Nipate
Forum => Kenya Discussion => Topic started by: vooke on August 26, 2018, 08:57:39 PM
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He has said a lot but he agrees interest capping was just a Jubilee ploy to manage its borrowing costs
it also confirms that the interest caps were always really about government access to cheaper domestic borrowing and not about promoting private sector economic activity, which the government appears to be doing its best to stifle.
Read more at: https://www.theeastafricanreview.info/op-eds/2018/08/25/jubinomics-and-kenyas-debt-crisis-a-private-sector-view/
E Review.
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Well written article with relevant figures showing economy in dire straits courtesy of Jubilee administration. Government spending (biggest buyer) only represent 13% of our economy whoever it can be used to distort the economy disproportionately. The capping of interest rates spreads need to be scrapped so that the government borrowing rate can skyrocket to over 20%. This is what will cut government borrowing and budget deficits.
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Economy has managed growth of 5.8% on average (6%) under Jubilee. Jubilee are constructing 10,000kms road (now 6,000kms are near complete) - since independence we had managed only 12,000kms!!!, has overseen the world fastest electrification, has delivered SGR - kenya biggest public investment - Mombasa port & Lamu port are being expanded & built - JKIA stopped being a mess and is now a decent airport- all this in six short years. Inflation is at 4%. Interest capping was introduced and now kenyans are happly re-paying loan at 12% - and still there was credit growth of 4% (yeah less than 10% required but not at 25% interest rate).
In short kenya is doing so well - our lenders including Chinese are still lending us more and more.