Friday, November 25, 2011

IMPORTATION OF FOOD A MAJOR FACTOR IN WEAKENING SHILLING

As much as the CBK is blamed for not doing enough in stabilizing the shilling,there are so many factors that have contributed to its weakening.Excessive importation of food commodities is surely one of the factors.The need to import food is directly related to the displacement of farmers in Rift Valley during the 2008 PEV.The farmers who sustained the country food basket were reduced to paupers overnight.Since then,the nation's strategic food reserve has never recovered.It was only a matter of time for this to be reflected in the country.It is possible that the breaking point of this recurrent deficit was attained this year.This could be a factor that has put pressure on shilling due to importation of what could be otherwise be locally produced in Kenya.
James Mwangi Kanyi,Nairobi.

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