₦airaland Forum

Mkenya2019:
Both domestic and external debt have cons and prons.
You need to get the right mix;
And even within that domestic or external debt; you need to get the right mix.

External debt - exposes the country to exogenous risk (forex risks) - and if commercial (flexible interest rate risks).

Borrowing internally - kills the private sector - because they cannot compete with risk-free gov bonds - that is why Nigeria interest rate for borrowing is 30 percent - and poverty is endemic.

Most domestic borrowing comes from banks, insurance and pension funds - you take too much of that - you kill private sector, local investment and stunt the economy.

That is where Nigeria is. TINY private sector. Zero tax collection. Poverty.

Ghana seems to be like kenya with right mix of 50:50; the problem with Ghana; they have taken a huge chunk of dangerous Eurobond (commercial foreign loan) - if their interest rate rises from 10 percent now to Zambia 17 percent - and if their Cedis depreciate against the dollar - they WILL DEFAULT - leading to another lost decade to clean such kind of a gigantic mess.

Mkenya2019:
If you bothered to read the report from your own DMO - you'd have understood that borrowing 85 percent from the domestic market - is completely crowding our private and household borrowing. In short, you banksters are making serious money doing nothing. While poverty in your country has by now exceeded 100M people.

Kenya has never defaulted.
Kenya has never been part of HIPC

Kenya, Laos, Liberia, Malawi, Somalia, and Sudan have never received a concessional rescheduling from the Paris Club.
https://www.imf.org/external/np/hipc/cost4/index.htm

Kenya was an LDC until 2013/2014 when it became Low Middle Income Country.

Now we are half way to become High/Upper Middle Income Country - which we hit before 2030 when our nominal GDP per capita will hit 4000usd.

Mkenya2019:
Misery loves company.
You wish kenya was broke like Nigeria. Please look for Ethiopia - that is one struggling right now - and is certainly defaulting. Or Ghana bossom buddies Zambia and your boko haram neighour Chad.
Kenya continue to collect more taxes than pre-covid.
Debt repayment has resumed - after six month hiatus.
https://www.bloomberg.com/news/articles/2021-07-31/kenya-resumes-china-debt-repayment-with-761-million-remittance

obaaderemi:
You don't know much about economics as several people had established long ago. I can see you still haven't learnt much in spite of all your years here.

External debts are clearly worse than domestic debts because they are based in foreign exchange upon which you have little or no control.

Again the terms are very stringent and they affect the ordinary citizens more. That's why joblessness is rising in Kenya.

Look at this scenario, did you think ordinarily your government would listen to the IMF and freeze salary increments if it wasn't owing so much multilateral loans?

You mentioned interest rates. Nigeria's interest rate is 11% as at June. In Kenya it was 12%. You are worse off.
Do you know why? IMF again.
When Uhuru came in, interest rates was around 35% in Kenya! He capped it at 5% or so, thinking it would help SMEs. Your banks simply stopped lending to small businesses and stifled your economic growth.
IMF came in last year and arm twisted Uhuru into removing the interest rate cap. Now it is growing again and once more ordinary little Indians are the losers.
Meanwhile your external debts keep growing, all thanks to Chinese loans. Higher than Nigeria's or Ghana's.

Honestly, there's no way out for Kenya. Kenya is an IMF and Chinese colony.

obaaderemi:
Well, your country is the one begging creditors for rescheduling because it is broke, using covid as an excuse.
Oil prices are going up while tea and tourism are doing badly. So who is faring better in terms of cash flow?
Mind you, Kenya only resumed debt repayment because China threatened to stop funding projects in Kenya. Uhuru in his craven manner rushed to get another expensive Eurobond so that he could pay your Chinese masters. The hammer is about to fall on your bubble economy.

obaaderemi:
Like I said the IMF just arm twisted Uhuru into removing the interest rate cap he introduced in 2014.

It's why joblessness and poverty are rife in Kenya.
@ bolded. Kenya was a HIPC as recently as year 2000.

Mkenya2019:
Of course Lebanase is a Nigerian - although he is based in Dubai for most of the year. So is more UAE citizen. The igbo man who founded Nova is in South Africa - not Nigeria. That makes his business a South African. My igbo friend here who own a restraunt here in France - that business is not Nigerian - it very small though.

rvp20182:
Kenya has never benefited from HIPC initiative facility.
If you want to go 20yrs ago - then I bet Nigeria was doing even worse then.
In fact so worse Nigeria benefited from HIPC intiative.
In fact there are few countries that have their debt forgiven in such scale like Nigeria - and it all became wasted money.
Nigeria was given 18B dollars debt write off and overal reduction of 30B - few years ago- in 2005.
It's not any better now.
Nigeria is functionally broke - spending 100 percent of revenues to repay debt - breeding poverty and all the ills associated.

rvp20182:
Why dont you start by reading Nigiria debt office strategy paper

You're functionally illeterate.

