Low money supply is straining the economy

Ken Gichinga is Chief Economist at Mentoria Economics.

The balance of evidence paints the picture of a Kenyan economy that is straining under low levels of money supply. Indeed, many established corporates are citing a “tough operating environment” as the key contributor to their poor earnings.

The latest reports from the capital markets tell the story of a bloodbath at the bourse as the share price of 17 Nairobi Securities Exchange listed firms have fallen below Sh5 per unit and 5 of the stocks are trading below one shilling!