- Add new comment
- 717 views
Central Bank of Kenya (CBK) has been accused of manipulating the shilling and overvaluing it by up to 30 percent.
The claims have been made by Amana Capital in its latest report dubbed ‘Kenya’s Economic Puzzle - Putting the pieces together’, which suggests that CBK has not been operating a free float currency.
“…the value Ksh.100 could buy in January 2009 can only buy 50 percent of that now,” says Amana Capital.
On Wednesday morning, the shilling was trading at 101.05/101.25 against the dollar, compared with 100.95/101.05 at the close of Tuesday.
Reuters reports that the Kenya shilling has weakened due to increased dollar demand from oil importers.
However, the Amana Capital report indicates that the Kenya shilling should actually be trading at around 131 against the dollar.
The firm says that devaluation of purchasing power is at 50 percent, which means that the figures released by CBK do not represent the actual circumstances of the economy.
The report warns that Kenya risks forcing exporters to pursue other alternatives since Kenyan products may become too costly for them in the short run.
The move would lead to a decrease in export earnings thus slowing down the economy significantly.
Last year, CBK Governor Patrick Njoroge dismissed a report by the International Monetary Fund (IMF) claiming that the shilling was overvalued by 17.5 percent.
Instead, Njoroge accused the IMF of miscalculation and using the Kenya currency as an ‘experimentation tool.’
Amana Capital’s Chief Investment Officer Reginald Kadzuty says that their report studied six factors contributing to the performance of the economy.
These are debt, the balance of trade, employment, fiscal policy, currency and interest rates.
The report also notes that Kenya's 5.2 trillion public debt has turned from being productive to unproductive, meaning that Kenyans risk being taxed more.
“In 2018, for every Ksh.100 of tax collected, Ksh.25 went to paying interest on the debt and as at June 2018, for every Ksh.100 in revenue, Ksh.34 was used to service the total debt obligations,” the study says.
Comments
Who is "Amana capital"? Just like the IBEAC (Imperial British East Africa Company), it is a private company attempting to dictate the value of a country's currency .
Amana Capital is part of a group of companies (private) specializing in providing brokerage services across a number of different countries. The question is: Since when? What is the history of this company?
Amana Financial services UK, according to Forbes does not have any key executives recorded and no transactions recorded in the past twelve months.
Amana Capital Lebanon, is regulated by Lebanese capital markets authority (CMA) as a financial intermediary institution.
Amana Capital Ltd is a licenced Cyprus investment firm, regulated by Cyprus securities and exchange commission. (Lic# 155/11)
"Amana Bank will be first full-fledged Islamic commercial bank in sri-lanka as of October 16,2009)
Kenyan's, it's time for research and more research. Stop dealing with shadow corporations that are created to take wealth unfairly from the so called "black man".
Let us research every corporation, it may have just changed its name but is one of those who enslaved our forefathers and is ready to enslave this new generation.
This reminds me of ICC (International Criminal Court) whose cases were all geared towards Africans.
IBEAC paved the way for our colonization by the British;forerunner of the East African Protectorate, later Kenya.
Is Amana Capital paving the way for our re-colonization?
A newly formed company ready to dictate what happens to a nation's resources. Time to wake up!
Just a thought
"Unscathed by the economic challenges resulting from the global financial crisis, Amana Capital was successfully established in 2010"
Amana Financial Services UK Ltd is authorized and regulated by the Financial Conduct Authority (FCA).
Amana Financial Services UK Ltd obtained its license from FCA on the 1st of April 2014. Firm reference # 605070
Amana Financial Services Ltd is regulated by Dubai Financial Services Authority (DFSA)- Registration number F003269
Amana Capital SAL is regulated by Lebanese capital markets authority (CMA)- Authorization number 26
ADS Global limited is a financial firm regulated & authorized by Labuan Financial Services Authority (LFSA) Registration number MB/18/0025
ACG International Ltd is regulated and authorized by the Financial Services commission Mauritius (FSC) registration number C118023192
All newly formed, make up Amana Capital.
These companies are just "Noise Makers" and should not be taken seriously.
According to this newly formed company (2014) every Kenyan should loose 30 cents for every shilling they are holding---What a crafty joke! How many millions of shillings is that?
The truth is beginning to seep out. Every Kenyan knows how much a packet of unga costs us today compared to 2009. Many employers are laying off their worker, stock exchange has one earning warming after another. The only thing supporting the shilling is remittances but thet will be nothing when the debt repayments fall due which is starting. It is painful today but we will really feel it by the end of this year.
Fear economics, name one company laying off workers, and I'll name two employing. All companies not making it at NSE have a common theme: bad management, corruption, and a don't care attitude. Name one that has good management that's in the red. The good remittance is a signal on the strength of the Kenyan economy.
you sound like one of the bloggers paid by sh. 500 by jubilee. I did some research for you.
Standard Chartered Bank has sent home 300 employees, Equity Bank 400, Sidian Bank 108, Family Bank, First Community and NIC 32.
@Jamama I am watching this space as @Imkgoogo comes up with 12 companies hiring.
I thought inflation was /has been very low. Comparing two currency is tricky. May be as the weakening of the Kenya shilling has been compensated by the weakening of the IS dollar
Here is what I think the trick is. They want the shilling to weaken so that it becomes harder to make payments. This will force the government to even borrow more money from them so as to strengthen the shilling and make other payments and this will lead to mzungu making more money because it will keep us in debt since we will be renegotiating the loan forever. We better not fall into that trap.
@jamama can u tell kenyans how many jobs were lost when boeing/Ford/chrysler closed shop in usa few years back n majority of those pple went sick/depression n lost homes coz they couldn't pay mortgages so every country jobs r lost every day so it's not new in kenya that the same is happening.Always have a plan b. even if ur earning a million a month coz shit can happen anytime.
Thank you mkenya halisi
Who is "Amana capital"? Just like the IBEAC (Imperial British East Africa Company), it is a private company attempting to dictate the value of a country's currency .
Amana Capital is part of a group of companies (private) specializing in providing brokerage services across a number of different countries. The question is: Since when? What is the history of this company?
Amana Financial services UK, according to Forbes does not have any key executives recorded and no transactions recorded in the past twelve months.
Amana Capital Lebanon, is regulated by Lebanese capital markets authority (CMA) as a financial intermediary institution.
Amana Capital Ltd is a licenced Cyprus investment firm, regulated by Cyprus securities and exchange commission. (Lic# 155/11)
"Amana Bank will be first full-fledged Islamic commercial bank in sri-lanka as of October 16,2009)
Kenyan's, it's time for research and more research. Stop dealing with shadow corporations that are created to take wealth unfairly from the so called "black man".
Let us research every corporation, it may have just changed its name but is one of those who enslaved our forefathers and is ready to enslave this new generation.
This reminds me of ICC (International Criminal Court) whose cases were all geared towards Africans.
IBEAC paved the way for our colonization by the British
Is Amana Capital paving the way for our re-colonization?
A newly formed company ready to dictate what happens to a nation's resources. Time to wake up!
Just a thought