Treasury in a desperate move raids parastatals

[KenyanPlato]

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Wow the economic bomb has just gone off. All cash confiscated from parastatals. Last time this happened old kcc died.

Uhuru was a disaster from the day moi fished him from rehab in Switzerland to now. Fuc K. Kenya is so screwed.

[sitting bull]

Dynamic duo....

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[Dear Mami]

Disaster Duo. They should leave together in 2022.

[Kadudu]

Funny thing is Ruto wants to be give praise for jubilee "achievements" but wants nothing to do with the economic messed caused by Jubilee. He is part and parcel of the economic mess. He and Uhuru have only achieved personal and family financial gains in the 7 years at the top of the regime. Both should be shelved to the corridors of history and even Kenya should recall the ICC to investigate the two on their term in office.

Wow the economic bomb has just gone off. All cash confiscated from parastatals. Last time this happened old kcc died.

Uhuru was a disaster from the day moi fished him from rehab in Switzerland to now. Fuc K. Kenya is so screwed.

[RV Pundit]

Uhuru 2.0 disaster is his own making. He has seen a mean machine that Ruto had ironed and was busy delivering come to a halt...because of allowing Raila and his usual mess into gov. Now half the gov is fighting the other half. The is a lot of witchhunt that nothing is happening - everyone is afraid - like in Tanzania magufuli.

Chinese even refused to lend more when they saw Uhuru was playing games - with his politics.

Next if he allows BBI nonsense - the next 2yrs the economy will tank. Investment decisions will be postponed. If he falls out with Ruto - even worse will happen.

Economy is a CONFIDENCE GAME. The more people are afraid or unsure they stop investing. Uhuru has to clarify what his political plan for kenya really is..

[GeeMail]

Funny thing is Ruto wants to be give praise for jubilee "achievements" but wants nothing to do with the economic messed caused by Jubilee. He is part and parcel of the economic mess. He and Uhuru have only achieved personal and family financial gains in the 7 years at the top of the regime. Both should be shelved to the corridors of history and even Kenya should recall the ICC to investigate the two on their term in office.

Wow the economic bomb has just gone off. All cash confiscated from parastatals. Last time this happened old kcc died.

Uhuru was a disaster from the day moi fished him from rehab in Switzerland to now. Fuc K. Kenya is so screwed.

'Zactly! There was a time Pundit treated us to large tracts of mythology on how Rotich is Ruto's man and he will fix everything from Eurobond to SGR to NYS. It did not help that when the 21b dams scandal burst its banks Ruto was quick to say "it's only 7b and not 21b". Now Uhuru will somehow turn around and blame Ruto and his men for messing up Treasury. Whichever way one looks at it, Ruto is screwed.

[RV Pundit]

You can steal as much as you want but economy will grow if people are hopeful about the future. Jubilee 1.0 was a very stable united gov that INSPIRED CONFIDENCE in people. Without confidence - the economy tank. That is why our economy growth half or worse EVERY ELECTION YEAR. Economy for most part is about SENTIMENTS. Uhuru has put the country in fix - perpetual confusion - that is affecting kenyans, foreigners, investors and everyone.

'Zactly! There was a time Pundit treated us to large tracts of mythology on how Rotich is Ruto's man and he will fix everything from Eurobond to SGR to NYS. It did not help that when the 21b dams scandal burst its banks Ruto was quick to say "it's only 7b and not 21b". Now Uhuru will somehow turn around and blame Ruto and his men for messing up Treasury. Whichever way one looks at it, Ruto is screwed.

[RV Pundit]

Uhuru the drunkard is dealing with confidence crisis. Nobody really knows where he is taking the country to.

Usefulness of the consumer confidence indicators

Investors, manufacturers, retailers, banks, and government agencies use various consumer assessments to plan their actions. For example, if weak consumer confidence indicates a decline in consumer spending, manufacturers will decrease their inventories in advance. They might delay investing in new projects and facilities. Banks will prepare for a reduction in lending activities like mortgage lending and credit card use. Homebuilders will plan for the decline in home construction volumes. The government will get ready for the reduction in future tax revenues.

