Topic: Kenya budget larger than rest of EAC combined

East Africa Community countries have raised spending by 20 per cent for the next fiscal in their 2012/2013 budgets read on Thursday, with an eye on job creation, as respective Finance Ministers warn of tough economic times ahead.

The region’s economies have been battered by high food and fuel costs, fluctuating currencies and diminished revenue collection, and
with pressures of surging unemployment, high cost of living and weakening currencies, the governments opted to increase spending that have left their frail economies with the biggest budget deficits ever.

Kenya, Uganda, Tanzania and Rwanda raised their combined spending from $26.6 billion in the 2011/2012 financial year to $32 billion in 2012/2013, according to budget spending plans released by the finance ministers.

Kenya’s total budget stands at Ksh1.4 trillion ($17 billion), up from Ksh1.1 trillion ($12.9 billion) while that of Uganda is Ush11.1 trillion ($4.4 billion) compared with last year’s Ush 9.2 trillion ($3.6 billion).

Tanzania will spend TSh15 trillion (9.5 billion), a rise from Tsh 13 trillion ($8.2 billion) compared with Rwanda’s Rwf 1.3 trillion ($2.3billion), up from Rwf 1.1 trillion ($1.9 billion) in 2011.

Sharp increases in deficit levels are likely to raise governments’ borrowing costs, divert resources from crucial social services like health and affect the standards

By Nairoberry

Can you please provide me with a link?

Why don't you do us a favor and visit your central bank's website ..... I thought you knew what ur talkin about mayn!

Print | Close this window
Kenya 2012 C/A defcit may hit 15 pct of GDP: World Bank

Mon Jun 18, 2012 6:39am GMT
By Richard Lough
NAIROBI (Reuters) - Kenya's economy will grow by 5 percent this year and next but additional external shocks would place east Africa's biggest economy under severe stress, the World Bank said on Monday.
With Kenya gearing up for its first nationwide elections early next year since a disputed poll in late 2007 triggered widespread violence, the bank warned that Kenya's economy was "out of balance".
"In the absence of economic and social turbulence, Kenya should grow at 5 percent in 2012 and 2013, which would still be substantially below its neighbors," the bank said in a report.
Kenya's external position is vulnerable to shocks as the current account deficit has soared, the World Bank said, forecasting the deficit could reach 15 percent of gross domestic product this year.
"This is among the worst external balances in the world and poses a significant risk to Kenya's economic stability," it said. "An additional external shock, especially a sharp rise in oil prices, would trigger severe economic stress, especially if accompanied by capital outflows."
The Washington-based body projected Kenyan inflation would remain below 10 percent in the second half of 2012.
A fall in food prices helped slow Kenya's inflation rate to 12.2 percent in May after it peaked at nearly 20 percent late last year.
© Thomson Reuters 2012. All rights reserved. Users may download and print extracts of content from this website for their own personal and non-commercial use only. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters and its logo are registered trademarks or trademarks of the Thomson Reuters group of companies around the world.
Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
Kenya 2012 C/A defcit may hit 15 pct of GDP: World Bank | Reuters

By FJM

Unataka tujadili budget za nchi za EAC basi leta hoja iliyokamilika, otherwise nachukulia hii hoja kama utani wa rejareja!

FJM,

Nairoberry anataka tu muingie kwenye ligi ya comparison kati ya TZ na Kenya...

By Nyunyu

FJM,

Nairoberry anataka tu muingie kwenye ligi ya comparison kati ya TZ na Kenya...

hehehe na wewe rudi shule ukamilishe darasa la saba upewe cheti chako cha degree

Business
Kenya’s fragile economy at greater risk of a crisis than those of EAC neighbours

