mwaswast
JF-Expert Member
- May 12, 2014
- 12,781
- 6,481
Ni jambo la kutumia akili ila kwa akili zako finyu za kibongolala CCMu huwezi ukaelewa.
Battle: Dar es Salaam vs Nairobi
Battle: Dar es Salaam vs Nairobi
ichoboy01
JF-Expert Member
- Mar 6, 2017
- 82,204
- 163,861
tuusan
JF-Expert Member
- Jun 30, 2016
- 17,973
- 20,222
Arusha city
asvptx
JF-Expert Member
- Jun 26, 2018
- 1,940
- 1,015
waTZ mpo hampo? Hivi pesa yote mnatumia kufanya nini kama bado mko LDC?
Mnalia hapa ati ooh Kenya tuko na madeni za watu kumbe NYANI HAONI MAKALIO ukweli
Nimecheka sana. Nilidhani nyinyi ni watu wa kujitegemea. Watu wa kutumia pesa zao.
[emoji23] [emoji23] [emoji23] nyinyi mnapewa pesa lakini hamjinufaishi, nyinyi mnanua ndege na mabasi
Mnalia hapa ati ooh Kenya tuko na madeni za watu kumbe NYANI HAONI MAKALIO ukweli
Nimecheka sana. Nilidhani nyinyi ni watu wa kujitegemea. Watu wa kutumia pesa zao.
[emoji23] [emoji23] [emoji23] nyinyi mnapewa pesa lakini hamjinufaishi, nyinyi mnanua ndege na mabasi
asvptx
JF-Expert Member
- Jun 26, 2018
- 1,940
- 1,015
Traffic lights zenyewe hazifanyi. Ni kama umeme hakuna. Nyinyi mkipata electric train treni zitakwama masaa Saba kwa sababu ya umeme
ichoboy01
JF-Expert Member
- Mar 6, 2017
- 82,204
- 163,861
Bottas
JF-Expert Member
- Jan 2, 2018
- 1,817
- 1,142
Arusha napapenda sana, hii jiji ndio mgeifaya iwe capital iko na potential kubwa sana
ichoboy01
JF-Expert Member
- Mar 6, 2017
- 82,204
- 163,861
Geza Ulole
Platinum Member
- Oct 31, 2009
- 75,683
- 107,124
Kenya debt is over $60 bln now!
We're over borrowing ceiling, says Central Bank Governor
Patrick Njoroge By Otiato Guguyu | Published Thu, July 5th 2018 at 00:00, Updated July 5th 2018 at 09:39 GMT +3
SHARE THIS ARTICLE Share on Facebook Share on Twitter
Engineers working on T-beams for a sea bridge at the Port of Mombasa for the Standard Guage Railway line. [File, Standard]
Kenya cannot afford to take more loans since mega infrastructure projects undertaken by the Government are not making any money to repay debts.
Central Bank Governor Patrick Njoroge said the State had to abandon the model of borrowing and let the private sector drive the economy. ALSO READ: Cut expenditure to control borrowing, think tank advises the State
“We have less headroom to borrow and we are running out of space. We need to look at public-private partnership and build operate and transfer models,” said Dr Njoroge.
“We have had 15 per cent rise in debt over the past few years but what is the return? In fact it is negative, infrastructure is costing us money. We do not have to look very far, Hambantota port in Sri Lanka is gone,” said Rich Management CEO Aly Khan Satchu.
Break even
Operations at the Standard Gauge Railways will take at least three years before it breaks even, according to Kenya Railways Corporation Managing Director Atanas Maina. And until then the Government is sinking in more money to run it.
“Any business takes about five years to break even and we are targeting three. We want to have a surplus by five years,” said Mr Maina.
He said he could not provide the exact cost-plugging the Government was doing because factors keep changing, citing the number of trains they are running, which will soon grow to seven, as an example.
In energy, Kenya is paying billions of shillings for over-capacity and guarantees to firms for idle plants, including Sh13.9 billion to Lake Turkana Wind Power and Sh37 billion to Lamu Coal-fired plant.
On roads, the Government has realised that the Road Maintenance Levy factored in retail fuel prices has not been adequate to cater for road repairs, and hence use of major trunk roads will attract a fee as the Government sets up toll stations along them.
The three were speaking yesterday at the Moody’s fifth Annual East Africa Summit in Nairobi where the ratings firm pointed out that commercial borrowing has contributed to worsening debt affordability.
“Interest payments take up a larger share of Government revenue in all four East African countries compared with five years ago,” Moodys said in a report.
“The deterioration in debt affordability has been most severe in Kenya; interest on debt took up 19 per cent of revenue in FY 2016/17, up from 11 per cent in FY 2011/12, which was already above the B-rated median,” the ratings agency said.
Despite the clarion call for Public Private Partnerships to deliver the Government’s agenda, Treasury has continued to run huge deficits and targets to borrow Sh562.7 billion in the current financial year.
The debt levels have hit Sh5 trillion and with large repayments pushing interest and redemption to Sh870 billion, including two syndicated loans and the part of the 2014 Eurobonds.
Tipping point
The Government says that debt which is currently 60 per cent of the GDP is still manageable, maintaining that the tipping point is 74 per cent.
