DICKSON MAGECHA @Dicksonmagecha Twitter profile

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DICKSON MAGECHA

3 years

A world is supported by four things “… the learning of the wise, the justice of the great, the prayers of the righteous and the valor of the brave.." -Frank Herbert

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DICKSON MAGECHA

@Dicksonmagecha

7 months

@paulinenjoroge Notice the difference on foreign currency debt creation? We had US$8bn of debt and $6bn of Fx Reserves when Kibaki left. Uhuru left $38bn of debt and just $7bn of FX Reserves. We borrowed $30bn dollars and only left $1bn to pay it down. Worse Exports remained at $6bn while

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DICKSON MAGECHA

@Dicksonmagecha

5 years

Cement must be the only commodity that sells cheaper today than 15 years ago, despite the inflation impact! Can industry experts break that down? It doesn’t make economic sense

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DICKSON MAGECHA

@Dicksonmagecha

5 years

Pres. Kenyatta praying for the health of Pres. Magufuli' mum... #KENTAN #Kenya #Tanzania

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DICKSON MAGECHA

@Dicksonmagecha

4 years

@yde_bree @e_lumumba @kampupi Hide this tweet before she comes around

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DICKSON MAGECHA

@Dicksonmagecha

7 months

@DavidNdii We have sacrificed building FX reserves ( and boosting national savings) on a preference of a stronger local unit. Monetary Policy had also been kept at a restrictive level for long periods with high positive real interest rates, which tends to support holding speculative

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DICKSON MAGECHA

@Dicksonmagecha

5 years

@ahmednasirlaw Totally derogatory especially given the animal choice and its anathema to certain demographics. The case of the delay was a political one and you have chosen to tribalise it. Feeding on prejudice and spreading hate because your candidate lost is just banal

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DICKSON MAGECHA

@Dicksonmagecha

4 years

The most underrated money transfer service in Kenya is Pesalink. It has been a true savior in these Covid months. Mpesa is great for small amounts, but...that's it. Some bank also offers free Pesalink transfers. They should have morphed it to something bigger by now @IPSL_Kenya

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DICKSON MAGECHA

@Dicksonmagecha

7 months

@denismaina_ @RkrPeti @paulinenjoroge There are no solutions to debt misadventure- just consequences. It’s very amusing to see folks thinking there will be a magic wand solution. Forget what politicians say or do- we are in for the long haul and it will take over 15 years to fix this mess. And that’s only if we

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DICKSON MAGECHA

@Dicksonmagecha

6 years

@MigunaMiguna @Swat_edu001 @RobertAlai If Kenyans had that attitude, we would have less thievery. Its not the amount that's important, it's the culture we allow to thrive. Would you ignore your kids for stealing a small amount, or would you take that chance to teach accountability? I support his course of action

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DICKSON MAGECHA

@Dicksonmagecha

1 year

@Amitmina @allyjung The whole world is becoming a no-kids zone. S Korea is just slightly ahead of the curve

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DICKSON MAGECHA

@Dicksonmagecha

7 months

@BillowKerrow This is a terrible example - why would you use victims to depict shame? You posit as if the women willingly got assaulted and only those who fight back are worthy of celebrating? How about the shame should be on the soldiers? This is tone deaf and very patriarchal at the point

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DICKSON MAGECHA

@Dicksonmagecha

7 months

@Jamin_sigana @RkrPeti @denismaina_ @paulinenjoroge This government doesn't belong to KK. Their economic plan is on hold while we go through the fiscal adjustment. If they fail or slibe back to fiscal loosening and printing cash for subsidies , you'll look back to this period & realise things were much better. Our currency moved

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DICKSON MAGECHA

@Dicksonmagecha

4 years

We will need to realize soon that we need @CBKKenya to print us out of this #COVId19 crisis. Our economic models aren't meant to deal with a hard-stop braking- The social order will not survive, millions will be rendered jobless. Forget austerity @BaloziYatani @StateHouseKenya

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DICKSON MAGECHA

@Dicksonmagecha

1 year

@Joshtety @DavidNdii He said watu wa jiji aren't middle class ..shagz people can survive without a salary, we can't

