Battle: Dar es Salaam vs Nairobi

Battle: Dar es Salaam vs Nairobi

Moses Swai said:
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UDSM Conference hall
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Toa uchafu hapa. This is KICC Conference Hall.
mice-venue-kenya.jpg
 
Geza Ulole said:

Kenya’s debt races past Ksh.7 trillion​

By Kepha Muiruri For Citizen Digital
time updated
Published on: October 12, 2020 10:00 (EAT)


Kenya’s debt races past Ksh.7 trillion

File Photo of The National Treasury.

​

In Summary​

  • The roughly Ksh. 1 trillion addition in the public debt registry is largely attributable to an unrestrained borrowing following the advent of COVID-19 pandemic in the country.
  • The significant accumulation of debt in Kenya has coincided with the new credit lines from Kenya’s development partners with the facilities meant to cushion the economy against the adverse effects of the pandemic.
  • According to the PBO, Kenya’s stock of debt is expected to hit Ksh.7.5 billion next year while the Ksh.9 trillion ceiling approved by Parliament last year will be surpassed at the end of the 2022/23 financial year.

Kenya’s stock of debt zoomed past the Ksh.7 trillion mark in August wounding up at Ksh.7.1 trillion from a flat Ksh.6 trillion at the start of 2020.

The roughly Ksh. 1 trillion addition in the public debt registry as revealed in the latest data from the National Treasury and the Central Bank of Kenya (CBK) is largely attributable to an unrestrained borrowing following the advent of COVID-19 pandemic in the country.

Kenya’s debt stood at a flat Ksh.6 trillion a year ago, translating into an 18.3 per cent growth in the stock of loans as of August this year.

The highest accumulation of the debt has been recorded between March and August when an estimated Ksh.800 billion was added to the stock.

The significant accumulation of debt in Kenya has coincided with the new credit lines from Kenya’s development partners with the facilities meant to cushion the economy against the adverse effects of the pandemic.

For instance, Kenya booked Ksh.81.3 billion ($749 million) from the International Monetary Fund (IMF) Rapid Credit Facility (RCF) and Ksh.108.5 billion ($1 billion) from the World Bank Development Policy Operations (DPO).

External debt has grown by 15.6 per cent to Ksh.3.7 trillion between March and August while local debt has expanded by 9.7 per cent in the same period to Ksh.3.4 trillion.

The majority of the domestic debt, 67.12 per cent is held in Treasury bonds (T-bills) with banking institutions holding a bulk 55.1 per cent of the local loans.

The expansion of Kenya’s debt stock is expected to continue piling pressure on the country’s debt sustainability which has become severed under the COVID-19 pandemic.

In its latest report, the Parliament Budget Office (PBO) has warned of increased debt pressure amidst what are low domestic revenues against increased spending needs under the global health crisis.

According to the PBO, Kenya’s stock of debt is expected to hit Ksh.7.5 billion next year while the Ksh.9 trillion ceiling approved by Parliament last year will be surpassed at the end of the 2022/23 financial year.

Kenya is already staring at a substantive debt refinancing crisis as it currently deploys 49 per cent of ordinary revenues in debt servicing.

This means for every shilling collected, 49 cents go to debt repayment while only a mere 51 cents are left behind for budget implementation.

“The 2020/21 financial year will present difficult economic conditions for fiscal consolidation measures to maintain debt at sustainable levels,” noted the PBO.

Additionally, Kenya’s domestic economy is under pressure from the pandemic while the international financial markets are at the moment non-conducive for debt refinancing.

Moreover, the Kenya shilling has marked a depreciation trend signalling higher costs of external debt refinancing which by large denominated in dollar terms.

The National Treasury is expected to borrow Ksh.951.4 billion in net terms by June according to new revisions contained in the draft Budget Review and Outlook Paper (BROP) to include Ksh.396.8 billion in external debt and Ksh.554.6 billion in local debt.

Externally, commercial financing will represent a partly Ksh.6.2 billion with semi-concessional loans representing Ksh.124.1 billion.

Project loans are estimated at Ksdh.244.1 billion while programme loans are projected at Ksh.202 billion of which Ksh.150 billion is an expected World Bank DPO loan.

Kenya’s debt races past Ksh.7 trillion - Citizentv.co.ke
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Wakuu hii kitu tunaiongea tu humu km masihara lkn impact yake itaumiza sn uchumi ya kenya yn Kenya naiona kabisa inakwenda kuwa Zimbabwe, japo wenyewe wanajipa moyo hawa Wakenya wa humu ni kwasababu hawana Idea yyte ya uchumi ndo mana utamsikia mbn bado kenya ipo juu kwa gdp kuliko Tz but kwa mkenya timamu kabisa aliyeenda shule anajua tofauti iliyopo kati ya kenya ya jana na ya leo au Tz ya jana na ya leo.

WaTz tulieni tunachotakiwa kufanya ni kuzidi kuwaombea mabalaa tu (sorry kunyans cz karma is a fool ) ss tuzd kuwaombea wakope zaidi na zaidi wakishakuwa hawakopesheki ndo tunawapelekea misaada ss ili tuwaoe vzr.
 

News​

Nigeria cherry-picks airlines​

© Tis Meyer (PlanePics.org)
09.10.2020 - 14:47 UTC

Nigeria has granted daily traffic rights to British Airways, Virgin Atlantic, and Turkish Airlines, while continuing to ban other European carriers over reciprocal visa issues.

From October 2, British Airways and Turkish Airlines, along with Ethiopian Airlines, RwandAir, ASKY Airlines, and Air Côte d'Ivoire have approval to operate daily flights to Lagos and Abuja, according to the latest flight schedule update from the Nigerian Civil Aviation Authority (NCAA).

Africa World Airlines has approval to operate twice-daily flights to Lagos and daily ones to Abuja; while Virgin Atlantic, Qatar Airways, Delta Air Lines, and Kenya Airways may now fly daily to Lagos, according to the approval signed by NCAA Director-General and Chief Executive Officer, Captain Musa Nuhu.

Meanwhile, the West African country continues to blacklist Lufthansa, Air France, and KLM Royal Dutch Airlines over travel restrictions imposed on Nigerian tourist visa holders by the European Union. This despite a meeting between Nigeria’s Aviation Ministry and EU ministers last month when discussions were reported to have "progressed well".

In similar tit-for-tat aero-politics, Nigeria banned Emirates for travel restrictions imposed by the United Arab Emirates, but reversed its decision on September 30 after the UAE backed-down. Aviation Minster Hadi Sirika tweeted the UAE would begin issuing visas to Nigerians on October 8, 2020.

BA, Virgin Atlantic, and Turkish Airlines were excluded from the blacklist published by Nigeria's Federal Ministry of Aviation ahead of the reopening of the country's international airspace on September 5, 2020.

According to the ch-aviation schedules module, BA started operating daily flights from October 3 to Lagos and daily to Abuja from October 7. Virgin Atlantic was scheduled to operate three weekly flights from October 7. Turkish Airlines began flying to Lagos and Abuja on October 3, increasing its frequencies to Abuja and Lagos to four weekly by October 8 and October 9 respectively.

Nigeria cherry-picks airlines
 
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