Silent Majority

Denis Young said:
At least 800 stalled roads are coming back to life with the finalization of the securitization of the RMLF.
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What is this ? The other day Kagombe who I understand is well versed with numbers had a hard time explaining to the other guests on a TV show since the current road budget allocations are not adding up .
Is securitization something outside the budget ?
 
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zapp_brannigan said:
What is this ? The other day Kagombe who I understand is well versed with numbers had a hard time explaining how the road allocations for this budget are not adding up .
Is securitization something outside the budget ?
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The securitization creates a special purpose vehicle. It guarantees future collections from the levy as payment which means the debt is off balance sheet.

But the funds are not for any other purpose but for paying road pending bills some of which are two decades old.

Do you have a link to the video where Kagombe was speaking on this?
 
Denis Young said:
The securitization creates a special purpose vehicle. It guarantees future collections from the levy as payment which means the debt is off balance sheet.

But the funds are not for any other purpose but for paying road pending bills some of which are two decades old.

Do you have a link to the video where Kagombe was speaking on this?
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It was on 15th June ,Inooro TV - Kiririmbi .It was Him , Ngogoyo,Wamuchoba and I don't remember the fourth .
I wonder why they are not doing the same with housing levy now that we have learnt the govt was using the funds to build markets etc . If they can make it work it will be a plus for them .Right now a move in the right direction is welcome .
I wonder why Ndindi is against securitization.
 
zapp_brannigan said:
It was on 15th June ,Inooro TV - Kiririmbi .It was Him , Ngogoyo,Wamuchoba and I don't remember the fourth .
I wonder why they are not doing the same with housing levy now that we have learnt the govt was using the funds to build markets etc . If they can make it work it will be a plus for them .Right now a move in the right direction is welcome .
I wonder why Ndindi is against securitization.
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They are actually going to do that with the housing levy. They plan on issuing a Sukuk bond backed by securitization of the HL. Somewhere in the region of 120B will be generated to rehabilitate the three main slums. Kibera, Mathare and kwa Njenga.

Btw the AH act allows for building of supporting infrastructure like markets. Like the recently allocated New Mukuru houses, they are establishing a market, I think a level 5 hospital and school for the population. It is about creating sustainable communities.
 
Denis Young said:
They are actually going to do that with the housing levy. They plan on issuing a Sukuk bond backed by securitization of the HL. Somewhere in the region of 120B will be generated to rehabilitate the three main slums. Kibera, Mathare and kwa Njenga.

Btw the AH act allows for building of supporting infrastructure like markets. Like the recently allocated New Mukuru houses, they are establishing a market, I think a level 5 hospital and school for the population. It is about creating sustainable communities.
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Supporting infrastructure - yes, but the govt was targeting around 400 markets I am not sure that matches the number of housing projects.
Those on payslips are suffering on projects that most probably will never help them directly.
Right now a move in the right direction is welcome.
 
zapp_brannigan said:
Supporting infrastructure - yes, but the govt was targeting around 400 markets I am not sure that matches the number of housing projects.
Those on payslips are suffering on projects that most probably will never help them directly.
Right now a move in the right direction is welcome.
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You will be shocked at the number of housing projects taking place at the moment. In every county actually.

But as you say, those on payslips are suffering. Is that true? Because, according to statistics only 5% of Kenyans on payslips earn over 100k. If you do the math on how much someone on 100k pays to the HL, that comes to 1500 shillings.

I also disagree on what you said about the houses not helping them directly. Take the example of the project taking place just outside Kikuyu. You can see it right as you enter the town. If you are a teacher or a young professional in the town and wanted a cheap 1 bedroom, you could sign up and pay 6k a month and own the house over 10-15 years.

It is all a matter of perspective. But we are not conditioned to think of it that way. Did you even know you could get a loan from HL to the tune of 5M and build your own house?
 
Denis Young said:
You will be shocked at the number of housing projects taking place at the moment. In every county actually.

But as you say, those on payslips are suffering. Is that true? Because, according to statistics only 5% of Kenyans on payslips earn over 100k. If you do the math on how much someone on 100k pays to the HL, that comes to 1500 shillings.

I also disagree on what you said about the houses not helping them directly. Take the example of the project taking place just outside Kikuyu. You can see it right as you enter the town. If you are a teacher or a young professional in the town and wanted a cheap 1 bedroom, you could sign up and pay 6k a month and own the house over 10-15 years.

It is all a matter of perspective. But we are not conditioned to think of it that way. Did you even know you could get a loan from HL to the tune of 5M and build your own house?
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You might have missed the highlighted part now that you have started talking about conditioning and perspective

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zapp_brannigan said:
What is this ? The other day Kagombe who I understand is well versed with numbers had a hard time explaining to the other guests on a TV show since the current road budget allocations are not adding up .
Is securitization something outside the budget ?
Click to expand...
Hizi zote ni fancy terms za kukopa. It's not some magical solution of some sort. This is how it works. Say you need a loan from a bank. Uko na rental rooms tano pale kiandutu ambazo uko na guaranteed income kila mwezi. So, bank wanakupa pesa alafu you agree to divert a percentage of your rental income every month to offset the loan. Off course, that payment still has interest.

The only difference is that the lenders are guaranteed their pay from the levy instead of waiting for government budgeting. That means they might be willing to lend at slightly lower interest rates. However, the danger of abuse/overcommital remains, especially because the levy provides ready cash.
Ukiangalia serikali unajua tu it will end in tears. They badly need to borrow today for some reason. Consequences mtadeal nazo baadaye.
 
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zapp_brannigan said:
You might have missed the highlighted part now that you have started talking about conditioning and perspective

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No. I saw that. I was just communicating how people view the houses. It is not just the bedsitters which are mainly under social housing.

People don't appreciate that kuna affordable housing and also market price houses. So 3 levels.

When you speak to someone about affordable housing anaona slum dwellers in those bedsitters. Watch this NTV special edition when you can of some houses in Kirinyaga:

Like you said, they are moving in the right direction. But the toxic negativity on social media is very sweet right now, in my view.
 
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Just like SHA, affordable housing lost its potential when it became a profiteering project by Ruto himself. The moment a project bleeds 20% funds to corruption, it can no longer be said to be a success. Everyone, including contractors, is focused on making money now. No one is worried about the long-term viability of the projects.
 
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