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Submitted by Jimnford Kebira on
During the period 1991-1997 the Russian rubble lost its value by almost 150%. Their foreign exchange policy at the time of raising interest rates on government debt to attract foreign funds to plug the gaping budget deficit further complicated the problem. This can be said of Kenya too, last week the Central Bank raised interest rates most likely to attract short-term investiments from foreigners. While this might cool the raging weaker shilling, it is a short-term control which postpones a problem but doesnt address it. The last government budget for the first time hit a trillion mark, this would make sense if the government had more revenues coming into her coffers, far from it. Given this Kenya's budget deficit is balooning year by year. This is another area the government should address, it should be strigent in its expenditures.