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DICKSON MAGECHA

@Dicksonmagecha

1 year

@mwandokamau @moneyacademyKE China are facing major defaults from so many countries... right now focus is to get paid what's owed first then they can see about other loans. And anyway we should just fund that from the railway development levy and stop borrowing in foreign currency

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DICKSON MAGECHA

@Dicksonmagecha

6 years

- @KenyaAirways was insolvent to the tune of 60bn in 2017 -A painful act of self-sacrifice by Banks was brokered by GoK -Banks could have chosen liquidation& moved on Instead they were ALSO asked to inject NEW loans for OPEX support. -Their magnanimity is being spat on right now

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DICKSON MAGECHA

@Dicksonmagecha

4 years

@smithoates @sRic054321 @jaimetoons @witchylunar_tic Because after spending a lifetime being profiled - it's already offensive! You need to empathize to understand. People are jaded and defensive and that approach can not end well - because no matter how you cut or dice, the stenciled message WAS the problem!

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DICKSON MAGECHA

@Dicksonmagecha

7 months

@RkrPeti @paulinenjoroge So how do you think dollar be would be paid ? For example the SGR debt had a principal holiday of 5-10 years - before 2020, our annual debt service in dollars was below $1bn. In 2022/23 it jumped to $3.4bn, then $5.1bn in 2023/24 due to the Eurobond in June 2024. Uhuru procured

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DICKSON MAGECHA

@Dicksonmagecha

1 year

@MutahiNgunyi The revolution we need is mental... Run prudent budgets without excessive debt and avoid self-imposed economic crises. It doesn't matter who we elect if we don't get the economics right.

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DICKSON MAGECHA

@Dicksonmagecha

7 months

At some point , we will need to consider a constitutional amendment to hard-code fiscal deficit caps to the constitution. It will serve no purpose to go through austerity only for another profligate administration to come mess things up again in the future . We need to build for

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DICKSON MAGECHA

@Dicksonmagecha

1 year

@bonifacemwangi @Safaricom_Care @CBKKenya @NAssemblyKE @CA_Kenya Didn't someone get fined 5million the other day for exactly this behaviour? It should become the standard to set the example further

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DICKSON MAGECHA

@Dicksonmagecha

1 year

@C_Roiginson @HonMoses_Kuria Why not? Rent can make up to 40% of your income - if income is used elsewhere it will turbo-charge consumption of goods or boost national savings. Once you remove stress ya nyumba you only need to figure what to eat

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DICKSON MAGECHA

@Dicksonmagecha

1 year

@BillowKerrow You left out an obvious metric to complete your equation - what was the comparative exchange rate ? Makes the post not very helpful and plainly sensational

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DICKSON MAGECHA

@Dicksonmagecha

1 year

@babalao__ @millardayo Russia and Saudia Arabia are the ones leading supply cuts to boost prices. Plus the OPEC cartel is still limiting production via agreed quotas. Brent crude hit $90 yesterday (that's about 10% higher in barely a month)- so fuel prices will be higher again next month

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DICKSON MAGECHA

@Dicksonmagecha

7 months

@AlilaArjen @paulinenjoroge It’s not a blame game - just pointing at the genesis of our Fx challenges. If we don’t figure the root cause, we will be bound to repeat the same. We are fixing the mess - but it’s still an IMF prescription and we will only know if we learnt any lessons once we exit their

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DICKSON MAGECHA

@Dicksonmagecha

1 year

@kitekimichael @OleItumbi @RailaOdinga Let's take the maths further.. This is allowable for tax so you save the PAYE portion and you only use 1,050. Your employer must match your contribution so double that to 720k. Assuming a 10% compounded annual return 720k*1.1^20 =4,843,800 That's a pretty good deal. I would take

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DICKSON MAGECHA

@Dicksonmagecha

6 months

@ahmednasirlaw @KagutaMuseveni He suggests the inflation rate should set the base interest rate for Islamic products ..to retain purchasing power. Very sound arguments - there can not be usury on that. But if it goes too high above the inflation rate... then iko shida

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DICKSON MAGECHA

@Dicksonmagecha

6 years

Oil has now dropped over $36 dollars since its Oct peak with no corresponding change in Kenya pump prices @WehliyeMohamed @energy_ke . Diesel dropped by a few cents in the Dec review. Hujuma?

