WSF: Italy signs Kenya's debt cancellation

Geza Ulole

Geza Ulole

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Oct 31, 2009
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WSF: Italy signs Kenya's debt cancellation​

Home / APC Talk / WSF: Italy signs Kenya's debt cancellation

By APC | 23 January 2007
At the World Social Forum the International Alliance of Inhabitants (IAI) entered in a dialogue with the Italian Minister for Development Co-operation, Patrizia Sentinelli, about the involvement of social movements in policies that may result from the agreement to be signed today to convert Kenya’s debt with Italy, worth 44 million euros.

In the past months Nairobi’s slums inhabitants, supported by the Kutoka Parish Network (a network of Catholic parishes) – with the backing of the International Alliance of Inhabitants (IAI) – resisted forced evictions and put forward constructive alternatives in the spirit of art. 11 of the ICESCR, within the framework of the W Nairobi W Campaign, one of the many initiatives linked to the Zero Evictions Campaign.

This successfully prevented the eviction of 300,000 people by mobilising local and international solidarity. On 27 October 2006 an agreement was signed to convert Kenya’s foreign debt with Italy, worth 44 million euros. At one of the WSF’s IAI events, on January 22nd, the Italian Minister for Development Co-operation Patrizia Sentinelli announced that the debt cancellation was to be signed on January 23rd and commited to enter in a dialogue with the Kenyan government to ensure an implementation plan including the involvement of social movements in policies drawing on social participation to combat urban and rural poverty.

Topic:
Access
Region:
Global

WSF: Italy signs Kenya's debt cancellation | Association for Progressive Communications

MY TAKE
Whaooh, a sigh of relief...!

CC: Teargass
 
Geza Ulole said:

WSF: Italy signs Kenya's debt cancellation​

Home / APC Talk / WSF: Italy signs Kenya's debt cancellation

By APC | 23 January 2007
At the World Social Forum the International Alliance of Inhabitants (IAI) entered in a dialogue with the Italian Minister for Development Co-operation, Patrizia Sentinelli, about the involvement of social movements in policies that may result from the agreement to be signed today to convert Kenya’s debt with Italy, worth 44 million euros.

In the past months Nairobi’s slums inhabitants, supported by the Kutoka Parish Network (a network of Catholic parishes) – with the backing of the International Alliance of Inhabitants (IAI) – resisted forced evictions and put forward constructive alternatives in the spirit of art. 11 of the ICESCR, within the framework of the W Nairobi W Campaign, one of the many initiatives linked to the Zero Evictions Campaign.

This successfully prevented the eviction of 300,000 people by mobilising local and international solidarity. On 27 October 2006 an agreement was signed to convert Kenya’s foreign debt with Italy, worth 44 million euros. At one of the WSF’s IAI events, on January 22nd, the Italian Minister for Development Co-operation Patrizia Sentinelli announced that the debt cancellation was to be signed on January 23rd and commited to enter in a dialogue with the Kenyan government to ensure an implementation plan including the involvement of social movements in policies drawing on social participation to combat urban and rural poverty.

Topic:
Access
Region:
Global

WSF: Italy signs Kenya's debt cancellation | Association for Progressive Communications

MY TAKE
Whaooh, a sigh of relief...!

CC: Teargass
Click to expand...
Hii ni habari ya 2007. Wewe siku hizi naona umeanza kuchizi.
 
Geza Ulole said:
hapa kwa mgongo wa African countries, imagine having 49% of yearly budget servicing debt with mltiple defaults and then deciding to spearhead the call for debt cancellation!
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Wakifanya vizuri wanatumia neno "Kenya is the best country in Africa......" katika jambo baya wanajumlisha nchi zingine, sana utasikia " East Africa is highly affected by Chinese loans"
 
joto la jiwe said:
Wakifanya vizuri wanatumia neno "Kenya is the best country in Africa......" katika jambo baya wanajumlisha nchi zingine, sana utasikia " East Africa is highly affected by Chinese loans"
Click to expand...

Debt forgiveness calls grow louder​

By MOSES MICHIRA | April 9th 2020 at 09:10:00 GMT +0300
yjqirulifc4itqv5e8e34cf06691.jpg

National Treasury Cabinet Secretary Ukur Yatani (right) with Principal Secretary in the ministry Julius Muia at a past event. The CS has admitted Kenya's rising debt burden is a threat to fiscal sustainability. [David Njaaga, Standard]

More than 100 civil societies have joined the call for debt forgiveness to enable poorer countries, including Kenya, to wade through the Covid-19 mess.

