Sometimes I think these policy makers don't care what consequences their actions have on stability of the market

Government revenue for first nine months of the year fell short of target by a significant Sh93.8 billion, signalling looming funding difficulties. The National Treasury had targeted revenue and grants of Sh874.5 billion, but realised Sh780.7 billion, leaving a gap of Sh93.8 billion. Of the revenue items, the A-I-A had the single-highest shortfall relative to the target at Sh31.6 billion in the nine-month period, bringing in only Sh39.1 billion. The second largest deviation from target was in the grants by donors totalling Sh25.8 billion, below target of Sh45.2 billion meaning less than half of the expected cash was received in the nine month. The third largest shortfall came in the form of pay-as-you-earn taxes, below target of Sh220.5 billion by Sh21.7 billion.
For the nine months to March, experts also attribute the low collections to slow economic growth and probable leakages.

Supplementary Estimates II 2014/2015
Cabinet noted that while Kenya’s economic growth is still resilient, the outcome of the 3rd quarter of the current financial year and the continuation of the global economic stagnation is likely to have a negative impact on the performance of revenues. Cabinet noted that:
Revenues had fallen below target and are expected to be lower by Khs.16.6billion mainly due to administration of large income tax payers and customs due to reduced oil imports following increased production of geothermal energy;
Domestic borrowing - expectations in decline of interest rates resulted in less appetite for Government securities; and
Expenditure pressures – we have received requests for additional funding to cater for emerging priorities related to security operations, forthcoming international conferences and summits, Catholic Nun (Sister Irene) Beatification process, slum upgrading and youth empowerment.
To address the challenges above, Cabinet approved additional spending amounting to Ksh.48.3billion under supplementary No. 2 and approved measures to close the financial gap of Kshs.74.3million.
CABINET OFFICE
NAIROBI
21st May, 2015

The weighted average interest rate for banks on the overnight borrowing market shot up to 11.0101 percent on Wednesday from 10.3709 percent the previous day, indicating there was a squeeze on liquidity.
The central bank sought to mop up 4 billion shillings from the market on Thursday, reinforcing its desire to cut volatility in the currency market, by pursuing a tightening stance through its open market operations.

In addition to a price correction, market analysts attribute the drop to a mix of factors, including the capital gains tax and a weaker currency but say market fundamentals remain strong. They rule out chances of a prolonged bear run.
“Some stocks may have been overpriced, but this does not mean that the companies themselves are having any problems,” said Standard Investment Bank (SIB) analyst Eric Musau.

The world's biggest solar technology company by market capitalisation got absolutely slaughtered this week.

Hanergy Thin Film Power is a Hong Kong-listed Chinese firm which has an astonishing boom story, which made its chairman China's richest man.

But on Wednesday it went through the floor — the stock's value was slashed nearly in half, falling 47% before trading was suspended.

The moment 4700 support level gives up I expect the newbies to completely disappear from the investor forum. The 4yr wedge breakdown is a serious warning that downside pressure is going to be nasty. NSE index is negative 3.61% as per yesterday's close (4932) from the year open (5117).

USDKES is negative 6.6% from year open (90.55) as per today's price (96.55). KES breakdown is ahead of market downside pressure! Bad signal. Meaning foreign investors are facing forex losses which are now starting to pile up with equity losses. This is forcing hands to start cutting losses or hasten profit booking.

Caution here for those that are still bullish. The econ growth feedback is not encouraging as well as those earnings warnings confirm the same. This is all happening before inflation becomes a headache! Is KE soon to face stagflation? Probably. That would be worse than dealing with inflation spike.

If stagflation presents itself, the market will deflate for quite some time e.g. a year or two!

I'm putting this extreme outlook so that those willing to remain during the stormy period ensure that they don't buy too soon. Buy window should be open for a year or two.

Out of curiosity, Mnandii, do you own any shares in NSE? Your pessimism of this market is as devoted as the thorough analysis of the same...

I sold my holdings. The thing is, Elliott Wave is an objective approach to analysing a market. If there was short selling existent in the NSE I'd be happy to sell. Imagine my call for NSE to drop below 4900 when it was still at about 5100? Today the target has been met. That is a 200 point move!

I concentrate more on forex now.