James Mwangi to Bloomberg
- Thread starter Okiya
- Start date
How different is it under Kibakinomics? Banks were still making profits
Uhuru borrowed extensively from local banks at ridiculous rates. It's those loans that we are feeling the pain as we repay now.
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At what was the interest rate that Uhuru was borrowing from local banks?
They were within 10.5-12.5%, which is a lot considering the time and amount he was borrowing. I know you'll say the current govt is borrowing at 17-18%, but that's not the issue. They have no other option except to borrow.
Kibaki borrowed from local banks at 22% at some point around 2011
Skatai okiya. Govt must borrow locally. But how much? Look at the debt profile. How much we are supposed to repay this yr. Is it healthy or sustainable? Ilifanywa na mtu ako na akili mzuri? Again, what was the purpose of the debt? He'll say for infrastructure, of which roads were built at the cost of more than 100M per Km for a two-lane rd, when a QS will tell you the cost shld be 35-45M .
Mwalimu-G
Elder Lister
They have. They can stop stealing to begin with and also defer vanity projects meant to benefit their merchant friends.
Umesema Uhuru borrowed at ridiculous rates which is not true.
Those are the sins we have to pay for having 47 counties which are just money pits. The debt is unsustainable so is devolution.
Eng'iti
Elder Lister
Devolution ni devolved looting.
10yrs ona hizi loans kina Ali Roba, Nanok etcetra wamedishi hata nothing to show for.
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Surprisingly if you check on the debt profile, you'll notice Kenya debt increased exponentially when Uhuru was the finance minister. Kenya was borrowing at 22% when he was the minister. Could be because Kibaki's ministers had autonomy to implement what they wanted. Tells you the suitability of this man.
So for 2011 economic sins we now want to blame Uhuru who was just a minister under Kibaki but for 2013-2022 economic sins we want to absolve Ruto who was deputy president?
Have some consistency
For the record, I have stated severally that devolution is nonsensical idea because it's a bottomless pit.
I can't term the 2011 as economic mess, because 5.4% deficit is sustainable.
Kenya's deficit 2011- 5.4%
2010- 3.6%
2009-3.1%
2008-0.2%
2007-1.1%
But you can clearly see there was a trend. An appetite for loans suddenly increased. A coincidence? When he took power, deficit jumped to 8%.
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Some untruths in your reply. Deficit reached 8% in 2020. And there was no jump, it was gradual as can be seen below
What's your point? My point is, his appetite for loans was evident before he took power. And this is his legacy for Ksh. Again, a coincidence?
What's this graph? What's the y axis? I can't comment for something I don't understand.
Uhuru became minister in 2009. Nusu mkate government was formed that time. 40 ministers, 51 assistant ministers. More spending. Post election violence effects. Global economic crisis whose effects went on till 2012
It is a clear USD/KSH real time performance graph since 2001 todate. Red lines indicate the period when he was the minister for finance