Infrastructure pushes Kenya debt to Sh3.76 trillion

[kilam]

Apr. 05, 2017, 12:15 am | By CYNTHIA ILAKO @ladykanyali

Kenya’s overall public debt increased by Sh608 billion in 12 months through December 2016, fresh data by the Central Bank of Kenya shows, underlining increased debt appetite for infrastructure development.

The CBK's quarterly Economic Review report for the second quarter of 2016-17 financial year, published last Friday, indicate the value of debt rose to Sh3.763 trillion from Sh3.155 trillion a year earlier. This means that debt has doubled during Jubilee administration's first term, having jumped by 98.94 per cent compared to Sh1.89 trillion the regime inherited in June 2013.

The CBK data indicate that about 54.6 per cent of Kenya's national wealth, technically referred to as gross domestic product, was in debt compared to 45.8 per cent in the second quarter of 2015-16 fiscal year.

Funds borrowed domestically increased 25.39 per cent year-on-year to Sh1.931 trillion in December 2016 from Sh1.540 trillion, while external debt grew by 13.45 per cent to Sh1.83 trillion from Sh1.62 trillion a year earlier.

“The December 2016 Debt sustainability update showed that Kenya faces a low risk of external debt distress. All the liquidity and solvency debt burden indicators were below the Country Policy and Institutional Assessment based thresholds,” CBK states, adding: “There is a temporary breach of debt service to exports ratio under standardised stress tests.”


Analysts at financial advisory firm StratLink foresee a rise in the government’s appetite for debt in the coming months, characterised by potential challenges in revenue mobilisation due to a slowdown in business activities.

“Exploration of crowd funding to tap into relatively cheap credit from the general public through the M-Akiba platform promises to be one of the avenues through which the government meets shortfalls,” StratLink says in its Kenya Market Update published yesterday.

The report shows there is a general slowdown in business which is characteristic of the election year and weak recovery of commodity prices. This may hurt mobilisation of government’s revenue target of Sh1.7 trillion.

To ease pressure on external borrowing and mobilise funds for infrastructure development, the National Treasury plans to issue a Sh5 billion bond through the mobile-based platform, M-Akiba, in June after the Sh150 million pilot sale that was launched on March 23.

However, the CBK data shows that should the primary deficit remain at the current levels, public debt will take an upward trajectory to way above the EAC convergence criterion.

Infrastructure pushes Kenya debt to Sh3.76 trillion

 

[tuusan]

Wazee wa super highway

 

[LangatKipro]

No problem with debt brother...it is non of your concern because it is Kenyans who will pay it. In addition it is being used to develop highways, ports, airports and many infrastructure projects...so it is beneficial

 

[kilam]

No problem with debt brother...it is non of your concern because it is Kenyans who will pay it. In addition it is being used to develop highways, ports, airports and many infrastructure projects...so it is beneficial

Yamune??

 

[LangatKipro]

Yamune??

Achamage

 

[3rd man]

hivi mkuu sgr ya mwendo kasi imefikia wapi​

Wazee wa super highway

 

[tuusan]

hivi mkuu sgr ya mwendo kasi imefikia wapi​

Last time walikua wanaandaa site..

 

[No SQL]

Sasa wenzenu deni linafanya vitu vya maendeleo na vinaonekana...nyie underdogs Tz vp..mnazid kujitengenezea madeni..IPTL na mchanga mtakuja kudaiwa tu..fafafaa

 

[rr4]

AISEEEEEEEEEEEEEEEEEEEE........ WAZEE WA MIKOGO NA KUJIMILIKISHA VILIVYO TZ KUMBE MNAJITUTUMUA NA MADENI.

VIPI THE BIGGEST ECONOMY IN EAST AFRICA.

 

[Iconoclastes]

At least our $3.78bn has been accrued mostly due to the infrastructural projects going on here, but what explains the Tanzania's $8bn public debt?
And that's excluding the huge debt u were unable to repay, it had to be cancelled in 2003!

 

[kilam]

Sasa wenzenu deni linafanya vitu vya maendeleo na vinaonekana...nyie underdogs Tz vp..mnazid kujitengenezea madeni..IPTL na mchanga mtakuja kudaiwa tu..fafafaa

Acha ujinga wewe, kama huijui Kenya bora unyamaze kuliko kuja kuropoka humu.

 

[Eyce]

At least our $3.78bn has been accrued mostly due to the infrastructural projects going on here, but what explains the Tanzania's $8bn public debt?
And that's excluding the huge debt u were unable to repay, it had to be cancelled in 2003!

