Is Kenya heading to Greece?

[RVtitem]

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 UN report warns on Kenya's rising external debt portfolio

www.standardmedia.co.ke/m/article/2000212544/un-report-warns-on-kenya-s-rising-external-debt-portfolio

www.the-star.co.ke/news/2016/07/22/debts-dangerous-kituyi-tells-african-countries_c1390570

[Omollo]

They will tell you about SGR and Laptops and then Rotich will refuse to name Eurobond projects

[Kadudu]

We cannot be heading to Greece. Greece has a big brother in the name of European Central Bank. We have no one to bail us out.

[Kim Jong-Un's Pajama Pants]

They will tell you about SGR and Laptops and then Rotich will refuse to name Eurobond projects

He says they gave the money to the Ministries and it is up to each Ministry to account for it.  And put some documents on Treasury website claiming the transfers were correct.  I think EACC or Tobiko agrees with that.

[RV Pundit]

We are not even 50% of GDP/Debt ratio. Greece were doing 150%. US is at 100%. We should borrow more and invest in infrastructure. If the borrowers don't think we can default; why stop. The worse that can happen is to default. Argentina and Greece have done it severally. And yet they are richer.

If someone is out there handing money- take it. What will China do if we default - beg us, delay repayment, reschedule, sell it to loan sharks, name it - but they won't kill us.

Imagine if we borrowed another 40BUSD to take us to US debt level.

40B USD dollars will transform this country to become first class in one generation. We can build modern railways, roads, airports,schools, hospitals,stadium and then default

That would be the heist of the century.

People who should worry about default...are the LENDERs..not the borrowers. You don't go worrying if you can bankrupt Equity bank if you borrow more. That is their problem.

[RVtitem]

The core issue is if we can repay the debt....even when there's is market disruptions that affect currency exchange.

I remember we have precautionary money from IMF/world bank?? That precaution was taken after last year crunch....meaning the situation is precarious at best.

The article sites that our economy is highly dependent on flowers, tourism etc for foreign currency....commodities which seem very risky.

[Georgesoros]

Yes infrastructure is being laid down but the thing that is lacking is laws to slow down land flipping. Ethiopia and Tanzania Zambia etc dont have such so investors will just pack and LEAVE. WHile there they can build industries and then export to Kenya.

[RV Pundit]

Tough one. You don't want Ethiopia or TZ kind of land grab where gov just take your land and move you anywhere else. That discourages local investment. I think strong property laws are foundation we want to build. If we can grab and give an investor land - what stop us from grabbing the investor's land later.

The high land prices calls for us to be innovative. Instead of building low rise building or infra - go high rise.

Yes infrastructure is being laid down but the thing that is lacking is laws to slow down land flipping. Ethiopia and Tanzania Zambia etc dont have such so investors will just pack and LEAVE. WHile there they can build industries and then export to Kenya.

[veritas]

Greece went into debt because it's govt aside from stealing was spending heaps on military gear. If the military wasn't so armed- insecurity and war would be rampant. Debt for Kenya hurts Kenyans. Every day commodity prices would skyrocket threefold to more until that debt is paid off. This means businesses will close down, insecurity obviously rampant, foreclosures- foreign vultures buying Kenyan land/buildings etc. seems it's already kicked off under Jubilee. Conservative govts thrive on anarchy. Jubilee's way of policies seems to reflect their overarching belief Kenya's gone to the dogs- so loot more of what should me rightfully mine as per my entitled history.

[hk]

If kenya was heading the greece way its debt yield would be very high and rising. Conversely is happening http://www.businessdailyafrica.com/Eurobond-yield-fall-signals-confidence-in-economy/539552-3341374-etr6v3/index.html . There's just no evidence to indicate that kenya financial situation is unstable its actually even improving with foreign reserve hitting $7.7b .

[RV Pundit]

Precisely.We should borrow more and invest in infrastructure.

If kenya was heading the greece way its debt yield would be very high and rising. Conversely is happening http://www.businessdailyafrica.com/Eurobond-yield-fall-signals-confidence-in-economy/539552-3341374-etr6v3/index.html . There's just no evidence to indicate that kenya financial situation is unstable its actually even improving with foreign reserve hitting $7.7b .