The term ''wash wash'' refers to the business of money laundering business. It is unfortunately a business which some Kenyans have opted to partake in due to the quick returns that someone gets.
The ''wash wash '' business is fueled by poverty, unemployment and greed among other things. Despite the ''wash wash'' business being riddled by a majority of fatal and legal challenges, a number of Kenyans swear by it.
For the past couple of years, the ''wash wash'' business has significantly grown and a majority of Kenyans are becoming part of it. The ''wash wash '' business greatly undermines the economy .Interested to know how it does this? Keep scrolling and reading:-
What the ''wash wash'' business does is that it increases the supply of money which includes both cash and other types of deposits such as through cheques.
The ''wash wash'' business is greatly damaging to the financial sector institutions that are important for the growth of the economy through promoting corruption and crime. It slows the country's economic growth.
The ''wash wash'' business causes an increase in the asset prices such as land and housing. Therefore, what this does is that it makes many citizens for example Kenyans to be unable to afford proper housing in certain areas of Nairobi City such as Kileleshwa.
The ''wash wash'' business especially has a major effect on small businesses. Curious to know how? For example, you invest and open a business and sell your products at the normal market price then a person in this kind of business opens a similar business next to you and sells the same products at a lower cost compared to yours. What then happens is that overtime, you would make losses and run out of business.
When it comes to these ''wash wash'' business, their purpose is not to make profits in small businesses but rather toto launder the funds and be able to print more money. The ''wash wash'' business causes a decrease in the government revenue. This then causes the government to increase taxes for people who are conducting legitimate business.
A majority of these ''wash wash'' businesses tend to be in the informal sector which makes them unable to be taxed. In an economy, when the government receives less revenue, they increase the country's taxes in order to curb the happening of a budget deficit.
The ''wash wash'' business causes inflation which is dangerous to a country's economy. When a country has money that is frequently printed and tapped to the market, the value of the country's currency falls. It also causes a country's currency to lose its value. Also ,the more money is in an economy ,the more the prices of commodities rise such as the gas cylinders which in the recent months, Kenya has experienced a price increase in them.
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