Kenya's economy is the most delicate in East Africa as the current account deficit continues to rise, the World Bank said on Monday, while warning that any external shock could trigger severe economic stress.
In its latest economic outlook report on Kenya titled “Walking on a Tightrope,” the World Bank says though the country’s economic growth was on track to hit 5 per cent in 2012, the country’s growth would continue to lag substantially behind that of its neighbours.
“Kenya’s growth outlook trends with the average for sub-Saharan Africa (5.5 per cent in 2012,and 5.6 per cent in 2013) but it is still below its faster neighbours, Tanzania (6.7 per cent), Uganda (6.2 per cent) and Rwanda (7.6 per cent),” the bank says. Kenya’s current account deficit —the difference between the value of imports and exports — has steadily widened over the past 10 years, with the country’s total exports only able to pay for 38 per cent of total imports today, compared with 65 per cent in 2003.
Last month, Kenya cut its 2012 economic growth projections to between 3.5 and 4.5 per cent from April’s forecast of 5.2 per cent, citing inflationary pressure, high lending rates and political risks ahead of the General Elections, as well as the euro crisis in Europe. The Bank cites the same factors as some of the main challenges facing the Kenyan economy in 2012.
“Kenya’s economy is more vulnerable than ever to shocks, due to a large and widening current account deficit, which could reach more than 5 per cent of GDP in 2012. Another oil price shock, poor harvest, or an episode of domestic instability could easily create renewed economic turbulence,” the Bank says.
With Kenya preparing to go to polls in March 2013, political risk, too, is expected to heighten. This situation is made worse by the tensions around the trial of four Kenyans at the International Criminal Court (ICC), a process sections of the government have been working to have stopped.
The steep rise in the country’s current account deficit has been fuelled by a surge in international oil prices and increased imports of consumer goods.
Oil prices have risen from an average of $30 per barrel in 2003 to the current average price of $100 per barrel.
The Economic Survey 2012 released by the Kenya National Bureau of Statistics and the Ministry of Planning last month showed the economy slowed from 5.8 per cent in 2010 to 4.4 per cent last year as key sectors including agriculture, energy, building and construction, manufacturing and financial services declined.
Growth was however recorded in other sectors including in the hospitality industry, real estate, tourism and fishing.
“Growth in the Euro Zone and the UK, major importers of Kenya’s agricultural produce, is projected to slow substantially, indicating the possibility of suppressed external demand.
Against this background, economic growth is likely to be subdued and is projected to grow at between 3.5 to 4.5 per cent in 2012,” Planning Minister Wycliffe Oparanya said recently.
Kenya

By Kijakazi

wewe uliyeleta hii post nafikiri IQ yako ni chini ya 70! vinginevyo usingeweza kuleta kitu kama hicho! sasa Kenya ina uchumi mkubwa KWA SASA hapa AM na kila mtu anajua hilo, sasa iweje iwe ni jambo la ajabu kuwa na bajeti kubwa AM???

Ungeeleweka kama ingekuwa Rwanda ina bajeti kubwa AM basi tungekaa kujadili kwa maana sio kawaida, vinginevyo nafikiri wewe na ninaamini ni mkenya uko kama wakenya wenzako ambao mnakwenda shule kujifunza kiingereza na sio vinginevyo!

sidhani kama ana kosa lolote la kumfanya umtukane..... ameleta news, kama hutaki unaacha

By Geza Ulole

Business
Kenya’s fragile economy at greater risk of a crisis than those of EAC neighbours


Kenya's economy is the most delicate in East Africa as the current account deficit continues to rise, the World Bank said on Monday, while warning that any external shock could trigger severe economic stress.
In its latest economic outlook report on Kenya titled “Walking on a Tightrope,” the World Bank says though the country’s economic growth was on track to hit 5 per cent in 2012, the country’s growth would continue to lag substantially behind that of its neighbours.
“Kenya’s growth outlook trends with the average for sub-Saharan Africa (5.5 per cent in 2012,and 5.6 per cent in 2013) but it is still below its faster neighbours, Tanzania (6.7 per cent), Uganda (6.2 per cent) and Rwanda (7.6 per cent),” the bank says. Kenya’s current account deficit —the difference between the value of imports and exports — has steadily widened over the past 10 years, with the country’s total exports only able to pay for 38 per cent of total imports today, compared with 65 per cent in 2003.
Last month, Kenya cut its 2012 economic growth projections to between 3.5 and 4.5 per cent from April’s forecast of 5.2 per cent, citing inflationary pressure, high lending rates and political risks ahead of the General Elections, as well as the euro crisis in Europe. The Bank cites the same factors as some of the main challenges facing the Kenyan economy in 2012.
“Kenya’s economy is more vulnerable than ever to shocks, due to a large and widening current account deficit, which could reach more than 5 per cent of GDP in 2012. Another oil price shock, poor harvest, or an episode of domestic instability could easily create renewed economic turbulence,” the Bank says.
With Kenya preparing to go to polls in March 2013, political risk, too, is expected to heighten. This situation is made worse by the tensions around the trial of four Kenyans at the International Criminal Court (ICC), a process sections of the government have been working to have stopped.
The steep rise in the country’s current account deficit has been fuelled by a surge in international oil prices and increased imports of consumer goods.
Oil prices have risen from an average of $30 per barrel in 2003 to the current average price of $100 per barrel.
The Economic Survey 2012 released by the Kenya National Bureau of Statistics and the Ministry of Planning last month showed the economy slowed from 5.8 per cent in 2010 to 4.4 per cent last year as key sectors including agriculture, energy, building and construction, manufacturing and financial services declined.
Growth was however recorded in other sectors including in the hospitality industry, real estate, tourism and fishing.
“Growth in the Euro Zone and the UK, major importers of Kenya’s agricultural produce, is projected to slow substantially, indicating the possibility of suppressed external demand.
Against this background, economic growth is likely to be subdued and is projected to grow at between 3.5 to 4.5 per cent in 2012,” Planning Minister Wycliffe Oparanya said recently.
Kenya

