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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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In the current financial 2016/2017 year kenyan govt will pay sh.466.5bn to repay debt. Interest will be sh.250 8bn and principal sh.215.7bn Domestic loans interest is sh.197.3bn and foreign 53.5bn Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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Ericsson wrote:In the current financial 2016/2017 year kenyan govt will pay sh.466.5bn to repay debt.
Interest will be sh.250 8bn and principal sh.215.7bn
Domestic loans interest is sh.197.3bn and foreign 53.5bn Interest higher than repayment??? And more loans to come? ?? Doesn't feel right in my tummy And for people who don't know munafikiri cs finance will pay this out of his pocket ??? NOP brace up for more taxes. Tutalipa hii pesa mpende msipende.kenyabs should be talking about issues affecting their daily lives like foreign debts not IEBC only
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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Formula should change from debt/Gdp ratio and be replaced with debt/ordinary revenue collection and for this it shouldn't go above 30% Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 2/8/2007 Posts: 808
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But our Debt at 2.5trill and ordinary revenue at about 800million we are talking 300%. Perhaps you are referring to debt service per annum against ordinary revenue in which case for 2016/17 we are looking 416m against 1.2trill.
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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Correct Kausha debt service per annum against ordinary revenue Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 9/18/2014 Posts: 1,127
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http://www.bloomberg.com...-rate-for-next-eurobond
I fail to understand how the cs thinks we will get a yield on the second euro bond at a similar rate to our debut issuance. Banking on yield starved investors to offer favorable rates is not a solid strategy in my opinion. Even with advanced economies currently in the negative scale, we will still borrow at a premium vs the initial bond. I doubt whether we will manage to successfully float it at less than 8%. Coming hot on the heels of a frazzled market, African states in distress(inflation, drought, devaluations, falling commodity prices) and a rising debt to GDP ratio even 8% sounds optimistic. If you factor in a strengthening USD... The main purpose of the stock market is to make fools of as many people as possible.
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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lochaz-index wrote:http://www.bloomberg.com/news/articles/2016-06-26/kenya-finance-minister-sees-affordable-rate-for-next-eurobond
I fail to understand how the cs thinks we will get a yield on the second euro bond at a similar rate to our debut issuance.
Banking on yield starved investors to offer favorable rates is not a solid strategy in my opinion. Even with advanced economies currently in the negative scale, we will still borrow at a premium vs the initial bond.
I doubt whether we will manage to successfully float it at less than 8%. Coming hot on the heels of a frazzled market, African states in distress(inflation, drought, devaluations, falling commodity prices) and a rising debt to GDP ratio even 8% sounds optimistic. If you factor in a strengthening USD... Dreaming is free. But reality is something else. Floating a eurobond now should be an act of crime! Who in their sane mind would come to the market as the storm is just starting? Thin liquidity plus strong USD will ensure the yield is in a heavy premium zone.$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Veteran Joined: 6/23/2011 Posts: 1,740 Location: Nairobi
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I think the Euro guys want to keep their money under the mattress this time round. Fear is all over them, I think if you call a guy in the streets of London loudly JOHN he will jump because he is no longer sure he is John.
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Rank: Member Joined: 10/14/2011 Posts: 661
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kayhara wrote:Ndii's article and the editorial one in the nation is just the best, comparing TZ economy with KE the gap is only 10% Helium deposit worth billions of dollars discovered in Tanzania's Rift Valley http://www.nation.co.ke/...68/-/nqvf1h/-/index.html
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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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Thiong'o wrote:[quote=kayhara]Ndii's article and the editorial one in the nation is just the best, comparing TZ economy with KE the gap is only 10% Helium deposit worth billions of dollars discovered in Tanzania's Rift Valley http://www.nation.co.ke/...8/-/nqvf1h/-/index.html[/quote] Now the ug and Rwanda taking their SGR there forcing shift to unlikely partners like Ethiopia and Botswana. Interesting. ...
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Rank: Member Joined: 2/7/2014 Posts: 155
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enyands wrote:Thiong'o wrote:[quote=kayhara]Ndii's article and the editorial one in the nation is just the best, comparing TZ economy with KE the gap is only 10% Helium deposit worth billions of dollars discovered in Tanzania's Rift Valley http://www.nation.co.ke/...8/-/nqvf1h/-/index.html[/quote] Now the ug and Rwanda taking their SGR there forcing shift to unlikely partners like Ethiopia and Botswana. Interesting. ... Botswana...looked like ni kazi tunatafutiwa.Jobs for Kenyans.
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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True or politics??? Kenya's economy expanded by 5.9 percent in the first three months of this year from 5.0 percent in the same period last year, the statistics office said on its website on Thursday. "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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http://af.reuters.com/ar...mp;virtualBrandChannel=0"Don't let the fear of losing be greater than the excitement of winning."
