Jonathan, And Nigeria’s Ringim Bell Of Shame

0

By Prince Charles Dickson

When you see a snake, you kill it first and set up a committee, you do not set up a committee first to kill the snake…

 

The very few paragraphs  that I will write , I have done with deep grief and plenty emotions, I cannot say that I am in the best state of mind, if one thought that the Xmas day Blasts were bad, it gets only worse by the next attack and sadly a case of who knows where next.

 

Like, the UN suicide bomb, the Independence Day bomb before it, the Mogadishu barracks, and all the Yobe, Maidugiri, Niger and Jos bombs many have been blown away. Wives, husbands, brothers, sisters, children, loved ones and friends all lost, even those one may have hated, I doubt any sane person would wish an enemy such death.

 

Lives cut short in their prime, killed for no faults of theirs and reasons they never would comprehend. No ode, condolences can bring back all the dead in Kano, no songs, and certainly not a government that blatantly would lie about figures of the dead or a government that does not know the difference between 7 and over 100.

 

We have gradually and steadily become a nation like many others ‘ruled’ by strife and shame because what we have now certainly does not pass for governance.

 

The government that promised security and was mandated by the constitution to ensure that all are protected despite creed, faith and location has failed woefully at each time of asking.  If that was not bad enough, we are saddled with a group that have lost a consciousness of shame.

 

Such that it is common to hear such shallow defence that, it started before them, its one group against the other, governors, and traditional leaders should do this and that, while innocent citizens die. Painfully the sad reality is that terms such as embarrassment, dishonour, disgrace, inadequacy, humiliation, and chagrin have become alien.

 

I never met with Jonathan and doubt I want to meet him, never met Inspector General Hafiz Ringim, do not want to meet him either, but these men represent what is wrong with this nation, a lack of shame.

 

A nation that sets up panels of inquiry to issues that already have answers, issues that we know the solution. They set up committees looking for roads were rocks are idling away.

 

We do not need to meet leadership to meet shame, and the actions of those in authority in recent times nay all the time have brought us face to face with derisive public shame and opprobrium.

 

The kind of shame that makes us depend on a voodoo chief for security when trillions in taxpayers’ fund go into security. The type of shame that sees a government helplessly and in alarming manner accede to the fact that Boko Haram is now everywhere you go.

 

Now we live in shame that rings in the ear with fear, one that sees David Mark beg Boko Haram, while CAN president says protect yourselves and Southerners say to Northerners leave our place and vice versa.

 

It is no shame that no single top security personnel from the police, SSS, DMI, and the entire ‘S’ we have has resigned. Certainly not, who will resign with the billions of naira around to play with while citizenry are killed by all manner of insecurity.

 

No head has bowed in shame, no head held accountable. In Borno residents refer to bombs as knockouts, a regular phenomenon, in Yobe the mass exodus continues, in Bayelsa, we got a sampling that the dynamites are still ready for use, while kidnap, robbery continues elsewhere.

 

Eyewitness accounts of the Kano blasts call it a real live movie better imagined than experienced.

 

We are watching the bells of shame ring dangerously and cart away what is left of our innocence staining generations with a vicious circle of retribution, while leadership hide in a false safety net.

 

While the government shamelessly pursued imaginary ghosts in Lagos, tear-gas men old enough to be their grandfathers, BH taught them who the real enemy is, displaying crude co-ordination leaving tears, pain and sorrow in its wake.  And shamelessly we are still hearing the word palliatives, I dare ask, palliatives for whom?

 

Is it Subsidy for the over six scores dead, or the subsidized government figures, or a man I simply call Mr. X, he could have lived if he had fuel to buy at N65, but he spent hours in the fuel station before he could buy, and at over a hundred and he ran into the ‘movie’. He never made it out alive.

 

By the time this was coming off the press, many 24 hours have passed and all that shakara oloje of “I give you 24hours to bla bla bla…” has shamelessly passed the IGs head is still Ringim, his legs ringing without even as much as an apology to a nation hurting.