Kenya is among the world’s most vulnerable nations in debt servicing, with the available resources hardly enough to meet the running of basic services.

Debt repayment is ordinarily the first charge on government revenues, meaning maturing loans must be settled before any other expenses, including salaries for public workers.
Among the organisations rooting for cancellation of external loan repayments are ActionAid International and Oxfam.

They join the International Monetary Fund (IMF) and the World Bank that have already made similar calls.

Further, they are seeking provision of emergency additional financing in grants to help the countries whose economies are hurting from the disruptions caused by the pandemic.

Severe implications
Covid-19 has had severe economic implications for Kenya and other poor countries, with projections indicating that the growth rates could slow by half.

Jubilee Debt Campaign, a UK-based coalition of civil societies, is leading the plea on debt forgiveness, citing that it is the only means to enable the poor countries fight coronavirus.

“All principal, interest and charges on sovereign external debt due in 2020 should be cancelled permanently, they should not accrue into the future,” demanded the civil societies.

“Cancelling debt payments is the fastest way to keep money in countries and free up resources to tackle the urgent health, social and economic crises resulting from the Covid-19 global pandemic.”

Kenya’s ability to service external loans was precarious even before the pandemic, which has so far claimed six lives at home.

Cumulative external debt owed to lenders is over Sh3.2 trillion, with scheduled repayment in the current financial year estimated at Sh350 billion, according to official data.

Without a restructuring of the repayments, the country lacks the means to make the settlements, which are all foreign currency denominated.

The pandemic has ravaged major sectors of the economy such as agriculture and tourism, translating to depressed contribution to the national kitty in taxes.

“Developing countries are being hit by an unprecedented economic shock and at the same time face an urgent health emergency. The suspension on debt payments called for by the IMF and World Bank saves money now but kicks the can down the road and avoids actually dealing with the problem of spiralling debts,” the campaigners said.

IMF and World Bank are among Kenya’s biggest lenders, with their messaging suggesting that they would, at the least, consider restructuring the loan repayment schedules.

China, which has funded major infrastructure projects, including the Sh500 billion Standard Gauge Railway, has not yet committed to negotiating on repayment terms.

Technocrats at the National Treasury had already voiced their concerns long before the pandemic, saying the soaring fiscal deficits and the stock of foreign debts were a cause for worry.

Support fund
Treasury Cabinet Secretary Ukur Yatani indicated in the debt management strategy paper released in February that the huge debts are a “threat to fiscal sustainability”.

At the time, the economy was cushioned from the ravages of Covid-19, which are today manifesting in closed factories and massive layoffs.

In an attempt to keep Kenya afloat, the World Bank and IMF have unveiled a multi-billion-shilling support fund following their respective commitment to push through debt reliefs for the worst-hit struggling economies.

They have also called on official bilateral creditors to provide immediate debt relief to the world’s poorest countries.

“Poorer countries will be the hardest hit, especially ones that were already heavily indebted before the crisis,” World Bank president David Malpass told IMF’s International Monetary and Financial Committee.

“Many countries will need debt relief. This is the only way they can concentrate any new resources on fighting the pandemic and its economic and social consequences,” said Mr Malpass.

Debt forgiveness calls grow louder​

​

 
Geza Ulole said:

Debt forgiveness calls grow louder​

By MOSES MICHIRA | April 9th 2020 at 09:10:00 GMT +0300
yjqirulifc4itqv5e8e34cf06691.jpg

National Treasury Cabinet Secretary Ukur Yatani (right) with Principal Secretary in the ministry Julius Muia at a past event. The CS has admitted Kenya's rising debt burden is a threat to fiscal sustainability. [David Njaaga, Standard]

More than 100 civil societies have joined the call for debt forgiveness to enable poorer countries, including Kenya, to wade through the Covid-19 mess.

Kenya is among the world’s most vulnerable nations in debt servicing, with the available resources hardly enough to meet the running of basic services.

Debt repayment is ordinarily the first charge on government revenues, meaning maturing loans must be settled before any other expenses, including salaries for public workers.
Among the organisations rooting for cancellation of external loan repayments are ActionAid International and Oxfam.

