So we wait for one main street - while Tatu city has expanded to 5,000 acres.

PROVERBZ:
child's play. Wait till u see what's going on at alaro city.

The main boulevard is a beauty. As soon as pictures are out I will post.

Just40:
mad man

Kenya is doing 75% of revenue... Kenyan wages, salaries and compensation takes 55% of revenue

There's no way to balance this and that is why Kenya is bankrupt and has defaulted of so many debt.
Now you don't want to pay workers.. the headache is on Kenya to solve and the IMF couldn't save you from this train reck.

Neither Ghana or Nigeria has gotten to this level of mess yet.
This is why you can see big budget financing projects going on in both countries but not in Kenya.

Big debate: Should Kenya default or owe salaries?

I'd say I agree with rvp2018 in this case. Withholding civil servant salaries for now (alongside cutting down the cost of Governance) would be better than outright default.

GeneralDae:

Rvp take your pick

Bloomberg puts it at 75%

FG of Nigeria has been unable to recover about N8 trillion (18 Billion dollars) taxes withheld by international and local oil companies, GSM operators, insurance companies, pension fund administrators, and gaming and betting companies.

The withheld revenue was uncovered by the 🇳🇬 Financial Intelligence Unit.

Nigerian biggest problem with revenue generation is corruption.

GeneralDae:
Big debate: Should Kenya default or owe salaries?

I'd say I agree with rvp2018 in this case. Withholding civil servant salaries for now (alongside cutting down the cost of Governance) would be better than outright default.

No.
Default is the best option.
You can't just stop paying salaries to your workers who need money to support their children.
Defaulting like Zambia or Ghana is ok since u will go and find a way to restructure the debts

GeneralDae:
Big debate: Should Kenya default or owe salaries?

I'd say I agree with rvp2018 in this case. Withholding civil servant salaries for now (alongside cutting down the cost of Governance) would be better than outright default.

why salary ? Only to appear clean in front of lender and be able to borrowed more? . So kenya is not even ready to curb debt at all or look for alternative to address future debt . Next generation of Kenyan are in trouble, they will pay debt forever and they will not be able to come up with any infrastructure.

How can you Channel the money expected to go into salary into debt servicing ? No advance country will ever consider this terrible option.

Sustainability of humanity over clean sheet anytime . just imagine the over terrible condition , already there is hunger and high cost of living in thee country and now salary is not coming fort .

Consider this from them blaming opposition party after 7 month in power. .

Kenya is officially bankrupt . The pulse is highly empty. Total zero. Everything is finished

rvp20182:
So we wait for one main street - while Tatu city has expanded to 5,000 acres.

please follow this link to skyscrappercity to see my posts on alaro city. Each time I post pictures with [img] [/img] here on nairaland, they delete the posts and suspend my account for sometime. https://www.skyscrapercity.com/threads/alaro-city-mixed-use-under-construction.2273064/page-4

It no brainer.
Default is nuclear option that stupid countries like Ghana take.
Kenya has many options before we go into such huge mess.
Like said cash crunch is temporary problem because of lots of debts were maturity in 1st Q.
That is now over.
Our next big problem is in 2024 - to meander through 2.5B dollars of Eurobond principal that will mature.

GeneralDae:
Big debate: Should Kenya default or owe salaries?

I'd say I agree with rvp2018 in this case. Withholding civil servant salaries for now (alongside cutting down the cost of Governance) would be better than outright default.

I dont see anything serious apart from Universal Homes. John the guy behind is my friend.

Shamunn:
please follow this link to skyscrappercity to see my posts on alaro city. Each time I post pictures with [img] [/img] here on nairaland, they delete the posts and suspend my account for sometime. https://www.skyscrapercity.com/threads/alaro-city-mixed-use-under-construction.2273064/page-4

You dont know what youre talking about.
Last default Tanzania had in 1985 - Nyerere had to resign.
Defaulting is never an option unless you've reached a wall like Ghana.
Kenya has not reached a wall.
We can decide to increase the interest rates of gov bonds - and take in more debt.
After you default - it will take you long time - to convince investors and creditors to lend you again.
Why on earth would one do that?
Argentina has yet to recover since 2000.
Zimbwabwe defaulted in 1999 - yet to recover.

