The voters need to manage their expectations when it comes to the economy. Politicians from both sides made promises, but none told you the truth. I'm here to bring you the truth.
1. USD/ KShs rate:-
This will continue to increase. Currently the US is having an inflation rate of 9.1% and to control this, the Fed has promised to continue increasing interest rates. The effect of that is that investors shift their money to US corporate and government bonds which results in low liquidity in developing countries like Kenya.
2. Kenya's international debt:-
Most of international debt is denominated in dollars. Depreciating shilling does more harm to our external debt. For instance Kenya's external debt has increased by Sh156 billion purely because of the weakening of the shilling.
3. Pending bills:-
There are suppliers to both counties and national government with unpaid bills of KShs 500 billion. No end in sight as to when they will get paid.
4. Global recession:-
The writing is on the wall. Over 60% of US economists believe that in 2023 there will be a global recession. When America sneezes, the rest of the world catches a cold.
5. Ukraine Russia conflicts:-
Although Europe is feeling most of the heat, no region will be spared in terms of soaring of commodity prices and food. 64% of the world's sunflower exports comes form Ukraine and Russia. 23% of the world's wheat exports comes from these two countries. 19% of world's barley exports comes from Ukraine and Russia. 18% of the world's maize exports comes form Ukraine and Russia.
6. Oil futures:-
Oil prices are expected to come down, but only slightly. So no end in sight regarding the impact of high oil prices.
7. IMF:
IMF has set a fresh loan condition requiring Kenya to drop the fuel subsidy programme by October 2022, exposing motorists to a sharp rise in pump prices.The multilateral lender has inserted the removal of the subsidy under the 38-month budget support scheme, in the list of reforms attached to a Sh270.2 billion ($2.34 billion) loan package.
8. Bank loans:-
If you have a bank loan and it's not fixed, call your bank NOW and find out about interest rates. They are about to be increased from about 12% to 16%.
1. USD/ KShs rate:-
This will continue to increase. Currently the US is having an inflation rate of 9.1% and to control this, the Fed has promised to continue increasing interest rates. The effect of that is that investors shift their money to US corporate and government bonds which results in low liquidity in developing countries like Kenya.
2. Kenya's international debt:-
Most of international debt is denominated in dollars. Depreciating shilling does more harm to our external debt. For instance Kenya's external debt has increased by Sh156 billion purely because of the weakening of the shilling.
3. Pending bills:-
There are suppliers to both counties and national government with unpaid bills of KShs 500 billion. No end in sight as to when they will get paid.
4. Global recession:-
The writing is on the wall. Over 60% of US economists believe that in 2023 there will be a global recession. When America sneezes, the rest of the world catches a cold.
5. Ukraine Russia conflicts:-
Although Europe is feeling most of the heat, no region will be spared in terms of soaring of commodity prices and food. 64% of the world's sunflower exports comes form Ukraine and Russia. 23% of the world's wheat exports comes from these two countries. 19% of world's barley exports comes from Ukraine and Russia. 18% of the world's maize exports comes form Ukraine and Russia.
6. Oil futures:-
Oil prices are expected to come down, but only slightly. So no end in sight regarding the impact of high oil prices.
7. IMF:
IMF has set a fresh loan condition requiring Kenya to drop the fuel subsidy programme by October 2022, exposing motorists to a sharp rise in pump prices.The multilateral lender has inserted the removal of the subsidy under the 38-month budget support scheme, in the list of reforms attached to a Sh270.2 billion ($2.34 billion) loan package.
8. Bank loans:-
If you have a bank loan and it's not fixed, call your bank NOW and find out about interest rates. They are about to be increased from about 12% to 16%.
