Explained: What Will Happen If Kenya Defaults On It's Debts- Dr. Alex Kamau
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- Опубликовано: 21 май 2023
- Guest: Dr. Alex Kamau- Business Consultant and University Lecturer
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The kpl and Kenya pipeline bosses were involved in corruption and Ruto has brought them back...its nepotism
We have so many people roaming our towns in the name of kuhustle instead of driving them to farms. We need to smell the coffee
Ruto is asking for 10% from every parastatals he privatised...the same is happening with mumias..the Ugandan company..is facing the same problem.
Don't use corruption as an excuse. As long as we continue to be majorly a consumer economy, we shall always rely on imports and look for more debt...IMF says this, IMF says that. Can't we think for ourselves? IMF is there to serve the interest of it's owners like any corporate entity.
You lack a fundamental understanding of these financial institutions. IMF is NOT a corporate entity, it is a subsidiary of the UN, therefore, all countries that are part of the UN are owners of IMF. Therefore, IMF is not serving anyone's interests but ours and the global interests.
@@moseskamau406 I may lack fundamental understanding of financial institutions but fact still remains, we ought to think of solutions that work for us as Africans and not solely rely on foreign entities we have less influence in...
But IMF doesn't force itself on Africans. It's us who mismanage our economies then go to them. You just heard him mention that Ghana was a beneficiary of debt forgiveness but 20 years later landed on the same problem
@@moseskamau406 wow, you think IMF is serving your interests?? Look at those with the voting power, 25 of the world’s richest countries and not one is in Africa. Kenya may be a member but not really a significant one
Yes indeed, "it is an ACCOUNTABILITY issue." Thank you very much. You have hit the nail on the head. It is the topmost of the 8 principles of GOOD GOVERNANCE, as enunciated by the United Nations, and sadly the least understood by our so-called African leadership today. The lack of good leadership or precisely GOOD GOVERNANCE, pervasive throughout the African continent, is the most intractable problem we are facing, a detriment and impediment to our progress in Africa since independence. The decisions that must be made in order to avoid the unthinkable in Kenya will have to be made by the government. If they get it wrong, it is the entire country that will pay the consequences.
Even though individual Africans and their families may have prospered since independence, it takes organisation, planning and so on to uplift millions of people in any country. That is where GOOD GOVERNANCE comes in. There isn't a single African country lacking the means (brains, work ethic, etc) and resources (both human and otherwise) to prosper. Nevertheless, the means and resources at our disposal will not amount to anything until we have achieved GOOD GOVERNANCE. Therefore, the African countries are not yet rich, nor are they poor at all. We are simply badly governed low-income countries.
Even forget the idea of exporting more goods than currently we do, BUT lets think how important it is to cut our huge appetite to consume "things foreign"! Especially food items! Put the idle bodies to work! ON THE FARM! Pesa mfukoni! And bellies filled! A win win for the whole Kenyan community!
Private consumption is a private matter boss. Why dont you concentrate on government wizi. That is the real problem.
@@Kittygacha_playz Munduyu! Thikiriria! Am an economist! Private consumption only takes place when goods are available! And yes, those goods can and should be locally produced! That was my point! Having said that, I also advocate ZERO TOLERANCE ON CORRUPTION! And how beautiful it would be if Ms Karua became DPP! That would be a good start on tackling corruption!
@@taing8694 Does not matter what you are if common sense is alien to you. I repeat, if someone wants to purchase a foreign products, NOBODY(not even you) can stop them. Not even if a similar product is available locally. What a private person chooses to consume is a personal decision. Karua is irrelevant in this issue. But she is a lameduck person who could not even win a governorship in her own home county. Bure yeye. Wacha amangamange na huyo mganga wa vitendawili.
@@Kittygacha_playz Unfortunate, you are unschooled on this matter! U aren't even worth a second of my precious time! Choka cukuru kirimu giki! Pan intended! Also, urothurwo ni tiri wa Kirinyanga!
If privatisation of public organizations is a strategy to dealing with corruption, then let us privatize governance, what do we need politicians for when we pay them and they don't deliver🤔
1. Default
2. Enter Crisis
3. Constitutional Reform
4. Turn into a Federal Republic
No 4 is problematic
@@deepnudist5055 it's the only way out
You cannot even afford this one government, you think you can afford to go federal? Lol. Kenyans who don't realize how dirt poor you really are. Soon you will.
This route is now becoming clear
Debt rescheduling, can't our govt reschedule?
Can't we drop certain development programs to avoid punitive measures and public suffering?
Mureithi, CJM.
Sounds true Corruption, can hinder financial help.
Can the economics professor explain how Ethiopian Aurlines is the most successful efficient international airline in Africa when it is fully government owned? This is a cultiral problem that will not be cured by privatization. That will just attract competition from the government anyway. Case in point Safaricom Mshwari and the government hustler fund. I agree with Ndu and CT.
Brilliant mind kamau ,he told you the problem stop asking him for solutions
Can we look at legitimacy of the loans and interest rates being charged?
The problem with economic mismanagement is that it puts you in some very very thick mud. For example, we need to pay the loans ASAP, and we only hope there creditor can forgive or extend the debt repayment. We don't have control on the debt side. What they govt really controls are taxes and monetary policies
Kenya need so make cuts so it can live within its means. Kenya is paying their leaders too much. They give their retired leaders too many perks. Don't blame IMF. Blame the Kenyan Govt. We have idiots leading Kenya.
Impunity is the mother of corruption.
Who are the godfathers of impunity. The leaders.
@@drcjmureithi6209 And do the leaders drop from heaven? Absolutely not. The people elect them. People get the kind of leadership they deserve. Kenyans should not expect the emergence of any leaders who will be better than themselves. Our leaders are just as hopeless as ourselves.
