Author: Dredan Njau

FeaturedNews

Kenya inches closer to full-scale dollarization

The gradual shift towards dollar payments in Kenya, observed across various sectors, has raised concerns about the intensifying trend toward the dollarization of the country’s economy. This movement has been fueled by the persistent weakening of the Kenyan shilling against the US dollar over the past year, showing little to no signs of improvement. Dollarization typically involves the need for a reserve of readily available US dollars to replace the existing monetary base and establish a liquidity cushion denominated in US currency. This cushion often amounts to approximately 20 percent of total bank deposits and serves as a safeguard against potential banking system crises or…

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FeaturedNews

Black Friday deals end 14 months of price hikes

If we are to believe the large billboards advertising goods at half price ahead of Black Friday, Kenyan businesses will cut product prices for the first time this year, having consistently raised prices every month due to increasing input costs and passing on new taxes to consumers. According to the Stanbic Bank Purchasing Managers Index, companies have been hiking prices each month, reaching a 14-month high in August before beginning to taper down ahead of the Black Friday shopping spree. For over a year now, prices of consumer goods have been soaring, forcing families to budget with their dwindling incomes and cut back on discretionary spending…

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