They join the International Monetary Fund (IMF) and the World Bank that have already made similar calls.

Further, they are seeking provision of emergency additional financing in grants to help the countries whose economies are hurting from the disruptions caused by the pandemic.

Severe implications
Covid-19 has had severe economic implications for Kenya and other poor countries, with projections indicating that the growth rates could slow by half.

Jubilee Debt Campaign, a UK-based coalition of civil societies, is leading the plea on debt forgiveness, citing that it is the only means to enable the poor countries fight coronavirus.

“All principal, interest and charges on sovereign external debt due in 2020 should be cancelled permanently, they should not accrue into the future,” demanded the civil societies.

“Cancelling debt payments is the fastest way to keep money in countries and free up resources to tackle the urgent health, social and economic crises resulting from the Covid-19 global pandemic.”

Kenya’s ability to service external loans was precarious even before the pandemic, which has so far claimed six lives at home.

Cumulative external debt owed to lenders is over Sh3.2 trillion, with scheduled repayment in the current financial year estimated at Sh350 billion, according to official data.

Without a restructuring of the repayments, the country lacks the means to make the settlements, which are all foreign currency denominated.

The pandemic has ravaged major sectors of the economy such as agriculture and tourism, translating to depressed contribution to the national kitty in taxes.

“Developing countries are being hit by an unprecedented economic shock and at the same time face an urgent health emergency. The suspension on debt payments called for by the IMF and World Bank saves money now but kicks the can down the road and avoids actually dealing with the problem of spiralling debts,” the campaigners said.

IMF and World Bank are among Kenya’s biggest lenders, with their messaging suggesting that they would, at the least, consider restructuring the loan repayment schedules.

China, which has funded major infrastructure projects, including the Sh500 billion Standard Gauge Railway, has not yet committed to negotiating on repayment terms.

Technocrats at the National Treasury had already voiced their concerns long before the pandemic, saying the soaring fiscal deficits and the stock of foreign debts were a cause for worry.

Support fund
Treasury Cabinet Secretary Ukur Yatani indicated in the debt management strategy paper released in February that the huge debts are a “threat to fiscal sustainability”.

At the time, the economy was cushioned from the ravages of Covid-19, which are today manifesting in closed factories and massive layoffs.

In an attempt to keep Kenya afloat, the World Bank and IMF have unveiled a multi-billion-shilling support fund following their respective commitment to push through debt reliefs for the worst-hit struggling economies.

They have also called on official bilateral creditors to provide immediate debt relief to the world’s poorest countries.

“Poorer countries will be the hardest hit, especially ones that were already heavily indebted before the crisis,” World Bank president David Malpass told IMF’s International Monetary and Financial Committee.

“Many countries will need debt relief. This is the only way they can concentrate any new resources on fighting the pandemic and its economic and social consequences,” said Mr Malpass.

Debt forgiveness calls grow louder​

​

Click to expand...
Walikuwa wakisema wanaume hawasemehewi deni ni kulipa,na hii he? hahaha, shame!
 
Ntaghacha said:
Walikuwa wakisema wanaume hawasemehewi deni ni kulipa,na hii he? hahaha, shame!
Click to expand...

Kenyan parliamentary committee recommends renegotiation of SGR costs​

Sep 26, 2020
Written byOliver Cuenca
A report by the Kenyan Parliament’s Transport Committee has recommended a programme of reforms to reduce losses on the 729km Mombasa – Nairobi – Naivasha Standard Gauge Railway (SGR).
Kenya SGR train on bridge-KRC


Kenya Railways

The Report Inquiry into the Use of SGR, which was presented to the Kenyan parliament on September 22, suggests the immediate renegotiation of operating costs with SGR operator Africa Star Railway Operation Company (Afristar), which it says should be reduced by 50%.

At present, the Kenyan government pays a fixed quarterly fee of Shillings 3.1bn ($US 28.6m) for the operation of SGR to Afristar, a subsidiary of the China Communications Construction Company (CCCC) which built the line. The committee hopes these payments can be reduced to around Shillings 1.5bn per quarter.

SGR has operated at a combined loss of Shillings 21.68bn since the opening of the initial 472.3km Mombasa – Nairobi section in May 2017, receiving Shillings 25.03bn in revenue for the period, compared with Shillings 46.71bn in costs incurred. Due to this, Kenya Railways (KR) has defaulted on payments to Afristar worth an estimated Shillings 40bn.

