Vybz Kita Bloggs

  Introduction Demonetization according to Clear tax refers to an act of stripping legal tender status of currency units. It happens whenever there is a change of any national currency. It involves the withdrawal of the current form or forms of money from being circulated usually replaced with new notes or coins. According to Investopedia demonetization is done to stabilize the currency and fight inflation, to facilitate trade and access market, to push informal economic activity into more transparent and away from black markets. Countries that have done demonetization include: USA, India, Ghana, Nigeria, Myanmar, Russia, Congo, Australia, European Union, North Korea, Zimbabwe and Venezuela. On 31st  May 2019, Kenya effected a major economic change by demonetizing the old Ksh.1000 bank note through Central Bank. As one of the objective of Central Bank is to maintain stable economy while at the same time mopping out illicit cash in circulation. Countries that have done demoneti...

  James Gichuru, Kenya's First Finance Minister from 1963-1969 James Gichuru, Kenya's first celebrated Finance Minister was a funny man. He served from 1963 to 1969 as Finance Minister.  He served under Mzee Jomo Kenyatta regime at the time when Kenya was setting foundation for its economic take off after the independence. He was among the ministers that Kenyatta feared and couldn't fire. Gichuru used to run Finance Ministry casually and even made his budgets in a bar. Duncan Ndegwa, Former CBK governor in his 2006 bio, Walking in Kenyatta Struggles: My Story, that Gichuru's drinking problem was such that government documents would be found under the tables at Karai Bar. In fact he had delegated most of his office work to secretaries.  On 14 September, 1966 Gichuru missed the official opening of the Central Bank of Kenya officiated by the head of state then Mzee Jomo Kenyatta due to drinking problem. Kenya's First President, Mzee Jomo Kenyatta opening Central Bank O...

         Treasury is one of the critical organs in any government. Besides being responsible for managing governments finances, it also formulate ways of collecting revenue and invest in short term surpluses and arrange lenders to cover short-term cash shortages. This blog aims at looking at successes of various Finance Ministers who were mandated to run this critical sector.  1.James Gichuru 1963-1969 He was Kenya's first Finance Minister under Mzee Jomo Kenyatta's government. He undertook expansionary fiscal and monetary policy.  James Gichuru. 2. Mwai Kibaki(1969-1981) He was the second Kenya's Finance Minister. He served during both the time of Mzee Jomo Kenyatta and Daniel Moi. He was the longest serving Finance Minister. As president our economy grew significantly and there was little foreign aid. He moved Income Finance Bill 1973 where couples married at the commencement of the year earned a tax relief Mwai Kibaki. 3.Arthur Magugu(1981-1988) He ...

 Most companies around the world are struggling to survive due to post-covid effects.  This has led to job loss among many workers. The worst hit are low-skilled and young inexperienced workers. Some sectors will shrink permanently while others will re-adjust and expand. A research done by World Economic Outlook in April this shows that job retention support can more likely reduce the rise in income inequality the first few months after crisis. With the help of labor to shift to new jobs, the research showed that the combined , well sequenced policy package can more likely dampen the increase in income inequality over the medium-term as captured by Gini-index(a common measure of inequality)than if each type was used. Partial unemployment benefits is among some job retention support and other subsidies to maintain worker' links to their employers should be in place when the pandemic is acute and other measures like lockdown are in place. In emerging markets like Kenya and other...