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Kenya Debt Watch
Rank: Veteran Joined: 9/4/2009 Posts: 700 Location: Nairobi
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The history of Debt by David Graeber. The situation the French anthropologist Jean-Claude Galey encountered in a region of the Eastern Himalayas, where as recently as the 1970s, the low-ranking castes-they were referred to as “the vanquished ones,” since they were thought to be descended from a population once conquered by the current landlord caste, many centuries before-lived in a situation of permanent debt dependency. Landless and penniless, they were obliged to solicit loans from the landlords simply to find a way to eat-not for the money, since the sums were paltry, but because poor debtors were expected to pay back the interest in the form of work, which meant they were creditors’ outhouses and reroofed their sheds. For the “vanquished”-expenses were weddings and funerals.
These required a good deal of money, which always had to be borrowed. In such cases it was common practice, Galey explains, for high-caste moneylenders to demand one of the borrower’s daughters as security. Often, when a poor man had to borrow money for his daughter’s marriage, the security would be the bride herself. She would be expected to report to the lender’s household after her wedding night, spend a few months there as his concubine, and then, once he grew bored, be sent off to some nearby timber camp, where she would have to spend the next year or two as a prostitute working off her father’s debt. Once it was paid off, she’d return to her husband and begin her married life.Read below from page 7 onwards: http://himalaya.socanth....als/ebhr/pdf/EBHR_08.pdf“We are the middle children of history man, no purpose or place. We have no great war, no great depression. Our great war is a spiritual war, our great depression is our lives!" – Tyler Durden
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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Moody's assigns stable outlook ratings for Kenya http://www.businessdailyafrica....36/-/xk2wpw/-/index.htmlHeko kwa Kenya inchi yetu
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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….. lots of good news coming in >>> Kenya diaspora remittances up 36pc in September http://www.businessdailyafrica....8/-/ma75g3z/-/index.html
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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91day - 10.346% up from 10.237% with oversubscription of 447%. Now with all the maturities clustered in Dec - March, I wonder how CBK will balance the repos... Inflation has bottomed, too much money coming into the circulation as election draws near! http://www.centralbank.g...ults/Results_1977_91.pdf$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Member Joined: 9/29/2010 Posts: 679 Location: nairobi
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[quote=hisah]91day - 10.346% up from 10.237% with oversubscription of 447%. Now with all the maturities clustered in Dec - March, I wonder how CBK will balance the repos... Inflation has bottomed, too much money coming into the circulation as election draws near! http://www.centralbank.g...lts/Results_1977_91.pdf[/quote] well,bad for kes but good for bonds...every election seems to be preceded by a period of excess liquidity,this one is no different infact this one has extremely high stakes and thus there shall be unprecedented amounts of money floating around
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Coz of this - www.businessdailyafrica....0/-/13g9ygi/-/index.html
That KRA 45B revenue miss is huge. Short term the domestic market will be crowded by GoK. Not good for biz in Jan when liquidity is tight & heated election campaigns then... Dicey position here for treasury.
The economy slump lag effect is now popping up. Budget vs actual is unbalanced. Cuts will have to be introduced to make targets realistic. In a high stakes election year is this an option? Nop. I'd hate to be in treasury now, the stress & ulcers...
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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S&P joins Moody and Fitch in assigning kenya a “stable” outlook based on expectations of fair economic growth, falling inflation and a bet that the March 2013 polls will be peaceful. ... a boost to Treasury’s bid for euro bond http://www.businessdailyafrica....4/-/1xo4jlz/-/index.html
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Rank: Chief Joined: 1/3/2007 Posts: 18,117 Location: Nairobi
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Not to forget the issuance of fake Treasury Bonds by CBK. http://www.nation.co.ke/...t/-/h28131z/-/index.htmlGreedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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Treasury ups debt target by Sh32bn as taxes fall short http://www.businessdailyafrica..../1/-/njaimb/-/index.htmlFinance minister Njeru Githae, however, said the government would exercise prudence while borrowing to avoid elbowing out investors. “There is liquidity so it is easier to borrow,” said Mr Githae. The total public debt currently stands at 46.1 per cent of the country’s GDP, which is slightly above the IMF recommended ratio of below 45 per cent. The government has, however, argued that this is a cyclical rise that will be contained after implementation of new structures created by the Constitution. “It is still below 50 per cent of GDP so it is still manageable and most of it is internal, which means if we want to reduce it is easy,” said Mr Githae.