When I say exogenous risk - (forex risk inclusive) - I am codensing the nonsense your write below.

Kenya and Nigeria in macro-economics can never be compared.

Kenya interest rate being more than Nigeria - has probably never happened

Kenya central bank rate is now 7 percent - and most commercial banks are lending at 13-15 percent - annually!
Nigeria base lending rate is what 14-16 percent - and their commerical bank rates start at crazy 25-35 percent - infact your loans are quoted monthly - because it insane if it was to be quoted annually!

Now let go back to debt - for more basic schooling of Nigeria WAEC graduate.

All the loans have their problems. What a country wants is cheap almost zero rated long maturing loans - and countries try to avoid short term expensive loans.

1) Borrowing internally like Nigeria does for 80 percent of their loan stiffle private sector, stiffle investment in real estates, equity and such. It reason Nigeria doesnt have any private sector - and is just one big informal black market. The only thriving sector in Nigeria is banks and maybe Dangote like import-export monopolies.

2) Borrowing Internally like Nigeria does at 16 percent is crazy. In fact Zambia at 17 percent Eurobond is better. Kenya gov borrows domestically from 6-12 percent. Nigeria start from 13-16 percent.

Borrowing externally has issues - forex risk - commercial risk.

Kenya does 50:50 mix - and within that 50 mix of foreign loans - we also split it into 3:3:3 - 30 percent commercial (eurobond, commercial loans from big banks); 30 percent bilateral (china, france, japan are out big lenders); 30 percent multilateral (Imf/wb/adb).

Now you're jumping all over because of small loans from IMF? - with that 30 percent of external loans - IMF contribute little.

We only went IMF with everyone else last year. Nigeria was first to rush to IMF.

We only went for debt relief like everyone else last. It was only for six months. It history now.

You country is in fix because 1) Naira keep depreciating to the dollar 2) You entire economy and gov depend on oil revenues.

And you country is spending 100 percent now of its oil revenue to pay debt.

You're functionally broke and brankrupt. The country and plus most of it's citizen.

Fresh data from the Central Bank
of Kenya (CBK) shows that lending
rates averaged 12.19 percent in
February, the lowest since January
2005 when it stood at 12.12 percent
during the reign of former
governor Andrew Mullei.
Kenya in November scrapped the
cap on commercial lending rates,
which had been blamed for stalling
lending to small businesses and
individuals. The removal of the
legal cap led to fears of a likely to
return to the era of high lending
rates, which had at one point hit a
high of up to 25 percent.

rvp20182:
We didnt beg. We took advantage of that covid facility for six months. You run to IMF faster than kenya.
I keep telling you - kenya has well diversified non-mineral economy.
We do not depend on any sector of the economy.
We are not Nigeria who depend on OIL.
We do not depend on anything - not tea - not tourism - we have so many sectors.
Under COVID - our gov revenues have grown - lending to private sector has increased - we had possible 1 percent growth last year - and this year we will be Africa Fastest Growing economy - with projected 8 percent growth.
In fact only downside is rising oil prizes - and small dent on KSHS to USD - otherwise under COVIDD in 2021 kenya economy is firing on all cylinders.

Kenya economic growth can only be stopped by civil war or something that big - otherwise it's well diversified and sustainable growth - and almost happening on it's own.

Debt is only a small issue until we rebase the economy - and ratio will drop from 65-70 percent to GDP - to almost 55 percent. LDC should do 50 percent debt to GDP. Kenya being Low Middle Income should do 70 percent debt to GDP...so we are FINE even now. Also as revenue grow - the debt servicing ratio drops to 30 percent - which is where prudent debt management is.

The least we talk about Nigeria macroeconomics the better.

Vlain:
Nope That is the nonsense rvp tell u guys so u can all sleep better at night.

Mkenya2019:
Very slow progress. Why cant Nigeria diaspora buy or build units.

Mkenya2019:
Konza is a gov project. Once they complete horizontal infrastructure it will fly. Kenya people have money.

PROVERBZ:
stop telling lies.
Firstly this road is the border between Lagos and ondo.
The reason why alaro has posted it here which u have intentionally cropped out, is cuz the road stretches all the way to epe where it connects with lekki free trade zone where alaro is located.

2ndly universal homes has not kicked off construction.
Alaro city has not done more work than konza city.
Konza cities horizontal infrastructure is nearly complete..the only roads at alaro is the two lane boulevard that stresses a few meters.

Mkenya2019:
Now you're splitting Kenyans into races and nationalities of ancestry. Nova is kenyan and South African (Nigerian is a south african business man). The same with others.

