Capital Economics raises concerns over accuracy of Kenya’s official GDP figures

[Nefertiti]

GoK needs to redirect its begging bowl strictly external - Eurobond, Asiabond, Exim - and stop playing spoiler otherwise it's simple substitution of private sector for public sector growth. We can have both. Likely now folks are withdrawing from bank, sacco, NSE to do M-Akiba.

[RV Pundit]

Precisely.Capital has to come from somewhere - both private and public(GOK+parastals) should realize there is a lot of cheap credit out there - in the debt market. Why would a listed company with great credentials like Safaricom crowd out mama mboga by borrowing 10-20B from local banks - when any bank in the world  or any debt market - would lend them in a flash.

So we need growth from public investment (from eurobond,wb, china)+private capital investment (saf+others borrowing international)+individual+sm(borrowing from local banks-mainly for consumption).

Obviously the infrastructure plans should continue - with proper thinking about debt conditions - but the private sector needs to be addressed. No reason the drivers of FDIA cannot appeal to private sector. The issue is credit - and I think it is wrong that GoK borrows heavy from the public or banks... instead of the two latter running credit market themselves. M-Akiba is not all hailmary like you have been telling us.

[hk]

The disconnect in kenya economy. https://www.bloomberg.com/news/articles/2017-07-25/hennessy-sees-growth-frontier-in-kenya-as-luxury-demand-surges

It seems like the upperclass is doing well. Its either the top class or the lowerclass that a business should focus on. Kadogo economy and highclass seems like that's where money is.

[Nefertiti]

Capitalist society is a pyramid like that - not a Kenyan uniqueness. The "top-class" has access to the world - cars, homes, schooling - oversold. The "market" is always the middle class. It's the poor and working classes that need innovative solutions like M-Akiba.

The disconnect in kenya economy. https://www.bloomberg.com/news/articles/2017-07-25/hennessy-sees-growth-frontier-in-kenya-as-luxury-demand-surges

It seems like the upperclass is doing well. Its either the top class or the lowerclass that a business should focus on. Kadogo economy and highclass seems like that's where money is.