Judging by what has happened in the past few days, one can only conclude that an appropriate macroeconomic policy mix — of easier monetary policy (low real interest rates on average) and tighter fiscal stance (austerity) — is now taking shape in Kenya.
Unfortunately, the tightened Sh2.97 trillion Supplementary Budget Estimates are only coming after we have screamed ourselves hoarse on monetary policy (interest rates – the cap, reserves), and fiscal policy (fiscal deficit, borrowing, spending, VAT and the navel-gazing at an umpire called IMF).