On the other hand, if consumer confidence is improving, manufacturers can begin to boost production and inventories. Large employers will plan to increase hiring rates. Builders start preparing for higher housing construction rates. T

When confidence decreases, spending and risk-taking tend to decrease.

[GeeMail]

Changing the narrative as usual. Confidence is nothing when the people we had confidence in (or rather, Uhuru had confidence in) have bled the coffers dry. You can scream confidence all day but what Rotich and Thugge did cannot be undone.

https://www.nation.co.ke/business/How-Treasury-mandarins-cooked-books/996-5354662-view-asAMP-j9x15y/index.html

[sitting bull]

You can steal as much as you want but economy will grow if people are hopeful about the future. Jubilee 1.0 was a very stable united gov that INSPIRED CONFIDENCE in people. Without confidence - the economy tank. That is why our economy growth half or worse EVERY ELECTION YEAR. Economy for most part is about SENTIMENTS. Uhuru has put the country in fix - perpetual confusion - that is affecting kenyans, foreigners, investors and everyone.

'Zactly! There was a time Pundit treated us to large tracts of mythology on how Rotich is Ruto's man and he will fix everything from Eurobond to SGR to NYS. It did not help that when the 21b dams scandal burst its banks Ruto was quick to say "it's only 7b and not 21b". Now Uhuru will somehow turn around and blame Ruto and his men for messing up Treasury. Whichever way one looks at it, Ruto is screwed.

Jubilee 1.0 "INHERITED" an economically stable country from kibaki. Wanton looting , excessive  borrowing and general mismanagement summarises jubilee government.

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[RV Pundit]

So when Uhuru asked why people are broke - you think Rotich & Thugge stole all the money. Nope. I think what has changed in Jubilee is Raila entry. That has created a schism that affect gov. Uhuru has to kicked Raila before it's too late.  Then let Ruto drive the gov. Ruto will steal 10% but deliver 90%. This ones are delivering 10% and leaving 90% undone.

Look at an idiot like Macharia - he painted thika road red - nothing - he went to Spain and got some train nothing - SGR has ended in maize plantation in Narok - NYS buses dead - nearly anything he has touched has failed - Eng Kamau was better even if he stole himself enough to build RadissonBlue Nairobi - I mean the guy should long has been fired.

The only way Uhuru can save his legacy is to bring back Jubilee - Mps, MCAs, Ruto and then go back to drinking. He cannot run the gov with Kibicho & Matiangi. They don't have the gravitas and experience needed to move such a big ship. Nobody listen to them...not people in mashinani, not investors, not foreigners, not lenders.

He started from Mt kenya - hopefully he can learn something before it's too late - he will be blaming Ruto & Rotich for stealing everything .

Gov money is not stored to be stolen ; it collected annually; used that year or that week.

Changing the narrative as usual. Confidence is nothing when the people we had confidence in (or rather, Uhuru had confidence in) have bled the coffers dry. You can scream confidence all day but what Rotich and Thugge did cannot be undone.

https://www.nation.co.ke/business/How-Treasury-mandarins-cooked-books/996-5354662-view-asAMP-j9x15y/index.html

[RV Pundit]

NARA was NOT STABLE. Raila and Kibaki were on each other neck almost daily. The gov was basically in civil war. It akin to Jubilee 2.0.

Jubilee 1.0 "INHERITED" an economically stable country from kibaki. Wanton looting , excessive  borrowing and general mismanagement summarises jubilee government.

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[Nefertiti]

These stories about cooking books are half-baked and anecdotal. Quoting anonymous sources. So Rotich and Thugge unprocedurally contracted staff... where is the proof of book fiddling? Out of 3Tr they "cooked" 70B - or they lied about debt-to-GDP ratio. So what's the correct level? - it hit 56% in 2017. Public knowledge. It also makes outlandish claims of "Kenya is running a Sh3 trillion budget on empty coffers." A 70B hole does not empty the 3Tr. I think Uhuru 2013/14 budget was already 2.2Tr.

