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Friday, August 13, 2010

Here Comes Constitution Mirage and/or Oasis

By KK Pundit

New Kenya constitution Chapter one, Section (1): “All sovereign power belongs to the people of Kenya, and shall be exercised only in accordance with this Constitution.”

It is one week since Kenyans voted for a new constitution but reading newspapers and watching news one would be tempted to imagine that last Wednesday's was a mock exercise. The so-called Kenyan church is up in arms demanding amendments to what is not promulgated yet.

Reading blogs with Kenyan political content leaves you wondering whether we falsely accuse out leaders of politicking 24/7. Bloggers will never cease drawing and craving political blood no matter the serenity of the occasion. Well, I guess it all boils down to the basic fundamentals: YOU CANNOT LEGISLATE VALUES, it is in the genes, LOL.

No wonder the Pokots have killed all their cats and dogs following advice by Minister Samuel Poghisio and PS Lonyangapuo that they would be taxed for keeping them under the new Constitution.

Are we there yet? Or are we heading nowhere?

There is a question being asked over and over by voices from the legal chambers of concerned experts, social gatherings, frothing waterholes, meat roasting dens, dispirited religious circles, sardine parked matatus, death-wish buses and regional political grapevines, which is:

What name will Kenyans christen the so called newly delivered Baby Constitution?

Will it be Dilemma, Quagmire, Quandary, Limbo, Mystery, Business As Usual, Kenya Ina Wenyewe (Shakers and Movers)?

Or will it be Hope (For the Better), Freedom (At Last), Change (We Fought For), Kick Them All Out If They Don't Deliver (Come 2012), Let's Wait And See (It Will Take Time Kenyan Style).

An ancient echo from a distant first cousin of KereNyanga named KereNjaro who lives in the neighbouring clouds of Eastern African may remind us of what is yet to come.

"Fifty years later and none of my six children have yet to resemble me in any way, shape or form, nor do they resemble their immediate grandparents, five paternal uncles, three aunts or any one of their paternal eighteen nephews and sixteen nieces. What's going on? Should I keep hoping for the better, ignore the matter all together or have a DNA test done asap?

I fear the worst if I opt for the last alternative. The truth may be a bitter pill to swallow if the results confirm my simmering decade old suspicion. The mother of my children is very uncomfortable with us being seen in public as a family.

Our close friends, family, colleagues, associates, relatives, complete strangers, former school mates, and neighbours have never ceased to ask whether all of our children are from their mother's previous relationship, marriage or were adopted by us given our very busy sociopolitical engineered projects for the last five decades."
~ KereNyanga.

Majority of Kenyans gave birth to a new constitution, but will it translate into what they had hoped for or will they end up without an inclusive political DNA that will transform the lives of many Kenyans all over the country?

Should Kenyans demand an immediate constitutional DNA test in order to figure out the real devil that is hidden in the details before it's too late, or should they wait and see what becomes of the baby's true political, social and economic identity in the next ten to fifteen years?

BTW, how does a country like Kenya finds the means and ways to perform a national DNA on the newly delivered baby christened by the majority as "Consti Tution wa Kenya"?


Anonymous said...

You said:
"YOU CANNOT LEGISLATE VALUES, it is in the genes."

That is a statement that has no basis in scientific evidence or experience. First, values are cultural-based (and not genetic) and legislations are used to modify values all the time all over the world. Second, culture or genes alone can not be a perfect predictor of what a person or living organism will turn out to be.

As a result, the success of this constitution will depend on a combination of its genes and the cultural environment we create. We have ad nauseam debated its genetic make-up (its internal structural elements such as kadhis, abortion, devolution, the relationship between the coordinate branches of govt, etc.).

What remains is creating a culural environment where the constitution cannot only survive but also thrive; that is, going beyond the constitution and creating an environment of Constitutionalism. Whether we will create that environment is, to a large extent, a choice for us to make. But the remainder of that choice may not be ours to make.

We live in a fast changing world and according to the Darwinian Law, part of our survival is dependent on how well and fast we especially embrace those global changes that concern governance. It takes two arms to embrace. We have one, the Constituion, but we lack the other, the Constitutionalism.