Bloomberg

@business

6 years

Oil in London fell below $50 for the first time since 2017

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DICKSON MAGECHA

@Dicksonmagecha

7 months

@RkrPeti @denismaina_ @paulinenjoroge You need to distinguish between debt increase via currency revaluation and also the natural increase due to service costs ( 1 trillion). Even if you balance you tax to expenses- this two will keep adding to the debt. The first mark to manage debt is to run a primary budget

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DICKSON MAGECHA

@Dicksonmagecha

7 months

@denismaina_ @RkrPeti @paulinenjoroge IMF don’t come to well run countries- and once people get to fiscal indiscipline, they never stop. Ghana is on the 17th cycle , ditto Argentina. It’s very easy to exit an IMF program - but once out, people tend to get back in very quickly. Why is that ? Because we have 5 year

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DICKSON MAGECHA

@Dicksonmagecha

8 months

@ekasoma @kipmurkomen If Tz was giving reciprocal rights, then this would make sense. TZ has the same landing rights for passengers in Kenya as KQ gets in Tz. Would Tz agree for KQ to take passengers directly from Dar to the rest of the world-I dont think so? This is what TZ is asking for - to use

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DICKSON MAGECHA

@Dicksonmagecha

4 years

@abuya_henry @KellyGitahi @Samooner @DavidNdii @gathara @gabrieloguda @MutemiWaKiama @TonyMurega @Watimz @nderi_j Every 5 years you get a golden chance to change this - what do you do with that window? Taxes are passed by Parliament - KRA is just following the law. The last budget passed without a whimper from the 'coalition' house. The only revolution you need is in your mind. Liberate it!

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DICKSON MAGECHA

@Dicksonmagecha

1 year

@Uzo_hills @RAbdiAnalyst Not really... Somalis were Muslim for over 1000 years before then. Religion isn't the problem. The cultural takeover is quite new and it's not only there- go and check photos from the 60s and earlier and you'll see so many different and colourful societies all over.

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DICKSON MAGECHA

@Dicksonmagecha

1 year

@fchuifall @DavidNdii Inflation is running at 9%, Kenya shilling is much lower & IPP are paid in dollars, thermal generation uses diesel which is imported (hydro suffered the drought). How is it rational to expect power cost to remain unchanged?

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DICKSON MAGECHA

@Dicksonmagecha

6 months

KES Change of fortunes. The best performing currency in 2024 ( YTD Mar 12). #Bloomberg

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DICKSON MAGECHA

@Dicksonmagecha

5 years

Kibaki removed foreign debt from gov't budgeting & grew revenues at a brisk 14% annually. Debt/GDP fell from 74% when Moi left to 40%(lower if you factor the rebase that Jubilee did to capture the telco sector). The 90's were terrible economically after the mega Goldenberg heist

Donald B Kipkorir

@DonaldBKipkorir

5 years

Many compare Kenya’s Economy under Presidents Daniel Arap Moi & Mwai Kibaki and associate former with Corruption & Stagnation & later with growth ... But they ignore Two Facts: All Companies built & grew under Kibaki are all DEAD! All Schools, Universities & Stadiums were by Moi.

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DICKSON MAGECHA

@Dicksonmagecha

7 months

@wadong3 You can never default on your domestic debt - unless you deliberately chose to - this is because the government has ability to print as much currency as they need (through fiscal deficits or central banks buying the debt). This is however inflationary and leads to loss of

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DICKSON MAGECHA

@Dicksonmagecha

5 years

@IkeOjuok @ahmednasirlaw I respect and admire the SC but he needs to be conscious of messages that are laden & can be used to fuel already-existing prejudice. He could have used Cow or sheep given that's the mainstay of Central. But also the blockage was instigated by the majority leader, a Northeastern

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DICKSON MAGECHA

@Dicksonmagecha

6 years

Kenya fiscal deficit woes always emanate from over optimstic forecasts that then crystallize to excessive spending when revenue targets are missed. Today's policy statement has followed the same thread. @WehliyeMohamed @alykhansatchu via @TheStarKenya