hmmm...I think it may be time to pull out Mekatilili 's list!

If Geza thinks posting about risks here is anything negative, he is living in another world; risk-taking is part of our mantra.

Geza Ulole, you want to ammuse yourself while scribling questionable facts from your lofty-perch with Tanzania's economic growth quantam that is higher than kenya's (very true)...How about I shock you a little bit. The largest economy in the world US is growing at 2.8% in comparison to China's 10.2% and yet President OBAMA promised to turn around and accelerate high growth levels. Who is more of a failed state now?!!

I will put here data for all EA countries so as to know where the truth lies

Tanzania:

Central bank		Bank of Tanzania
International Reserves		US$ 3.905 billion (Source: World Bank; Data updated: November 2010)
Gross Domestic Product - GDP		US$ 24.858 billion (2010 estimate)
GDP (Purchasing Power Parity)		68.862 billion of International dollars (2010 estimate)
Real GDP growth		2001 2002 2003 2004 2005 2006 2007 2008 6% 7.2% 6.9% 7.8% 7.4% 6.7% 7.1% 7.3% 2009 20010 2011 2012* 6.7% 6.5% 6.7% 6.4% *Estimate
GDP per capita - current prices		US$ 578 (2006 estimate)
GDP per capita - PPP		$1,601 International Dollars (2006 estimate)
GDP (PPP) - share of world total		1980 1990 2000 2010 2015** 0.07% 0.07% 0.06% 0.08% 0.09% **Forecast
GDP - composition by sector		agriculture: 27.8% industry: 24.2% services: 48% (2011 estimate)(Data released on February 2012)
Inflation		2009 2010 2011 2012* 11.8% 10.5% 7% 17.4% *Estimate
	2009 2010 2011 2012* N/A N/A N/A N/A *Estimate
Household saving rates		N/A(Data released on December 2011)
Public debt (General government gross debt as a % of GDP)		2008 2009 2010 2011 2012* 35% 37.1% 39.9% 44.4% 47.7% *Estimate
Public deficit (General government net lending/borrowing as a % of GDP)		2008 2009 2010 2011* 2012** 0% -4.8% -7% -6% -6.4% *Estimate **Forecast
Market value of publicly traded shares		2007 2008 2009 N/A US$1.293 billion N/A
Largest companies in Tanzania		N/A

Uganda

Central bank		Bank of Uganda
International Reserves		US$ 2.838 billion (Source: World Bank; Data updated: November 2010)
Gross Domestic Product - GDP		US$ 19.399 billion (2010 estimate)
GDP (Purchasing Power Parity)		48.918 billion of International dollars (2010 estimate)
Real GDP growth		2001 2002 2003 2004 2005 2006 2007 2008 5.2% 8.7% 6.5% 6.8% 6.3% 10.8% 8.4% 8.8% 2009 20010 2011 2012* 7.2% 5.9% 6.7% 4.2% *Estimate
GDP per capita - current prices		US$ 532 (2010 estimate)
GDP per capita - PPP		$1,341 International Dollars (2010 estimate)
GDP (PPP) - share of world total		1980 1990 2000 2010 2015** 0.03% 0.03% 0.04% 0.06% 0.06% **Forecast
GDP - composition by sector		agriculture: 21.8% industry: 26.1% services: 52.1% (2011 estimate)(Data released on February 2012)
Inflation		2009 2010 2011 2012* 14.2% 9.4% 6.5% 23.4% *Estimate Public deficit (General government net lending/borrowing as a % of GDP) 2008 2009 2010 2011* 2012** -2.8% -2.4% -4.7% -7.2% -4% *Estimate **Forecast
		Public debt (General government gross debt as a % of GDP) 2008 2009 2010 2011 2012* 22.5% 22.2% 23.3% 29.2% 29.4% *Estimate

