Monday, October 08, 2007

Election year inflation

The elections are a few weeks away and assets are disposed of and savings converted into consumer spending and other election-related services. People are being warned to be careful with their SUV’s (lest they are stolen to be used in rural campaigns and dumped)

There are 210 constituencies in the country and one estimate of the cost of running a viable campaign is set at about 10 million shillings ($150,000) - and this can be as high as 100 million shillings (where titans are battling it out to enter Parliament)

Scenes from the Nairobi show
Also known as the Nairobi international trade fair (which ended on Sunday October 7)
- Traffic to the showground was so bad along Ngong road, that it was better and faster to detour along Kibera. I asked one very tired policeman about this and he replied that the heavy traffic was not related to the trade fair – just that vehicles never cease coming no matter how long directs the traffic (too many cars)
- Visiting an impressive stand, I’m reminded that long before Vice President Moody Awori spruced up the Prisons Department, it was highly regarded for the good quality furniture that they i.e. prisoners used to (and still) produce and which the department would sell to the public
- A yellow Humvee is a big draw for all the school kids even though they are not allowed near it
- I was able to get my social security statement from the NSSF stand, but my stockbroker could not give me a statement! (They were not online). The NSSF also gave a friendly reminder to patrons to top up their contributions otherwise they would receive very little when they retired
- Ice cream vendors almost every 10 yards. And the way it was hot, they were all doing roaring business
- JKUAT (University) enterprises produce a variety of juices, jams, soaps and lotions.
- A drunk high school student being hauled out of the show grounds by his colleagues. I later passed them outside the showground and noticed they have wisely removed their school uniforms – otherwise they could have bundled into a police wagon to be paraded on the evening news.


MainaT said...

Very funny re the students...

Politics in Kenya is coping the US-moneywise. I read somewhere the that they won't pass the law on political funding until after the elections. Or may be 2012...

Dropmyload said...

I think we should brace ourselves for a serious inflationary spike: the vast majority of our so called MPs are actually unelectable. In reaction to this, they will spend a huge amount of money trying to return to Parliament. At the same time, we have like 10 other characters vying for the same seat. The spending this election is going to surpass all others ( except perhaps 1992).

we~a~do said...

You know what, pundits have been speculating about the reasons NSE Index is tanking so stubbornly. Yet, bankz has just pinpointed one of the "invisible hands." I want to claim that a lot of that hefty MPs salary and "dirty" money ended up at the NSE, as a nest egg for campaigns and retirement. Now that it's "harvest" time, they are cashing out in time for the campaigns. Then there is the aspirants, comprising a bevy of professionals and business tycoons. If not entering competitive politics, they are funding candidates to hedge their bets. Most of these people hold huge stakes at the NSE and, hence, their heavy cashing out will sure depress prices.

If I had a few $$$$, I'd buy heavy at the NSE right now and wait to sell back to the same people or the new crop of MPs and moneymen next year :)

m said...

Traffic was even worse that sunday for the concours. It took us 1 and a half hours to GET OUT of the grounds!!!

don said...

Hmm... waiting a little longer to buy. But looks to be building up to a good opportunity.

I'm not sure we have bottomed out yet though

bankelele said...

MainaT: Great timees are had by students at the show, in many different ways
- the way parties are raking in the cash(from nomination fees), I don't see why taxpayers should have to support them

Dropmyload: It's ok if they spend their own money. The elections keep getting expensive every time (thsi year ICT spending will be big like no other before)

we~a~do: There's no dirty money at the NSE, just people who bought low and sold high. December will be a good time to buy low again

M: pole

Don: Regardless of who wins, buy. Even Zim stock exchange investors make money!

Darks said...

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