The Star

The Star brings you breaking news, developing stories, politics, entertainment, lifestyle, sports and much more from Kenya and around the world, throughout the day.

www.the-star.co.ke

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DICKSON MAGECHA

@Dicksonmagecha

1 year

@SavednSent @MutahiNgunyi Only difference is there is no victim in choices two adults make. Your examples are incomparable- just saying

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DICKSON MAGECHA

@Dicksonmagecha

5 years

@IkeOjuok @ahmednasirlaw Again political - and I fully agree with the sentiment. It is a constitutional requirement and should not be at the whim of the presidency on when to gazette- could be grounds for impeachment But to convey the message with tribal & religious deragatory innuendo is not right.

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DICKSON MAGECHA

@Dicksonmagecha

5 years

NEXT the @NSE_PLC Derivatives Market is going live today. On the Launch will be a number of Single stocks & the NSE 25 index Futures. Here’s to a new great horizon in the Ke 🇰🇪 Capital & Financial markets.

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DICKSON MAGECHA

@Dicksonmagecha

8 months

@maronga_abiuth @kipmurkomen 1. Shipping companies charge you daily demurrage running into tens of thousands of dollars. So they aren't just waiting, they are being paid very handsomely to wait. The pain will be borne by importers.

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DICKSON MAGECHA

@Dicksonmagecha

7 months

3 weeks in African markets. Zambian Kwacha and Kenya Shilling move from the worst pairs to the best performing currencies. They swapped places with the Nigerian Naira, which was allowed to float freely. Africa is not for the fainthearted ... Charts courtesy of Bloomberg

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DICKSON MAGECHA

@Dicksonmagecha

4 years

@eb05fd08981a40e @njorogep @raziakkhan Shouldnt it be a simple matter of enforcing the law? Kenya has a minimum wage that's 2.5 times that amount. You cant get away with that... A simple visit to any labour office will fix that employer. Let's be factual in our criticism!

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DICKSON MAGECHA

@Dicksonmagecha

7 months

@kong8900 @Jamin_sigana @RkrPeti @denismaina_ @paulinenjoroge 1. If you set a deficit cap then that's the hard target you should follow, we budgeted for lower spending on interest rates servicing than we have seen - I would think we should automatically see a supplementary budget cutting spending to push items to the next year's s budget.

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DICKSON MAGECHA

@Dicksonmagecha

1 year

KESUGX cross rate 5 year chart (Bloomberg) Ugx has gained >31% (c. 7% annualized) in that period It evidences adherence to free-markets (market determined Fx and interest rates ) pays higher dividends in the long run - despite the offset being slightly higher volatility

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DICKSON MAGECHA

@Dicksonmagecha

5 years

When the dust settles on our debt fiasco, the biggest responsibility will lie with parliament We changed the constitution to have the check excesses by the executive- they instead went to sleep and rubber stamped every ask by Treasury.

FCPA Billow Kerrow

@BillowKerrow

5 years

Nothing new..Rotich's budget have been a PR job. How do you get a budget done & approved in June & a couple of months later it is unworkable. It's been so past 3 years....It reflects badly on National Assembly which approves it as a ritual.

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DICKSON MAGECHA

@Dicksonmagecha

4 years

KQ will need KES 30-50bn in bailouts per year to remain in operation. For that cost we can start a new airline from scratch! Just send it to administration, pay off your guaranteed debt & start a new airline. You could literally lease the same aircrafts for a huge discount!

