The current cause of headache to any Kenyan right now is debt. Every day when you wake up you realize that you have to pay a debt that you didn’t get yourself.
Each day you realize the much money we owe foreign countries , our country and all of us can be auctioned. So devastating but we have no option but to pay.
But the debt is only caused by borrowing. Our shilling is growing weaker each and every day against the US dollar. This is alarming as in the recent past the shilling was gaining value which was an indication of a brighter Kenya.
On Thursday alone, Kenya’s external debt grew by Ksh2.5 billion after the shilling dipped by 0.1 percent to cross the Ksh103 mark.
As of yesterday (Thursday), the shilling was retailing at Ksh103.05, the sixth day it was depreciating in a row.
Combined with the recent increase in fuel prices, it is expected that the price of basic commodities will shoot due to increased cost of production, and increased cost of importation.
This is a clear indication that we should basically start preparing for even more tougher days a head.
Last month, the International Monetary Fund (IMF) —the body that gives loans when countries are in financial difficulties— said that Kenya is artificially manipulating the shilling.
In a statement quoted on Bloomberg, IMF said that the local unit is 17.5% over-valued.
The IMF reclassified the shilling from “floating” to “other managed arrangement” to reflect the currency’s limited movement due to periodic central bank interventions.
Importers stand to lose the most while those paid in dollars and exporters stand to gain in the new development.
DO YOU THINK THE DEBT WILL BE SETTLED?