So, we may not be enthusiastic about creating Constitutionalism, but how paratable is the alternative, the Rule of the Jungle, of "might is right?"

Anonymous said...

Not legislating values is better read in jest. No need to split hairs and make it and evolution class with Darwin's theories. Stay simple and be happy otherwise just ask one Mutahi Ngunyi who peddled his lies and is still taking eggshells off his face, ati intellectuals are often lonely, MY FOOT.

Come to think of it, some people are programmed to deceit it may be GENETIC, ama?

Anonymous said...

anon 2:53 aka TAABU,

Are you trying to increase comments in your stale post??
I think you are so used in the moi style of DECEPTION, FRAUD and IMPUNITy that even RIGGING blog comments comes naturally.

Poor old thingie....

Anonymous said...

Bwa ha ha haaaaaa

Is Taabu calling himself a PUNDIT??

ROTFLMAO, what a pitiful title for this tribal KK bigot!!!

Mwarangethe, please post an article on the financial nightmare of the implementation of this constipation sorry constitution

Anonymous said...

Why cant people like makau mutua write articles to educate people about the thing they passed. Why keep on harping about who won and who lost. For a professor of law, his articles sound as if written by an uneducated fisherman. See his articales in last sunday nation and today's nation. Please those who know him tell him to lay off.

M. Pesa said...

Over the last two years, I have been a very harsh critic of Rt Hon Prime Minister Raila Odinga AKA "Fabregas, Tinga, Captain, Agwambo, Arap Mibei, Jamba etc". But I'm now seriously considering endorsing him for the highest office in Kenya come 2012. I'm beginning to like lots of actions he's taking and words he's talking because he's striking all the right tones. I know he can do better and that's why I'm holding my endorsement for a few more weeks. But compared to other presidential contenders/pretenders/wannabees, Raila seems to be way ahead of the pack. This is because the said pretenders are bogged down in legal cases that involve fraud, election violence and land grabbing. Others like Ruto are busy living a big fat lie while they build castles in the air as far as patriotism is concerned. True, Raila is not a saint and no one is perfect. But most of us can relate to his vision, hope and aspirations for mother Kenya. I think Raila would make a great President assisted by Martha Karua or what do you think? Of course a week in politics is like eternity and lots of stuff can happen in between. We still have about 2 years to go to the ballot and the vote will separate the wheat from the chuff. Yet so far although I hate his party, I like the leader!

Watch my blog for more for the "possible" convsersion on the road to Damascuss......

Anonymous said...

Who cares with your conversion? You are one very confused twisted young man. I have followed your comments right from when you joined KK, but dude, I don't think anyone can ever take you seriously. Maybe the likes of excitable Phil and co. will appluad you for finding the true "messiah".

Anonymous said...


Yes, since the armageddon theories fell on their face, let us try the "katiba is a mirage" singsong. It might work if we sing it frequently enough in our head.

Anonymous said...


I will take Raila seriously when he will apologize for branding Kikuyu's kabila adui and supervised their near genocide in 2008 to get some power.
The man who also participated in the bloody 82 coup need to convince me that he cares more for Kenya and Kenyans than for his personal gratification and enrichmentcoz the blood trail he has left behind in pursuit of power SPEAKS VOLUMES TO THE CONTRARY.
Let him also return Malindi squatters land and pay back the poor Nyanza peasants whose money he took for molasses shares but he made it a personal company after the NDP/KANU merger.

KALONZO is the only corrupt free, non violent presidential candidate ho practises politics of reconciliation. He showed his diplomatic nature during the recent constitutional process. He is the man many Kenyans will vote for in 2012. He has not surrounded himself with crooks, thieves and killers like Raila.


Anonymous said...

If we go by the position taken by Mogotio voters who rejected it by 91%, then it is a mirage. But if you ask the voters of Bondo who passed it by 98%, it isan oasis. So, Taabu, take your pick and don't forget your "ancestral" genes.

Anonymous said...

Anon 2:03 PM,

"Not legislating values" is better read in jest. There's no need to split non existent hairs.

