Experts warn of Africa’s new debt crisis,Tanzania Worst in EA
Experts warn of Africa’s new debt crisis,Tanzania Worst in EA
- Thread starter Niksta254
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KichwaNgumu254
JF-Expert Member
- Aug 31, 2017
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Look who is talking! If anything,majority of Kenyans don't give a damn hoot to Tz affairs whatsoever, contrary to your folks always sniffing for any negative news from Kenya but conveniently ignoring the positive ones. Get a life and build your nation bila kinyongo!
KichwaNgumu254
JF-Expert Member
- Aug 31, 2017
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They're mortified by Kenyans in every sphere of competitive business. They should slacken their laid back attitude and learn from the best.
Look at Rwanda now,they're learning from the best from economic blue-print to education reforms yet some southerners here are too proud to accept the obvious.
joto la jiwe
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- Sep 4, 2017
- 26,117
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Sasa wewe mbona unabishana na mimi?, waliosema Kenya ipo katika critical condition, kwamba ipo katika hatari ya nchi ku collapse zaidi even ya North Korea sio mimi, usibishane na mimi wala kunikasirikia ndugu yangu, nimekuwekea link hiyo toka kwenye international bodies, zilezile zilizoitaja Kenya kuwa na uchumi mkubwa mkafurahia na kuchekelea, leo hao hao wanasema Kenya ni miongoni mwa nchi zilizo katika hatari kubwa ya kusambaratika, unaanza kujenga hoja na kutoa povu, hivi kwanini lakini[emoji1] [emoji1]
1) Hawa wazungu waliposema, Kenya is no longer in the list of LDC countries, mlichekelea na kufurahi kwa nderemo na vigelegele
2) Wazungu walewale leo wanasema Kenya ni miongoni mwa nchi zilizo katika hatari ya kusambaratika kuliko hata North Korea, unaanza kujenga hoja za kutaka kukataa huo ukweli, that is the symptoms and signs of failed state reasonings
http://allafrica.com/stories/201006231033.html
[emoji14] [emoji14] [emoji14] [emoji14] [emoji14] [emoji14] [emoji14] [emoji14] [emoji14] [emoji14] [emoji14] [emoji14]
joto la jiwe
JF-Expert Member
- Sep 4, 2017
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Syria GDP $103B, Kenya GDP 51B, Hongereni kwa kuipiku Syria kwa GDP[emoji122] [emoji122] [emoji122] [emoji122]
joto la jiwe
JF-Expert Member
- Sep 4, 2017
- 26,117
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But we feed you, we create employment for our people, we don't die from hunger, no corruption, good heath system, enough clean water for our citizens, what more do you want?[emoji1] [emoji1] [emoji1]
Emc2
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- Sep 26, 2011
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mwaswast
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- May 12, 2014
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Hahaha Naskia mshamuua opposition leader as of today? Shughulika kwenu yetu huyawezi na katika mwendo huu naona mkigeuka kuwa a new failed state.
GeniSys101
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- Aug 10, 2015
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Achana nao wapuuzi hao unapoteza mda tu kaka
GeniSys101
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- Aug 10, 2015
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Sioni Syria hapo… embu rudi juu uone jamaa alikuwa anacomment kuhusu nn
pingli-nywee
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- Sep 16, 2015
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Hahaha watz buana! Mlipe deni muache longolongo!
TEMLO DA VINCA
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- Sep 1, 2013
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Wee jamaa na wewe cjui unakunywa gongo gani siku hizi.... Yaan watu ambao hata kuzalisha msosi wa kuwatosha hamuwezi ndio mtucolonize tz ???hahahaaaa
Gangi Longa
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Niksta254
Moody’s downgrades Kenya credit rating over rising debt level
WEDNESDAY FEBRUARY 14 2018
National Treasury of Kenya. Global rating agency Moody’s has downgraded Kenya’s credit scores, citing pressure from the country’s rising debts. PHOTO FILE | NATION
In Summary
By BUSINESS DAILY
More by this Author
Global rating agency Moody’s has downgraded Kenya’s credit scores, citing pressure from the country’s rising debts.
The assessment adds voice to rising concerns over the possible impact of heavy borrowing on Kenya’s future.
