yeah besides infrastructural development is always expensive. .were lucky we will b producing oil for export 2018
oil and sgr will pay…this debt is small compared to what the US owes China
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But is Kenya’s economic capacity near to what the US is in order for such a comparison to be made?
He…he…
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Seriously!
Oil prices are also in a downward trajectory…Many countries are discovering oil day in day out
The way that debt is compared between two countries is by using the debt to GDP ratio. Kenya’s ratio currently stands at 52.8% compared to the highest which is Japan at 229.2% and the lowest, Brunei at 2.3%. Also "[SIZE=5]Government Debt to GDP in Kenya averaged 54.93 percent from 1998 until 2015, reaching an all time high of 78.30 percent in 2000 and a record low of 42.80 percent in 2008." [source: http://www.tradingeconomics.com/kenya/government-debt-to-gdp] So we shouldn’t start worrying. Yet.[/SIZE]
As a country we are busy laying the ground work for the next debt crisis and its just a matter of time…maybe after the next elections.
You, my friend, are off. You cant compare Kenya to any developed nation. We are a low middle income country. Japan is a high income country. We have every reason to worry. Japan’s economy is badass with lots of future potential. Exports and incomes are balanced. Big successful companies creating jobs. The Japanese people are known for their work ethics. Simply put, Japan has the ability to repay its debt. It generates revenue high enough to repay the debt.
Lets look at Kenya. We are borrowing more than the revenue we are generating. That alone should set off the alarm bells in any sane JP psycophant, if it doesnt, then that psycophant has their head so far up their rear end. We have no way of paying that debt. The oil prices are dropping. We cant depend on that. The SGR is just a mkebe ya kimbo imeparara. It’ll only help with imports. Carrying passengers wont help pay its debt (the fare will have to be high to recover the debt, of course people will always use the cheaper option- road transport. Unless the govt. subsidizes the fare which means thiis thing will gobble up our taxes, useless project!)
There is no potential in our economy. That’s why it’s wrong to compare with Japan.
Remember what happened to Greece? They borrowed lots when their economy didnt have the ability to repay the debt.
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Ate hwhat? SGR will pay :D:D:D
The Greece crisis is very complex, the biggest problem was they had huge budget deficits (like we do) and therefore they had to borrow (like we do) to raise funds to fill that hole, shit hit the fan when their economy begun to shrink after 2008 when it was at it’s peak at €242 billion to €179billion, in 2009 Greece’s debt stood at 130 % of its GDP which meant debt was more than all their earnings in an year. The situation got worse when they got more loans to repay old loans without fixing their economy, bado wako hapo kwa hio vicious cycle.
Moral of the story:
- Live within your means
- Only borrow if you are sure whatever you spend that money on will improve your production capacity and earnings
Is Kenya heading there? we cannot answer that question definitively without scrutinising where the funds we raise through debts are being used up, based on our stagnant development expenditure, rampant wastage of public funds corruption and misplaced priorities we need to tread more carefully
That is private money. We will have a few new billionaires but none of that money is going to the treasury. Ngoja uone.
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Asand sana
Also, an important fact to consider about that, US Treasury can legally print money. We can’t.
mc excel potochop…kenya is fine bitch:cool::eek:
In the USA the debt is at 20 trillion$ and no one is talking about it
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Because the dollar is the world reserve currency.
Th
This is why I call you immature .have you seen anyone mentioning Matusi hapo Mbele.
Please keep your orientation pale-----------> and people will respect your honest well deserved contribution like this one . Good job