₦airaland Forum

rvp20182:
Why would Kenya default. You need to understand how countries default and why Kenya is far from doing it. I dont know how much financial education you need to understand that Kenya had liquidity challenges but is very solvent.


You default if you do a series of stupid mistakes like Zambia and Ghana
1) You take huge external commercial loans - Eurobond & Syndicated loans with variable interest rate. Both Ghana and Zambia took lots of that.
2) You default if your currency loses grounds - Ghana for example saw almost 50-100% depreciation of cedis - and they threw up their hands.
3) You revenues stop growing - Ghana tried everything including mobile money taxation - but revenues just didnt grow - they threw in the towel - one sunday their sweating finance minister announced they were bankrupt.

You dont default if like Nigeria you take lots of domestic debt. Nigeria has printed 50B dollars worth of Naira. You just de-flate the money by printing - and creating poverty - but you dont default. This what Nigeria has been doing - printing their way out.

Kenya has only printed 500M dollars - the whole of last year. That the much kenya gov has borrowed from our central bank to address liquidity challenges. Kenya revenues grew by 20% last year from covid recovery - this year up again by nearly 10% - the economy is growing at 6% year in year out - inflation is not even double digit - base interest rate is 8%.

HOW do you expect kenya to default

What you call printing money, we call them CBN bonds to local investors especially in 2020 and 2021.

Just that much of it is unaccounted for and the result it aimed to achieve by getting farmers to have heavy loans during COVID, came at a loss due to unaccountability and increase in insecurity to the farmers from Bandits (both within Nigeria and across the border) thesame year 2021/2022.

Printing money is also costly and because of that, not more than 8 African countries print their own money themselves. Hope you know that?

ProblemChild1:
Why can't you post your yoruba dirty brown roof

you are ashamed of your dirty backward igboland i know

GeneralDae:
Igbo villages are heaven on earth. Beautiful and green. But the towns and cities are the problem (like many towns in Nigeria). I also observed that when I stayed in Anambra for a year and half.

Nothing really special about anambra most especially if you stayed in onitsha(although awka seems better) but you can try Enugu .

rvp20182:
46% on interest alone illiterate Ghanian fool. You still have to pay for principal.

Illiterate, that was in 2022 and Ghana paid without defaulting. Which was the worse of it

This year is has dropped to 35% on debt servicing

rvp20182:
Price, you pay investing in a wasteful irresponsible gov like Ghana and Zambia - both who hold Africa record in the number and propensity to default.

One must be ignorant to buy either Zambia or Ghana bonds. Ghana Cedis and Zim Kwacha had become so useless 1 dollar for 50,000 cedis they had to re-start from zero. 10yrs later they are 15 - that is 15 times depreciation. I can only imagine if KES was to drop 15times in 10yrs.

You're desperate... Ghana offers the best of returns on investment hence attracts good investment.
See the people who buy Ghana bonds, these guys are whales.

They will never invest in a country like Kenya with poor returns. Only fools putting money in places like Kenya and receive poor business

They will be happy to take a loss just like they get happy in making good returns

rvp20182:
I knew Ghana would default waaay back - it predictable - if you know the history of Ghana gov legendary recklessness.

slowpoke losing their money for investing in Ghana have themselves to blame.

The same way we are telling you Kenya will be bankrupt soon.

rvp20182:
Oil will not generate itself; Nigeria has failed to invest in oil sector and now it's starting to bite. Nowadays you can barely do 1M barrels - or doing half what you did a decade ago.

Now you have 220m country waiting for 20B dollars or less from Oil - with usual price fluctuation.

You have kenya working hard to generate 30B dollars in revenue from non-minerals - solid revenues that dont fluctuate.

Nigeria now if you rotton oil infrastructure continue the downward trend - soon your federal and state gov will be sharing 10B dollars

By February 2023 Nigeria's oil production had risen to 1.3m barrels. We are on course to hit 1.8m in the next 3 months. Kenya doesn't have such a hefty backup.