The report also recommended the renegotiation of loans borrowed in 2014 from China’s Exim Bank to fund SGR, “due to the prevailing economic distress occasioned by the effects of Covid-19.”

Repayments under the current arrangement rose to Shillings 71.4bn this financial year. Kenya began repayments in 2019 following the expiry of a five-year grace period.

Other recommendations made by the committee to reduce losses incurred through the operation of SGR include:
  • the implementation of measures to improve the utilisation of KR assets including land and rolling stock, with income accrued from these assets put towards the payment of the SGR loan
  • the introduction of policies to enable competitive, privately funded rail operation and last-mile rail network expansion on Kenya’s network to reduce incurring further government debt, and
  • the implementation of an additional 0.28% surcharge for the Railway Development Levy (RDL) for road freight users to incentivise a modal shift towards use of the SGR for freight, on top of the present 2.5% levy.
The report follows criticism by members of parliament (MP) towards government directives designed to ensure that containerised freight on the corridor is carried via SGR, and that all freight is transported through the newly-established Naivasha Inland Container Depot (ICD). Both directives have since been rescinded, following concerns that they violated the spirit of a free market economy.

“Forcing use of rail goes against the Competition Act and the spirit of a liberalised market economy,” the report says. “It also goes against the International Maritime Laws and World Trade Organisation (WTO) treaties that allow freight owners to choose the mode of transport that is competitive in their view.”

“The use of this strategy has not only increased the cost of doing business because of the high cost of transporting freight, but has also threatened Kenya’s position as the region’s logistical hub.”

The report follows a ruling by the Kenyan Court of Appeal on June 26, which found that the Shillings 500bn contract agreed between KR and CCCC for the construction of SGR was made illegally, due to the deal being completed without sufficient regard for the country’s competition and procurement laws. The verdict overturned a decision to dismiss the case made by then-High Court judge, Justice Isaac Lenaola (now a member of Kenya’s Supreme Court) in November 2014.

The verdict has cast doubt over the legitimacy of the debts owed to CCCC, and may pose a challenge to Kenya’s attempt to renegotiate operation fees.

If renegotiations are successful, Kenya will be the second African country to renegotiate infrastructure loans with China. In September 2018, Ethiopia successfully renegotiated a loan for its $US 4bn Addis Ababa – Djibouti railway, extending repayments from 10 years to 30.

Kenyan parliamentary committee recommends renegotiation of SGR costs - International Railway Journal
 
Tony254 said:
Hio ya France hamna deni pale. Hio ni ppp. Kwa hivyo hujatazama uzi wa video ya interview ya uhuru niliopost. Tazama hio interview
Click to expand...
Wacha wewe, kama hamna deni serikali ya Kenya isingeweka saini. Katika PPP serikali ndio inakua guarantor kwa huyo private partner ili aweze kukopeshwa hiyo pesa, endapo private Partner atashindwa kurudisha hiyo pesa, serikali ndio italipa, katika vitabu vya mahesabu, hiyo deni inaingia katika orodha ya madeni ya GoK
 
joto la jiwe said:
Wacha wewe, kama hamna deni serikali ya Kenya isingeweka saini. Katika PPP serikali ndio inakua guarantor kwa huyo private partner ili aweze kukopeshwa hiyo pesa, endapo private Partner atashindwa kurudisha hiyo pesa, serikali ndio italipa, katika vitabu vya mahesabu, hiyo deni inaingia katika orodha ya madeni ya GoK
Click to expand...
Are you sure about this?
 
Tony254 said:
Kama ni kweli basi Uhuru anatudanganya kwa sababu ukitazama hio interview niliyopost Uhuru anasema vizuri kuwa Kenya haitajiongezea deni.
Click to expand...
Guarantor ni sawa na kumdhamini mtu anayedaiwa, kazi na jukumu kubwa la serikali ni kumsimamia huyo uliyemzamini arudishe pesa anayodaiwa.

Sasa Kama serikali haihusiki kwa lolote lile katika huo mkopo kwanini kuwepo na PPP?, kwanini isiwe ni private project kama ilivyo bomba la Uganda crude oil pipeline, ambapo muwekezaji anatafuta pesa kwa njia zake anazozijua na serikali inasubiri kupata kodi?
 
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