kenya's credit rating down graded to B

[KenyanPlato]

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A Credit rating of B means Kenya has a 'material risk' of defaulting on some of its debt obligations.

Basis for B credit rating:

-Elevated debt repayment obligations incl upcoming maturity of Eurobond 2024 amid high financing costs
-Dwindling forex reserves
-Hikes in Fed rate pic.twitter.com/4hCcQpR8jb

— Africanus (@AfroEconomicus) December 16, 2022

?t=Dxiu6ThKRTmdj6uzScJIxQ&s=19

[RV Pundit]

Ufool legacy

[KenyanPlato]

Ufool legacy

Ruto was serving for 10 years in uhuru govt and 10 in kibakis govt. he is part of this mess. when is the magic

[RV Pundit]

That would be kibaki - 15yrs in kenyatta - 15yrs in Moi. Ruto was in kibaki gov for only 3yrs and his impact was felt. He was in Jubilee 1.0 and his impact is still being felt.

Ufool must carry the cross with Raila for Jubilee 2.0 - they kicked Ruto to the periphery - harassed, humiliated him and didnt hide it.

Let learn to be factual.

Ruto has already done a lot otherwise we were going Ghana way - default.

When will economy fire again. Right now Ruto has almost stabilized it - next six months will be painful. Then magic will start to happen in 2023 when Ruto will unveil his first budget.

Six months we will see a suplimentary budget - with heavy cuts-

Ruto was serving for 10 years in uhuru govt and 10 in kibakis govt. he is part of this mess. when is the magic

[Georgesoros]

Ufool legacy

Ruto was serving for 10 years in uhuru govt and 10 in kibakis govt. he is part of this mess. when is the magic

Nope Ruto was not in govt. That was a ghost.
Deny Deny Deny

[RV Pundit]

You spent 5yrs denying he was in gov and Raila was co-president;
Ruto left gov in 2018 - when everything was good. He just refused to resign but was out of gov.
Ufool spend five years - fighting Ruto - killed the economy.

Learn to speak the truth. Kenyans rejected ufool and his raila project because they failed - they bankrupted kenya.

In 5yrs time Ruto will account for his tenure. For now he is cleaning up Ufool mess.

Nope Ruto was not in govt. That was a ghost.
Deny Deny Deny

[Georgesoros]

You spent 5yrs denying he was in gov and Raila was co-president;
Ruto left gov in 2018 - when everything was good. He just refused to resign but was out of gov.
Ufool spend five years - fighting Ruto - killed the economy.

Learn to speak the truth. Kenyans rejected ufool and his raila project because they failed - they bankrupted kenya.

In 5yrs time Ruto will account for his tenure. For now he is cleaning up Ufool mess.

Nope Ruto was not in govt. That was a ghost.
Deny Deny Deny

As long as he stayed in office he was in govt.

[Njuri Ncheke]

A Credit rating of B means Kenya has a 'material risk' of defaulting on some of its debt obligations.

Basis for B credit rating:

-Elevated debt repayment obligations incl upcoming maturity of Eurobond 2024 amid high financing costs
-Dwindling forex reserves
-Hikes in Fed rate pic.twitter.com/4hCcQpR8jb

— Africanus (@AfroEconomicus) December 16, 2022

?t=Dxiu6ThKRTmdj6uzScJIxQ&s=19

Plato this is what hour cousin did to the country
Uhuru is a criminal. Guy robbed Kenya period.
I don't understand why Ruto is entertaining him,this is a weakness am very puzzled.

[hk]

It'd have been worse if it wasn't for IMF rescue package. The most important thing is what's the plan to deal with the debt problem. 2024 there's a major euro bond tranche repayment and there's no concrete plan on how to repay. Debt issue has to be dealt with now all the other "plans" will come to naught if its not dealt with. The PR nonsense of ringing closing bell and outlandish proclamations are just sideshows .

[Kadudu]

Eurobond is maturing in 2024 and US$ 2.4B will have to be paid. Do not mention handshake here. The Eurobonds were UhuRuto projects. Till today noone knows where the "infrastructural" bonds went to since all the infrastructure projects are financed with loans.

Ufool legacy

[Kadudu]

Simple reason. They stole together. Your hustler friend was a single digit billionaire if at all before 2013. Today he is a multi-billionaire. Guess where the loot came from.

Plato this is what hour cousin did to the country
Uhuru is a criminal. Guy robbed Kenya period.
I don't understand why Ruto is entertaining him,this is a weakness am very puzzled.

[Njuri Ncheke]

Eurobond is maturing in 2024 and US$ 2.4B will have to be paid. Do not mention handshake here. The Eurobonds were UhuRuto projects. Till today noone knows where the "infrastructural" bonds went to since all the infrastructure projects are financed with loans.

Ufool legacy

I guess that's why Mzito is selling KQ otherwise we are fcuked up kabisa inflation will hit us hard life will become miserable,Ruto needs to sell anything his government has we offset this mess.

[RV Pundit]

The only way to save Kenya economy is PR.
It will be sometime before Kenya credit rating improve to "investment grade" so we can be able to float Eurobond.
The only way we've been paying Eurobond has been by borrowing more Eurobond - refinancing. Now we cant.
How soon can kenya return to Eurobond?
I don't think it will happen in 2023 - as Fed have raised interest rate - at 4.5% almost in most US/EU - nobody will invest in risky Africa.

Locally the domestic debt market is okay - although the interest rate is high - due to high inflation & gov in a tight corner.

