Mr. Micah Cheserem on what he found when he walked into the CBK in 1993.
➠ Falling shilling
➠ No FX reserves
➠ Demoralized staff
➠ IMF and donors had cut funding
➠ Goldenberg: KSh 5.8Bn Scandal
➠ 1992 elections money fueling inflation
➠ Inflation at 100%
Key first actions:
▸ Exchange controls abolished
▸ Goldenberg treasury bills personally cancelled
▸ Grand Regency seized as part of recovery
▸ KSh 1.2 billion overnight interbank lending absorbed
▸ Liquidity mop-up: interest rates raised, t-bills sold
▸ Inflation brought down to 9%
▸ Shilling strengthened dramatically
▸ 600+ exchange control clerks retired
CBK released an interview with former CBK Governor Micah Cheserem.
Some of the Key points to note:
— He says banks “wanted to kill” M-Pesa
— He says he ordered burning of thousands of exchange-control documents (about 47 truckloads)
I've been trying to tell people for years.
- Kenya was the "safe" place in Africa for the rich children of the world to come and work and play.. back during colonial days.
- Once colonialism was over.. that didn't change, if anything it increased. More so with the continued portrayal of Kenya via Hollywood movies and series.
- When people think of "traveling to Africa" they first think of Kenya, not Tanzania or South Africa. Again.. thanks to Hollywood.
- Kenya has always been aligned with the centers of Money in the world, i.e. New York and London.
- Kenya is still the "real Africa" unlike South Africa, with more of the practical problems the rest of the continent faces.. while also having enough of the amenities that South Africa offers.
- It's always been stable, with a stable business environment, with strong judicial oversight of business structures.
All of these things make it the go to spot in Africa for any Ivy League grad with a bright idea.
It's also a badge of honor on any Western CV to have done time in Kenya. South Africa and other places.. less so.
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Never expect Western githeri media outlets to highlight the tangible progress your country is making. Bloomberg is trying to find problems without realizing the efforts President Ruto has made in Kenya. These affordable housing projects aren’t just about infrastructure but are transforming lives, you’ll find schools in them, playgrounds for children, and much more. Long gone are the days when children had to walk miles to school when they can now be hosted in one safe space for everything. We’ve only had 63 years of self-rule as a sovereign nation; we are not in competition with those older than 250+ years.
As President, I would read 10 letters a day sent to me by ordinary Americans. At the Obama Presidential Center, we’ll have some of the letters I read — and responded to — every night. I still get emotional reading them, and it’s one of my favorite exhibits.