Analysis of the Kenya Shilling's rapid decline. Part 1 (21st Sept.)

A new record low has been set again by the Kenyan Shilling, raising questions about when and if the downward slide of the local currency against major global currencies will stop.

In some instances today, the Shilling traded below the 97 shillings mark to the US Dollar.

http://www.ntv.co.ke
In this first part of an analysis on the Shilling's rapid depreciation over the past few months, Alex Mwangi now tracks the real reason of its decline against the world's major currencies.

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[connoisseurnic]

That's what happens when your government are so corrupt.

[Savai333]

The depreciation of the Kenyan Shilling is simply and squarely caused by the ICC-case, lack of confidence in the country triggering capital flight and the high probability of oversupply of the Kenyan Shilling, which in turn has a lower velocity due to lower salaries in the lower echelons of the citizenry. The Kenyan banks seem to be storing a lot of Kenyan Shillings, whose source must be investigated. But who should investigate?