which is bigger than one(17.5%) which indicates Kshs gained to $. That's why Kenya Economy was inflated by 17.5% and 30% respectively.

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Kaka hawa failed state sijui wanaringaga nini?!
We nchi yenye ukabila watasongaje mbele??!!

Kenya - Social development
The National Social Security Fund operates a limited pension fund for employed persons. Retirees (age 55) are entitled to a lump sum equal to total contributions plus accrued interest. Disability and survivor benefits are also paid. Medical coverage for employees includes hospital benefits only. Employers are also obligated to obtain private worker's
injury insurance.
Facilities for social welfare have been largely in the hands of private and voluntary organizations. The government assists many of the voluntary organizations financially. The private and voluntary agencies are highly developed. There are societies that care for the blind, the deaf and mute, and the physically disabled, and voluntary organizations that care for the poor and destitute. Homes and hostels have been established throughout the country for the care of orphans, young offenders, and juvenile prostitutes.
Women in Kenya are traditionally responsible for planting, harvesting, and weeding food crops, and for this purpose children are viewed as an economic asset. Women also lack the legal rights provided to men. Women must obtain written permission from their husbands or fathers in order to obtain a passport. In practice, permission is also required for women applying for credit. Although the Law of Succession stipulates that sons and daughters should receive equal inheritances, traditional custom continues to benefit male children. In 1997 the constitution was amended to prohibit
discrimination based on gender. Domestic violence against women is widespread, and it is viewed as a family issue not a criminal matter. Female genital mutilation is widely practiced, especially among certain ethnic groups.
Ethnic tensions between Kenyan tribal groups are pronounced. Tribal violence has occurred in the Rift Valley, as well as ethnically motivated fighting between Nubian and Luo populations erupted in Nairobi. Although most ethnic groups are represented in the government, Kikuyus sometimes face discrimination and harassment by government officials. Kenya's human rights record remains poor. There are many reports of extra judicial killings, the use of excessive force, and arbitrary arrest. Prison conditions are poor, and there are lengthy pretrial detentions.
Also read article about Kenya from Wikipedia

Wana poor social welfare then wanajiita wameendelea?!

eliakeem said:

A report titled ‘Kenya’s Economic Puzzle-Putting the pieces together’ insinuates that the CBK has not been operating a free float currency.

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Hata yenu ni Dirty float acheni kujifanya...Almost all currencies are managed since central banks or governments intervene to influence the value of their currencies. So when a country claims to have a floating currency, it most likely exists as a managed float.

Janerose mzalendo said:

Hata yenu ni Dirty float acheni kujifanya...Almost all currencies are managed since central banks or governments intervene to influence the value of their currencies. So when a country claims to have a floating currency, it most likely exists as a managed float.

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Ahaaa haaa haaa
Asiye kuwepo na lake halipo. Tulisha jadili wakati uko lupango.

Kaka huyo dada mzowee maana dah hatta mm mwenyewe hunishangazaga.

eliakeem said:

Ahaaa haaa haaa
Asiye kuwepo na lake halipo. Tulisha jadili wakati uko lupango.

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joto la jiwe said:

Tukiwaambia ninyi mnapika data huwa mnakataa, "Chicken is coming back home to be roasted". Haiwezikani nchi iwe na uchumi wa $90B lakini ishindwe hata kukarabati reli ya zamani, achilia mbali kujenga reli ya SGR. Professor Manyora alishamuomba rais Uhuru Kenyatta kuwafuta kazi Gavan wa Benk Kuu na CS wa Uchumi lakini hasikilizi, Uchumi wa Kenya upo ICU.

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You sound like a RETARD. Honestly.
The MGR was at no point a Government priority in refurbishment. That was done by RVR, a private company.
As for the SGR. Last I checked the railway to Kisumu and Malaba was finally approved.
And Kenya's SGR is far superior.
It is a China Class 1 rail.
Tanzania's is an AREMA railway, inferior to even the Ethiopian class 2 rail.
Kenya, Uganda and Rwanda will have a more superior rail.
This $90 billion economy just managed to make the Primary-Secondary transition rate reach over 92%(as compared to a certain nation where even half is a problem).
This $90 billion economy is on its way to Universal Healthcare with several counties already having over half the population covered by NHIF.
This $90 billion economy has 70 percent of the population connected to electricity and is still going strong.
What of yours??? Do we need to go through the stats?

joto la jiwe said:

IMF iliposema GDP ya Kenya ni $90B, wakenya walikuja hapa na kujisifia kama kawaida, sasa subiri watakavyoipinga na kuitukana IMF kutokana na hii ripoti.

Ila huu ndio ukweli halisi ya Uchumi wa Kenya, sio zaidi ya $70B. Ukiwa na akili ya kawaida huwezi kuamini kwamba, miaka minne iliyopita GDP ya Kenya nilikua $64&, kwa wastani wa kukua kwa 5% ghafla umefikia %90B.

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The last time Kenya had an economy of $64 billion was in the early 2010s, like 7 years ago.
Is your mind slow... Wait I am asking a Tanzanian that.