Kenya

Central bank		Central Bank of Kenya
International Reserves		US$ 4.321 billion (Source: World Bank; Data updated: November 2010)
Gross Domestic Product - GDP		US$ 42.449 billion (2010 estimate)
GDP (Purchasing Power Parity)		76.104 billion of International dollars (2010 estimate)
Real GDP growth		2001 2002 2003 2004 2005 2006 2007 2008 4.7% 0.3% 2.8% 4.6% 6% 6.3% 6.9% 1.5% 2009 20010 2011 2012* 2.6% 5.6% 5% 5.2% *Estimate
GDP per capita - current prices		US$ 1,008 (2010 estimate)
GDP per capita - PPP		$1,808 International Dollars (2010 estimate)
GDP (PPP) - share of world total		1980 1990 2000 2010 2015** 0.1% 0.11% 0.09% 0.09% 0.1% **Forecast
GDP - composition by sector		agriculture: 22.2% industry: 16.4% services: 64.6% (2011 estimate)(Data released on February 2012)
Inflation		2009 2010 2011 2012* 10.6% 4.1% 14% 10.6% *Estimate
Unemployment rate		2009 2010 2011 2012* N/A N/A N/A N/A *Estimate
Public debt (General government gross debt as a % of GDP)		2008 2009 2010 2011 2012* 45.5% 47.6% 49.8% 48.9% 46.6% *Estimate
Public deficit (General government net lending/borrowing as a % of GDP)		2008 2009 2010 2011* 2012** -4.2% -5.2% -5.1% -4.1% -4% *Estimate **Forecast

u need to learn to see whether it makes sense putting up a budget of US$ 17 bio. while all those deficiency and all those risks r at large! How realistic will that budget be? How will u plug in those deficits? so do u agree with me that ur budget is 15% deficient AND that means donor dependence ama? i need someone smart to explain to me! if Tanzania is 26% donor dependent how about saying Kenya is 15% donor dependent instead of keep lying to urselves ati u r self sufficient and ur budget is 100% supported by urselves! I hope u get my point...

Geza Ulole I put that data specifically for you since your are interested in surgically exposing kenya's economic deficiency. In essense, I wanted you to see that Tanzania's services sector is crippled (actually the lowest in the region) coupled with a large and unresolved accumilation of public/government debt.

....................I wanted you to see how also inflations is on the rise in TZ upto 17% and still rising. There will be eventual effects of such steady inflation.

I was stating the fact the kenyan economy grows at an average low as compared to other EA states since most borrowing is done internaly as opposed to backing from donor funds.

.........................&17 billion was just a responsible budget from the Kenyan Finance minister. If he wanted he could have spent $80 billion. Kenya's source to fix the debts can be achieved from internal borrowing

Question is how will you plug your deficits since Tz's budget depends on mainstream donor funding?!!!

By Kabaridi

Geza Ulole, you want to ammuse yourself while scribling questionable facts from your lofty-perch with Tanzania's economic growth quantam that is higher than kenya's (very true)...How about I shock you a little bit. The largest economy in the world US is growing at 2.8% in comparison to China's 10.2% and yet President OBAMA promised to turn around and accelerate high growth levels. Who is more of a failed state now?!!