 

It’s no news that over 48 hours just like the Madalla episode, no strong worded speech, and safe for a carefree, one sided, misinformed press release by the president’s spokesman. How do we know these guys understand the import of their inaction except Boko Haram start to visit them personally?

 

The words of empathy so drab from the once upon a man without shoes, no shoulder for nation to lean on and cry instead we are beseeched with subsidy and maladministration.

 

 

“I know how to pound and I know how to marsh” is what causes pounded yam made with wateryam to be lumpy. Knowing it all can be disastrous. This house must not collapse. Jonathan needs help.

 

I conclude by say that we do not have a Northern problem, it is not a southern issue, it is not just about a citizens docility or leadership folly. It is more, more of a case of playing with shame, like the snake time will tell.

BE MY GUEST MOVIE CONTENT & POSTER ARTWORK 1

BE MY GUEST is a riveting drama filled with suspense, intrigue, lies

and passion. It brings Chris Attoh and Nadia Buari, two of Ghana’s
favourite A-listers, together in a movie for the first time, and is
the screen debut for Omotu Bissong, former Nigeria’s Most Beautiful.

Written by the screenwriter of the popularly and critically acclaimed
award-winning hit TV series, Things We Do For Love, Eddie Seddoh Jnr,
and directed by Selassie Tetteh, co-writer of Checkmate, BE MY GUEST
will keep viewers spell-bound from beginning to end.

Also appearing are Timothy Bentum, Fred Amugi, Zapp Mallet, Louis
McCarthy and David Bangura, and features Eddy Blay Jnr. and Ben Brako,
two of Ghana’s showbiz icons making their first screen appearances.

The movie is set to premiere on Friday, February 10th at the National Theatre.

BE MY GUEST is a Wide Angle Entertainment production.

For updates visit www.bemyguestmovie.com or follow on twitter
@BeMyGuestMovie and facebook page/bemyguestmovie

BATURE’s Al-HAJJ CALLS FOR WAR

… As It Wades Into Useless & Vain Defence of Korle-Bu CEO

Prosper Agbenyega

Alhaji Bature Iddrisu
Alhaji Bature Iddrisu

The Al-Hajj Newspaper being edited by Alhaji Bature Iddrisu has been apt but, too late in wading a senseless war against the media houses that have taken it upon themselves to expose the rots and the illegalities that the so called ‘four-member cartel’ is involved in just to ruin the nation’s premiers hospital, for which the likes of Al-Hajj have failed to do all this while even though they are aware.

It beats ones imagination to see how a Newspaper organisation like the Al-Hajjs is bent on defending the defenceless even at the peril of the lives of innocent citizens including patients at the Korle-bu Teaching Hospital.

The Al-Hajj in its Thursday January 19, 2012 edition under the headline “Unrelenting Conspiracy against Korle-Bu EXPOSED (1)-Media Conspiracy Cited,” written by one of its reporters, Rowland Phillips-Addo, claimed that a conspiracy was hatched by some media organisations together with some members of the Korle-Bu Board to destroy the Chief Executive Officer (CEO) and the Board Chairman, Professors Otu Nartey and Andrews Seth Aryeetey respectively. The newspaper also wrote that the orchestrated plan had “backfired.” Interesting!

The Ghanaian Trust is stating unequivocally that it is one of the few media organisations that have taken the pain to the conduct investigations into the activities of the hospital, and indeed, it turns out that the hospital is wallowing in series of mess.

If the Al-Hajjs and their Rowlands will close their eyes to these happenings to see the nation’s flagship hospital destroyed and many lives lost, The Ghanaian Trust and other media which think alike will stay put and continue to fight a good fight until there is total transformation of the hospital. Alhaji Bature’s boys can continue licking their boots for all we care, the battle still continues.

However, the Al-Hajj is also claiming that “Accusations of poor financial performance, importation of goods under aegis of Korle-Bu hospital for private purposes, poor procurement processes, payment of excess allowances, attacks on media personnel have been debunked as untrue by hospital authorities and of course documentary evidence which journalists failed to cross check with the hospital before going to town with their news items. Furthermore accusations of arbitrary dismissal on the part of management and engaging of retired professional has also been explained beyond reasonable doubt.”