The ratings agency — which had last October said it had placed Kenya’s B1 rating on review for downgrade due to persistent deficits amid high borrowing costs — downgraded the issuer rating of the Kenya government to B2 from B1 but assigned a stable outlook.
“The drivers of the downgrade relate to an erosion of fiscal metrics and rising liquidity risks that point to overall credit metrics consistent with a B2 rating,” explained Moody’s of its move on Tuesday.
“The fiscal outlook is weakening with a rise in debt levels and deterioration in debt affordability that Moody's expects to continue.”
Cost of borrowing
A rating downgrade is significant because it can affect how much it costs a government to borrow from international financial markets.
The Treasury has budgeted for Ksh658.2 billion ($6.5 billion), or 45 per cent, of projected Ksh1.44 trillion ($14.2 billion) tax revenue for payment of domestic and external loans in the current financial year that ends in June.
In theory, a high credit rating means a lower interest rate (and vice versa). Moody’s rating scale runs from a high of Aaa to a low of C comprising 21 notches.
Moody's said it expects Kenya's fiscal metrics to continue to “deteriorate”, as large primary deficits combine with “worsening debt affordability and rising debt levels.”
Moody's forecasts government debt to increase to 61 per cent of GDP in fiscal year 2018/19 (the year ending in June 2019), from 56 per cent of GDP in FY 2016/17 and 41 per cent of GDP in FY 2011/12.
Recent forecasts indicate that Kenya’s borrowings could soon take the debt load past 60 per cent of GDP.
“Debt affordability is deteriorating as reflected by the increase in government interest payments as a share of revenue to 19 per cent in Financial Year 2017/18, from 13.7 per cent in Financial Year 2012/13,” said Moody’s.
Ksh4 trillion mark
Kenya’s public debt crossed the Ksh4 trillion ($39.5 billion) mark at the end of March last year, reflecting the government’s sharp appetite for loans.
Treasury officials did not comment when reached on phone regarding the latest downgrade by Moody’s.
President Uhuru Kenyatta’s administration has said it will continue with large infrastructure-related development spending needs at a time the Kenya Revenue Authority (KRA) is battling subdued revenue collection.
President Kenyatta has said his administration will pay special attention to four key sectors he believes will drive Kenya’s economic agenda during his second term in office.
The youth, he has said, will be at the centre of the four-pillar plan, dubbed “the Big Four”, that includes food security, affordable housing, manufacturing and affordable healthcare.
Moody’s noted that, based on the realities, the large gross financing needs and reliance on commercial external debt will maintain government liquidity pressures.
“While the government aims to improve the efficiency of spending and revenues, such measures are unlikely to be effective enough to stem a weakening in fiscal trends,” said Moody’s.
Foreign currency bond
Moody's also lowered the long-term foreign-currency bond ceiling to Ba3 from Ba2 and the long-term foreign-currency deposit ceiling to B3 from B2.
Moody's also lowered the long-term local-currency bond and deposit ceilings to Ba2 from Ba1.
Moody’s assessment, however, breaks ranks with that of Fitch Ratings, which early this month revised the outlook on Kenya’s Long-Term Foreign- and Local-Currency Issuer Default Rating (IDR) to stable from negative and affirmed the IDRs at ‘B+’.
Last month, the Central Bank of Kenya (CBK) warned the country’s headroom for more public debt is narrowing, advising the Treasury to instead adopt alternative forms of financing for mega projects.
Last August, an analyst at credit ratings agency Standard & Poor’s warned that piling public debt poses the largest risk to Kenya’s economy in the medium term.
Garder Rusike, an associate director in charge of sovereign rating and public finance at S&P Global Ratings, said then that Kenya could struggle to honour repayments in case of economic shock hence the need to cut the budget deficit and stabilise debt level.
Moody’s downgrades Kenya credit rating
Moody’s downgrades Kenya credit rating over rising debt level
WEDNESDAY FEBRUARY 14 2018
National Treasury of Kenya. Global rating agency Moody’s has downgraded Kenya’s credit scores, citing pressure from the country’s rising debts. PHOTO FILE | NATION
In Summary
- The assessment adds voice to rising concerns over the possible impact of heavy borrowing on Kenya’s future.
- The agency had last October placed Kenya’s B1 rating on review for downgrade.
- This comes at a time the Kenya Revenue Authority (KRA) is battling subdued revenue collection.