DICKSON MAGECHA

@Dicksonmagecha

4 years

You can't turn around an airline steeped in debt & inefficiency. South Africa gave up on SAA! We shall come to that logical conclusion sooner or later. Things were tough pre-covid, the airline industry will take 4 years to recover. Can we afford to prop KQ that long? @MihrThakar

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DICKSON MAGECHA

@Dicksonmagecha

5 years

Building oncology centers, while a great idea, is still diagnostic at best. The conversation we aught to have is how greed has allowed us to decimate our forests, poison our food, pollute our environment while we bemoan & do nothing. Cancer is but a consequence #RIPLaboso

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DICKSON MAGECHA

@Dicksonmagecha

6 years

Ghana Parliament has passed the Fiscal Responsibility Act to ensure prudent spending. Ghana seems to have learnt hard lessons from its recent past & hard coded fiscal limits into law #debt #Africa #kenyadebt #Ghana @WehliyeMohamed @alykhansatchu

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DICKSON MAGECHA

@Dicksonmagecha

4 years

@jimnjue_ke @DonaldBKipkorir Because the state cant tax it... It's all about money!

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DICKSON MAGECHA

@Dicksonmagecha

5 years

This feels like a riot in Kenya, with crazed cops an all! FFS What is going on in #Catalonia ?

Thomas van Linge

@ThomasVLinge

5 years

Seriously! What the hell is this? Whatever you think of #Catalonia I think we can all agree that this kind of violence is completely unprovoked and unjustified

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DICKSON MAGECHA

@Dicksonmagecha

4 years

@thatrichdriver @XivTroy @sir_greg_t That tweet is gender neutral. Even the guy needs to keep growing otherwise his self-esteem will turn into a monster. Support while also pushing yourself.. Grow each other!

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DICKSON MAGECHA

@Dicksonmagecha

1 year

Kenya Is Poised to Become the ‘Singapore of Africa’ Not only is Africa rising, but East Africa is too. And Kenya is likely to be the easiest and most predictable way to bet on it. @WehliyeMohamed @MwangoCapital

Kenya Is Poised to Become the ‘Singapore of Africa’

The continent’s growth is an opportunity for multinational corporations, and its seventh-most-populous nation is well-positioned to take advantage.

www.bloomberg.com

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DICKSON MAGECHA

@Dicksonmagecha

11 months

Agreed 100%! We had a defacto managed pegged, which didn't reflect our 5-6% annual current account deficits. Without borrowing to replenish FX reserves, we would have depreciated by anywhere between 5-10% per year in line with our twin significant deficits (fiscal deficit was

Charlie Robertson

@CharlieTTEcon

11 months

Agreed with all of this and I’d add that it was external borrowing which kept the Kenya shilling strong. The rise in external debt each year was similar to the size of the current account deficit. This allowed the KES to remain stable when inflation implied it should weaken

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DICKSON MAGECHA

@Dicksonmagecha

4 years

The CBK MPC have done their part -CBR cut 1% to 7.25% -CRR cut by 1% (will immediately inject 40+bn to Bank's liquidity) -Also commits do to more if necessary We needed bold & they excelled. Well done! Now over to fiscal policy. .. !

DICKSON MAGECHA

@Dicksonmagecha

4 years

11. In summary 1. Make a huge stimulus program targeting payroll replacement, nutrition, rent, taxes etc 2. Fund via QE (print) 3. Cut CRR and CBR 4. Severe import restrictions to allow capital markets remain open and force local consumption 5. Keep at it for as long as needed!

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DICKSON MAGECHA

@Dicksonmagecha

4 years

For many years it has been cheaper ro jump into a long haul flight, go spend a week in an exotic location and the total cost would still be cheaper than staying in a comparatively lower-rated hotel in Kenya. We are our own worst enemies!

Citizen TV Kenya

@citizentvkenya

4 years

Tourism CS Najib Balala: The problem I have with our tourism industry is that we have overpriced ourselves. Even the people who come to Kenya, come once in a lifetime because it is very expensive. We need to make it affordable even for Kenyans #DayBreak w/ @TrevorOmbija

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DICKSON MAGECHA

@Dicksonmagecha

6 years

Is Fuliza cannibalising Mpesa? 50% of the guys I have tried to send cash to in the last few weeks have requested I hold back & use other means as they are in O/D. The velocity of money in the platform must be taking a hit

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DICKSON MAGECHA

@Dicksonmagecha

2 years

The reason why I was very vocal agst the fuel subsidy - it prioritizes the wealthy over the poor. A direct cash transfer to the poor for nutrition support remains the most effective way to alleviate. Hope we head that way @MwangoCapital @WehliyeMohamed

Why Nairobi's wealthy is crying less over rising cost of living

The rich spend most of their income on transport, the middle-class on utilities and rent, while food takes the bulk of the poor's budget.

www.businessdailyafrica.com

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DICKSON MAGECHA

@Dicksonmagecha

6 years

@RobertAlai Is it anyone's responsibility to feed anyone else? You missed the context she never called anyone a beggar. FYI 99% of Kenyans are borderline beggars( that's why we are always fundraisin).... but only because we are still on this path to economic emancipation.

