Kwa Lugha Nyepesi, Economic Growth through Infrastructure

I don’t know how to explain this, but the government is cheating you when it tells you massive infrastructural projects will bring about economic growth.
CBK has two or three tools, one is to put money into the economy, another is to remove money from the economy, to avoid inflation.

We remove excess money from economy by the government selling treasury bills and bonds.

We spur economic growth through the government injecting money into massive infrastructural projects, which creates employment and brings about demand for goods and services.

The treasury must release the funds to "local contractors.
the contractors must employ locals.
The locals must spend the money within the economy.
the contractors must source all materials within the economy, only technology should be imported, in rare cases.

When you look at our 300 billion railway, it has taken money which should have been put to circulate in our economy, and taken the money to China.
A 300 billion project, employing 1000 youth at 2000 bob per day, for two years, the amount of money injected into the economy through those youths is only 2million shillings per day, when you multiply by 365 days two times you get only 1.5billion out of 300 billion was injected into the economy.
another 3 billion goes into purchase of cement, which is too small to make the manufacturer employ more people to meet demand, or expand his plant.

So a railway project worth 300 billion will end up injecting only 10 billion into the economy, the rest of the money, 290 billion, remains in china.

the construction of SGR was supposed to spike some significant growth in the construction industry, but not when, we imported labour and raw materials.

Halafu tunawekewa vikwazo tusiingize mizigo, na hiyo mizigo ndio ilitarajiwa ibebwe na hiyo reli.