Market liquidity has a strong impact to the economy of any jurisdiction; it is defined as the ease of converting an asset into cash without interfering with its market price. 

The Capital Market Authority of Kenya (CMA) is the regulatory board meant to oversee the securities exchange in the Kenyan market; defining key policies that governs and institutionalize the economy of the nation through the galvanization of the Securities' market. It has a leviathan responsibility in molding one of the marquee economic indicator of Kenya; and setting up a productive environment that would imbue a positive market liquidity and stock price efficiency.

For a while, the foreign ownership in the market has been capped at 75pc; with the intentions of improving the market liquidity of the security market, the CMA in January, 2015; removed the cap allowing the foreign investors' shareholding to a hundred percent. I believe the analysts and the advisors in this case came from the school of thoughts that heavily borrowed their philosophies from the strategic trade model of Kyle (1985). Before the removal of the cap in 2015, they had introduced a faster settlement cycle, which translated into a reduced time frame from four to three days (Jul, 2011); and later in Jun, 2014, the NSE converted from a privately owned enterprise to a publicly owned enterprise (demutualization).

The whole idea of the changes by the CMA to the NSE were meant to improve the investors' confidence, both foreign and local; but with an assumption of the savers being differentially informed forgetting about the noise investors, who are mainly local and are found amidst the youths of the nation. This brings in the arguments on the impact of information asymmetry on market liquidity.

 Lets learn from this borrowed video together

REVISING THE KENYAN ECONOMY: ARE WE REALLY NEEDED IN THE E.A.C?

The North American Free Trade Agreement(NAFTA) of 1995 between the US and Mexico was meant to liberalize free trade between them. This should have triggered a paradigm  to the Mexican economy because of the access to the largest market in the world.

Besides, Mexico had a large diaspora living in the US, who could essentially, have contributed immensely in forging the Mexican economy given the treaty of the NAFTA

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But the statistics showed a different result, with an average decrease in the growth of the per capita income and the per annum GDP by 1.3 PC across the first five financial years from 1995 in comparison to the pre-NAFTA treaty financial periods.

The history has been written and rewritten countlessly, in different economic epochs, to an extent that it has become a routine. In the year 1832, Andrew Jackson refused to renew the license for the quasi-central bank, basing his argument on the preface of the foreign ownership share ratio. He stated that the foreign ownership share was too high at 30PC, stating that the stock of the bank principally pass into the hands of the subjects of a foreign country and that should they, unfortunately, go into war with that country, what would be their condition? The foreign country controls their American currency, receiving their public money and holding thousands of their citizens dependent. Andrew Jackson went ahead to spearhead for the Absentee management by foreign investors, and this was an act of protectionism.

This begs for the questions, is the Kenyan government on the right track to sort out its economic disparities? Has it ever laid down any foundation to sort out its temperamental sound money? What about fixing its budgetary policies? How much has it spent as a nation, on overseas research and development? And the white elephant is; was it a good move for it to be the flagship nation of the E.A.C?

Robert Walpole is considered the first prime minister to the United Kingdom, and he was at the helm of power for over twenty years. Just after the Tudor Monarchy, he suggested that the only way their state could secure the coffers of their taxpayers and create value to their economy was only through exporting finished goods and importing raw materials; to date, these defines the economic stature of the great UK.

The famous referendum for Brexit should have raised the eyebrows of our African leaders, because, as it has always been stated, an indecision is a decision. This brings us to the famous Republicans' win with Donald Trump, having the mantra of making America great again. What should that tell us as a nation, are we following the famous narrative of, "do as I say and not as I do?"

The Kenyan Market is one of a kind, one that extraordinarily risks aggressively and thus making the entrance of new products and services quite quickly absorbed and thence making it quite attractive to investors, both local and international. 

Besides all the glamour in the potential of the Kenyan Market, Procyclicality and asset bubbles most of the times carry the day...

