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THE IMPACT OF UK SPENDING CUTS AND JOB LOSSES ON KENYAN ECONOMY AND NSE
erifloss
#1 Posted : Thursday, October 21, 2010 9:52:38 AM
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Joined: 6/21/2010
Posts: 514
Location: Nairobi
UK announced a major cut on govt spending since WW2 so as to avoid UK from being bankrupt due to high budget deficit, avoid double dip recession, lower inflation and attract investment. On the flipside about 500,000 jobs will be lost, expenditure on welfare will be further reduced and some towns and businesses that depend on govt expenditure will be run down.
I want an opinion from you guys on this with relation to our economy and nse as i think it will have an impact on the tourism and housing sectors...
'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary
Sober
#2 Posted : Thursday, October 21, 2010 10:32:14 AM
Rank: Elder

Joined: 11/27/2007
Posts: 3,604
It's 390,000 jobs to be lost in a span of four years. I dont see how that will affect us because now our main patners is china.
African parents don't know how to say sorry.. the closest you will get to a sorry is a 'have you eaten'
bss
#3 Posted : Thursday, October 21, 2010 10:38:11 AM
Rank: New-farer

Joined: 8/19/2010
Posts: 49
Location: Nairobi
some non-listed outsourcing firms with markets their have ALREADY engaged in retrenchment and other cost cutting measures. i will not name them...this $hit is real. if these employees were NSE investors we talking of less liquidity into the NSE. In my view it's negligible.
mkonomtupu
#4 Posted : Thursday, October 21, 2010 10:39:23 AM
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Joined: 2/10/2010
Posts: 1,001
Location: River Road
govt spending and deficit spending is not the way to grow an economy. it doesn't spur innovation and entrepreneurship it just spurs deals and maintains the status quo. Businesses that depend on govt expenditure are just welfare stations and should just shut down.
On the potential impact on our economy and the nse and housing sector...nil. They did the same under Margaret Thatcher was there any major impact? Tourism will grow given that climate change will make the UK winters cold. The housing sector will get impact from diaspora remittances mainly US. Forget the UK look at China
Hi-Lo
#5 Posted : Thursday, October 21, 2010 10:56:08 AM
Rank: Member

Joined: 10/5/2007
Posts: 91
Military exp will be cut hugely...wont ever got to war...this is beautiful. But the nonsense that aid to...guess this!...Russia, China, India will be cut...beats me!
youcan'tstopusnow
#6 Posted : Thursday, October 21, 2010 10:56:54 AM
Rank: Chief

Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
If the DFID is among the departments being hit with the cuts, the Kenyan economy will be affected, however slightly. I don't see any impact on the NSE specifically though
GOD BLESS YOUR LIFE
youcan'tstopusnow
#7 Posted : Monday, October 25, 2010 12:35:56 AM
Rank: Chief

Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
www.businessdailyafrica....78/-/moicsj/-/index.html UK spending cuts to hurt Kenya ’s horticulture sector
GOD BLESS YOUR LIFE
erifloss
#8 Posted : Monday, October 25, 2010 10:03:19 AM
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Joined: 6/21/2010
Posts: 514
Location: Nairobi
@Mkonomtupu, remember that our largest agricultural market is Europe the largest chunk taken up by the UK and Germany. As for China they've flourished on cheap labour and exports, this being one of the reasons making them weaken the Yuan so as to ensure that their exports are cheap on the international maket. My point being they export more and most of their citizens work to survive a case in point being the shooting incident in Zambia.
'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary
VituVingiSana
#9 Posted : Monday, October 25, 2010 10:05:50 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,349
Location: Nairobi
We need to find new markets... How about Japan, Middle East & Russia?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
mkonomtupu
#10 Posted : Monday, October 25, 2010 11:10:41 AM
Rank: Veteran

Joined: 2/10/2010
Posts: 1,001
Location: River Road
@erifloss, the edible horticultural produce will still be exported in the same volume given that kenya has the lowest production costs. Its luxury items like flowers that will get hurt. Given all the chemicals they dump in naivasha and the treatment given to flower farm workers especially women it's a good thing to downsize. Let's do something better.
Anyway my point was on real estate, whatever the case against China they are now the real estate deal breakers. The Low cost housing technology and efficiency of the contractors (case in point Greatwall apartments) China points to the future UK the past. Think of new markets
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