Interestingly, the Al-Hajj Newspaper has failed to state the various explanations given by the hospital authorities to the many issues raised in the media.

But if Al-Hajj can be sincere to itself and the people of Ghana, it should publish answers to; The rot exposed by the internal audit report, the payment of Top Ups to Prof. Afua Hesse and Prof. Seth Aryeetey, whether these two professors are employees of Korle-Bu, the misuse of the Global Fund Toyota Hilux car with registration number GE 8982 Y given to the Fevers Unit, Felicity Commey’s actions with impunity, the recovered diaries, whether Prof. Aryeetey is a management staff of the hospital, the useless retreat at Ho in the Volta Region where millions of Ghana Cedis was spent, the Audit Report indicting the CEO and Felicity Commey, the over $61,000 inflation on prices of Analyzer Reagents by Felicity Commey, among others.

Indeed if the likes of The Al-Hajj have done their homework well enough, they would have known the truth even better than some of us. Surprisingly, the Al-Hajj and its Boss Bature have shirked their ethical values and stooped as low as a pauper licking the boots of the very people who want to destroy the country’s number one health service provider, allowing these same people to feed the m with lies to fight back at the media.

Anyway, who told the Al-Hajj Newspaper that, the Korle-Bu teaching hospital is enjoying a comparative industrial harmony? This is serious. After the Board Chairman has rendered even the Board he is presiding over useless, destabilizing the core fabric of the hospital set up and turning staff against each other; is this peace?

The Al-Hajj Newspaper needs to do more work, probably investigate the more. If indeed they want proof, they can call on us. There are lots of issues about the people they are trying to protect and defend, that are backed by facts, documents and figures. It is however surprising that till today, the so-called journalists at Al-Hajj newspaper who always stand by their journalistic ethics, has not been following the media publications so far.

But for a question posed by Al-Hajj so far, “Why shouldn’t the media leave personalities in Korle-Bu alone…,” the media will, but not until the hospital is clean, not until the likes of Alhaji Bature and his Al-Hajj see the truth.

Anyway, he can lead his pay masters to engage the said media on a different platform rather than this useless war they sought to engage the media in, because that will not help them a bit.

[email protected]

Korle-Bu Board Chairman Exposed!

0

Dropped Hijacked HIV/Aids Car

  • · Now Focuses On TB Unit Vehicle

Prosper Agbenyega

The Board Chairman of Korle-Bu Teaching Hospital, Prof. Rev. Seth Andrew Aryeetey who had been caught at the centre of controversies surrounding the misuse of a Green Toyota Hilux with registration number GE 8982 Y given to the Fevers Unit by the Global Fund for HIV work, has decided to abandon the use of the said car as result of the media publications exposing his nefarious activities at the hospital.

Indeed the media publications have really given him tough time as according our sources, he (Prof. Aryeetey) has directed the hospital driver, Richard, who used to drive him in the said car, never to come and pick him anymore.

However, checks conducted at the premier hospital have revealed that, even though the Board Chairman has decided to stop using the HIV car, he has not aborted his ‘cruelty’ toward the suffering patients at the hospital.

It is however revealed that, he has thus diverted all his attention to the Tuberculosis (TB) Unit car. The Ghanaian Trust investigations have led to interesting situations in that the Board Chairman is has now decided to be using a TB Unit car, a Toyota Land Cruiser, ash in colour with registration number AV 1741 X for his rounds.

Our checks are that, the TB Car in question was the car he used for the trip to the Volta Region on Wednesday January 11, 2012, where they held the so-called retreat. Investigations have led to the revelation that Prof. Aryeetey, who could have used the HIV car, was unable to do so as result of the publications but rather used the TB vehicle.

It could be recalled that The Ghanaian Trust Newspaper has carried a story in its 45th edition about the attempts by Prof. Aryeetey to cripple the hospital by messing up with its resources. A Log Book in the possession of The Ghanaian Trust detailing journeys made by the Board Chairman with this vehicle, indicting him has it that he only uses the HIV car as a transport to and from work.