🎯
Thanks for bringing Daktari, but still give him time to explain issues, don’t interrupt…
Service first or the money first
The $2B Eurobond was NOT for SGR.
Does a country borrow money to plug it's importation deficit?? The only effect on importation that debt default will have is weakening the local currency making imports expensive, this is actually good because it will encourage local production. When did JP Morgan start issuing credit rating??
Yes. Countries may, and indeed do borrow to plug it's importation deficit. It is however not sustainable in the long run. It is the same principle even at a personal level. You can't sustainably run your personal budget by endlessly borrowing to plug a budget which is not matched be income.
As I said, Daktari was not prepared for this interview.
Wanjigi was advocating for default before he wanted to benefit from bailout.
Just give the ports and the airport to the Chinese...they are mismanaged anyway and corrution has run then down..the Chinese will operate them efficiently..
Then Ruto is in the right direction of recovery.
6:07 the guest has just been explaining what you are asking 😅
The accountant is wrong 😑
Tourism is our largest foreign exchange earner.
Diaspora remittances also play into this.
Yes we may not export as much as we import, Howe foreign exchange earned from the sources I have mentioned balance things out.
It not is would be total scarcity of dollars in the market.
Diaspora remittances is the biggest foreign exchange earner. About USD 1 Billion a MONTH It overtook Horticulture, Tourism, Tea and Coffee many years ago.
Kenyans in Diaspora should be having a whole MINISTRY to be serving them and enable them remit more, especially through investments. Ati shillingi ya diasporian ikiskika imepotea DCI inasaidia kui-recover!
Did Parliament approve this Euro bond? Where did the money go?
In the pockets of politicians and now common mwananchi has pay in pain
looted most likely
Mumias was never privatised..its a big scam
How can this good Dr keep on comparing Kenya to Denmark?
He was not prepared for this interview am sorry to say. Recycling the same BS our President is trying to give us, as arguments supporting that Kenyans are not over taxed. Unfortunately thank the situation crew left him off the hook diplomatically. He never actually gave a concrete proposals on the way forward. A waste of time.
Just give the ports and the airport to Chinese.. they are mismanaged anyway..the Chinese will make them profitable
Africa is working for Western financial institutions. Africans will remain poor unless our leaders be sincere with us.
Development is not a recurrent expenditure. Its investment in income generating potential. Do we ever have a cost-benefit analysis of our debt, revenue and expenditure and have anything useful we expect out? Simple accounting?
This guy seems not to understand what he is talking about,,,Debt defaulting won't reduce a nations export potentials
It will. It results in high inflation which will lower output
You lost the conversation on corruption. You could have done better
Let the parastatals be privatised to foreigners...Kenyans cannot run these companies.
this is not nuclear science, how can the country be heavily in debt, be in troubled in debt and the executive increases it's budget 2 or three times fold? 2 plus 2 is not 9. You go figure !!!! Any normal accountant would tell the executive to go on a financial diet right????
Kenyan iko already defaulted. Debt is 200 trillion shillings and 30 trillion shillings intrest in dollars denomination. How pay pesa when 34 million kenya unemployment and 600 000 businesses closed. Massive poverty and inequality and rampant corruption. Revolution lazima happen renewed kenya spiritually
The poverty is partly due the population growth explosion..people are also to be blamed..
Which country do you live in aty 200 trillion and 30 trillion interest 😂😂😂🤦🏽♂️
Which country are you in😅😅
@@ruffjuli4241 does it matter..its a fact
This one is more eloquent than Jimmy
It’s ok to default. Argentina does it all the time. Whether you choose to live with corruption that is a separate issue.
I have friends in Argentina. They told me that once they defaulted their currency power was halved in 8 months. They also made it such that it become difficult to move money outside the country. Meaning you struggle to import things like fuel. And bring the money inside the country is also taxed.
@@martinnjoroge9789 Actually it means difficulty in pricing things. A car could be priced more than a house. Food more than clothes etc. masters degree from a top (when I say “top”, I mean TOP) western university in the subject here.
It is not Ok to default. Ghana defaulted last year inflation is at 45%, they have fuel rationing, people are dying of hunger in the streets. If you think life is bad now wait until we default trust me it can lead to immense adverse effects (incredible social unrest). WE CANNOT DEFAULT
@@moseskamau406 Don’t get me wrong, it would be a terrible idea to default. Much the same way that corruption is a terrible idea. We live and celebrate thieves everyday, in fact we elected one as president. We trashed international norms when we elected a pair who were suspects of international crimes against humanity. If we can live with all that corruption and madness what makes you think a default is the line we will not cross?
@@moseskamau406 ask yourself, did they default because of high inflation or was high inflation the cause of the default🤔😂
The professor was being continously interrupted by publicity seeking individuals
Doktari is being an alarmist ... In any case we should be weaning ourselves off debt, Moi managed ... Kibaki did minimal borrowing, we do not have to import everything, necessity will lead to local inventions.
With great respect, that is the most foolish thought I have heard this month.
@@ooj100 Loans are an imperial tool for control, why would you want to be a beggar your whole life? And pass the same to future generations, why can't we produce even basics? Western education dumbing down generations of Africans to sustain Neo Colonialism
We are weaning ourselves off debt, but it is a slow process. If we do not import food people will die, it is literally as simple as that.
@@moseskamau406 My brother, you do not understand how national economics works. You cannot wean yourself off debt if you have no additional income. You cannot reduce your mortgage payments unless you refinance or you increase your income.
@@ooj100 Finance Bill 2023 is going to increase income