I will put here data for all EA countries so as to know where the truth lies

Tanzania:

Central bank		Bank of Tanzania
International Reserves		US$ 3.905 billion (Source: World Bank; Data updated: November 2010)
Gross Domestic Product - GDP		US$ 24.858 billion (2010 estimate)
GDP (Purchasing Power Parity)		68.862 billion of International dollars (2010 estimate)
Real GDP growth		2001 2002 2003 2004 2005 2006 2007 2008 6% 7.2% 6.9% 7.8% 7.4% 6.7% 7.1% 7.3% 2009 20010 2011 2012* 6.7% 6.5% 6.7% 6.4% *Estimate
GDP per capita - current prices		US$ 578 (2006 estimate)
GDP per capita - PPP		$1,601 International Dollars (2006 estimate)
GDP (PPP) - share of world total		1980 1990 2000 2010 2015** 0.07% 0.07% 0.06% 0.08% 0.09% **Forecast
GDP - composition by sector		agriculture: 27.8% industry: 24.2% services: 48% (2011 estimate)(Data released on February 2012)
Inflation		2009 2010 2011 2012* 11.8% 10.5% 7% 17.4% *Estimate
	2009 2010 2011 2012* N/A N/A N/A N/A *Estimate
Household saving rates		N/A(Data released on December 2011)
Public debt (General government gross debt as a % of GDP)		2008 2009 2010 2011 2012* 35% 37.1% 39.9% 44.4% 47.7% *Estimate
Public deficit (General government net lending/borrowing as a % of GDP)		2008 2009 2010 2011* 2012** 0% -4.8% -7% -6% -6.4% *Estimate **Forecast
Market value of publicly traded shares		2007 2008 2009 N/A US$1.293 billion N/A
Largest companies in Tanzania		N/A

Uganda

Central bank		Bank of Uganda
International Reserves		US$ 2.838 billion (Source: World Bank; Data updated: November 2010)
Gross Domestic Product - GDP		US$ 19.399 billion (2010 estimate)
GDP (Purchasing Power Parity)		48.918 billion of International dollars (2010 estimate)
Real GDP growth		2001 2002 2003 2004 2005 2006 2007 2008 5.2% 8.7% 6.5% 6.8% 6.3% 10.8% 8.4% 8.8% 2009 20010 2011 2012* 7.2% 5.9% 6.7% 4.2% *Estimate
GDP per capita - current prices		US$ 532 (2010 estimate)
GDP per capita - PPP		$1,341 International Dollars (2010 estimate)
GDP (PPP) - share of world total		1980 1990 2000 2010 2015** 0.03% 0.03% 0.04% 0.06% 0.06% **Forecast
GDP - composition by sector		agriculture: 21.8% industry: 26.1% services: 52.1% (2011 estimate)(Data released on February 2012)
Inflation		2009 2010 2011 2012* 14.2% 9.4% 6.5% 23.4% *Estimate Public deficit (General government net lending/borrowing as a % of GDP) 2008 2009 2010 2011* 2012** -2.8% -2.4% -4.7% -7.2% -4% *Estimate **Forecast
		Public debt (General government gross debt as a % of GDP) 2008 2009 2010 2011 2012* 22.5% 22.2% 23.3% 29.2% 29.4% *Estimate

Kenya

Central bank		Central Bank of Kenya
International Reserves		US$ 4.321 billion (Source: World Bank; Data updated: November 2010)
Gross Domestic Product - GDP		US$ 42.449 billion (2010 estimate)
GDP (Purchasing Power Parity)		76.104 billion of International dollars (2010 estimate)
Real GDP growth		2001 2002 2003 2004 2005 2006 2007 2008 4.7% 0.3% 2.8% 4.6% 6% 6.3% 6.9% 1.5% 2009 20010 2011 2012* 2.6% 5.6% 5% 5.2% *Estimate
GDP per capita - current prices		US$ 1,008 (2010 estimate)
GDP per capita - PPP		$1,808 International Dollars (2010 estimate)
GDP (PPP) - share of world total		1980 1990 2000 2010 2015** 0.1% 0.11% 0.09% 0.09% 0.1% **Forecast
GDP - composition by sector		agriculture: 22.2% industry: 16.4% services: 64.6% (2011 estimate)(Data released on February 2012)
Inflation		2009 2010 2011 2012* 10.6% 4.1% 14% 10.6% *Estimate
Unemployment rate		2009 2010 2011 2012* N/A N/A N/A N/A *Estimate
Public debt (General government gross debt as a % of GDP)		2008 2009 2010 2011 2012* 45.5% 47.6% 49.8% 48.9% 46.6% *Estimate
Public deficit (General government net lending/borrowing as a % of GDP)		2008 2009 2010 2011* 2012** -4.2% -5.2% -5.1% -4.1% -4% *Estimate **Forecast

Btw do u believe that figure? check here to see what World Bank (most credible institution) says on ur GDP

By Kabaridi

Geza Ulole I put that data specifically for you since your are interested in surgically exposing kenya's economic deficiency. In essense, I wanted you to see that Tanzania's services sector is crippled (actually the lowest in the region) coupled with a large and unresolved accumilation of public/government debt.