Kazikazi:
No.
Default is the best option.
You can't just stop paying salaries to your workers who need money to support their children.
Defaulting like Zambia or Ghana is ok since u will go and find a way to restructure the debts

Mkenya2019:
I dont see anything serious apart from Universal Homes. John the guy behind is my friend.

I don't know if u are being serious or joking. On the same skyscraper city, the Kenyans on the Tati city thread are complaining of tinny roads and lack of bicycle tracks. While alaro city has an 8lane main boulevard and bicycles tracks even in the industrial cluster.

A simple look at alaro and u would be convinced that's it's an upgrade to Tatu.

Tatu is filled with ware houses while alaro already has 3 factories for production.
And I'd we are talking about progress alaro has done way better than Tatu did in its first two years even with the vivid break.

Another Codein addict.
You want to seriously compare Tatu city with Alaro
Are you even serious

Shamunn:
I don't know if u are being serious or joking. On the same skyscraper city, the Kenyans on the Tati city thread are complaining of tinny roads and lack of bicycle tracks. While alaro city has an 8lane main boulevard and bicycles tracks even in the industrial cluster.

A simple look at alaro and u would be convinced that's it's an upgrade to Tatu.

Tatu is filled with ware houses while alaro already has 3 factories for production.
And I'd we are talking about progress alaro has done way better than Tatu did in its first two years even with the vivid break.

Mkenya2019:
Another Codein addict.
You want to seriously compare Tatu city with Alaro
Are you even serious

It's the codeine.

It must be very hallucinating. it's like chewing Khat or miraa.

gallivant:


It's the codeine.

vaxx:
why salary ? Only to appear clean in front of lender and be able to borrowed more? . So kenya is not even ready to curb debt at all or look for alternative to address future debt . Next generation of Kenyan are in trouble, they will pay debt forever and they will not be able to come up with any infrastructure.

How can you Channel the money expected to go into salary into debt servicing ? No advance country will ever consider this terrible. option.

Sustainability of humanity over clean sheet anytime . just imagine the over terrible condition , already there is hunger and high cost of living in be country and now salary is not coming fort .

Consider this from them blaming opposition party after 7 month in power. .

Kenya is officially bankrupt . The pulse is highly empty. Total zero. Everything is finished

This is the same fool that had a prophecy of weekly oppositiin protests together with Kazikazi;they melted away in a week. I doubt your economic wisdom is any better!!

It complete nuts to compare Alara with one street - two factories - and one housing estate - with 5,000 acre Tatu city
1) Industrial park - tatu city has 70 companies in operation - many more under construction - including 500M dollars to be invested by Moderna - and KWAL/Distel putting up huge alcohol factory there
2) Housing Units - Now well over 2000 units if not more completed - many more under construction- Lifestyles, Unity West, Kijani. 1/4 of an acre plot in Kijani going for 250,000usd.
3) Road network is now extensive
4) Schools, amenities, hospitals
6) ETC


https://www.youtube.com/watch?v=CiLlZNvxa48

3) Office space - 4.000 seat call center - largest in kenya coming up

Mkenya2019:
It must be very hallucinating. it's like chewing Khat or miraa.

gallivant:


This is the same fool that had a prophecy of weekly oppositiin protests together with Kazikazi;they melted away in a week. I doubt your economic wisdom is any better!!

gallipig why are you so dammed stupid? , your weak govt requested for a handshake and hence the temporary Monday withdrawal . It might soon come back . Ralia is not accepting ruto presidency . Poor brain

Mkenya2019:
It no brainer.
Default is nuclear option that stupid countries like Ghana take.
Kenya has many options before we go into such huge mess.
Like said cash crunch is temporary problem because of lots of debts were maturity in 1st Q.
That is now over.
Our next big problem is in 2024 - to meander through 2.5B dollars of Eurobond principal that will mature.

You are idiot. only poor wretched country consider the option of not paying salaries when there is evidence of high cost of living and distress in the country . Debt restructuring on the other hand is what country who still prefer to stay in the financial market will consider. Russia (With a more successful economy than any africa country ) once did it and works . Only poor nation will consider the option of not paying workers .

That is damn stupid

vaxx:
You are idiot. only poor wretched country consider the option of not paying salaries when there is evidence of high cost of living and distress in the country . Debt restructuring on the other hand is what country who still prefer to stay in the financial market will consider. Russia (With a more successful economy than any africa country ) once did it and works . Only poor nation will consider the option of not paying workers .

