Fitch downgrades Kenya's credit outlook on higher borrowing

[Kadudu]

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Was bound to happen and could get worse. This means loans for Kenya will get more expensive.
Maybe kassin can intervene.

http://www.theeastafrican.co.ke/business/Fitch-downgrades-Kenya-s-credit-outlook-to-negative/-/2560/2799952/-/x6j2p3z/-/index.html

[RV Pundit]

Kenya has to be careful.Our biggest problem macro-economically is figuring how to improve export beyond 5B dollars that has been stuck there forever. This has been mitigated by FDIs and Remittances coming in.

But as long as the GDP is growing and tax base is growing; I think the debt ratios are okay.

[Georgesoros]

Pundit
The only thing growing is real estate. And that can collapse very quickly. People around NRB feel and act rich because all they do is buy a 1 acre subdivide sell and repeat. Aint nothing going on here.
And Kenyatta keeps borrowing to give to NYS et al for the next campaign. If he had been using this money to expand Kericho-NRB into a dual like they did Thika then one can say its good money borrowed.

[RV Pundit]

That is peni mbili economic analysis..kenya economy is well diversified and very sophisticated despite it bunny size.
If you analyse the GDP figures for last couple of yrs.
The laggards remain 1) manufacturing, 2) Agriculture and lately 3)Tourism.
The stars for the last few years are
1) Financial and inter mediation --nearly all banks and related have turned handsome profit year on end...from 2m accounts recently to 20M accounts...folks are rich coz they can now like american access credit...it need to be cheaper but so who'd have thought anyone can get mshwari loan that easily.
2) Retail and wholesaling--kenya is only second to RSA in terms of supermarkets and malls taking over dukas..we are doing about 30% formal shopping and slowly kicking out mama dukas...and that is great news for manufacturing..given it easy to deal with one supermarket than try figure out a distribution mess of a network spanning mini dukas.
3) Real estate & construction..cement consumption has grown at double digit annually..now we are consumng about 6M tonnes per annum from 2M recently..the country is one big construction site..and mjengo jobs are plentiful.
4) Transport and Communication--Safaricom is global success story and transport has been doing well and transport is doing great...more need to be done on formalizing transport and SGR will definitely change the face of transport in kenya.
5) Social sector..10yrs ago we had less than 20,000 in universities..now have nearly 0.5M kids in universities..campus have sprouted everywhere. 80K just got admitted this year to public universities alone.

There is a lot going on in Kenya. Lots of great things. If only we can fix Manufacturing and Agriculture. Tourism will recover as soon as we get out of Somalia.

We also need lady luck to smile on us when it comes to oil and minerals....and we can start growing at double digit.

Pundit
The only thing growing is real estate. And that can collapse very quickly. People around NRB feel and act rich because all they do is buy a 1 acre subdivide sell and repeat. Aint nothing going on here.
And Kenyatta keeps borrowing to give to NYS et al for the next campaign. If he had been using this money to expand Kericho-NRB into a dual like they did Thika then one can say its good money borrowed.