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DICKSON MAGECHA

@Dicksonmagecha

4 years

Corona mitigation won't be a 2-week exercise. it's a multi-year vigilance issue that will forever change the way we live, interact & do business. A lot of jobs might be on ice until we get a vaccine-think travel, tourism, hotels & bars. What are all the folks supposed to do now?

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DICKSON MAGECHA

@Dicksonmagecha

5 years

This 20 year Journey... Time does pass by, but love is eternal!

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DICKSON MAGECHA

@Dicksonmagecha

2 years

@MwangoCapital @HonMoses_Kuria The dollars don't belong to banks. They are customer deposits

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DICKSON MAGECHA

@Dicksonmagecha

7 months

@calvinokello4 The election was lost in Baba's strongholds- if the turnout had mirrored 2017- he would have been home and dry. look his folks in the eye who stayed away because they were told the race was won already through huge billboards and opinion polls.

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DICKSON MAGECHA

@Dicksonmagecha

1 year

@ledamalekina @ahmednasirlaw You can’t have a monetary union without a fiscal union - something the EU learnt during the Greek crisis. It won’t be long before you have acute imbalances from the net exporting to the net importing (where will they source this single currency if trade flows are flowing in one

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DICKSON MAGECHA

@Dicksonmagecha

2 years

@ephraimnjegafan No news here.. all shares dipped in June

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DICKSON MAGECHA

@Dicksonmagecha

7 months

@dopycontent @paulinenjoroge We only liked Kibaki after he left- pick newspapers and read headlines from that period to see what the national mood was. We are geared to always complain about the government- then look back kindly at them after they leave

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DICKSON MAGECHA

@Dicksonmagecha

6 years

The 1.5% railway development import levy has collected about 120bn to date if these funds were ring-fenced, we could pay off 100% of the SGR loans in another 5 years

Nation Breaking News

@NationBreaking

6 years

EXIM BANK of China may take over Mombasa port if Kenya fails to service the loan it took to build SGR, says report by Auditor-General Edward Ouko.

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DICKSON MAGECHA

@Dicksonmagecha

7 months

@RkrPeti @paulinenjoroge The challenge isn’t the debt itself- it’s the ability to raise dollars to repay it. You might wonder - how did we end up with $38bn in debt with no reserves to show for it ? That’s the problem- we have been importing 21bn$, exporting 6bn $- which left an annual trade deficit of

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DICKSON MAGECHA

@Dicksonmagecha

7 months

This makes sense - we should only have one revenue collection agent to get a 360 degrees view of tax-payers. Also from a cost perspective, KRA has economies of scale to collect at a lower cost (2.5% management fee ).

Nation Africa

@NationAfrica

7 months

KRA to collect revenues for counties in new Public Finance Management Bill

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DICKSON MAGECHA

@Dicksonmagecha

4 years

The S. Africa SARB announced they will start buying government bonds across the yield curve to add liquidity & drive interest rates down. To the Naysayers who says only developed economies can undertake unconventional policies - let's be open-minded @WehliyeMohamed @alykhansatchu

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DICKSON MAGECHA

@Dicksonmagecha

5 years

Public sector driven economic growth will never best a private sector led one. The gov't isn't an efficient allocator of scarce debt capital. Now we have good roads & rails but no capital to spur investments. Fiscal revenues have stagnated, yet the debt utilized is already due

Mohamed Wehliye, MBS

@WehliyeMohamed

5 years

I come home once at least every 3 months. I have not seen the economy in this state for a very very long time. In fact never in this state. The 2 levels of govts have taken away the little MSMEs had in the form of pending bills. We have guys driving Mercs unable to pay sch fees