So the only solution remaining for kenya gov to get quick dollars to repay Eurobond is through bilateral and multilateral donors.
Multilateral donors - basically you need to kiss US/EU arse for more world bank/imf loans.
Bilateral donors - you need to try get money again from richer northern hemisphere.

You can only do this if you're a darling of the west - and once in a while sneak to China.

Ufool has taken kenya that kibaki had made economically independent - to one that is now a colony of debt - and Ruto has to kiss lot of a.rse going forward.

Then next attack for 2023 is to continue with unpopular budget cuts and of course import substitution - by levying more duty on "useless" imports.

The first attack is to sweat talk western nations to send us AID or Loan in any dollar form, investment, trade deals, such.

It'd have been worse if it wasn't for IMF rescue package. The most important thing is what's the plan to deal with the debt problem. 2024 there's a major euro bond tranche repayment and there's no concrete plan on how to repay. Debt issue has to be dealt with now all the other "plans" will come to naught if its not dealt with. The PR nonsense of ringing closing bell and outlandish proclamations are just sideshows .

[sema]

The first attack is to sweat talk western nations to send us AID or Loan in any dollar form, investment, trade deals, such.

It seems like the China were a conduit for billions in loans for both uhuru and kibaki? what has happened? chinese money was an easy way for people to become very rich. western aid comes with conditions that corrupt african politicians don't like.

Also, how will this affect the unemployment rate? I am getting too many requests from relatives (young men) who should be working but are not and are just sitting thinking they can live off remittances forever.  Why aren't more young people thinking about immigrating? especially young people? It's the old that are leaving not the young that need to be working.

Been roaming villages better part of this weekend, North and South Rift. There's an interesting phenomenon where most women in retirement are relocating to Yuwesee either to start life afresh or to join child(ren) living there.

[RV Pundit]

Ghana has gone burst - default

[Kadudu]

 Was expected. When you hear the finance minister requesting for God's intervention on the country's financial woes, then know the country is in trouble.

Big question is if Kenya will be able to keep off the innevitable. 2023 and 2024 will be tough years.

Ghana has gone burst - default

[hk]

There we have it https://www.businessdailyafrica.com/bd/economy/treasury-sets-ruto-s-first-budget-at-sh3-64-trillion--4061896 , ruto regime is just a continuation of jubilee regime. Tax, borrow and spend, the first business order should've been reduction of government contribution to aggregate demand. The immediate withdraw would be painful but the rebound in the 2024 would've been very robust. For sure now the economy will just drift along with very little private sector growth.

[RV Pundit]

This is actually one of slowest budget growth in recent memories - and with Ruto expecting to collect 2.9 trillion - and with budget deficit of mere 690B dollars - we are doing great.

We expect to borrow just 2billion dollars external - that we can easily get from multilateral creditors.

Sorry you cannot just dramatically cut down public expenditure without causing issues. This has to be done slowly like Ruto is doing.

I believe the budget deficit here is one of lowest - as economy will be more than 12 trillion - so we down to mayb 5%.

There we have it https://www.businessdailyafrica.com/bd/economy/treasury-sets-ruto-s-first-budget-at-sh3-64-trillion--4061896 , ruto regime is just a continuation of jubilee regime. Tax, borrow and spend, the first business order should've been reduction of government contribution to aggregate demand. The immediate withdraw would be painful but the rebound in the 2024 would've been very robust. For sure now the economy will just drift along with very little private sector growth.

[hk]

This is actually one of slowest budget growth in recent memories - and with Ruto expecting to collect 2.9 trillion - and with budget deficit of mere 690B dollars - we are doing great.

We expect to borrow just 2billion dollars external - that we can easily get from multilateral creditors.

Sorry you cannot just dramatically cut down public expenditure without causing issues. This has to be done slowly like Ruto is doing.

I believe the budget deficit here is one of lowest - as economy will be more than 12 trillion - so we down to mayb 5%.

There we have it https://www.businessdailyafrica.com/bd/economy/treasury-sets-ruto-s-first-budget-at-sh3-64-trillion--4061896 , ruto regime is just a continuation of jubilee regime. Tax, borrow and spend, the first business order should've been reduction of government contribution to aggregate demand. The immediate withdraw would be painful but the rebound in the 2024 would've been very robust. For sure now the economy will just drift along with very little private sector growth.

KRA collection is just a projection and if by the off chance of hitting the target, it'll have material effect on the economy(over taxation) Where will kra get 900b from the current collection of 2t? Huge budgets aren't sign of progress, I bet you GDP growth will solely be driven by public spending. Just like jubilee used to report above 5% growth while on the ground people got poorer.

[RV Pundit]

Well Jubilee now collects in 5 months what Kibaki was doing in 12 months
So definitely progress has been made.
Ruto think there is a lot of corruption and leakage with fake stamps that reduces VAT collections.
If he is wrong - then we have problem.
If he is right - then we can certainly collect total revenues approaching 3 trillion soon.

Good thing - we are now actually repaying debt - not refinancing.
We are now repaying 1.3 trillion - and borrowing 0.7 trillion.
For long time - we have basically been borrowing a trillion - and repaying a trillion.

So hopefully the debt to gdp will start to come down - it been arrested at 68% the last few years -  if economy grows more and we knock down 7 billion annually - it will come down.

KRA collection is just a projection and if by the off chance of hitting the target, it'll have material effect on the economy(over taxation) Where will kra get 900b from the current collection of 2t? Huge budgets aren't sign of progress, I bet you GDP growth will solely be driven by public spending. Just like jubilee used to report above 5% growth while on the ground people got poorer.