ECONOMICS
22-02-2024 by Freddie del Curatolo
Kenya is no longer at risk of economic default. At least that is the authoritative view of its first citizen, President William Ruto.
On the sidelines of a meeting with his Cabinet and members of the House of Representatives and Senate, Ruto was keen to point out the government's efforts to improve Kenya's economic situation, namely by reducing debt and increasing revenue.
The president attributed the recent recovery in the value of the shilling against the US dollar with the newfound confidence of investors, both foreign investors and those already in the country.
"We have pursued a turnaround strategy focused on increasing tax revenues and reducing spending and debt accumulation. Our sacrifices and efforts have not been in vain,' he said, as quoted by The Standard newspaper.
Fears of not being able to repay the ten-year Eurobond debt maturing next June seem to be behind us thanks to a new, even more investor-friendly bond launch, which has raised more than the Kenyan government itself could have imagined. Thus the USD 2 billion of the previous debt will be repaid and at the same time the Treasury will be able to launch a USD 2.5 billion bond issue.
Optimism reigns supreme and the markets are once again believing in the country's commercial potential, as is tourism, whose figures for the beginning of the year point to a decidedly upward trend.
However, according to international economists, including the Africa experts of our newspaper Il Sole 24 Ore, Kenya's recovery is momentary, but the long-term risk is that of entering a 'loop' of debts that are increasingly large and difficult to manage, starting with interest payments, which are the reason why the country's public debt continues to rise.
It is a tug-of-war with fictitious numbers; if in fact, translated into dollars, the public debt had recently exceeded 63 million, now with the strongest shilling it risks going up, although fortunately the country's gross domestic product also goes up.
"Today, after the anxiety of the last year, when many in the international community were concerned about Kenya's position and its financial capacity to handle our situation, including the debt situation, I can say with certainty that Kenya is no longer on the list of countries at risk of default," Ruto said.
How much will 'mama mboga', or the fruit and vegetable stall vendor, on whom (like the millions of 'boda boda' taxi drivers on motorbikes) Ruto's election campaign had been centred, notice these global economic games his government has decided to play?
'The country will save a trillion shillings in the next six years,' the president announced.
But it is also true that those who have nothing today will hardly be able to save anything.
ECONOMICS
by redazione
After months of shilling devaluation and ventilated risks of the country's economic default, Kenya is recovering and...
ECONOMICS
by redazione
And suddenly the Kenyan shilling recovered, returning to its pre-summer levels and...
ECONOMY
by redazione
The World Economics Journal recently considered the devaluation of the Kenyan Shilling and considered that the currency of Kenya will remain at low values, compared to the dollar and euro, for at least 4 months.
The difficult period for the Kenyan economy may have reached its climax and now begin its downward...
ECONOMICS
by Freddie del Curatolo
The Kenyan shilling remains solid and strong against the dollar, keeping the US currency used for trade at...
NEWS
by Freddie del Curatolo
The fourth day of agitation and demonstrations against the country's rising cost of living and for ...
KENYA NEWS
by Freddie del Curatolo
The Kenyan government cuts public spending on ministries, parliament and the judiciary, but...
AIR TRAVELS
by Freddie del Curatolo
After the abolition of the visa requirement for citizens from all over the world as of 1 January 2024 and the...
DIGITAL
by redazione
It will be called 'Smarta' and will be the first android mobile phone assembled...
Kenyan President William Ruto announced on live television his decision to remove the entire...
NEWS
by redazione
The U.S. dollar yesterday reached a new record high against the Kenyan shilling, which is at an...
by Freddie del Curatolo
Kenya has been facing its most serious economic crisis in its history since the beginning of the...
NEWS
by redazione
Kenya's new President William Ruto has released the full list of ministers in his...
Coronavirus effect but not only that, the fact is that the Kenyan Shilling has reached an ...
POLITICS
by redazione
The ruling opposition is calling on the people to "disobey" the new restrictive measures signed...