Unconditional integration to the global market brings in a new level of jeopardy to the national foreign exchange reserves and could entice brownfield FDI, given the levels of corruption in our nation. We risk transfer pricing which eventually harms the nation's economy given that the MNCs and the TNCs use the state resources in terms of the infrastructure and the human resources whose education has been entirely state-funded.

THE SIMPLICITY WE RUN AWAY FROM IS OUR BEST EVER FORM

The life science of appreciating our innate ability and tapping from the source has never been made public.

Transformation is a process of change, and I believe that reading this piece will ingrain, imbue and shine an immense light of experience, towards transformation, in toto. 

When we let nature take charge

Our drilled societal characters have made categorizing good from bad and perfect from imperfect the main business of existence. This moribund culture has imprinted our society with divisive straight lines; yet, nature on its own is full of imperfect lines, which are perfect by design. We have been saturated with inherent desires of accumulating resources, titles and all the things that seem to glitter in this world, in a manner that we have even forgotten the basics of living.

Humanity is not and will never be a mistake, it is from the imperfections seen in them that makes the core of this realm and existence. The economy is a marquee fit to the jigsaw puzzles of the pandemics and disasters that we experience in the global arena. It is not in the superiority of a structure of governance, that we get rescued from our situations, especially those in the "micro-majority" of the population, but in the empowerment of their children and children's children that we can truly get a brighter future with to the whole world.

We have been taught of the Malthusian trap, and how a variety of commodities should give a plus to our living standards. The number of doctrines and schools of thoughts has spiralled our abilities to tap from our own nature into a restive potential that will only be laid back to rest after this life of predefined scales; nobody wants to speak of the truth, but obey and serve the systems and structures of governance, that have been erected to calcify our very own existence with a punch of control, decorating their mantra.

All of us have a point of no fear, a point of omnipotence and a point of metaphysical ability that supersedes all that have ever been written in the science world. Unfortunately, we have never been able to exploit that ability in us, we have never tried to explore beyond our physical abilities, and if we ever have, we have never achieved to maximumly accomplish the full abilities underlying our dermis because of the doubts that we have, our eyes have been blinded to an extent that we don't even know ourselves.

We only believe in what we can see, giving power to the clouds of doubts,  ironclad our consciousness with the protractions of the colonizers, which were meant to distaste ourselves from ourselves. The school of thoughts that were designed to guide the structures of boundaries and later globalization only but epitomise to individuals' vested interests, and not ours. It is time we consider our interests as a nation, and with utmost sobriety, design our future, colouring it with a paint of our uniqueness and imperfect curves.

THIRD WORLD COUNTRIES ECONOMIC PROWESS

                    Volatility & Procyclicality of International financial capital flow

QUESTIONS THAT OUR FUTURE GENERATIONS WON'T BE ABLE TO ANSWER.

OUR MOTHERS

           What is it about our nation that really makes us stand out? Is it our perennial and perniciously seasoned winning athletes? Or, Mpesa? Is it our creativity and innovative nature? Or affinity to embrace new technologies without a second thought?  For me, those are just but icings on the tips of icebergs. Methinks that our superiority is based on our hardworking nature, the way we arise before the sun, walking along the highways to work; sometimes, walking so long in search of work; without giving up, come the morning rains, the freezing morning cold, the midday scorching sun. We have a tendency to hustle even when employed. A side hustle is a new trend, the new dream of every Kenyan. Up the totem pole is a strong desire, a perpetual gusto of being billionaires, with high levels of risk-taking, even in the new areas; this, on its own, is a Leviathan trigger, a stimulus of economic growth; but my crystal balls indicates a daily nosedive in the underbelly of our very strongest character. The malice, contorted gluttony for any available public resources, the supply and demand curve absolution, autocratic economic subjugation, corruption, unconditional integration to the global market... and the list is endless. It begs the question, what should we really do to heal our nation? Yes, we have the greatest potential, the best coastline in eastern central Africa, the most literate country in Eastern Central Africa, the highest absorption rate of smartphones and new technologies, but with a single-digit Gross Domestic Product rate for the last five decades, an overstretched budget that leans on almost the same structure that was used four decades ago, and the highest corruption index in East African region.