Devaluation of Kenya Shilling: Government Must Explain

Published on 15th August 2011

Central Bank of Kenya
Demonstrations and riots that have engulfed the United Kingdom in the recent past are not only shocking but also reveal that people, irrespective of their colour, culture and location can react differently when agitated. Developed countries have their ‘hooligans’ who loot as those in developing countries.

Democracy and respect for the rule of law is fundamental in governance but democracy itself must be controlled and regulated. Even though political scientists define democracy as ‘the majority wins,’ it is also important to define the relationship between democracy and civilization.

However as the people of UK go to the streets about the high cost of living, Kenyans are struggling to survive with an ailing economy. The value of the shillings is depreciating alarmingly forcing the living cost to rise above the income and expectation of ordinary Kenyans. The irony is that the government is not explaining to the people the reason for the high rate of inflation. A dollar is now changing at about one hundred shillings and yet many Kenyans live below a dollar a day and are not able to eat the required three meals a day let alone breakfast. Prices of most essential commodities such as Maize, Sugar, Unga, petrol, paraffin has doubled the normal price.

The Minister for Finance, the Central Bank governor and the whole chain of command in the treasury charged  with the responsibility of managing finance and economy for the country should explain the situation or own up and  resign because they have failed the country. Political responsibility should be a voluntary measure by any credible and responsible leader, Chief Executive Officer or Manager who has failed in discharging his or her duties.

While people are suffering, starving and dying from hunger, the leadership especially the ruling class including parliamentarians are busy increasing their salaries and running their businesses. Adamantly, most Members of parliament have refused to pay taxes and yet they themselves are the law makers. The Kenyan leaders should not mistake and underestimate Kenyans as cowards.

Kenyans are patient but very intelligent and strong. They can protest and demand for credible and accountable leadership. People’s power should not be taken for granted because it is a very strong   component in terms of pushing for both economic and democratic freedom. The Kenyan leaders should not be brainwashed to think that Kenyans are different from other oppressed and suffering people in Uganda, UK, Tunisia, Egypt, Libya and the rest now experiencing serious political and economic unrest.

The government has failed totally in its economic plan. Last year, the dollar was exchanging at 77 shillings. It has now clocked 94, an escalation of 27%. In south Sudan which just attained her independence, a dollar is exchanging at about 2.8 Sudanese pounds. The effect of the inflation is weighing strongly on the people of Kenya.

Politically, it is being speculated that the high cost of the dollar is politically instigated by certain politicians as a strategy for 2012 general elections. This is a very immoral attitude if true. It is a hell bent strategy aimed at literally strangling Kenyans. Though speculation, it is naïve to deny it because of the nature of Kenyan politicians who are known to be crafty, unreliable, irresponsible and not concerned with the welfare of the people.

By Denise A. O. Kodhe,

Executive Director, The Institute for Democracy, Leadership & Empowerment in Africa- IDEA, Nairobi, Kenya.


This article has been read 1,959 times
COMMENTS