About stability and confidence - BBI or war against corruption increase stability. PEV and electoral uncertainty is caused by the perceptions of the unjust tyranny of numbers. And tallying of presidential votes in Nairobi. The system cannot be fair or stable when only two tribes stand a chance.

[Dear Mami]

NARA was NOT STABLE. Raila and Kibaki were on each other neck almost daily. The gov was basically in civil war. It akin to Jubilee 2.0.

Jubilee 1.0 "INHERITED" an economically stable country from kibaki. Wanton looting , excessive  borrowing and general mismanagement summarises jubilee government.

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What you call instability, some of us call accountability! NARA passed the constitution and handled the economy well and any time someone tried to steal, they experienced trouble for it. The only stability in Jubilee is people looting in peace while the economy goes to the dogs. "Sisi tunakula nyama" is not 'stability'.

[RV Pundit]

Well I believe NARA was so quarrelsome Kenya passed the constitution that makes clears who head of state is. Now we want BBI.We had Raila and Kibaki - we had ICC and all the mess around it. The economy before it was re-based grew by 4% - Jubilee have pulled nearly 6% - but I think we are about to go to 4% - Unless Uhuru kick Raila out, steady the ship and prepare to retire.

 Big 4 agenda basically is so dead only Ruto talks about it.Zero seriousness in Uhuru

What you call instability, some of us call accountability! NARA passed the constitution and handled the economy well and any time someone tried to steal, they experienced trouble for it. The only stability in Jubilee is people looting in peace while the economy goes to the dogs. "Sisi tunakula nyama" is not 'stability'.

[patel]

Akin to raiding kids piggy bank to pay car note and mortgage, may work few months before the piggy bank drys out. Most of this cash was in some banks that have loaned out the money or heavily invested in real estate where they cannot move these properties...what will happen to those banks?

Wow the economic bomb has just gone off. All cash confiscated from parastatals. Last time this happened old kcc died.

Uhuru was a disaster from the day moi fished him from rehab in Switzerland to now. Fuc K. Kenya is so screwed.

[patel]

The big issue here is short term borrowing, high interest and loans repayment. More than 55% of KRA collections is going to loan repayment. Uhuruto 1.0 was not encumbered with heavy loans repayment they lived on grace period.

[GeeMail]

So what's the way forward? If you were in Uhuru's position, what would you do? Ndii is offering some solutions but they are very political and it seems like he's happy his hunch has been confirmed. I'd like to hear from finance experts.

[RV Pundit]

My solution - fix the politics - and then sell safaricom & couple of cash cows - to fix the gov balance sheets (deficit, debt repayment, development). Once we are back to 40-50% debt to GDP - start the music again - and for god sake complete that SGR to Kisumu or Malaba.

Immediately appoint Biwwot daughter Koimett to Finance PS or CS - and ask her to appoint transaction advisor and start fire sale of many parastals. Use the money to fund the budgets deficit - and reduce borrowing for 2yrs - GDP would have grown to 120B - and we will be back to healthy status.

35% of Safaricom can easily bring in 4-5B enough to repay annual debts - or reduce budget deficit to zero.

So what's the way forward? If you were in Uhuru's position, what would you do? Ndii is offering some solutions but they are very political and it seems like he's happy his hunch has been confirmed. I'd like to hear from finance experts.

[GeeMail]

Selling Safaricom would be a good solution, actually. The strange thing is that it will be bought with the money looted from the public coffers by the same thieves who are also running down parastatals. Then they will run down those corporations and the taxpayer will suffer triple loss - government assets sold to thieves, thieves run down parastatals and buy them off, then they run down again and government bails them out, loss of jobs.... There should be a rule about openness and transparency in companies buying out state assets. Full disclosure as bare minimum. In fact, certain names and their families and proxies should be barred from buying and if found, they will forfeit with heavy penalties. But selling off government assets is not creative thinking. It is desperation mode.