Kadudu I know you've been waiting for many years for kenya to collapse to you can laugh LOUD in freezing cold German but it will be some more years of waiting.
When China refused to lend us to get SGR to Kisumu - I knew we had reach the limit of our borrowing - we are now close to 5.6 trillion in debt in a kshs 9 trillion economy. That is 62% GDP to Debt ratio. That is a red flag.
There are two ways out of this - we wait it out - meaning we cut our budget and have austerity measures - by end of this year of GDP will be around 10trillion shs...so GDP to Debt ratio if we cut our borrowing - should improve to say 57% - if we don't borrow any more than we repay. Another year - and it will be down to 52% - and by 2021 - we should be ready to restart borrowing again.
Now in this period of cooling our heels - Uhuru has chosen to fight graft and cut projects - that is WRONG WAY TO GO. First GDP/Revenues/Taxes will not grow by 6% to nearly 10 trillions without public investment - it will grow by usual 4% - to say 95 trillion - and so we will wait longer to have ambitious development budget.
The way out of this is to do what Kibaki or kadudu does - if you cannot get a loan from the bank - and you still want to take your kid to Germany or build that small dam in your farm or electrify your house or buy that land - you look at your cows, goats and sheeps - and sell some of them - esp those that are not really adding any value anymore. I am talking Safaricom, Kenya Pipeline, Kengen, National Oil - we should sell them for next 2-3yrs we cannot really borrow that much - and use the proceeds to fund the budget.
Ambitious budget to close the infrastructure and social deficit - we need more roads, more electricity, more ports, more broandband, more schools, more colleges, more water dams, more irrigated land.
We cannot afford to sit and DO NOTHING. In economics when you're in hole - you dig in - you spend more
you inject stimulus to the shock the economy to spin again and get the momentum. That is how Obama got US out of trouble with QE - massive printing of dollars and stimulus package to many sector of economy.
If you don't anything- you get into something call deflation - a misery - a vicious cycle of poverty - you don't invest - you don't grow. The US had one - The GREAT DEPRESSION - and the solutions was to SPEND AND INVEST MORE. Not to twiddle your fingers and pray.
Uhuru has to be careful because this could end badly for him! The music must not stop.
Pundit, you are a hypocrite. Now you state we cannot borrow anymore. Have you jaut realised that? You are the same person who has been claiming here that we can borrow till nobody lends us any cash.
You are a typical triblist only with one agenda that your man takes SH.
Bure kabisa.
