Greece's economic collapse could have parallels in Kenya

Mzalendo452 said:
Vipi Nonda,

This is good stuff you have posted here about the UK debt crisis. However, let me clarify in this thread when you hear us ever mention the initials U.K. , we are referring to Jomo's son.
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I saw that post but I couldnt figure out the connection. I hope Nonda got it now...:biggrin:
 
Smatta said:
Am good AB, how's the U.S, thought you'd be dropping by this holiday season and probably bring in some dollars to save our shilling from its imminent slump.... One thing that you should note sir is that currently, Kenya has a leadership vacuum, its crazy to note that there is no single candidate that is popular enough to win the election without relying on his kinsmen. This is quite dangerous for the country considering the inflation and the unaffordability (if there's such a word) of basic, everyday commodities. The hopelessness and disillusion due to the above stated fact will and should lead to a revolution, the only problem is tribalism.

I loved the article by Commissioner Omar Hassan, he said what everybody has been saying all along. Its common knowledge that Kibaki has given all the sensitive dockets to his tribesmen, ignoring and going against the constitution. the goons who have been baying for Omar's blood are just insensible and have buried their head in the sand like the proverbial ostrich, Kenyans are tired of their theatrics, we know who they are and they wont see parliament next election.

Na AB unajua hatuwezi hamia tuje Bongo, you guys dont like us like that.. on a serious note, its about time the Kenyan public puts its act together, we need to be united to win this war against this mad cleptocrats.
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Smatta na Mzalendo452,

I'm good out here lakini hli ji-snow na baridi makes me wanna come home ASAP. I was there last year Dec to
February shuttling between Dar-Mombasa-Nairobi and Arusha. Pity we couldnt link up and have a tusker in the
name of EAC..( I know u like that animal...:biggrin:)

I concur with your analysis of the kenyan political landscape and the reason for apathy. However I beg to differ
with your statement of not voting and staying home imbibing the frothy tusker. If the learned like you don't go
out there and educate the masses then the situation will remain as it is and that doesn't augur well with posterity.
Kwa hivyo nitakuomba kwa mara nyengine usife moyo ndugu yangu, you have to keep the heat on before
meaningful gains are realised. Contrary to that, then all the meaningful gains will be wiiped out. Right now as I read
various Kenyan dailies, it is obvious that the 'Mpigs' do not have a clue that there is a new dispensation in town and
thats why they don't want to respect the new constitution. Why are they still arguing about not paying taxes? Why
are they still arguing about the election? Why are people like Wetangula and Goebels Mutua trying to go against the
Judge's ruling on Bashir's arrest warrant? All I'm trying to say ni kwamba licha ya ku-promulgate katiba bado tunaona
mapambano yapo and folks should not slack. Carry that message forward bro!

Now back to the economic front.

This is how the shilling has been declining with some 'fake recovery'...

Chart.aspx


And then Cheserem who I believe was the CBK governor during Moi days ( I was learning in Kenya by then) said this about Ndungu:

The Standard | Cheserem says Ndung'u has failed economy


Kisha to add my two cents to the topic, I believe Kenya imports more than it exports and to maintain such a trade balance,
she has to borrow money from somewhere. That in itself is not bad lakini shida inatokea when you have to payback plus interest.
That is where the common mwananchi gets bombarded with taxes that are meant to offset these debts. Kisha kumbuka kua all
this is not happening in a vacuum and there are factors at play including depreciation and inflation. That scenario paints a dog
chasiong its own tail in circles! i had given an example of the estimate done on the Thika Highway by the Chinese and how
inflation has really changed the price tag!...By the way my sister works at AfDB and gives me some infor on the workings of
this thing.

Kenya's current fiscal year is running on a trade deficit of sh 236 billion while the total expenditure projection stood at 1.2 trillion.
Sasa who is going to finance that deficit?....That is where Uhuru Kenyatta comes with his economics of wanting a leeway in imposing
levies and taxes on the common mwananchi! Somebody told me that the man has a stake in Kenya's banking system where
people get loans! Go figure why he is pushing for this freehand.

Another bleak picture I want to paint is contained in this story I picked out in the daily nation:

High rates stoke fears of housing crisis


PIX3.jpg


File| Nation Apartments under construction in Nairobi. Experts warn high interest rates and inflation have slowed demand for houses, especially in upmarket estates.

​
By MWAURA KIMANI pmkimani@ke.nationmedia.com
Posted Friday, December 9 2011 at 22:00



Elizabeth Ngigi, an auditor, took a Sh5 million mortgage two years ago to buy a three-bedroom house in Kahawa Wendani, in the outskirts of Nairobi.


The interest rate for the facility was 10 per cent, which means she was paying a monthly instalment of Sh53,730. She would have paid Sh9,6071,466 at the end of the 15-year mortgage.

Ordinarily, that was affordable for the 27 year-old who earns a net salary of Sh80,000. But now it's not.