68816419:
land reclamation for a city of about
25 km2 (10 sq mi) (larger than many capitals)) is not that easy,mind you, all the land at Eko Atlantic has been sold out, 14 brdiges has been completed, underground drainage and sewage system has been completed, 200,000 varieties of tree has been planted, 14 towers are under construction as we speak and all other major infrastructures are done, constructions of towers has picked up as well, the major issues now is , land speculators and the scared of been interrogated by EFFC( corruption agency).

Vlain:
[s]Lol same way you split SAns into races anytime it’s doesn’t Favour u and u want to play trick for cheap scores.

Nova pioneer is Nigerian. Take it to the bank and cash it[/s]

Vlain:
[s]U don’t need to explain shiit to him.for how long would u keep explaining this things to him. It’s obvious he is bitter. Just post and watch him bicker in pain. U don’t need to convince him when u know u’ve long done that. He has already accepted it in his heart,just forget this his bitter online persona[/s].

Mkenya2019:
Of course Lebanase is a Nigerian - although he is based in Dubai for most of the year. So is more UAE citizen. The igbo man who founded Nova is in South Africa - not Nigeria. That makes his business a South African. My igbo friend here who own a restraunt here in France - that business is not Nigerian - it very small though.

Shma2020:
But konza has spent more money on just horizontal layout.

Konza is now 90 percent complete on horizontal infrastructure and that alone gives konza an upper hand.

gallivant:
Eko has only completed 4 buildings. It should be a crime to call this white elephant next to Makoko the best project in the whole of Africa.

obaaderemi:
You don't know much about economics as several people had established long ago. I can see you still haven't learnt much in spite of all your years here.

External debts are clearly worse than domestic debts because they are based in foreign exchange upon which you have little or no control.

Again the terms are very stringent and they affect the ordinary citizens more. That's why joblessness is rising in Kenya.

Look at this scenario, did you think ordinarily your government would listen to the IMF and freeze salary increments if it wasn't owing so much multilateral loans?

You mentioned interest rates. Nigeria's interest rate is 11% as at June. In Kenya it was 12%. You are worse off.
Do you know why? IMF again.
When Uhuru came in, interest rates was around 35% in Kenya! He capped it at 5% or so, thinking it would help SMEs. Your banks simply stopped lending to small businesses and stifled your economic growth.
IMF came in last year and arm twisted Uhuru into removing the interest rate cap. Now it is growing again and once more ordinary little Indians are the losers.
Meanwhile your external debts keep growing, all thanks to Chinese loans. Higher than Nigeria's or Ghana's.

Honestly, there's no way out for Kenya. Kenya is an IMF and Chinese colony.

obaaderemi:
I don't have the time to type a novel. I am not idle like you.
Commercial lending rate in Nigeria is 11%, lower than Kenya's 12% and the IMF does not colonize Nigeria like it is colonizing Kenya. Read this and see that Kenya's case is worse than you think:
You are a poor liar,Son.
That interest rate is gradually going back to the 25% it used to be. Kenya is a joke.

obaaderemi:
Stop lying, boy.
Kenya runs to the IMF more than Nigeria. That's why they can pocket Kenya. The IMF has been bailing you out since 1975!
Nigeria had nothing to do with IMF until 1987. You need to be smarter than this.
You just issued another expensive eurobond, the 4th in seven years, just so you can use it to settle part of your debt. Who does that?
Your debts are unsustainable, forget what your treasury minister tells you. Kenya is out.

And your growth rate is projected to be 4.5% this year not the 8% you pulled out of your bum. Can you for once stop lying?

Vlain:
Mumu the chagouri’s are based in Lagos,Nigeria.
Nova pioneer is owned by a Nigerian.
That restaurant in France is owned by a Nigerian. He invested into the French economy.

rvp20182:
Tortured Arguments as always. Chagouri and Lebanese are Nigerians but Nigerians living and investing abroad - with almost no plan to ever return to Nigeria are Nigerians.

Vlain:
U are stupid as always.The Chagouri’s does not live in Dubai or abroad.They live in Lagos Nigeria and invest in Lagos Nigeria.pls say what u know not what u don’t.

68816419:
Nigga, u need to travel more and then u would understand why we say Mombasa is nothing. Mombasa is just the old , tiny ugly old town and Nyali, why Kaduna is made up of towns like Kaduna city(State capital), Zaria and Kafancha, these cities have superior infrastructures than Mombasa,

rvp20182:
This just 5 days ago -- seems he relocated to Paris. Eko is by South Energyx Development, based in the United Arab Emirates.

