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public debt. another greece in the making or will G.K pull it off.
Muthawamunene
#1 Posted : Thursday, January 27, 2011 10:16:53 PM
Rank: Member


Joined: 1/3/2011
Posts: 264
Location: Nairobi
public debt is at 109 BILLION BOB!! thats allot of chedda to take away from kenyan hands. add admin cost and interest and thats even more chedda to promise kenyans. Reduced call revenues, demolitions of businesses and mututho hiding the bottle opener jus makes me wonder, is G.K serious ama thy want another greece on african soil?
Cde Monomotapa
#2 Posted : Friday, January 28, 2011 12:31:57 AM
Rank: Chief


Joined: 1/13/2011
Posts: 5,964
I believe Kenya still has a healthy balance sheet in terms of debt to GDP ratio at i think 60%. The economies abroad including Greece have it at over 100% meaning they owe more than they make. I don't discount us headed that way over time so my advice is to make hay while the sun shines and cash out then reinvest when the econ is greatly trashd but with signs of growth ;-)
erifloss
#3 Posted : Friday, January 28, 2011 8:11:15 AM
Rank: Member


Joined: 6/21/2010
Posts: 514
Location: Nairobi
What is most annoying about these govt borrowings is that apart from infrastructure bonds the largest chunk of the rest funds the recurrent budget which adds nothing to the govt coffers. This might actually make it worse for Kenyans, the govt should invest most of this cash on projects that will spur expenditure. From dwindling taxes from the telecom sector & brewers, i'm waiting to see Uhuru's next move after saying that they'll not be raising taxes this year!
'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary
mukiha
#4 Posted : Friday, January 28, 2011 8:28:16 AM
Rank: Elder


Joined: 6/27/2008
Posts: 4,114
erifloss wrote:
What is most annoying about these govt borrowings is that apart from infrastructure bonds the largest chunk of the rest funds the recurrent budget which adds nothing to the govt coffers.

Not true
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
mukiha
#5 Posted : Friday, January 28, 2011 8:30:06 AM
Rank: Elder


Joined: 6/27/2008
Posts: 4,114
Muthawamunene wrote:
public debt is at 109 BILLION BOB!! thats allot of chedda to take away from kenyan hands.

Sh109b is just about 10% of the national budget; i.e. a very very small amount!
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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