At the end of last month, the bank sent her a note - the fourth since she took the facility - saying it had adjusted the lending rate to 23 per cent, pushing her monthly repayment to Sh99,083.

A quick calculation shows she would have paid Sh17,834,970 - more than triple the amount borrowed, assuming the rates remain at 23 per cent - after 15 years

"I'm left holding on a loan which I can no longer afford. I regret it" Ms Ngigi said.

The steep rise in interest rate has come as a shocker to Kenyans whose spending habits were shaped by years of relatively low cost of borrowing. Each increase of 1 percentage point in rates adds as much as 10 per cent to the total cost of a home, real estate analysts said.

High rates stoke fears of housing crisis *- News*|nation.co.ke
 
Ab-Titchaz said:
Smatta na Mzalendo452,


Another bleak picture I want to paint is contained in this story I picked out in the daily nation:

High rates stoke fears of housing crisis


PIX3.jpg


File| Nation Apartments under construction in Nairobi. Experts warn high interest rates and inflation have slowed demand for houses, especially in upmarket estates.

​
By MWAURA KIMANI pmkimani@ke.nationmedia.com
Posted Friday, December 9 2011 at 22:00



Elizabeth Ngigi, an auditor, took a Sh5 million mortgage two years ago to buy a three-bedroom house in Kahawa Wendani, in the outskirts of Nairobi.


The interest rate for the facility was 10 per cent, which means she was paying a monthly instalment of Sh53,730. She would have paid Sh9,6071,466 at the end of the 15-year mortgage.

Ordinarily, that was affordable for the 27 year-old who earns a net salary of Sh80,000. But now it's not.

At the end of last month, the bank sent her a note - the fourth since she took the facility - saying it had adjusted the lending rate to 23 per cent, pushing her monthly repayment to Sh99,083.

A quick calculation shows she would have paid Sh17,834,970 - more than triple the amount borrowed, assuming the rates remain at 23 per cent - after 15 years

"I'm left holding on a loan which I can no longer afford. I regret it" Ms Ngigi said.

The steep rise in interest rate has come as a shocker to Kenyans whose spending habits were shaped by years of relatively low cost of borrowing. Each increase of 1 percentage point in rates adds as much as 10 per cent to the total cost of a home, real estate analysts said.

High rates stoke fears of housing crisis *- News*|nation.co.ke
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I really felt sorry for that lady, its crazy thinking that the bank will reposes her house if she'll be unable to repay the morgage in the long run.In words I never said, Lupe Fiasco said ''Crooked banks around the world would gladly give a loan today So if you ever miss a payment, they can take your home away''.. Banks are thieves, their interest rates are extremely high, I dont F*ck with bank loans, credit cards no matter how much they shove it on my face.. I have invested allot in SACCO'S and I can take very large development loans with minimal interest and flexibility on payment, that's what people should do. Our economy is on a free fall, and illegal businesses like Shylocking are thriving in this enviroment with their obscene interests... its funny how money works.
 
Ab-Titchaz said:
Smatta na Mzalendo452,

I'

Kenya's current fiscal year is running on a trade deficit of sh 236 billion while the total expenditure projection stood at 1.2 trillion.
Sasa who is going to finance that deficit?....That is where Uhuru Kenyatta comes with his economics of wanting a leeway in imposing
levies and taxes on the common mwananchi!
Click to expand...

FYI, Kenya has been running on a financial debt since Anglo-leasing. Did you know about, that or you had crossed to oversees by then. It's only the poor Kenyan who is supporting those 'Mpigs' BTW thru NSSF, NHIF. Kenya now is for the Working class. Have a clue about the mortgage scheme for the members of the judiciary. Sisi na kura zetu tuendelee kukaa. And do not think Atwoli is just hullabalooing for nothing
 
Mkuu MkamaP.

Ni kweli hili nalo neno.Unajua mkuu wangu kuna maeneo EA wanaweza kushirikiana wananchi wa pande zote wakawa happy Tanzania inahitaji walimu from Kenya & Uganda ingawa tayari wapo kibao.

MkamaP said:
Kwanini serikali ya bongo isiwachukue graduate wa kenya nakuwapa shule za kata. Kiukweli kenya shughuri pevu wakati bongo hakuna walimu.
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Ngongo said:
Mkuu MkamaP.

Ni kweli hili nalo neno.Unajua mkuu wangu kuna maeneo EA wanaweza kushirikiana wananchi wa pande zote wakawa happy Tanzania inahitaji walimu from Kenya & Uganda ingawa tayari wapo kibao.
Click to expand...

Kwanini mutake waalimu kutoka Kenya au Uganda? What are your graduates from tz busy doing? and where are they? Kwanza mfumo wenu wa elimu ni ngumu, itakuwa vigumu waalimu kutoka nje ya Tz kufunza huko. Kama kwa mfano huyu jamaa anayeitwa Yona Fares Maro aliyeandika post hapa JF, anakaa amesoma sana. Anafanya nini katika chuo kikuu huko marekani?
 
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