The "rejuvenation" is needed across the entire spectrum of Government first.

Slow resolution of cases at the courts which delay justice. And defaulters can get away for years without paying off their debts! Then we have fake title deeds which hamstring genuine borrowers.

GoK borrowed at 15% and wants banks to lend at 14.50%? How now? Sensible banks will put more money in [risk-free] T-Bonds and T-Bills rather than lend to [risky] customers.

(Short-term) T-Bonds and T-Bills do not (negatively) affect the Capital Ratio Requirements. Plus GoK/CBK pays interest every 6 months. And these securities are easy to REPO with CBK if banks need cash.

As long as GoK is in the business of Business... Look at KQ, Mumias, NBK, etc which have been sucking in cash raised via T-Bills/Bonds competing against (genuine) Taxpayers.

The solution(s) is for GoK to:

1) Stop borrowing at high rates for projects. Rationalize the projects being funded using taxpayer funds eg NYS.
2) Stop borrowing to fund the recurrent expenditure eg commissions, cars, etc.
3) Rationalize the court system to defaulters are brought to book sooner.
4) Improve the collateralization system e.g. fake/duplicate Title Deeds, etc which makes it harder for GENUINE borrowers.
5) GoK should get out of the business of Business eg KQ, Uchumi, etc.

All the other stuff is irrelevant as long as GoK spends money like it can be printed. Which it can. With inflationary results.

Let the President start monitoring. He said they will be monitoring, didn't he?

The CS and Central Bank Governor must be having a terrible job at the moment. They advised the president not to sign and gave him reasons and he signed anyway. Now he will expect them to deal with the aftermath!!! Ever woke up and didn't feel like going to work? That is those guys today? And tomorrow... And for a while...

And you imagine the President will be in a brainstorming group trying to figure out how to deal with the aftermath??? Your guess is as good as mine!!

Until Q1 2017