In that publication, we brought to our readers how the Board Chairman Rev. Prof. Seth Aryeetey has been using the hospital car for his personal rounds against the Transport Policy of the Ministry of Health.

The Policy, which states on its page 9 (2.2.8.2) that; “Station Wagons shall be used for long distance journeys only,” and on its page 10 (2.2.8.8) that “Vehicles shall not be used to transport staff to and from work. In exceptional cases such as long working hours, heads of institutions shall authorize the use of official vehicles,” is being flouted with impunity.

The car, a Green Toyota Hilux with registration number GE 8982 Y was initially given to the Fevers Unit at Korle-Bu by the Global Fund and was to be used for HIV work, for visiting patients and conveying drugs. According to investigation, the car is no longer being used for that purpose but rather use in conveying Prof. Aryeetey from his house at East Legon to his office at the Medical School and back, in strict contravention of the MOH Policy.

This development according to sources has made it very difficult for the Fevers Unit to intensify their monitoring services on HIV patients and as well deliver drugs on time. It is also interesting to note that as and when the Fevers Unit needs the vehicle for their official assignments, Prof. Aryeetey prevents them from using it because he would be using it for his personal assignments.

Now the TB Unit is also being stressed because the limited resources are being abused by no other person but the Board Chairman.

Meanwhile, checks conducted have revealed that Prof. Aryeetey is being given fuel coupons in his capacity as the Board Chairman of the hospital, but he continues to gallons of Diesel for the car.

[email protected]

SAKUMO WULOMO RUBBISHES NDC CHAIRMAN FOR INSULTING ACCRA MAYOR

0

“Shut Up and Allow Accra to Develop”

Prosper Agbenyega

The High Priest of the people of Ga, Sakumo Wulomo, and President of the Ga Traditional Council Nuumo Ogbamey III has warned the Chairman of the National Democratic Congress (NDC), Mr Yaw Boateng Djan to desist from interfering in the work and developmental agenda being perused by the Chief Executive Officer of the Accra Metropolitan Assembly (AMA) Alfred Oko Vanderpuye, and called on him to offer an apology to the Accra Mayor.

His outburst came at the heels of recent publication in The Publisher Newspaper, citing the NDC Chairman for calling the AMA Mayor names and asking him (Mayor) to “get away with is moustache” when news came that the AMA had carried out another demolishing exercise at Circle Odawna Railway line.

According to Sakumo Wulomo, they have observed that right from the NPP regime till date that anytime development in Accra needs to be undertaken, political influence are brought on board which has really hindered the progress of developmental projects in Accra.

In an exclusive interview, the Sakumo wulomo stated that it was high time the NDC Chairman concentrates on the illegal falling of trees in his constituency and the Galamsey operations by the youth by looking for better jobs for them than rather stop poking his nose into the affairs of Accra being the capital city of Ghana where all his (Yaw Djan) literates and illiterates migrate to seek greener pastures, such as selling of Dog chains and chewing gums on the principal streets of Accra.

He also noted that in their capacity as elders and chiefs of Accra, Yaw Boateng Djan should leave them to dictate the pace, saying, “Yaw Boateng Djan must shut up!”

It has been revealed that the demolition of the area was necessitated by the illegal activities of squatters resulting in a fire outbreak that affected the high tension electricity pole serving some industries and residence within the Accra Metropolis.

He cited Sodom and Gomorrah which needed to be demolished during the NPP era but was stopped as a result of political influence and this, he stated affected the NPP.

Information gathered indicated that the ECG has spent over GH¢10million on repair works alone to get these affected industries and residents again connected to the national grid.

However, when the Accra Mayor was contacted for his comments, he declined but said, “I respect the President, the President respects me and I believe he has given me a job to do. And so, I will live to perform my duties as my international relations believe I can make a change in Accra, hence the Accra Millennium city project.”

GIPC launches Investment Monitoring Platform

0

Prosper Agbenyega

The Ghana Investment Promotion Center (GIPC) has launched an Investment Monitoring Platform that is aimed at redesigning and reshaping the country’s investment promotion strategies.