....................I wanted you to see how also inflations is on the rise in TZ upto 17% and still rising. There will be eventual effects of such steady inflation.

I was stating the fact the kenyan economy grows at an average low as compared to other EA states since most borrowing is done internaly as opposed to backing from donor funds.

.........................&17 billion was just a responsible budget from the Kenyan Finance minister. If he wanted he could have spent $80 billion. Kenya's source to fix the debts can be achieved from internal borrowing

Question is how will you plug your deficits since Tz's budget depends on mainstream donor funding?!!!

Hahah r u serious? Tanzania's budget has least risks in the region that means more realistic! And this is according to the WB! did u read what i just posted! If we go according to the recent events, u can see those internal sources in ur country have dried up! and ur coming election even bring more risks plus uncertainties refer to the KQ's recent IPO that was under subscribed! BTW be thankfully towards us cause our inflation was highly attributed by ur food deficiencies up North since grains price doubled to trigger that high inflation though least compared to the other EA countries putting all other factors the same among the EA countries e.g. global oil prices and recessions et al ! if we decided to close the border i think urs would have even grew to over 30%

By Geza Ulole

countries putting all other factors the same among the EA countries e.g. global oil prices and recessions et al ! if we decided to close the border i think urs would have even grew to over 30%

You stop at nothing to try and tear Kenya apart

By Nairoberry

hehehe na wewe nyangau rudi shule ukamilishe darasa la saba upewe cheti chako cha degree

None sense! Ina maana Kenya bado kuna watu wa Primary mnawasaidia wafike university level eeh!! Unajifanya hujui jina la manyang'au ni la kina nani eeh!! Kwa kuwa yako umechukua juzi unataka kujilinganisha na baba zako (si umesoma juzi tu wakati Mwai Kibaki ameamrisha Primary school free for all)... koma na uwe na heshima.

Nyang'au lete hoja bana, acha ulimbukeni...

By Dhuks

You stop at nothing to try and tear Kenya apart

Is that all u can say? when will u learn to have a useful conversation with critical facts? enhee everything to u is hating that country of urs! Go and sleep...!

By Geza Ulole

Is that all u can say? when will u learn to have a useful conversation with critical facts? enhee everything to u is hating that country of urs! Go and sleep...!

The fact that you think if Tanzania closed its borders inflation would go to like 30% speak volumes, if Tanzania is the one holding our inflation down then how come you inflation is even higher? Tanzania closing its borders would just mean what we import from there will be sourced from other markets which is basically mostly foodstuff that can be got from anywhere else in the comesa region.

By Geza Ulole

Hahah r u serious? Tanzania's budget has least risks in the region that means more realistic! And this is according to the WB! did u read what i just posted! If we go according to the recent events, u can see those internal sources in ur country have dried up! and ur coming election even bring more risks plus uncertainties refer to the KQ's recent IPO that was under subscribed! BTW be thankfully towards us cause our inflation was highly attributed by ur food deficiencies up North since grains price doubled to trigger that high inflation though least compared to the other EA countries putting all other factors the same among the EA countries e.g. global oil prices and recessions et al ! if we decided to close the border i think urs would have even grew to over 30%

Tanzanias budget has the least risks, but your government has been quoted as saying it has trimmed its growth forecasts from 7% to 6.8 percent due to energy shortages and drought. And the Tanzanian government has adopted internal financial borrowing. So what risks are you attributting to Kenya's economy. Probably drought and that is also a factor nowadays in Tanzania. Political instabilty; that has only an effect on inflation and not any other thing.