By the way, where is Mutahi Ngunyi?
He peddled a lot of lies - I see him trying to clean his face off the so many eggshells splashed all over it.

I agree with anon 10 2:53 PM that
some people (we know them and they know themselves - they always try to put across this fraudulent impression that they are INDUSTRIOUS, ENTERPRISING & HARDWORKING which is all a BIG HOAX) seem to be programmed to deceit, fraud and theft. Could it be genetic? Could be.

Anonymous said...


Please teach us some more concerning the constitution and its impact on our economy.

You are the only sane voice since the hecklers like Taabu and phil are busy with diversions and petty politicking.

Tuteteni said...


Each and every peace and progress loving Kenyan needs to ask themselves what STANDARD OF GOVERNENCE will he/she tolerate. What are YOU prepared to do if your threshholds is not met, will you continue to accept bad governence to continue like it was pre-katiba. Nobody will enforce the standards for YOU the answer is DIY [do it yourself] - The Katiba gives you unprecedented rights to protest without kunyanyaswa- USE IT. Watch out for THE NEW social network called TUTETENI which will be co-ordinating protests and strikes throughout the country. We need to protest in one voice.

Since the Principals have earned some goodwill, TUTETENI has put co-ordination or RIOTS throughout the country on ice, but... it is not off the table, we are first waiting to see if the crucial bills will be FOR US as we voted and passed or AGAINST US[status quo]

Kwa hayo machache next time the question MTA DU is raised when your standards are trampled on, remember TUTETENI is just a Phone, Web or SMS away, you will never again stand alone pro-katiba. Wanainchi will be speaking with one voice.

TUTETENI - The Pulse of Wanainchi

Anonymous said...

Lets wait and see if kalonzo will deliver the 49 bills then we can talk about electing him for president

Anonymous said...

Lets wait and see if kalonzo will deliver the 49 bills then we can talk about electing him for president

Anonymous said...

Kenyans will have t embrace the new katiba for survival as a nation. Luos used to swear how they would not be circumcised because it is a cultural practice of their 'enemies,' but look how AIDS has convinced them otherwise.

Anonymous said...

Why is the Luo wing of ODM hunting down Ruto??

Anonymous said...

Whether Jaluos want it or not Kalonzo will be elected by he majority to be president of Kenya in 2012. Period.

Anonymous said...

If Raila, Anyang' and Orengo are men enough, let them kick Ruto out of ODM as they are threatening. Just let them do it.

Anonymous said...

So raila gave up the lgb job when he saw their is work to be done? The cooperation of all blocks of mps will be necessary to pass the needed bills. Who will cooperate with all these threats from nyongo. Ati nyongo says "spare the rod and spoil the child". This is so dark ages. Seriously i dont think we should let a luo bocome president. These people are dictators by nature. They like opposing when they are outside, but when inside they cant tolerate opposition.

Anonymous said...

Ha Ha ha - lets focus on katiba "empty debes" make .....jijazie mwenyewe

luke said...

Katiba is here to stay and without overstating the obvious Kenya has taken 1 giant step forward- for all of Africa. The illusion of mirage/oasis only takes place when we look back in the rearview mirror because we need to learn from our mistakes of the past in order to avoid taking 2 steps backward

You cannot legislate values TRUE.period.
But Kenya did not burn in '07 because of values ONLY. We can legislate every other thing that made us butcher each other such as anti-corruption laws, public servant code of conducts etc

In fact the only disappointing thing is if ODM continue to insist on "disciplining" the 2 Rutos. In my "politiking 24/7" opinion now is not the time to turn national attention and focus away from debate on implementing and operationalizing the constitution with sideshows about internal party politics

Another problem is those who voted "No" against the proposed new constitution should stop acting as if their views and concerns are totally being ignored now that the "Yes" side due time their concerns will be addressed there is no need to panic

Anonymous said... is back!!!

Anonymous said...

anon 2:25, if ruto is man enough let him FORMALLY quit ODM and join UDM, PPP, KKK, TAI-THAI, KANU PNU or whatever party he wishes to join and seek reelection. after all he together with his surrogates stopped attending ODM party meetings, campaigned for other candidates during by-elections and have been fighting the party leader at every opportunity including going against the party position at naivasha. what is still keeping them in ODM? don't think ODM is foolish enough to 'expel' those that had already expelled themselves from the party. BTW isn't ruto the RV king who can get re-elected on any party including finger of god party if he so chooses?