The platform according to GIPC will feature a compilation of investment data expected to boost the impact of foreign investment inflows into the country.

During the launching, the Chairman of the National Development Planning Commission, Paul Victor Obeng has indicated that the platform which was developed by the United Nations Industrial Development Organization (UNIDO) was implemented in collaboration with the GIPC, adding that, if used prudently would direct more investments into the economy.

“All the issues that affect industrialization, investment promotion, effectiveness of government policy on investment and responses to these policies by the private sector are all captured on this platform,” he said.

According to him, the platform could be a one-stop facilitating platform where prospects and constraints are seen, averring that, if all the parties that stand to benefit from the platform come together and work together, it will drive investment and create jobs to advance national development.

[email protected]

Kenya shilling firms, unmoved by finmin’s departure

0

NAIROBI, Jan 26 (Reuters) – Kenya’s shilling closed firmer for the third straight session on Thursday, unphased in the final minutes of trading by the finance minister’s resignation following his indictment earlier this week for crimes against humanity.

A currency dealer counts Kenya shillings at a money exchange counter in Nairobi October 23, 2008. REUTERS/Antony Njuguna

Pressure had piled up on Uhuru Kenyatta to quit the Treasury after the International Criminal Court ruled on Monday he must face trial for crimes committed during violence after a disputed 2007 poll.

“The resignation shows there is still some integrity in the system and that will be shilling positive. But there will still be uncertainty over the new appointments,” said Dickson Magecha, a trader at Standard Chartered Bank.

In a statement, the presidency said Robinson Githae, a lawyer and cabinet minister for metropolitan development, was named acting finance minister.

At the 1300 GMT market close, commercial banks quoted the shilling at 84.80/85.00 against the dollar, nearly one percent stronger than Wednesday’s close of 85.50/70.

Market players said tight liquidity and dollar inflows from offshore clients had supported the shilling on Thursday.

The Central Bank of Kenya had sought to mop up 5 billion shillings through repurchase agreements, but received no bids.

Determined to keep the shilling on an even keel after its collapse last year, the central bank has been busy absorbing liquidity and selling hard currency.

“Markets will be cautious after the change of the top guy at the finance ministry. But I think we will be able to take it in our stride,” said a trader with a commercial bank.

Traders said high yields on Kenyan government securities were enticing foreign investors, leading to high subscription rates in recent auctions and injecting dollars into the market.

In fixed income, yield on the 91-day Treasury bills fell to 20.614 percent at Thursday’s oversubscribed auction from 20.769 percent last week, as investors keen to lock in high yields outstripped the amount offered.

In the money market, the weighted average interbank lending rate rose to 21.1 percent on Wednesday, from 20.3 percent on Tuesday, pushed by banks competing for the few shillings in the market after central bank tightened liquidity through repos.

“The interbank is the predictor in this market and it has been easing down of recent. Guys are looking to lock in these good yields,” said Johnson Nderi, an analyst at Suntra Investment Bank.

On the secondary debt market, government and corporate bonds worth 635 million shillings ($7.4 million) were traded, up from 300 million shillings on Wednesday.

In stocks, the key NSE-20 Share Index was barely

changed, down 0.1 percent to 3,188.23 points.

“We don’t expect any major impact on the equities market from the finance minister’s resignation,” Nderi said.

Shares in cement manufacturer Bamburi fell 3.7 percent to 130 shillings. Traders said investors remained nervous about the slow down in the property sector brought on by high interest rates and inflationary pressures.

By Kevin Mwanza, Reuters

Kenya 2012 GDP seen up 5 pct, inflation to fall

0

JOHANNESBURG, Jan 26 (Reuters) – Kenya’s economy is set to grow 5 percent this year and nearly 6 percent in 2013, boosted by better trade links in the region, provided political tensions remain in check, a Reuters poll showed on Thursday.

That would be a slight improvement on government estimates for 4.5 percent growth in 2011, a year when the economy was restrained by a severe drought that hit food and electricity production and caused widespread water shortages.

Economists also expect Kenyan inflation to plunge following a series of aggressive interest rate hikes from the central bank, responding to runaway prices and a near-25 percent collapse in the shilling in the first nine months of last year.

