One does not need to be an economist to grasp a simple truth.
When the currency of a country strengthens against major foreign currencies, it means that imported inputs become cheaper and costs of production and distribution of products and services should fall (and this impacts everybody because goods also need to be transported and a stronger shilling means that we need less shillings to buy petrol for example). In other words it is rather obvious that prices should fall.
But look at the situation in Kenya today. As the shilling continues to strengthen, the prices continue to go up.
So what's wrong?
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Its a sad situation, I change 1000 bob in the morning and by evening its gone, what about other Kenyans who earn 200/day from casual labor and jobless Kenyans. How do they survive, thank God for maziwa, blueband and omo kadogo, unga ya kupima, omena etc….. One wonders what happens to their children when they get sick in this cold weather and how do they meet other expenses.
ReplyDeleteGod help us!