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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#Noted. The Market Leaders Forum sat yesterday and advised CBK to issue two bonds; a two year bond whose coupon will be market determined and a 15 year bond whose coupon is pegged at 11.25%.
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Rank: Member Joined: 7/6/2010 Posts: 242
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None of the Presidential candidats has addressed this rising public debt and how they intend to tackle it . It is absurd that both RAO & UK are promising capital expenditure projects yet at the same time Our expenditure overwhelmingly exceeds revenue.
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Rank: Veteran Joined: 11/21/2006 Posts: 1,590
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mwekez@ji wrote:Treasury ups debt target by Sh32bn as taxes fall short http://www.businessdailyafrica..../1/-/njaimb/-/index.htmlFinance minister Njeru Githae, however, said the government would exercise prudence while borrowing to avoid elbowing out investors. “There is liquidity so it is easier to borrow,” said Mr Githae. The total public debt currently stands at 46.1 per cent of the country’s GDP, which is slightly above the IMF recommended ratio of below 45 per cent. The government has, however, argued that this is a cyclical rise that will be contained after implementation of new structures created by the Constitution. “It is still below 50 per cent of GDP so it is still manageable and most of it is internal, which means if we want to reduce it is easy,” said Mr Githae. We are talking about shaving off Ksh100bn. Can someone tell me when GoK9under its own steam) has managed even Ksh25bn shave? Sehemu ndio nyumba
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Rank: New-farer Joined: 1/29/2013 Posts: 45 Location: South Africa
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Rank: Member Joined: 2/8/2007 Posts: 808
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Kenya's debt level is getting careless! Githae is blatantly lying. he can't reduce domestic debt by printing money of sterilizing dollars! Debt is certainly above 50% GDP. I am also not sure whether our GDP numbers are very accurate. There is always a big error estimate in most KNBS statistics. Our ability to repay the debt and one or two other indicators suggest to me our debt is probably about 60%. Only time will tell though.
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Kausha wrote:Kenya's debt level is getting careless! Githae is blatantly lying. he can't reduce domestic debt by printing money of sterilizing dollars! Debt is certainly above 50% GDP. I am also not sure whether our GDP numbers are very accurate. There is always a big error estimate in most KNBS statistics. Our ability to repay the debt and one or two other indicators suggest to me our debt is probably about 60%. Only time will tell though. Have you had a look at the eurozone debt levels. Or better Japan, UK, US, PIIGS etc... KE debt levels are a heaven!$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Member Joined: 10/29/2009 Posts: 40
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I would be careful comparing the debt levels of Kenya with those of the nations you indicate here, including the PIGS, particularly because of the socio-economic data, in mind here is unemployment rates, inflation rates, cost of credit (interest rates), and levels of poverty. If only when these are low can you be comfortable with the level of national debt for Kenya
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Rank: Veteran Joined: 11/11/2006 Posts: 972 Location: Home
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josimar wrote:None of the Presidential candidats has addressed this rising public debt and how they intend to tackle it . It is absurd that both RAO & UK are promising capital expenditure projects yet at the same time Our expenditure overwhelmingly exceeds revenue. Next Finance cabinet secretary has some serious work.
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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holycow wrote:josimar wrote:None of the Presidential candidats has addressed this rising public debt and how they intend to tackle it . It is absurd that both RAO & UK are promising capital expenditure projects yet at the same time Our expenditure overwhelmingly exceeds revenue. Next Finance cabinet secretary has some serious work. Uhuru's big spending should see us at kshs 2trillion in our 2014 budget!! Mark 12:29
Deuteronomy 4:16
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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