HK What % of GDP is Sustainable for Kenya

[Omollo]

Thank you very much. You have said 80% is sustainable. In fact from the overall mood, tone and wording, it may well even go higher than that to well, infinite. It is a non issue, perhaps an irritant that stops Uhuru from borrowing, stealing most and using a little on "development projects", as he did said he did with the Eurobond.

I will revert back to you presently

[hk]

Thank you very much. You have said 80% is sustainable. In fact from the overall mood, tone and wording, it may well even go higher than that to well, infinite. It is a non issue, perhaps an irritant that stops Uhuru from borrowing, stealing most and using a little on "development projects", as he did said he did with the Eurobond.

I will revert back to you presently

There are two things; borrowing and use of the funds. Kenyans can borrow over 80% of GDP, the question is how are funds being utilized. And which projects are given a priority.  What would  be more appropriate would be to easy burden on households and private sector. Encourage more capital goods investment by private sector.

[Omollo]

There are two things; borrowing and use of the funds. Kenyans can borrow over 80% of GDP, the question is how are funds being utilized. And which projects are given a priority.  What would  be more appropriate would be to easy burden on households and private sector. Encourage more capital goods investment by private sector.

The Eurobond was "used on [unspecified] projects" - all 200 Billion of it.

Private sector again!

Kindly explain how to borrow and use it to "ease the burden on households" first then in detail educate me how the public should borrow money so that it can ease the burden of the private sector. I know how certain fee market oriented economists think the worst thing that ever occurred since Karl Marx was born is the increased status of the Public Sector. So I do not understand why the bad guy has to help the eternal good guy.

[hk]

Private sector again!

Kindly explain how to borrow and use it to "ease the burden on households" first then in detail educate me how the public should borrow money so that it can ease the burden of the private sector. I know how certain fee market oriented economists think the worst thing that ever occurred since Karl Marx was born is the increased status of the Public Sector. So I do not understand why the bad guy has to help the eternal good guy.

Government can lower taxes and to plug the temporary funding deficit, borrow as the lower taxes kicks in. Lower taxes result in collection of more taxes over time. Case in point is when kra lowered rent income taxation from 33% of net income to a flat fee of 10% gross. This roped in more landlords and kra is collecting more than double  from landlords.
If the PAYE taxation was removed for salaries lower than 30k this would increase the buying power of a lot of people . And the highest taxation of 33% to charged to incomes of 500k and above. Vat to be lowered to 10% this would lower cost of goods increasing consumption. Zero rating of capitals goods and depreciation expense tax would lead to companies buying machines and equipment to boost productivity. Further turbo charging the economy.