.................Only 30% of TZ forecast budget expenditure will focus on development. The rest 70%, will be spent on running administrative costs/government running and maybe strengthening resource production sector. Ibrahim Lipumba, has seen this shortage and has slammed Tanzania's inabilty to tap in resources in production. If grain prices doubled on a larger scale because of high demand from food insecurities to your north, I would expect the prices to be stable. But increase in prices and protectionism from selling grains to neighbouring countries falls in groups of activities like hoarding. Such activities are done to throw such trade to the bottomless-pit. I have even heard from you guys say that TZ with its huge land-resource is the bread-basket of EA and yet food-shortages and rural-hunger has been reported in some areas.

Tanzanias economic woes did not begin recently...I remember in 1977-78 your economy had already started melting, due to increasing global fuel and commodity prices. This is the time actually when the EAC union was boycotted due to your inabilty (Tanzania was unprepared and had no clue or measure that could revamp the economy) to come with policy that would absorb the after-shocks of global economic recession. What your current government is trying to do is crucial for Tanzania's economic competitiveness, or else your country will be playing in the same league of CAR and CHAD. It has also tried to increase the service-sector pre-dominance to reverse the thought that privatization of certain institutions to boost economic sustainabilty as a creation of command economies. This stubborn thought that has been peddled in the minds of politicians in successive generations and has been straining Tanzania's economic potential within the region. Good-luck to CCM as it tries to attune the country's political phsycology to its long-term vision.

..KQ rights issue was underscribed; true that. Their IPO subscriber target was unrealized. But the pride of africa has been the source of envy from west african, southern africa, and European aviation experts. What about the then pre-dominant carrier of Tanzania, AIR TANZANIA CORPORATION. Some of your muisguided politicians moved by pre-emptive peddling of ideas in the 1970s, were against the carriers privatization. Same case with privatization attempts of UGANDA AIR in 2001 that quickly resulted into its liquidation due to un-informed desicion from hopeless managers.

Only Precision Air of late has come to save Air Tanzania corporation and the Aga Khan fund for economic development (AKFED) has intervened to aid Air Uganda to its feet and at least resume normal operations. But the simmilarity of the collapse of such quasi airline corporations is as a result of poor choices made from ill-informed managers running them.

On some terms, I would say there is significant trade between Kenya and Tanzania. But I do not think kenya will suffer inflation as a result of Tanzania closing its borders. If you do that as a way of stroking your national ego, I think Tanzania will suffer more because of poor trading patterns within the SADC region. In fact, trading btn Kenya and TZ has been envisaged very recently after CCM's intervention in country politics and initations of economic recovery strategy programs. You can see kenyas inflation is steady just below the 10% mark.

kenyas foreign trade; below are kenyas main trading partners an exports and import charts:

COUNTRY EXPORTS IMPORTS BALANCE
United Kingdom 244 316 -72
Uganda 226 n.a. n.a.
Pakistan 131 n.a. n.a.
Netherlands 96 112 -16
Germany 73 112 -39
United States 36 127 -91
United Arab Emirates 34 406 -372
Japan 19 164 -145
India 17 132 -115
South Africa n.a. 217 n.a.

Kenya's most sought-after commodity export is tea (28%), which accounts for 17% of the world's tea export market. Coffee follows closely (10%). Other exports include refined petroleum products (7.9%), vegetables (6.5%), fruit (2.9%), and iron plating and sheeting (1.4%). Tourism is also an important source of revenues from foreigners. In 2000 Kenya's imports were distributed among the following categories: Consumer goods 8.2%

Food 11.2%
Fuels 22.0%
Industrial supplies 29.9%
Machinery 17.8%
Transportation 10.4%
Other 0.5%

did u check what percent has been allocated to energy? and do u have idea that Tanzania has been food sufficient for the a long time now over 90% and has enough reserves to render that drought issue insignificant and do u follow the proceedings to see how the MPs want to raise that 30 to 35%? For God sake how do u compare Tanzania's woos to 1978's while the economic pros have least worries on the country reaching the set targets for a country that grows to over 6.5% yearly?

I have a problem with this growth rate percentage. Always stagnant never rising or going below. Always stuck at 6.5% for a decade now. I would have put a question. This stunted growth rate, how do you expect to cater for your energy needs? And if you keep sustaining expensive modes of energy production, what goes into the national reserve. And for now agro-based economic trading is simply coming to a close, due to expanded GMO technologies that is taking root in SA and other west african nations.

I did not follow proceedings because I was busy but give me the percentage allocation for energy and we calculate now that we know that only a paltry 30% will go to developments like infrustructure and others.