GeneralDae:
What you call printing money, we call them CBN bonds to local investors especially in 2020 and 2021.

Just that much of it is unaccounted for and the result it aimed to achieve by getting farmers to have heavy loans during COVID, came at a loss due to unaccountability and increase in insecurity to the farmers from Bandits (both within Nigeria and across the border) thesame year 2021/2022.

Printing money is also costly and because of that, not more than 8 African countries print their own money themselves. Hope you know that?

I am talking overdraft that Nigeria take from CBN to pay salaries. Nigeria federal gov has taken 50B dollars worth of such overdrafts. That is asking central bank to create money to pay off salaries. It increases money supply and inflation. That is why Nigeria is struggling with inflationary pressure like bankrupted Ghana. That is also partly explain why dollar exchange in black market is double official rate.The cost of minting or printing paper is little...

Obaaderemi2:
The same way we are telling you Kenya will be bankrupt soon.

But you can't predict nothing without deeper knowledge of things..

rvp20182:
I am talking overdraft that Nigeria take from CBN to pay salaries. Nigeria federal gov has taken 50B dollars worth of such overdrafts. That is asking central bank to create money to pay off salaries. It increases money supply and inflation. That is why Nigeria is struggling with inflationary pressure like bankrupted Ghana. That is also partly explain why dollar exchange in black market is double official rate.The cost of minting or printing paper is little...

Lol, there is no evidence Central Bank's money was used to pay off salaries. Federal Government of Nigeria even at her worse in 2016 always paid salaries. Nigeria is not little India that struggled to pay salaries for 3 months.

Kenyan Government is officially bankrupt.

Tanzania
Busy busy pumping out the water from lake Victoria for human consumption and irrigation

Tanzania
While others are bankrupt, United republic is busy busy with tourism

Tanzania

Tanzanian stuff

GeneralDae:
Lol, there is no evidence Central Bank's money was used to pay off salaries. Federal Government of Nigeria even at her worse in 2016 always paid salaries. Nigeria is not little India that struggled to pay salaries for 3 months.

Kenyan Government is officially bankrupt.

Why do you think it took overdraft instead of floating bonds..your Zoo has long exceeded 100% debt servicing ratio..that stupido mean its been printing money..Buhari has printed 3000 percent more than Goodluck.Stupido country full of brain dead.Now you have 50B that you want convert into bonds so you clean the mess..however it will mean your debt will balloon.Lots of painful decisions will be needed to save your Zoo.

Airlord2030:
you are ashamed of your dirty backward igboland i know

Why are you also ashamed to post your shambolic brown roof republic

GeneralDae:
Igbo villages are heaven on earth. Beautiful and green. But the towns and cities are the problem (like many towns in Nigeria). I also observed that when I stayed in Anambra for a year and half.

You're right. But Owerri and Enugu are very beautiful oo. You need to visit there to see things for yourself.

Confessions time

Kazikazi:
Confessions time

Tanzania should be the powerhouse of East Africa.

Not Kenya, not even Ethiopia.

Kenya is the tech powerhouse of East Africa for a fact though.

Kenya still importing 8 years old cars 😂🤣

No wonder their roads are filled with rickety cars

Just40:
Kenya still importing 8 years old cars 😂🤣

No wonder their roads are filled with rickety cars

In Ghana and West Africa you drive stolen second hand cars from America.


https://www.youtube.com/watch?v=gshyozP-GY8

rvp20182:
But you can't predict nothing without deeper knowledge of things..

Did I not tell you Kenya was broke? If I had the time I would dig it up where I said that. We've been saying that for years here. Now you are struggling with ordinary federal government civil servants salaries. That's deep knowledge.
And I'm telling you today that you would default and Nigeria will not.

GeneralDae:
Lol, there is no evidence Central Bank's money was used to pay off salaries. Federal Government of Nigeria even at her worse in 2016 always paid salaries. Nigeria is not little India that struggled to pay salaries for 3 months.

Kenyan Government is officially bankrupt.