Kenya's annual budgets depends a little on foreign assistance compared to ours....
you cant even compare our GDP with yours since our economic capacity is quit different from yours..

Your private sector is huge making public services readily available while in Tz, public sector is a major drive of the economy posing a higher burden to the government in provision of the services concerned

Tanzania cant finance its budget fully including the re-current expenditures plus the inflated figures of past projects...
But infrastructural wise, Tanzania have developed especially in interconnecting the district with tarmac roads,bridges,ferries and many other completed and undercostruction projects such as gas pipeline,rapid transit roads, airports, highways,sgr ,fly overs, in mining etc.....

Our nation is very vast and our population is very disparsed compared to your country so, its normal for many projects to go unnoticed...

 

[kilam]

Kenya's annual budgets depends a little on foreign assistance compared to ours....
you cant even compare our GDP with yours since our economic capacity is quit different from yours..

Your private sector is huge making public services readily available while in Tz, public sector is a major drive of the economy posing a higher burden to the government in provision of the services concerned

Tanzania cant finance its budget fully including the re-current expenditures plus the inflated figures of past projects...
But infrastructural wise, Tanzania have developed especially in interconnecting the district with tarmac roads,bridges,ferries and many other completed and undercostruction projects such as gas pipeline,rapid transit roads, airports, highways,sgr ,fly overs, in mining etc.....

Our nation is very vast and our population is very disparsed compared to your country so, its normal for many projects to go unnoticed...

Kenya wanategemea misaada ya wazungu kwa kiasi kikubwa mno. 20% ya bajeti ya Kenya ni misaada, hapo bado hujaongezea mikopo.
Ukweli ni kwamba hayo madeni (na Tanzania pia) hayalipiki. Ukijenga barabara huzalishi mapato kwa nia yoyote (tunajidanganya kuwa barabara zitainua uchumi lakini kiuhalisia si kweli). Unakopa pesa kufanya miradi ya miundombinu ambayo yote inafanywa na Wachina, hapo hela hazibaki Afrika.

 

[Eyce]

Kenya wanategemea misaada ya wazungu kwa kiasi kikubwa mno. 20% ya bajeti ya Kenya ni misaada, hapo bado hujaongezea mikopo.
Ukweli ni kwamba hayo madeni (na Tanzania pia) hayalipiki. Ukijenga barabara huzalishi mapato kwa nia yoyote (tunajidanganya kuwa barabara zitainua uchumi lakini kiuhalisia si kweli). Unakopa pesa kufanya miradi ya miundombinu ambayo yote inafanywa na Wachina, hapo hela hazibaki Afrika.

sidhani kama unajua kuwa mikoa ya kusini mwa Tanzania ilikuwa haina maendeleo kwa kiasi kikubwa ila kutokana na ujenzi wa barabara bora miji inazidi kuendelea, mimi ni shahidi wa hilo

Watu wamezidi kuhamia mikoa hiyo na kuanzisha vitegauchumi vingi ambavyo vimeajiri na kupanua tax base...

Kilimo cha kisasa kimekua na hata southern circuit of Tanzanias tourism inaendelea pia...

Sometimes we need those infrastructures not coz of direct profits but indirect ones since they are the product of peoples empowerment and better investment environment

Kumbuka kuna projects zinginezo ambazo zitarudisha pesa directly kama kigogo nd busisi bridge,nyerere bridge,mwanza airport,sgr etc

 

[Geza Ulole]

No problem with debt brother...it is non of your concern because it is Kenyans who will pay it. In addition it is being used to develop highways, ports, airports and many infrastructure projects...so it is beneficial

Ubaya ni kwamba Uganda na Rwanda wamewakimbia lazma mle mabuya maana kulilipa ni ndoto

 

[kilam]

sidhani kama unajua kuwa mikoa ya kusini mwa Tanzania ilikuwa haina maendeleo kwa kiasi kikubwa ila kutokana na ujenzi wa barabara bora miji inazidi kuendelea, mimi ni shahidi wa hilo

Watu wamezidi kuhamia mikoa hiyo na kuanzisha vitegauchumi vingi ambavyo vimeajiri na kupanua tax base...

Kilimo cha kisasa kimekua na hata southern circuit of Tanzanias tourism inaendelea pia...