That is damn stupid

But if you default and do local debt restructuring, then there would be haircuts which would affect the big private sector players and which in turn has its effects.

When you default on your external debts, there becomes the problem of trust. Trust is important in all business deals. Would you be trusted to get good loans in the future? That's the thing.

On the other hand, if you try to plug loopholes or reduce the size of your civil service especially non productive civil service workers, then you can manage the situation.

The only problem is that if your civil service is large and forms the core of your middle class then you have a problem there as well.

None of those choices are easy to be honest.

vaxx:
You are idiot. only poor wretched country consider the option of not paying salaries when there is evidence of high cost of living and distress in the country . Debt restructuring on the other hand is what country who still prefer to stay in the financial market will consider. Russia (With a more successful economy than any africa country ) once did it and works . Only poor nation will consider the option of not paying workers .

That is damn stupid

Dimwit, who hasn't received their salaries in Kenya? Don't you have anything better to do during Easter than peddling nonsense?

gallivant:


Dimwit, who hasn't received their salaries in Kenya? Don't you have anything better to do during Easter than peddling nonsense?

all county workers remain unpaid, all civil Servants with the exception of the police and military remain unpaid.

Now go back to prayer mode hoping hunger don't kill them all

vaxx:
gallipig why are you so dammed stupid? , your weak govt requested for a handshake and hence the temporary Monday withdrawal . It might comes soon come back . Ralia is not accepting ruto presidency . Poor brain

The protests won't return. You and the other prophets of doom can take your scare mongering to Ghana.

Just40:
all county workers remain unpaid, all civil Servants with the exception of the police and military remain unpaid.

I got paid. Am I special hobbit?

gallivant:


I got paid. Am I special hobbit?

you're not a worker shut up and go and drink changaa

Unemployed dwarf 🤣

Just40:
you're not a worker shut up and go and drink changaa

Unemployed dwarf 🤣

Find something to do with your free time. Don't waste your life on nairaland.

I agree with general tenor of your argument - but I dont get it why you think trust wont be an issue for local players. If you're a Ghanian who invested in ghana treasury bonds and have to take huge cuts in your investment - and wont get paid a dimme until 2027 - do you think you'll ever invest in treasury bonds again; Not very soon. Most of those investors are poor pensioners without any other source of income.

There are many things one can do before they default - unless again like Ghana you've run out of wriggle room.
1) Cut budget - cut development projects - roads can wait. Focus on maintaining existing roads. Go slow on building new roads.
2) Improve revenue collection - raise taxes or improve collection - more money you collect - mean more wriggle room.
3) Debt refinance - Issue new debt or Issue higher interest bonds - to take care of the risk from investors.
4) Delay payment to contractors/suppliers - rack up the pending bills.
5) Retrench employees/freeze employment





10) Give up like Ghana. Appear one Sunday morning sweating and announce to the world you're bankrupt - cant and wont pay.

GeneralDae:

But if you default and do local debt restructuring, then there would be haircuts which would affect the big private sector players and which in turn has its effects.

When you default on your external debts, there becomes the problem of trust. Trust is important in all business deals. Would you be trusted to get good loans in the future? That's the thing.

On the other hand, if you try to plug loopholes or reduce the size of your civil service especially non productive civil service workers, then you can manage the situation.

The only problem is that if your civil service is large and forms the core of your middle class then you have a problem there as well.

None of those choices are easy to be honest.

gallivant:


The protests won't return. You and the other prophets of doom can take your scare mongering to Ghana.

i ask you a question earlier you are yet to answer . Why are you so dammed stupid ?

gallivant:


Find something to do with your free time. Don't waste your life on nairaland.

confession from a broke country in bankruptcy 🤣😂

Some fathers will not be able to feed their families and pay fees.


For me, it's the fact that the 50% of Kenyans without electricity will not get it and will be in darkness for the next 10 years.

The 60% of Kenyans without water will not have it even in the next 10 years.

The roads will remain dusty

gallivant:


Dimwit, who hasn't received their salaries in Kenya? Don't you have anything better to do during Easter than peddling nonsense?

I am a pagan , I don't celebrate jesus death nor birth . I am only interested in establishing the fact that you come from a hell hole .

Talking of Tatu city - Officially Phase 1 is complete - 2,500 acres.

https://www.youtube.com/watch?v=HLAF-GWjYAk