The first time President mwai Kibaki talked about the free fall of the shilling was at the opening bell of the NSE when Brish American commenced trading on the NSE about two weeks ago. The IPo was undersubscribed, and one reason for that, stock-brokers say is a shilling that won't hold stready as well as Inflation which has robbed Kenyans of disposable income, and the stock exchange is the last of their priorities. The president talked about a dollar demand that was insatiable, and called on the IMF to quicken the process of the Extended credit facility that Kenya had signed up for earlier this year. let me break that down: The Extended Credit Facility (ECF) is an IMF facility which provides financial assistance to low income countries with protraced balance of payments. This means that the import- export balance is off tangent, and it usually results in a weak local currency among other economic challenges. So when Kibaki asked for the a hastening of the ECF, he was basica...
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