Prices of basic commodities are increasing by day with sugar retailing at Ksh200 per kilo, cooking flour at Ksh 160 and milk at Ksh 140.This trend is expected to be constant up until September 2017,something that should get Kenyans worried. But do you know the reason why we are experiencing this? Here is why.
For the past 5 years, politicians have stolen, looted,earned and embezzled money meant for development. Most of these politicians have resorted to using their loot to campaign. In the process, the money in circulation has increased to alarming levels. From economics point of view, when money in circulation increases, inflation shoots—and it persists until the Central Bank takes action.
Inflation is persistent increase of food prices, it occurs the same way it happened in Zimbabwe where money in circulation become too much, forcing the country’s currency to be rendered useless. In Kenya, we are almost experiencing the same scenario but this one is temporary…it will end as soon as elections are over.
Away from the loot, we understand that politicians own most of the companies in the country.These same politicians are hoarding the commodities to force food prices to shoot. In the process, they will hike prices so as to get money for campaigns. If you doubt this, ask yourself: who owns milk companies, who owns sugar companies, who owns maize flour processing companies, who owns——