“If we are talking about 74 per cent of the GDP are we deluded? We are extremely fortunate that the shilling strengthened because of growth in remittances,” said Mr Satchu.
The CBK boss, however, said fiscal consolidation targeting 5.7 per cent of GDP will be good for the economy, offering hope that the State will borrow less.
Treasury wants to offload pension burden to a scheme where civil servants contribute, control procurement and pre-approve any new projects to limit spending. RELATED TOPICS: debt crisis cbk governor patrick njoroge cbk
Read more at: We're over borrowing ceiling, says Central Bank Governor Patrick Njoroge
Bottas
JF-Expert Member
- Jan 2, 2018
- 1,817
- 1,142
60percent of $88 mi $60bn njooni muone huu babu😀😀😀😀😀Aibu ya ldcKenya debt is over $60 bln now!
We're over borrowing ceiling, says Central Bank Governor
Patrick Njoroge By Otiato Guguyu | Published Thu, July 5th 2018 at 00:00, Updated July 5th 2018 at 09:39 GMT +3
SHARE THIS ARTICLE Share on Facebook Share on Twitter
Engineers working on T-beams for a sea bridge at the Port of Mombasa for the Standard Guage Railway line. [File, Standard]
Kenya cannot afford to take more loans since mega infrastructure projects undertaken by the Government are not making any money to repay debts.
Central Bank Governor Patrick Njoroge said the State had to abandon the model of borrowing and let the private sector drive the economy. ALSO READ: Cut expenditure to control borrowing, think tank advises the State
“We have less headroom to borrow and we are running out of space. We need to look at public-private partnership and build operate and transfer models,” said Dr Njoroge.
“We have had 15 per cent rise in debt over the past few years but what is the return? In fact it is negative, infrastructure is costing us money. We do not have to look very far, Hambantota port in Sri Lanka is gone,” said Rich Management CEO Aly Khan Satchu.
Break even
Operations at the Standard Gauge Railways will take at least three years before it breaks even, according to Kenya Railways Corporation Managing Director Atanas Maina. And until then the Government is sinking in more money to run it.
“Any business takes about five years to break even and we are targeting three. We want to have a surplus by five years,” said Mr Maina.
He said he could not provide the exact cost-plugging the Government was doing because factors keep changing, citing the number of trains they are running, which will soon grow to seven, as an example.
In energy, Kenya is paying billions of shillings for over-capacity and guarantees to firms for idle plants, including Sh13.9 billion to Lake Turkana Wind Power and Sh37 billion to Lamu Coal-fired plant.
On roads, the Government has realised that the Road Maintenance Levy factored in retail fuel prices has not been adequate to cater for road repairs, and hence use of major trunk roads will attract a fee as the Government sets up toll stations along them.
The three were speaking yesterday at the Moody’s fifth Annual East Africa Summit in Nairobi where the ratings firm pointed out that commercial borrowing has contributed to worsening debt affordability.
“Interest payments take up a larger share of Government revenue in all four East African countries compared with five years ago,” Moodys said in a report.
“The deterioration in debt affordability has been most severe in Kenya; interest on debt took up 19 per cent of revenue in FY 2016/17, up from 11 per cent in FY 2011/12, which was already above the B-rated median,” the ratings agency said.
Despite the clarion call for Public Private Partnerships to deliver the Government’s agenda, Treasury has continued to run huge deficits and targets to borrow Sh562.7 billion in the current financial year.
The debt levels have hit Sh5 trillion and with large repayments pushing interest and redemption to Sh870 billion, including two syndicated loans and the part of the 2014 Eurobonds.
Tipping point
The Government says that debt which is currently 60 per cent of the GDP is still manageable, maintaining that the tipping point is 74 per cent.
“If we are talking about 74 per cent of the GDP are we deluded? We are extremely fortunate that the shilling strengthened because of growth in remittances,” said Mr Satchu.
The CBK boss, however, said fiscal consolidation targeting 5.7 per cent of GDP will be good for the economy, offering hope that the State will borrow less.
Treasury wants to offload pension burden to a scheme where civil servants contribute, control procurement and pre-approve any new projects to limit spending. RELATED TOPICS: debt crisis cbk governor patrick njoroge cbk
Read more at: We're over borrowing ceiling, says Central Bank Governor Patrick Njoroge
mkorinto
JF-Expert Member
- Jun 11, 2014
- 32,086
- 39,573
punguza punyeto mbuzi we.
Geza Ulole
Platinum Member
- Oct 31, 2009
- 75,683
- 107,124
i wanted to say 60% i.e. $52.8 bln! 7 bln less of which by end of this year will hit $60 bln! As u r planning to borrow more!
ichoboy01
JF-Expert Member
- Mar 6, 2017
- 82,204
- 163,861
wanamadeni mpka matakoni😀😀 na nado wanataka kukopa huku pesa yakulipa pia hawana
ndio maana kuna mchumi wao mmoja alisema kenya wanakopa pesa kwa ajili ya matumizi na sio maendeleo
asvptx
JF-Expert Member
- Jun 26, 2018
- 1,940
- 1,015
Nawasihi mtengeneze barabara bora
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