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Rank: Veteran Joined: 9/18/2014 Posts: 1,127
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As much as rating agencies and their ilk are very biased, things tend to go downhill extremely fast once they start putting out warnings or downgrades. Budget financing strains have been hovering over the KE economy for the better part of the last twelve months and the overall picture has been deteriorating ever since. Given that our debt obligations are front-loaded in any financial year, something has to give sooner rather than later. http://www.businessdaily.../-/sqqwaxz/-/index.html
http://www.businessdaily...6/-/xukf3l/-/index.html
http://www.businessdaily.../-/14kvaa1/-/index.html
http://www.businessdaily...4/-/mj834e/-/index.html
http://www.businessdaily.../-/7lxgdlz/-/index.html
Added to stress in our banking sector, we are about to fall off a cliff seeing as liquidity is evaporating even for tier 1 banks. Systemic risk transmission from the govt to the banking sector or vice versa will make for a full blown crisis. The main purpose of the stock market is to make fools of as many people as possible.
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Rank: Elder Joined: 12/4/2009 Posts: 10,702 Location: NAIROBI
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Funny how the kenyan economy is. Economy grew at 5.9% yet retrenchment is the order of the day in what even analysts are saying the trend is alarming. I think this economic growth figures are hot air and tools for jubilee government to continue with the indebtness of the country.On a realistic term our debt to gdp ratio is around 70% and not the below 50% gava is saying. How do u explain half of what KRA collects annually is being used to repay debt Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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Ericsson wrote:Funny how the kenyan economy is.
Economy grew at 5.9% yet retrenchment is the order of the day in what even analysts are saying the trend is alarming.
I think this economic growth figures are hot air and tools for jubilee government to continue with the indebtness of the country.On a realistic term our debt to gdp ratio is around 70% and not the below 50% gava is saying.
How do u explain half of what KRA collects annually is being used to repay debt the kenyan economy will always grow for the mighty,iam eager to see what the sgr will carry to justify the cost "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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mlennyma wrote:Ericsson wrote:Funny how the kenyan economy is.
Economy grew at 5.9% yet retrenchment is the order of the day in what even analysts are saying the trend is alarming.
I think this economic growth figures are hot air and tools for jubilee government to continue with the indebtness of the country.On a realistic term our debt to gdp ratio is around 70% and not the below 50% gava is saying.
How do u explain half of what KRA collects annually is being used to repay debt the kenyan economy will always grow for the mighty,iam eager to see what the sgr will carry to justify the cost Employment rate, GDP and inflation numbers are just that; numbers that can be easily manipulated to look rosy.
Purchasing power is the real story, which is reflected by the reported profit losses, profit warnings, job losses and aggressive taxation. Mr market has been in reverse gear since March 2015. The rest is noise!$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Veteran Joined: 4/4/2016 Posts: 1,997 Location: Kitale
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Ericsson wrote:Funny how the kenyan economy is.
Economy grew at 5.9% yet retrenchment is the order of the day in what even analysts are saying the trend is alarming.
I think this economic growth figures are hot air and tools for jubilee government to continue with the indebtness of the country.On a realistic term our debt to gdp ratio is around 70% and not the below 50% gava is saying.
How do u explain half of what KRA collects annually is being used to repay debt If economy grew by 5.9%,that means poverty rate in our country is still high.With the inflation rate at 8%,that leaves the real growth at 2.1%. Towards the goal of financial freedom
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Rank: Veteran Joined: 4/4/2016 Posts: 1,997 Location: Kitale
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Ericsson wrote:Funny how the kenyan economy is.
Economy grew at 5.9% yet retrenchment is the order of the day in what even analysts are saying the trend is alarming.
I think this economic growth figures are hot air and tools for jubilee government to continue with the indebtness of the country.On a realistic term our debt to gdp ratio is around 70% and not the below 50% gava is saying.
How do u explain half of what KRA collects annually is being used to repay debt If the economy grew by 5.9% and with inflation rate at 8%,thats s 2.1% growth.It means poverty rate is still high. Towards the goal of financial freedom
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Rank: Elder Joined: 6/23/2009 Posts: 13,552 Location: nairobi
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Ebenyo wrote:Ericsson wrote:Funny how the kenyan economy is.
Economy grew at 5.9% yet retrenchment is the order of the day in what even analysts are saying the trend is alarming.
I think this economic growth figures are hot air and tools for jubilee government to continue with the indebtness of the country.On a realistic term our debt to gdp ratio is around 70% and not the below 50% gava is saying.
How do u explain half of what KRA collects annually is being used to repay debt If the economy grew by 5.9% and with inflation rate at 8%,thats s 2.1% growth.It means poverty rate is still high. This is new. You minus inflation from growth. Never seen this before
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