But escalation of any tensions ahead of elections scheduled for March 2013 would undermine the economy, especially if the situation threatens to descend into a repeat of the mayhem and bloodshed that followed a late 2007 poll.

“While a stable political environment has supported the implementation of economic reforms and the attraction of capital inflows since 2009, the upcoming elections could stir social unrest and stoke investor uncertainty and shilling volatility,” South African bank RMB said in a research note.

The elections now set for next year were originally scheduled to be held in August but have been pushed back. The government had proposed amending the constitution to delay them because of logistical problems.

Meanwhile, the International Criminal Court ruled this week that former Finance Minister Uhuru Kenyatta and former education minister William Ruto would have to stand trial in the Hague for directing the unrest in which at least 1,220 people were killed.

Kenyatta stepped down on Thursday and president Mwai Kibaki appointed Robinson Githae, a lawyer and cabinet minister for metropolitan development, as acting finance minister.

Economic analysts and traders said market impact was likely to remain limited, but the market would be closely watching to see if Githae is up to the task.

“Given the strength of Kenya’s institutions, this is unlikely to dramatically alter the outlook for fiscal policy, or near-term borrowing plans. As such, market reaction should be relatively limited,” Razia Khan, head of research for sub-Saharan Africa at Standard Chartered, said.

BETTER INTRA-REGIONAL TRADE FLOWS

In previous Reuters polls Kenya’s prospects have hinged more on the outlook for the euro zone, which is still battling through a sovereign debt crisis that has lasted two years and still threatens the currency union.

But that appears to be changing, with trade figures from the first seven months of 2011 showing exports to other countries in the region, exceeding those to traditional trading partners in Europe and the United States.

The World Bank said this month that more advanced trade links among East African countries has led to a relatively rapid expansion of trade within the region.

London-based risk consultancy Business Monitor International (BMI) said expansion of trade in east Africa’s recently established common market should be a major driver of economic growth.

“Improving domestic economic conditions and the robustness of regional trade partners underpin our expectations,” said BMI’s Matthew Searle, who like the consensus from the poll expects 5 percent growth this year.

INFLATION TO FALL SHARPLY

The poll also forecast inflation will average of 11.8 percent for 2012, easing to 7.1 percent the year after. The central bank is targeting 9 percent for the July 2011-June 2012 fiscal year.

Inflation peaked at 19.7 percent in November last year, forcing the central bank into an aggressive tightening cycle that pushed its benchmark lending rate up to 18 percent currently from just 6.25 percent in September.

The analysts forecast the shilling at 88.7 against the dollar at the end of the first quarter – in line with its current value. It was then likely to ease to 90.5 three months later and end the year at 90.0, the poll said.

“The overall pressure should be for shilling depreciation given the large current account deficit, slowness in bringing the fiscal deficit under control and rising political tensions,” Citi economist David Cowan said.

By Vuyani Ndaba, Reuters

Kenyans, Ethiopians runners set to dominate at Dubai Marathon

0

DUBAI, United Arab Emirates (AP) — Runners from Kenya and Ethiopia will be aiming to maintain their dominance at this year’s Dubai Marathon with favorite and three-time London Marathon winner Martin Lel back in top form after an injury and last year’s women’s champion Asselefech Medessa returning to defend her title.

Martin Lel

Nearly 15,000 runners will compete in the $1 million race Friday that starts in the shadows of the Burj Khalifa, the world’s tallest building. The mostly flat route then takes runners along the Persian Gulf coast before ending back at the Burj Khalifa.

Lel leads what organizers say is the best men’s field ever, with a dozen runners having bettered Kenyan David Barmasai’s 2011 winning time of 2:07:18, including Ethiopian’s Bazu Worku (2:05:25) who finished third in Berlin, former World Youth Champion Markos Geneti (2:06:35) of Ethiopia and 2009 Boston Marathon champion Deriba Merga (2:06:38).