Anonymous said...


Ruto to resign and seek re-election on FINGER OF gOD party as its new leader, LOL.

Anonymous said...

To be honest, Ruto has proven that he can secure the RV votes - even if by using lies. He is now ready to sell the votes to the highest bidder and for this he wants him and his cronies to be allowed to be immune from any kind of prosecution for all crimes like corruption in the past and in future. They are going against all stands taken by ODM, not attending party functions, campaigning against party candidates etc while benefiting from party favours in terms of appointments. If they allowed to continue they will ODM by the balls till 2012 then dump it to the party that can assure them of continued impunity. So they are a lost cause and the earlier they are gotten rid of the better.

Anonymous said...

To the two dumb anons above,hakuna kitu kama finger of god party.The members of finger of god formed the Placenta Party of Kenya.Wacheni ushamba..!

Anonymous said...

What is the difference between FoG and PPK? Ushamba ni wewe, confused as the duo Esther HELL(on), LOL.

Anonymous said...

mshamba @ 8:13,

finger of god....placenta...whatever. ruto can have his pick. no point chest thumping eti daring odm to expel them.

Anonymous said...

Anons 9:38 and 9:52.You are the types who've made Mwarangethe sick,the guy went nuts trying to make people like you see some sense...!

Anonymous said...

mwareng'ethe is better off at jukwaa where he will meet his equals. kk is filled with RAO haters whose only preoccupation is hating on the man. not being rude, but most of them cannot understand any of mwareng'ethe's peices. KWELI AU RONGO?

Anonymous said...

So some bloggers here have become Mwarang'ethe's WORSHIPPERS? LOL!

Mwarang'ethe said...

Anonymous said...
Anons 9:38 and 9:52.You are the types who've made Mwarangethe sick,the guy went nuts trying to make people like you see some sense...!

8/13/10 10:06 AM


Mwarang'ethe is not nuts. He is just watching in amusement as a nation self - destructs itself in the name of a new constitution.

After enacting a non - starter constitution, we now see Kenyans are back to what they do best. Discuss and fight over nothing really. Why do we say so?

Anyone well versed with man's struggles with oppression for the last 5000 years is aware that, man has faced 4 GREAT RACKETS. These are:

(a) The exploitation of the fear of the unknown e.g. black magic,priests etc.

(b) The exploitation of violence.

(c) The exploitation of the monopolization of cultivable land.

(d) The exploitation of money.

During the debate for this Katiba, we insisted on two things as ESSENTIAL and all other as ACCIDENTAL. These ESSENTIALS are LAND and MONEY.

On money, we pointed out that, without a RADICAL reform of our money system, we SHALL go nowhere. We were dismissed as living in our heads, being utopians and even having hammer syndrome.

Haya, we now have a new constitution which addresses all what Kenyans think is important.

Given this, can we be told now, how we shall create industries and jobs we need when credit is going for over 15%?

We ask this because inquiring minds are reading this:

Worries as Lending Rates Remain High @

Among other stuff, we are told that, a Kenyan manufacturer wishing to borrow must pay at least 15%.

In the context that, in the OECD nations the interest rates are as low as zero, Kenya can and shall remain a captive market for foreign MANUFACTURED goods. And, it SHALL be the job of the CBK to ensure this colonialism continues.

Following from the above, we SHALL not be able to industrialise. It need not be said that, a nation that cannot industrialise cannot end poverty.

Now, considering that, we have entrenched this monster in our wonderful constitution (CBK), all we can say is this.

Kenyans shall grind their buttocks to no avail for they have "addressed" all imaginary issues while completely ignoring the most essential.

Anonymous said...

Oh! Mwarang'ethe want to say that we are better off with the old constitution than the new one.

The good old days of Money printing ordered by the 'owners' of chama ya baba na mama.

Treasury being used to fund KANU with impunity.