They are down and out. The signs are there already. Struggling with salaries.

rvp20182:
Why do you think it took overdraft instead of floating bonds..your Zoo has long exceeded 100% debt servicing ratio..that stupido mean its been printing money..Buhari has printed 3000 percent more than Goodluck.Stupido country full of brain dead.Now you have 50B that you want convert into bonds so you clean the mess..however it will mean your debt will balloon.Lots of painful decisions will be needed to save your Zoo.

The most painful decision is when federal workers go to bed with empty bellies like in Kenya.

gallivant:
In Ghana and West Africa you drive stolen second hand cars from America.


https://www.youtube.com/watch?v=gshyozP-GY8

It doesn't matter, it is still bought 🤣😂

What matters is the old cars on kenyan roads

GeneralDae:
Actually, very few African nations print their currency by themselves. Not more than 8 of them I think.

Its part of sovereignty to be able to print your currency needs locally.

Kazikazi:
Printing money isn't a big deal,anyone can buy printers and do the job

Anyway, that's why we are called a developing nation,we still have a lot to o. We won't do all things at once. Same like kenya, you print money yes,its okey,but you starve! You focused on printing,you forgot about growing food. TZ don't print money but has something to eat.
Kenya prints money,but ýou lack security. Bandits are killing people in droves while u are busy celebrating the printing of money.

The problem of many developing nations lile kenya and others is mainly they are not knowing what to prioritize.

Its always crucial to ensure that what you say aligns with reality. It will disabuse you of the cognitive dissonance that arises once what you believe to be true is actually not the case. This is research done by Ethiopians.

Country-specific analysis shows that about 60% of the surveyed farm households in Ethiopia were food-secure, while 11% and 22% of the households were mildly food-insecure and moderately food-insecure, respectively. Of the Kenyan households, 50% were food-secure, while 12% and 30% were mildly food-insecure and moderately food-insecure, respectively. In Tanzania, 48% of the farm households were food-secure, while 22% and 24% were mildly food-insecure and moderately food-insecure, respectively. These results indicate that there is a slight variation in the prevalence rates of farm household food insecurity across countries in the East African region.
https://www.sciencedirect.com/science/article/pii/S2212096321000620

Kenya is actually more food secure than Tanzania because of two reasons

1. cash transfer programs to the most vulnerable and
2. majority of kenyans living in central and western highlands.

Despite this>>> The country-specific results show that Kenya recorded more frequent droughts in the last three years than Ethiopia and Tanzania.

Kenya’s Hunger Safety Net Programme, an unconditional cash transfer programme, boosted beneficiaries’ food consumption relative to controls and increased dietary diversity for poorer households in the project

Tanzania has some of the highest levels of malnutrition among African countries. Approximately 42% of children under five suffer from malnutrition and stunting

This last point actually explains why most of you Tanzanians struggle to understand very basic concepts. You never got the nutrition to power robust brains capable of normal human-level intellect.

https://www.intechopen.com/chapters/74388

GeneralDae:
Tanzania should be the powerhouse of East Africa.

Not Kenya, not even Ethiopia.

Kenya is the tech powerhouse of East Africa for a fact though.

Tanzania and its people will always remain a joke.Power House kidding right.Move out of the highway there are no paved roads

Just40:
Kenya still importing 8 years old cars 😂🤣

No wonder their roads are filled with rickety cars

Ghana as of recently just got 10yr old from no age limit. Kenya has had 8yr age limit since 1990s.We have now disallowed used trucks.kenya about 10yrs from car manufacturing taking off.

Obaaderemi2:
The most painful decision is when federal workers go to bed with empty bellies like in Kenya.

Something that been happening in your Zoo more often than anyone cares to list..do you even pay pensioners

Kenya rank fourth in Africa wealth ranking with Nairobi also fourth...just slightly below the Zoo n lagos. South Africa continues to regress https://www.businessdailyafrica.com/bd/economy/kenya-fourth-in-africa-s-dollar-millionaires-rank-3795462