Inflation storms gathering for the CBK

Economic policy is unforgiving and continues to chalk merciless lessons for Kenya’s new administration on both sides of the policy aisle – fiscal and monetary.

Insatiable borrowing and deficit-ridden spending plans have prompted the World Bank to caution repeatedly in its Kenya Economic Updates that the consequences of fiscal dominance – neglect of private sector potential to grow the economy – equals inappropriate and prolonged crowding out of the private sector in the local debt market, despite growth potential.