“The men’s field is incredibly strong with 12 runners who have all run below 2:07:00,” event director Peter Connerton said. “We are delighted to have a five-time major winner in Martin Lel with us this year, but he is just one of many men who can win the event, and the women’s field is very similar with some incredible talent in the lineup.”

Three-time winner Haile Gebrselassie, considered among the greatest distant runners of all time, will not run.

Much of the attention among the men will be on Lel due to his strong performances at big races over the past decade. The 33-year-old was a runner-up at last year’s London Marathon. Before that, he won in London in 2005, 2007 and 2008 and New York in 2003 and 2007.

“It’s great to have such a strong race to help me try for Olympic selection,” Lel said. “I’ve seen how Haile has performed well here, and if the group is strong, I hope to produce a good race.”

If he were to win, Lel would continue the dominance of Kenyan men that was most evident last year. All the major events in 2011 were won by Kenyans and 37 of them ran 41 of the world’s top fifty times. Close to 500 Kenyan men ran under 2:20, with 162 of them under the Olympic qualifying time of 2:12.

In the women’s field, Ethiopians are expected to upstage the Kenyans. Medessa is among the favorites but her personal best 2:22.38 is still slower than three other runners competing in Dubai.

She will expect a strong challenge from 2010 Dubai champion Mamitu Daska of Ethiopia, who set a best of 2:21:59 in Frankfurt last year, Atsede Baysa of Ethiopia (2:22:04) and Kenya’s Lydia Cheromei, who set a course record 2:22:34 winning in Prague last year.

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Kenya January inflation dips as price pressures ease

0

NAIROBI, Jan 26 (Reuters) – Kenya’s year-on-year rate of inflation is expected to maintain a downward trend in January as food and fuel price pressures ease and the effect of months of monetary tightening reflects in a stronger shilling.

People shop at Nakumatt supermarket Nairobi January 5, 2011. REUTERS/Noor Khamis

All eight analysts polled by Reuters said the rate would come down from 18.93 percent in December, as the impact of past rate rises filters through the market. Inflation rose for 13 consecutive months to peak at 19.72 percent in November.

The shilling, one of the worst performing currencies last year, rebounded strongly after a series of rate rises that surpassed market expectations in the second half of 2011.

The shilling closed 2011 down 4.8 percent against the dollar after recovering about 20 percent of its value having hit an all-time low of 107 in October. Its rally reduced imported inflation.

The Central Bank of Kenya left its key benchmark rate at 18 percent earlier this month.

In a bid to keep the shilling on an even keel, the central bank has so far this year absorbed about 26 billion shillings through regular repos and sold hard currency to commercial banks.

“Thanks to base effects, a recovery in the shilling, tight domestic liquidity and improving weather, we believe that year-on-year inflation in Kenya has topped out and that it will head progressively lower over the course of 2012,” Matthew Searle, sub-Saharan Africa analyst with Business Monitor International, said.

Searle, who predicted inflation would fall marginally to 18.5 percent in January, warned the market would be watching the central bank closely to see whether it would defend the shilling if it came under renewed pressure.

The central bank was heavily criticised for being too slow to respond to the shilling’s freefall for much of last year.

“At $3.8 billion or 3.4 months worth of import cover, the bank does not exactly possess a warchest of foreign exchange reserves with which to do the job,” Searle said.

The next Monetary Policy Committee meeting is due on Feb. 1.

The stronger shilling has allowed the energy regulator to cut the prices of petrol, diesel and kerosene, while good rainfall has improved harvests, easing food inflationary pressures. Nonetheless, east Africa’s biggest economy is still expected to import 67,500 tonnes of maize in the six months to June to boost its stocks.

While the maize imports are likely to put some pressure on the shilling, the Ministry of Agriculture says the resulting surplus will ease pressure on the price of the main staple food.

Kenya’s finance minister has pledged to cut inflation to 5 percent by 2014/15 (July June) fiscal year through austerity measures to reduce its budget deficit.

“Inflation is likely to slow to around 18 percent in January … as transport, utility, and clothing costs … moderate somewhat,” Angus Downie, fixed income and currency strategist at Ecobank, said.

By Yara Bayoumy, Reuters