Kamlesh Pattni 'walking out of CBK' with a cool Ksh.160 Billion in Goldenberg scandal.

Treasury used to 'punish' communities that are not 'toing the party line' - through reduced development or none at all.

The days of run away Interest rates in the early and late 90's - remember what the interest rate was back then.

CBK being autonomous is far much better for Kenya period - better placed for implementing the monetary and fiscal policies.

The interest rates wont simply come down because good old baba Jimmy refused to accent to the finance bill that was duly passed by parliament and backdated to the 90's were banks are accused of charging Kenyans illegal interest rates. Furthermore, its a liberalised industry and there is no max or minimum cap on interest - bank customers borrow out of their own will - you either need the money or you dont.

The banks further offer 'competitive' interest rates to their customers - you only borrow if you agree with the terms and conditions.

Anonymous said...

Anon@2:03 pm. Very well said.
Might is right is very costly all round.
Can indigenous governance institutions (i.e. what was baptized by the British as tribal) be called into play in the move towards entrenching democracy?

NB: protest is good--as long as you're not looting, raping and maiming along the way like the Haki Yetu anarchists of 2008.

Anonymous said...

Mwarang'ethe said...

Kenya can and shall remain a CAPTIVE OF FOREIGN MANUFACTURED GOODS!.....Aiiiii!

It depends on which manufactured goods you are talking about.

1. Goods which we can ourselves manufacture locally but 'prefer' to import?

2. Goods which are 'imposed' on us to consume?

3. Goods which we dont manufacture at all?

Kenyan consumers are known for their 'acquired' taste for foreign manufactured goods - Is it that all our locally produced goods are sub standard or do we just have a liking for foreign goods... Kenyan Lingo...'Hii nilibuy kutoka majuu' (more prestige).

Furthermore, we all have our different tastes and preferences - Bidco (read local) outshone Kimbo (read foreign). Equity bank - has rubbled the banking industry from the underbelly (Local) - remember the days of Barclays and Stanchart etc - its a debatable subject.

Moreover the industries matter - commercial, telecommunication, banking. And again the balance of trade with the said economies

Mwarang'ethe said...

Anonymous said...
Oh! Mwarang'ethe want to say that we are better off with the old constitution than the new one.


Simply, nothing has changed. You have changed non - essential stuff, but, not the essential stuff.

The other views about liberalised economy blah blah tells us you have no idea about money and banking.

All you are telling is what everyone talks about cos that what the school, media, politicians talk about and want you to know. Good luck.

In your world, you imagine we are the first to "liberalise" the economy. We also saw Roman Empire do so.

Anonymous said...

'Prof' Mwarang'ethe...please 'enlighten' us on Money and Banking, because us far as am aware your name is not synonymous in the banking and financial industry.

You hold no meaningful position thereof and have no published literature material that we know and have read on MONEY AND BANKING! - Kenya aint the Roman Empire bwana neither do we live in the midevil ages. So dont draw comparisons with an empire that is 'miles' ahead of us.

Well furthermore, the 'Illuminati' family members e.g the Rothschild are said to control the world banking and financial industry together with the CFR, IMF, and World bank monster e.t.c - They will continue to impact the global economy but we simply have to live with our 'NON ESSENTIAL CBK' Bwana.

Emilio Mwai Kibaki has simply thrown the Interest rate Bill in the Bin Period!

Anonymous said...

'Prof' Mwarang'ethe...please 'enlighten' us on Money and Banking, because us far as am aware your name is not synonymous in the banking and financial industry.

You hold no meaningful position thereof and have no published literature material that we know and have read on MONEY AND BANKING! - Kenya aint the Roman Empire bwana neither do we live in the midevil ages. So dont draw comparisons with an empire that is 'miles' ahead of us.

Well furthermore, the 'Illuminati' family members e.g the Rothschild are said to control the world banking and financial industry together with the CFR, IMF, and World bank monster e.t.c - They will continue to impact the global economy but we simply have to live with our 'NON ESSENTIAL CBK' Bwana.

Emilio Mwai Kibaki has simply thrown the Interest rate Bill in the Bin Period!

Anonymous said...