By BUSINESS DAILY
More by this Author
Global rating agency Moody’s has downgraded Kenya’s credit scores, citing pressure from the country’s rising debts.
The assessment adds voice to rising concerns over the possible impact of heavy borrowing on Kenya’s future.
The ratings agency — which had last October said it had placed Kenya’s B1 rating on review for downgrade due to persistent deficits amid high borrowing costs — downgraded the issuer rating of the Kenya government to B2 from B1 but assigned a stable outlook.
“The drivers of the downgrade relate to an erosion of fiscal metrics and rising liquidity risks that point to overall credit metrics consistent with a B2 rating,” explained Moody’s of its move on Tuesday.
“The fiscal outlook is weakening with a rise in debt levels and deterioration in debt affordability that Moody's expects to continue.”
Cost of borrowing
A rating downgrade is significant because it can affect how much it costs a government to borrow from international financial markets.
The Treasury has budgeted for Ksh658.2 billion ($6.5 billion), or 45 per cent, of projected Ksh1.44 trillion ($14.2 billion) tax revenue for payment of domestic and external loans in the current financial year that ends in June.
In theory, a high credit rating means a lower interest rate (and vice versa). Moody’s rating scale runs from a high of Aaa to a low of C comprising 21 notches.
Moody's said it expects Kenya's fiscal metrics to continue to “deteriorate”, as large primary deficits combine with “worsening debt affordability and rising debt levels.”
Moody's forecasts government debt to increase to 61 per cent of GDP in fiscal year 2018/19 (the year ending in June 2019), from 56 per cent of GDP in FY 2016/17 and 41 per cent of GDP in FY 2011/12.
Recent forecasts indicate that Kenya’s borrowings could soon take the debt load past 60 per cent of GDP.
“Debt affordability is deteriorating as reflected by the increase in government interest payments as a share of revenue to 19 per cent in Financial Year 2017/18, from 13.7 per cent in Financial Year 2012/13,” said Moody’s.
Ksh4 trillion mark
Kenya’s public debt crossed the Ksh4 trillion ($39.5 billion) mark at the end of March last year, reflecting the government’s sharp appetite for loans.
Treasury officials did not comment when reached on phone regarding the latest downgrade by Moody’s.
President Uhuru Kenyatta’s administration has said it will continue with large infrastructure-related development spending needs at a time the Kenya Revenue Authority (KRA) is battling subdued revenue collection.
President Kenyatta has said his administration will pay special attention to four key sectors he believes will drive Kenya’s economic agenda during his second term in office.
The youth, he has said, will be at the centre of the four-pillar plan, dubbed “the Big Four”, that includes food security, affordable housing, manufacturing and affordable healthcare.
Moody’s noted that, based on the realities, the large gross financing needs and reliance on commercial external debt will maintain government liquidity pressures.
“While the government aims to improve the efficiency of spending and revenues, such measures are unlikely to be effective enough to stem a weakening in fiscal trends,” said Moody’s.
Foreign currency bond
Moody's also lowered the long-term foreign-currency bond ceiling to Ba3 from Ba2 and the long-term foreign-currency deposit ceiling to B3 from B2.
Moody's also lowered the long-term local-currency bond and deposit ceilings to Ba2 from Ba1.
Moody’s assessment, however, breaks ranks with that of Fitch Ratings, which early this month revised the outlook on Kenya’s Long-Term Foreign- and Local-Currency Issuer Default Rating (IDR) to stable from negative and affirmed the IDRs at ‘B+’.
Last month, the Central Bank of Kenya (CBK) warned the country’s headroom for more public debt is narrowing, advising the Treasury to instead adopt alternative forms of financing for mega projects.
Last August, an analyst at credit ratings agency Standard & Poor’s warned that piling public debt poses the largest risk to Kenya’s economy in the medium term.
Garder Rusike, an associate director in charge of sovereign rating and public finance at S&P Global Ratings, said then that Kenya could struggle to honour repayments in case of economic shock hence the need to cut the budget deficit and stabilise debt level.
Moody’s downgrades Kenya credit rating
pingli-nywee
JF-Expert Member
- Sep 16, 2015
- 11,923
- 13,350
Huu uzi bana, ndugu zanguni, wakenya kwa watz, hamna haja ya matusi bana. Nawaomba tudumishe hadhi ya jamiiforums, tafadhali.
