Teren Teren (very ghastly music) Kenya`s Debt Ceiling

Ngimanene na Muchere

Chief Lister
Kenya will raise its debt ceiling of Sh9 trillion to accommodate gaps in its expenditure needs amid underperforming tax collections, the National Treasury has said, confirming reports that emerged from corridors of Parliament early January.

The Treasury says in Medium Term Debt Management Strategy 2021 that it will be tabling changes to the Public Finance Management law for approval by legislators in the near future to raise the cap on debt, without disclosing the fresh limit it is looking at.

This comes just over a year since the lawmakers raised the ceiling from Sh6 trillion in October 2019.

“The formulation of this strategy has been on a background of public debt stock fast approaching the statutory ceiling of Sh9 trillion set out in the Public Finance Management Act, 2012,” Treasury officials wrote in the debt strategy paper for the next three years.

“As a result, the implementation of this strategy may require the revision of the debt ceiling through the amendment of the PFM Act based on future borrowing requirements.”

Public debt crossed Sh7.28 billion last December, an equivalent of 65.6 percent of gross domestic product (GDP), from Sh6.01 trillion or 58.0 percent of GDP a year earlier, the Treasury data shows.

Treasury earlier projected total public debt to hit Sh7.66 trillion by end of the current financial year in June from Sh6.69 trillion a year earlier, but rise to Sh8.59 trillion in June 2022 and Sh9.37 trillion in the year that follows.

However, the Parliamentary Budget Office (PBO) — the unit which advises lawmakers on financial and economic matters — wrote in a report late last month that Kenya’s debt stock will climb to Sh7.8 trillion by June, an equivalent of 69 percent of GDP.

“This (upward) trend is projected to continue over the medium term as the expansionary economic blueprint, the need for fiscal stimulus and debt servicing obligations continue to drive expenditures even as revenue generation remains low and the economy continues to underperform,” the PBO analysts wrote in a report titled “Evading recessionary pressure under a mounting debt burden”.https://www.businessdailyafrica.com/bd/economy/kenya-ceiling-again-as-headroom-reduces-3293910

Gavament apologist @Mwalimu-G ataonekana huku? @bigDog pia
 

bigDog

Chief Lister
I don't have a problem with loans. It's an instrument in financial management that takes advantage of someone else's money primarily for growth. Obviously, the cost of borrowing must be low. This cost of borrowing will go up as we approach the debt ceiling. One more negative aspect is when the debt is domestically sourced therefore competing with the commercial sector.

One situation that we are in that I absolutely hate is when development funds are stolen. That is why we should restructure our criminal justice system so that financial crimes are expedited.
 

Ngimanene na Muchere

Chief Lister
I don't have a problem with loans. It's an instrument in financial management that takes advantage of someone else's money primarily for growth. Obviously, the cost of borrowing must be low. This cost of borrowing will go up as we approach the debt ceiling. One more negative aspect is when the debt is domestically sourced therefore competing with the commercial sector.

One situation that we are in that I absolutely hate is when development funds are stolen. That is why we should restructure our criminal justice system so that financial crimes are expedited.
This is debt supported by what? Falling revenues? Austerity?
And you recall once Yattani saying they'll not borrow from the domestic market, he changed his mind and did just that.
 

Denis Young

Chief Lister
This is debt supported by what? Falling revenues? Austerity?
And you recall once Yattani saying they'll not borrow from the domestic market, he changed his mind and did just that.
The BPS for this financial year actually suggests that the government will increase internal borrowing.

You see, @bigDog understands the problem but he honestly doesn't care because apparently more money is going to go to his people as if it is landing in each individual's account.

He also figures that since the BBI claims it will devolve 35% to the county, that money will magically appear. How do you offer 35% of a cake when 90% has already been eaten?

You know what, I honestly hope this BBI bill passes. It doesn't affect me as much since I am self employed. My only pain will be when I am buying basic commodities and at the fuel pump. Kama bachelor I don't have to worry about paying fees among many other family needs.

Just like an alcoholic, we as a country need to hit rock bottom so that we can either admit we have a problem ama tuangamie sisi wote.
 