Sometimes we need those infrastructures not coz of direct profits but indirect ones since they are the product of peoples empowerment and better investment environment

Kwa nini tokea nchi za Afrika zimepata uhuru pamoja na kujenga barabara nyingi hadi leo haziwezi kufanya miradi ya maana bila ya kukopa? Njia pekee ya kulipia mikopo ya miundombinu ni toll roads na toll bridges kama Kigamboni angalau hadi hela zijilipe.

Huwezi kulipa madeni kwa kutoza watu Tsh 500 mabasi ya mwendo kasi wakati unadaiwa mabilioni. Habari mbaya zaidi ni kwamba miradi yote inafanywa na wageni.

 

[Eyce]

Kwa nini tokea nchi za Afrika zimepata uhuru pamoja na kujenga barabara nyingi hadi leo haziwezi kufanya miradi ya maana bila ya kukopa? Njia pekee ya kulipia mikopo ya miundombinu ni toll roads na toll bridges kama Kigamboni angalau hadi hela zijilipe.

Huwezi kulipa madeni kwa kutoza watu Tsh 500 mabasi ya mwendo kasi wakati unadaiwa mabilioni. Habari mbaya zaidi ni kwamba miradi yote inafanywa na wageni.

Tatizo lingine la Tanzania...
Tunafanya jitihada ndogo kuwekeza katika future na vitu vingi vinafanywa kwa misingi ya kisiasa....
Kingine ni uchumi kuendeshwa na sekta za umma na jitihada za kuendeleza sekta binafsi itakayoongozwa na wazawa ni ndogo mno kwa maana hata ukiweka payment system wakati watu hawana uwezo mkubwa ni kuwaongezea mzigo mkubwa wa kimaisha....

Mawaziri wapo busy kutafuta foreign investors huku base yetu ni dhaifu....ninachokiona ni capital inflow and profit outflow ambazo haziwezi kuuhudumia uchumi wa taifa letu..

 

[Mhe McAmacy]

Hili swala la mikopo tutawaelimisha mara ngapi.
Hivi waTz mbali na uwezo wenu mdogo wa kung'amua pia mpo wepesi wa kusahau hivi.
Hata nchi iliyoendelea na tajiri kama Marekani pia wana matrioni ya dola kwa mikopo...

 

[Iconoclastes]

Kenya wanategemea misaada ya wazungu kwa kiasi kikubwa mno. 20% ya bajeti ya Kenya ni misaada, hapo bado hujaongezea mikopo.
Ukweli ni kwamba hayo madeni (na Tanzania pia) hayalipiki. Ukijenga barabara huzalishi mapato kwa nia yoyote (tunajidanganya kuwa barabara zitainua uchumi lakini kiuhalisia si kweli). Unakopa pesa kufanya miradi ya miundombinu ambayo yote inafanywa na Wachina, hapo hela hazibaki Afrika.

Kenya finances upto 95% of its budget, not 80%.
But that is neither here nor there. All countries, however rich or poor would have to borrow from external lenders at some point to finance some of their development initiatives. It is not necessarily sumthing undesirable, the way u and some of your fellow Tanzanians are making it seem. Just read thru Tobaaa's well articulated explanation above.

 

[Geza Ulole]

sidhani kama unajua kuwa mikoa ya kusini mwa Tanzania ilikuwa haina maendeleo kwa kiasi kikubwa ila kutokana na ujenzi wa barabara bora miji inazidi kuendelea, mimi ni shahidi wa hilo

Watu wamezidi kuhamia mikoa hiyo na kuanzisha vitegauchumi vingi ambavyo vimeajiri na kupanua tax base...

Kilimo cha kisasa kimekua na hata southern circuit of Tanzanias tourism inaendelea pia...

Sometimes we need those infrastructures not coz of direct profits but indirect ones since they are the product of peoples empowerment and better investment environment

Kumbuka kuna projects zinginezo ambazo zitarudisha pesa directly kama kigogo nd busisi bridge,nyerere bridge,mwanza airport,sgr etc

sawa ila kufananisha miradi ya Kenya ambayo ina ufisadi na ile ya MCC south of Tanzania ni ujuha uliopitiliza. Jiulize Eurobond money ipo wap na jiulize kwann 1km of unelectrified SGR ni twice the amount of electrified rail in Tanzania. Jiulize kwann Rwanda na Uganda wanawahepa? Kwann wanamchukia Magufuli? Pitia magazeti yao uone wanavyomshambulia huku wakimuacha UK akiendelea kufilisi nchi? Wizi umezidi miradi ya Kenya mtu asikudanganye. Haitawaneemesha