None. Has zero effect in my analysis that shows fuel increased by 19% per year under Ruto and 5% per year under Uhuru
Someone break this down for me /us
- Thread starter Okiya
- Start date
Then if Kenya will not default mbona unatafuta makosa
Then your analysis is skewed to fit your bias....you can carry on
There were subsidies during both Uhuru and Ruto regimes. So they cancel out. But you can bring us your analysis ama?
Is it not true that he made promises that he hasn't met?
Isnt it still in progress ama unataka things to be done like flipping a switch?
Problem is your analysis assumes uhuru paid all the debts incurred
Bring yours we see
Did he meet the promises he set for himself? Simple yes or no
Denis Young
Elder Lister
I genuinely feel for you chief. How can you sustain discussions with individuals who are deliberately disingenuous and presumptively ignorant?
1. We know for a fact petrol was really worth 214sh by August 2022, subsidised to a tuneof 54.91sh. Money that is still being paid to the OMC in this year's budget. (So what money was Uhuru using to subsidize fuel)
2. We know for a fact electricity was being subsidized. KPLC never got the money and had to borrow a commercial loan.
3. We also know for a fact that this year debt interest payments have gone up to close to a trilion on the back of maturing short term debt and a weakening shilling. Don't forget the 320B Eurobond single payment coming due in June.
4. We know that CBK under the direction of Uhuru burned through our FX reservers to support a weakening shilling, which drained our import cover, occassioned a fuel shortage crisis.
Despite all this Ruto has now:
- Instituted the Eurobond buy back. The market has responded positively and interest on the Eurobond has gone down from 15 to 9% reducing our servicing costs.
- Refinancing is now a possibility, with the pontential for a 7yr bond being floated to repay the maturing 2024 bond. This will give the country much needed breathing room expense wise. Money will now go to investing in productive sectors of the economy rather than servicing debt in the short and medium term.
With those few facts you can continue your holy war against these ignoramuses.
Wacha kizungu mob. Bring your numbers ya fuel increase under Uhuru v Ruto we interogate.
Import cover was above 4 months during Uhuru's second term which is the minimum for CBK. It fell to 3.6 months in Nov 2023.
Tiiga Waana
Elder Lister
Is it only me who find it extremely hilarious and hysterical when Kenya Kwishans talk of prices of fuel?
These Guys committed a fFinancial Crime which they won’t admit when they embarked on the foolish Government2Government Deal whereby they were thoroughly whipped and screwed by the cunning Arabs!
They ended up losing us 6 Billion, a very huge amount of money which by all standards could have paid for the annual operations of a whole Ministry.
Denis Young
Elder Lister
So, went from a high of 6.4ish to just about 4 months of import cover in those 5 years. So what happened to our dollars?
Reduced borrowings from international markets, increased cost of imports, slowing of diaspora remittances and selling of dollars by CBK to protect depreciation of the shilling
Denis Young
Elder Lister
Good...and why do you think there was reduced borrowing from international markets?
Ukraine war impacted the yields. So it became expensive to borrow internationally
Denis Young
Elder Lister
This is what I mean by deliberately disingenuous. But I will give you the real deal:
1. The cheap covid money dried up as the US raised interest rates and implemented QT.
2. Most frontier economies (read Kenya) were juiced to the gills with debt and there was doubt in the market if we could repay. Remember the failed 2021/2022 Eurobond? We were thus locked amid a liquidity crunch. It is how we ended up at IMF under Uhuru. Lender of last resort.
So the conclusion is that international experts including IMF and AFDB who point out to impact of Ukraine war are wrong. But Denis Young is right.