Brother am just asking one question !
What does that great GDP of yours help,while your nation has poor social welfare like India?!

GERALD710 said:

You sound like a RETARD. Honestly.
The MGR was at no point a Government priority in refurbishment. That was done by RVR, a private company.
As for the SGR. Last I checked the railway to Kisumu and Malaba was finally approved.
And Kenya's SGR is far superior.
It is a China Class 1 rail.
Tanzania's is an AREMA railway, inferior to even the Ethiopian class 2 rail.
Kenya, Uganda and Rwanda will have a more superior rail.
This $90 billion economy just managed to make the Primary-Secondary transition rate reach over 92%(as compared to a certain nation where even half is a problem).
This $90 billion economy is on its way to Universal Healthcare with several counties already having over half the population covered by NHIF.
This $90 billion economy has 70 percent of the population connected to electricity and is still going strong.
What of yours??? Do we need to go through the stats?

The last time Kenya had an economy of $64 billion was in the early 2010s, like 7 years ago.
Is your mind slow... Wait I am asking a Tanzanian that.

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Ummayed said:

Brother am just asking one question !
What does that great GDP of yours help,while your nation has poor social welfare like India?!

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Do you even know what you are talking about??
In Kenya, the old are getting between sh 2,000 and sh 5,000 as free cash from the Government.Out of the 977,000 people over 70 in the country, around 566,000 so far have been registered and have been getting the money monthly.The stipend is expected to rise with time, laying the foundations of social welfare.
Many of the elderly are also getting FREE Healthcare under the Inua Jamii 70+ program. Some counties like Muranga already had such a program long before the National Government initiated the Inua Jamii program.
Need I mention the fact that in Kenya, every constituency provides bursaries. Most students studying medicine not only DO NOT pay any school fees because the constituency bursaries pay for it.
So which social welfare programs does Tanzania have exactly???

GERALD710 said:

Do you even know what you are talking about??
In Kenya, the old are getting between sh 2,000 and sh 5,000 as free cash from the Government.Out of the 977,000 people over 70 in the country, around 566,000 so far have been registered and have been getting the money monthly.The stipend is expected to rise with time, laying the foundations of social welfare.

Sh30bn set aside for cash transfers for elderly

NAIROBI,Kenya,Mar 14 - The government has set aside Sh30 billion for cash transfers for elderly people aged 70 years and above starting April this year. - Kenya breaking news | Kenya news today | Capitalfm.co.ke

www.capitalfm.co.ke

Many of the elderly are also getting FREE Healthcare under the Inua Jamii 70+ program. Some counties like Muranga already had such a program long before the National Government initiated the Inua Jamii program.

1.3 million elderly to receive health insurance cover

Ruto asked Parliament to prioritise legislation aimed at improving the lives of the poor and vulnerable.

www.nation.co.ke

Need I mention the fact that in Kenya, every constituency provides bursaries. Most students studying medicine not only DO NOT pay any school fees because the constituency bursaries pay for it.
So which social welfare programs does Tanzania have exactly???

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Do you even know what is social welfare bro ?!
You did not answer me well like the way it is needed!
Social welfare is brought by social development.
You don't have social development because alot of people who are in need of the welfare are not getting it.
Like people living with hunger in Turkana.
How can you say you have social welfare ?!
Welfare is the fund which is given to people who are in need from the government.
But in kenya people who are in need do not get the requirements!!!
How can you say you have social welfare ?!
Your nation is mostly handling well people living at Nairobi thats all.
But not handling people from different regions such as kibera and Turkana who are dying with hunger and not getting the welfare like the way it is needed.
Things and social welfare are given basing on tribalism,thats not good.

Kenya is like India.
Even India welfare is given by bias basing on tribalism and classes.
Santhal from Jharkhand are not getting welfare like Gujarat from Northern India.
It is like Kenya the way you are treating yourselves.
How can you have social development mister!?

GERALD710 said:

Do you even know what you are talking about??
In Kenya, the old are getting between sh 2,000 and sh 5,000 as free cash from the Government.Out of the 977,000 people over 70 in the country, around 566,000 so far have been registered and have been getting the money monthly.The stipend is expected to rise with time, laying the foundations of social welfare.

Sh30bn set aside for cash transfers for elderly

NAIROBI,Kenya,Mar 14 - The government has set aside Sh30 billion for cash transfers for elderly people aged 70 years and above starting April this year. - Kenya breaking news | Kenya news today | Capitalfm.co.ke

www.capitalfm.co.ke

Many of the elderly are also getting FREE Healthcare under the Inua Jamii 70+ program. Some counties like Muranga already had such a program long before the National Government initiated the Inua Jamii program.

1.3 million elderly to receive health insurance cover

Ruto asked Parliament to prioritise legislation aimed at improving the lives of the poor and vulnerable.

www.nation.co.ke

Need I mention the fact that in Kenya, every constituency provides bursaries. Most students studying medicine not only DO NOT pay any school fees because the constituency bursaries pay for it.
So which social welfare programs does Tanzania have exactly???

Click to expand...