Mr Black

Chief Lister
The BPS for this financial year actually suggests that the government will increase internal borrowing.

You see, @bigDog understands the problem but he honestly doesn't care because apparently more money is going to go to his people as if it is landing in each individual's account.

He also figures that since the BBI claims it will devolve 35% to the county, that money will magically appear. How do you offer 35% of a cake when 90% has already been eaten?

You know what, I honestly hope this BBI bill passes. It doesn't affect me as much since I am self employed. My only pain will be when I am buying basic commodities and at the fuel pump. Kama bachelor I don't have to worry about paying fees among many other family needs.

Just like an alcoholic, we as a country need to hit rock bottom so that we can either admit we have a problem ama tuangamie sisi wote.
People do not seem to learn, Jubilee has been an unmitigated disaster, 100%! No argument there.

Why anyone would trust them to deliver Kenyan-friendly amendments after they failed to deliver 90% of what they promised is the very definition of irredeemable stupidity
 

Ngimanene na Muchere

Chief Lister
The BPS for this financial year actually suggests that the government will increase internal borrowing.

You see, @bigDog understands the problem but he honestly doesn't care because apparently more money is going to go to his people as if it is landing in each individual's account.

He also figures that since the BBI claims it will devolve 35% to the county, that money will magically appear. How do you offer 35% of a cake when 90% has already been eaten?

You know what, I honestly hope this BBI bill passes. It doesn't affect me as much since I am self employed. My only pain will be when I am buying basic commodities and at the fuel pump. Kama bachelor I don't have to worry about paying fees among many other family needs.

Just like an alcoholic, we as a country need to hit rock bottom so that we can either admit we have a problem ama tuangamie sisi wote.
@bigDog @bigDog where thou at @bigDog
 

The.Black.Templar

Chief Lister
Staff member
Mnakumbuka hii ward development fund was heavily rejected by the powers that be?


Sasa the MCAs believe they will now just be getting the money without any issues, lakini tunaelewa they know this and they just wanted the 2million za gari

Through their umbrella body County Assemblies Forum, MCAs have said they will oppose any move to deny them the fund.

Governors have opposed the Bill saying it will give MCAs developmental roles, which is the prerogative of the county executive.

They say the key roles of MCAs are representation, legislation and oversight.

At some point, the Council of Governors outlawed Ward Development Funds that had been created by some counties, especially in the first term.
 

Montecarlo

Chief Lister
How do you convince an ignorant populace that we're sinking not only deep but also fast when all they wanna do is dance along to the tune of their pied piper 🤷🏾‍♂️

Really sad situation..
That is why being educated for an African is indirectly proportional to their wisdom..........you see some characters here failing to realise that you may have some goodies in the BBI and a few bad issues in it...but if the costs of the few bad ones far outweigh the benefits of the goodies why would a sane person vote yes for BBI? In a country where the president and his relatives and his deputy and their cronies are stealing 30% of all borrowed funds and Kenyans are overtaxed to meet the shortfall and some idiot supports expansion of the executive and representation and increase of county funds and unnecessary creation of commission.....I cry for my beloved country
 

Montecarlo

Chief Lister
The BPS for this financial year actually suggests that the government will increase internal borrowing.

You see, @bigDog understands the problem but he honestly doesn't care because apparently more money is going to go to his people as if it is landing in each individual's account.

He also figures that since the BBI claims it will devolve 35% to the county, that money will magically appear. How do you offer 35% of a cake when 90% has already been eaten?

You know what, I honestly hope this BBI bill passes. It doesn't affect me as much since I am self employed. My only pain will be when I am buying basic commodities and at the fuel pump. Kama bachelor I don't have to worry about paying fees among many other family needs.

Just like an alcoholic, we as a country need to hit rock bottom so that we can either admit we have a problem ama tuangamie sisi wote.
What is funny is that most people in this forum don't come from wealth and they themselves are not wealthy enough for their wealth to cushion them against bad governance; they have kids who will be affected..some of their daughters will end up with sponsors whilst some of their sons will end up either plotting to kill the parent and take up the small wealth or as alcoholics or just dillussioned due to lack of opportunities to enable them attain their potential but we are Africans and shortsightedness is our forte
 
Top