Anon 1.52 am.... Your good old 'Prof' Mwarang'ethe has not told us the IMPACT OF THE NEW CONSTITUTION WITH BACKED UP FACTS!

Anon 1.32 am.... Please dont wait for Mwarang'ethe to answer your inflation. Because I believe he practices 'Confusion Theory' - an apprentice of Mutahi Ngunyi.

'Prof' Mwarang'ethe as you are know referred to in KK University - dont try and clog our heads with baseless and useless historical Mambo Jambo and shenanigans from the time of Rome all the way to the days of Adam and Eve.

Just give us the breakdown on the economic impact of the new constitution - Dont tell us nothing has changed and dont answer if you will begin with......In the days of the Oxen 20,000 years ago Banking was....blah blah.

Over to you 'Prof' Mwarang'ethe - we us KK University await you to enlighten us.

Anonymous said...

Ati! 'Prof' Mwarang'ethe...ha ha ha he he ... I like that.

WERE ARE YOU 'PROF'- It seems some bloggers wana ku 'hunt'. I havent seen this in a long time - the way some bloggers in KK 'worship' you.

Ebu leta theory za Methusselah hapa. Lol!

Anonymous said...

Walalala! Could this be the end of Mwarang'ethe...

I am sure that you are busy researching he he he, but ofcourse you are 'enlightened' so I guess not using media, politicians, school texts just your good old 'Medula Oblangata'.

He he cant wait for your classical response...UMEPATIKANA! I LIKE...I LIKE.

Anonymous said...

Mwarang'ethe said....In your world you imagine we are the first to "liberalise" the economy. We also saw the Roman empire do so.

Am new at this blog but 'Prof' Mwarang'ethe, you have tactifully avoided answering questions on the IMPACT OF THE NEW CONSTITUTION ON THE ECONOMY and have not addressed the reason why INTERESTS ARE HIGH IN KENYA TODAY.

I am yet to hear your name mentioned in the corridors of 'power' in the MONEY and BANKING world. I am a banker myself with the CBK MONSTER - As you call it.

Let me try and answer the question why CBK Autonomy is good for Kenya ( Prof. Mwarang'ethe can correct me). And 'Prof' you will rescue me from the darkness of my ignorance for I fear I have strayed from the anarchist line, O enlightened one.

Let me begin by quoting Thomas Jefferson.....'Paper is poverty....It is only the ghost of money and not money itself'

Prof...alluded to the Roman empire..I am assuming that it is about banking.

Banchi grossi (Great banks) of the roman empire perfected the art of money impunity and it is the people and the vatican that brought it to its knees. E.g as you are aware the bankers got round the Church's condemnation of Usury ( Interest rate on loans) by disguising loans as temporary gifts ( repayable with a voluntary thank you present). I will not dwell much on the Roman system.

The medieval European Knights Templar ran probably the best known prototype of a Central bank system. Their activities laid the basis for modern banking system. This further led to the development of the European system- Bank of Amsterdam 1609 considered to be a precursor to a central bank, then Bank of Sweden (worlds Oldest central bank) 1664, Bank of England etc.

Moving on....the rate of Interest is determined historically by the classical theory, Loanable funds or new classical theory and Keynesian or Liquidity preference theory each has its merits and demerits.

But the Modern method for determining Interest rate that we use in the Kenyan Model is Demand for capital, demand for money, savings and supply of money.

Some of the reasons for high interest rates (without CBK intervention);

1. Demand for credit is high
2:Difficulty in recovering debts is a key obstacle. Our judicial system is inept and Kenyans dont have a very high credit rating.
3. Lack of systems to track credit repayment histories of borrowers and blacklist bad debts. The model we are trying to adopt here is the S.Africa, Namibia and Botswana models
4. Difficulty in asset recovery - risk simply passed on to borrowers
5. Informal businesses, which need credit to grow are too risky for banks to finance.
6. Deposits also tend to be short term in the Kenyan Market
7. Macro-economic concerns
8. Low deposit base lending
9. Economies that use 'Fiat Money' - which dont have any Intrinsic value and are subject to the worst of all taxes - INFLATION.

I will stop there for now.

CBK 'MONSTER' said...

