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{
    "id": 1354275,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1354275/?format=api",
    "text_counter": 101,
    "type": "speech",
    "speaker_name": "Kiharu, UDA",
    "speaker_title": "Hon. Ndindi Nyoro",
    "speaker": null,
    "content": "The second thing is the regime of the Central Bank of Kenya (CBK). It has three critical areas that it needs to do other than the regulation of the financial institutions. Its critical role is to set prices. There are three categories of prices: prices of commodities which we call inflation, the price of money which we use interest rates and the price of the domestic currency which is forex or exchange rate. The regime of the CBK affects the domestic currency or the direction it takes. It is known that Kenya has a floating exchange rate regime where it is a matter of demand and supply. There are two categories within it: the managed exchange rate regime which is floating and independent. For the last six years, Kenya adopted a managed floating regime. We could offload our dollars when our shilling was weakening so we were able to manage our local currency artificially. The current regime is independent so that the shilling gets its true value in relation to other global currencies. Some Members will ask why the Kenyan Shilling is losing against the Ugandan Shilling or the Tanzanian Shilling. If you check the economic data of the Ugandan Shilling versus the Kenyan Shilling and the Tanzanian Shilling versus the Kenyan Shilling, you realise we are at the same level we were during the late former President Kibaki's time around 2010. Why? When the Shilling finds its true value, it is able to relate with other currencies independently. That is the main reason that we have seen some devaluation in the Kenyan Shilling as it finds its ground in an independent floating regime. With those many words, I thank all the Members of this House. The Budget and Appropriations Committee always benefits greatly by listening to all of them. The majority of them come to my office and give me a lot of guidance and counsel. Therefore, the work that we do, including the one for the Supplementary Budget, is the collective wisdom of this House. I thank Members of the Budget and Appropriations Committee, leadership of the House led by our Clerk and leadership of the Parliamentary Budget Office (PBO), especially Director Masinde. There are very important people who have been by my side all through and they are here: Dr Abel, Ms Julie and Mr Dan. I went to Kenyatta University. By coincidence, almost all these economists went to Kenyatta University, including Deputy Leader of the Majority Party of this House and the Chairman of the Departmental Committee on Communication, Information and Innovation. Those who did not get an opportunity to go to Kenyatta University can still do a post-graduate course in that institution."
}