China has extended its position as Kenya’s biggest lender, with the Sh534 billion it had disbursed in loans by the end of March raising its share of Kenya’s bilateral debt to 72 per cent.
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The Chinese government has asked Kenyans to get used to trade imbalance and public debt in order to get industrialised.
Visiting top Chinese envoy for Sino-African relations Zhou Yuxiao said on Monday that critics of China’s trade with Africa had forgotten that Beijing was in similar circumstances years ago.
With 62% of our budget going to pay salaries the government needs to be creative in how to manage the debt.
One way to make the Chinese debt advantageous to us is if we pay in back in yuans you see 1 yuan is about 14 Kenyan shillings instead of dollars. This makes the debt much for manageable.
I doubt as a country we have enough yuans lying around to pay such figures. I also don’t see some Chinese exporters who are soo willing to keep a reserve of our shillings… But I agree with you we can negotiate the same way they are trading with the Russians (de-dollarization) with each other currencies…But hear Yee! The Trump people hear we are doing that… an excuse will be sort out to put sanctions on us… Ask Turkey they know the drill.
China has been wanting to open a renminbi exchange in Africa. And this is going to happen in Nairobi because they’re construction the Nairobi Globe Trade Center(Avic towers) which will house this important exchange. This would make it easier for Kenya/Africa to get a steady supply of Yuan to use in trading with China.
If you haven’t noticed the West and its media hates our new SGR releasing negative stories every month. Why? It’s clear that our government is mulling to start paying off the debt in Yuan’s. Which would drastically change how that currency is viewed because if Kenya adopts then the rest of Africa will follow. Debt repayment because easier and so does trade.
Kenya and Africa shouldn’t be afraid of the USA we hold much more strings than they make us believe…
This country is fucked, and the new constitution cemented that by creating layers and layers of greedy legislators,mps,senators, Mcas add governors and their cabinets… and to make matters they can determine their allowances… there is no way they are going to implement strict govt fiscal policies to control the expenditure and and un-necessary spending, they are part of it.
fact 1: we need the money to reduce poverty* and to catch up with the rest of the world.
fact 2: any mismanagement of the money will make us poorer than ever before
fact 3: the world has come of age. you don’t need your fists and guns to become a superpower. you need brains and importance- China knows that.
fact 4: a government is a business, with the country as it’s premises. for the business to grow, healthy risks in forms of loans and a little over taxing have to be taken.
fact 5: we just need patriotic leaders and a less ignorant society we will be on our way to matching the Singapores and the south Koreas of this earth
If Americans and Europeans keep running current account trade deficits with China, China will keep funding strategically significant infrastructure; those euros, dollars and pounds have to used somehow, and not just in financing American government budget deficits.
If, in twenty years or so, the US Navy is supplanted - or even defeated - in the Indian Oceans by the PLA Navy because the latter’s ships have hegemony over those seas, you’ll know how it happened.