I forgot to address the Issue of Central Bank of Kenya autonomy a.k.a Monster as per 'Prof' Mwarang'ethe.

The Banking system reforms is long overdue and should begin with the CBK. I will start by quoting the Economist, Feb 10, 1990, p. 10... THE ONLY GOOD CENTRAL BANK IS ONE THAT CAN SAY NO TO POLITICIANS.

By calculating indexes of central Bank autonomy for 163 central banks as end of 2003 and comparable indexes of a subgroup of 68 central banks as of the end of the 1980s - One will note that the results confirm strong improvements in both economic and political central bank autonomy over the past couple of decades. It confirms greater central bank autonomy has on average helped to maintain low inflation levels.

Their will also be significant benefits for macroeconomic performance like;

1. Achieve lower average inflation
2. Cushion the impact of political cycles on economic cycles
3. Enhance financial system stability
4. Boost fiscal discipline without any real additional costs or sacrifices in terms of output volatility or reduced economic growth

Of particular note to you 'Prof' Mwarang'ethe is that the Key features of Central Bank autonomy are as follows;

Few governments, even in developing countries have automatic access to the Central bank credit; when this type of credit is available, the interest rate charged by the Central bank is often close to the market rates but practices differ even in developing countries.

The world is becoming a global village and Kenya is no exception we need to reform even though we are still taking 'baby steps' but we are on the right track.

Historical trends suggest a possible sequencing of reforms to enhance Central Bank autonomy, which associates the two sub - components of Central Bank Autonomy ( i.e economic and political ) with structural changes in the economy and financial system.

The process of improvement in CBA generally starts with establishing the political foundations of an autonomous central bank; this is followed by steps to strengthen operational autonomy; and the process ends in the political autonomy area in terms of increased autonomy for policy formulation and appointment of senior management.

Autonomy of CBK has been speeded up by the following determinants: equilibrium level of unemployment, government debt, political instability, suspension of financial institutions, financial opposition to inflation and finally public opposition to inflation.

The necessity for public intervention in the economy has traditionally been justified by the need to correct market 'imperfections' and unfair distribution of resources.


Anonymous said...

CBK Monster! He he ha ha! I simply like your article... I am glad because reading 'Prof' Mwarang'ethes articles - all i see is history- we should learn from history but not live in history.

But I have learnt alot from you CBK Monster!

We are still waiting for you 'Prof' Mwarang'ethe, he he he.... Hope that the 'Monster' hasn't scared you away.

I would like to see you debate with him/her on issues relating to Money and Banking!

The 'Beef' is on..... Manze 'Prof' usipo reply comments za huyu 'Monster' utakuwa una let KK Down... Vile tunakutambua!

kevoh said...

on the issue of money and land you have to know two things before we argue.. Land is for all of us and who ever owns it or rents it should pay taxes on the land they own/rent and this aint happening. Money is printed without being backed up by Gold etc and thats why inflation and depression could be any day CBK decides from now on and thats not funny.

The said...

CBK monster,

Using a new formula to calculate the rate of inflation does not change the fact that an egg today costs more than it did one and two years ago. That's real inflation sir.

Similarly the laws of nature cannot be usurped by the laws of man. Usury is against natural law for it seeks to gain from where it has not sown. The original source of wealth is the earth (soil) and the sun. Surprisingly the natural elements of the earth do not levy any interest on what it produces. It thus follows that man shouldn't charge interest on something (read money) that doesn't generate wealth. Man in his ingenuity together with the resources of the earth is indeed the true source of wealth.

As you have repeatedly stated in your two posts the autonomy of CBK is vital to the kenyan economy. From who is the CBK autonomous? And for what reason is this necessary? Who will CBK be answerable to if not the people of Kenya?

With over 70 per cent of the Kenyan population engaged in wealth generation in the informal sector and a CBK completely autonomous from them doesn't it stand to reason that the role of the CBK in wealth generation of negligible.

Thus it stands to reason that decentralisation and de-politicisation of money and banking in the Kenyan economy is of much more importance than an autonomous CBK.

Bwana CBK Monster I'll come back with more tomorrow.

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