Those Lebanase made a fortune under Abacha -

Gilbert Chagoury, on the other hand, defined by African business analyst, Philippe Vasset, as[b] "the guardian of the Abacha presidency"[/b], following the death of Sani Abacha in 2009, agreed to return about $300m stolen from Nigeria by the dictator through his network of companies.

https://www.sunnewsonline.com/why-billionaire-mogul-gilbert-chagoury-now-avoids-nigeria/

Saddamochieng00:
I know you thrive in this useless comparisons so I won't waste time on you. Everyone here can see the clear difference between the two.

https://www.youtube.com/watch?v=x_AcJs5up4I


https://www.youtube.com/watch?v=N02KJuTF1Aw


https://www.youtube.com/watch?v=1BPHEbadPuY

Vlain:
Konza is dead like ugatuzi and 90% of most real estate projects in Kenya.wake up my friend,wake up.

Shma2020:
The day your brain will expand is the day you'll start viewing things with intelligence. Apparently for you, you only think vertical infrastructure is what define progress.

Lemme start with phase one which is currently at 90% completion.

Some of the main key:

Streetscape and Sub-Surface Utilities

New roadway construction in Konza Technopolis will include a hierarchy of streets: arterial and collector roadways, local level roads, and several “green streets”. The planned roadway layouts and cross-sections includes:

Roadways,
Parking areas,
Bicycle paths,
Dedicated bus lanes,
Pedestrian sidewalks,
Street lighting,
Traffic signalization and signage, and
Landscaping
Streetscape and Sub-Surface Utilities

All these are currently on course and 80% done.

Site Grading and Street Pavements you'll notice this scope is already on course! I will post the photos for you.

Read this article and enlighten yourself.
Storm Water Drainage
Konza’s development density and the imperviousness of the proposed infrastructure (paved roads, hardscapes and buildings) will lead to generation of significant storm water runoff. Storm sewers will thus be required to handle storm water runoff. The storm sewer system includes a series of drainage inlets, manholes and piping.

Water Supply Distribution
Konza water distribution system layout includes [b]trunk mains, secondary mains, distribution lines and service pipes. Service will be provided to the entire area within each phase. The water distribution system will consist of various types and diameters of water pipes for different pressure zones and appurtenant structures including fire hydrants and isolation valves. Distribution pumping stations and storage tanks also form part of this system though these are covered in this report under a different sub-topic.

Wastewater Collection and Reticulation System
The wastewater collection system will consist of various diameter and type sewer pipe, appurtenant structures including manholes and junction chambers and gravity main pipe. Various pipe materials provide a cost effective, long life system.

Konza’s sewer collection system layout includes trunk sewers, interceptor sewers, services and gravity mains. Sizing of mains will be done to capture Phase 1 as well as future phases where sizing is critical through Phase 1.

Electrical and ICT Network
The conduits will be constructed simultaneously with the rest of the street pavement and sub-surface utilities infrastructure to curtail the retrogressive, costly and damaging effect of cutting already build pavements to lay service ducts for the same.

b. Wastewater Reclamation Facility

The Wastewater Reclamation facility consists of a 9 Ml/day advanced treatment system that incorporate the Moving Bed Biofilm Reactors (MBBR) facility for Phase 1. It will treat water to a drinking water standard and be used in the grey water system for toilet flushing and irrigation as well as partial mixing of raw water supply to the water supply for Konza. It will be built in such a manner that it can be up-scaled to cope with sewage inflows resulting from full build-out of all phases of Konza.

c. Water Treatment, Pumping and Storage

Treatment for drinkable water treatment is expected to employ reverse osmosis in the early phases of Konza and particularly for existing borehole water reserves. Booster pumps will pressurize water for the upper zone.

Stored water will be located at the highest locations and at elevations to facilitate zone pressures. Pressure would be maintained by elevated storage, with the tank elevation set to provide specified pressures within the zone. A Pump station will be used for the Upper pressure zone that exists for a small part of the Phase 1 site mostly near the entrance off Mombasa Road.

d. Electrical Power Supply

The electrical power supply system will comprise of power sub-stations to be constructed internally with initial power supply originating from the Konza KETRACO 132/33 KV substation. The other main consumables expected under this item are transformers, cables and associated items for electrical distribution.

e. Public Parks

Park facilities will be constructed throughout the Phase 1 part of the site. Parks will include school play fields, football fields and landscaped areas. These include

City Perimeter Landscape
Nature Park – furnished with benches, drinking fountains, bike racks, restrooms, trash receptacles, trailhead and way finding and shade canopies etc.
Civic Park – landscape features included sculptures/monuments, outdoor stage and grand shade pavilion, shade pavilion, water fountains, benches, bike rack, lighting etc.
Urban plazas and squares
Green transit corridor
Pocket parks and playgrounds at neighbourhood centres
Field artificial turf and landscaping
f. Public Facilities

Public facility buildings that will be constructed as part of Konza Phase 1 Horizontal Infrastructure are:

Police and fire station
Entrance and security feature
Solid waste management facility, and
Transit facility.

Mind you, konza is a vision 2030 project. Once basic infrastructure is laid by the government, then investors will start rushing for land. This project is light years ahead of Tatu.