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DICKSON MAGECHA

@Dicksonmagecha

7 months

@CptHarrisjnr @RkrPeti @paulinenjoroge The first solution is always to let your foreign exchange rate adjust - remember we were importing $21bn and maybe just half of that was absolutely necessary (think oil, raw materials, pharmaceuticals etc). The other half is conspicuous consumption items like expensive cars,

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DICKSON MAGECHA

@Dicksonmagecha

1 year

@ZITOSIS @ahmednasirlaw @TheStarKenya @makaumutua Make it make sense that the existing laws in the books have never been enforced since 1960's - same as Kenya. Passing this law is most likely just a symbolic affair that won't lead to any change - but will cost Uganda billions of dollars in trade and aid

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DICKSON MAGECHA

@Dicksonmagecha

5 years

The withdrawal of KES 1000 notes won't be as impactful as is being touted 1 KE allows foreign currency deposits and notes (ease of conversion to $,€,£ etc) 2. The economy is over 80% informal 3. 4 months is too long a window 4.Over 70% of transactions happen electronically

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DICKSON MAGECHA

@Dicksonmagecha

4 years

11. In summary 1. Make a huge stimulus program targeting payroll replacement, nutrition, rent, taxes etc 2. Fund via QE (print) 3. Cut CRR and CBR 4. Severe import restrictions to allow capital markets remain open and force local consumption 5. Keep at it for as long as needed!

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DICKSON MAGECHA

@Dicksonmagecha

6 years

The Ghana bill caps the fiscal deficit at 5% of GDP & the budget must also have a primary surplus. It allows for the Finance Minister to get fired by parliament if spending exceeds defined limits. @alykhansatchu @WehliyeMohamed #Ghana #Kenyadebt #Fiscalprudence

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DICKSON MAGECHA

@Dicksonmagecha

1 year

@bygones2023 @moneyacademyKE About 1 trillion of that increase is from US$ depreciation

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DICKSON MAGECHA

@Dicksonmagecha

4 years

@Michael199200 @jaimetoons Do you reckon if it was a different message, like say a birthday one, anyone would have been concerned? Or is their problem the message? In which case it's less about being a good neighbor than trying to muzzle people's voices!

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DICKSON MAGECHA

@Dicksonmagecha

5 years

@coldtusker @MihrThakar Pension Trustees have a mandate to chase the best returns... Not support neighborhood economies. Those are private and not public funds

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DICKSON MAGECHA

@Dicksonmagecha

6 years

"The problem with the world is that the intelligent people are full of doubts, while the stupid ones are full of confidence." – Charles Bukowski

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DICKSON MAGECHA

@Dicksonmagecha

4 years

We are heading straight into a debt trap. Revenues aren't even enough to cater for recurrent expenditure +debt service costs - which means we actually borrowed to pay debt service costs. That will become an endless hole eventually. Debt is not paid by GDP size but by revenues

Sura Mbaya

@surambaya

4 years

This journey... KRA missed its target by Sh350bn, the highest in five years that saw the Government net Sh1.43tn in taxes in 2019/20 As a result, Treasury borrowed Sh786.8bn to plug the shortfall, pushing the country further into debt distress.

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DICKSON MAGECHA

@Dicksonmagecha

3 years

The Kenya shilling is down 20% against the Uganda shilling over the last 2 years .. how exactly do you measure value?

Hip-Hop Artist

@Ngaha_nayanga

3 years

So annoying when Kenyans quote a Ugandan tweet going on about how strong their currency is. We already know our shilling is weak,Kamau. Go eat githeri or something.

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DICKSON MAGECHA

@Dicksonmagecha

1 year

@Superdeviant @DavidNdii Support is based on ability to pay- the objective is to not leave anyone behind (or leave as few people as possible). A lot more of the funding will go to poorer folks than those able to pay. One more rung in this 'bottoms-up' economic model

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DICKSON MAGECHA

@Dicksonmagecha

1 year

Murban Generic contract on a freefall. Should eventually impact on the $/KES exchange level with energy imports making c.28% of total imports (& having jumped by 60% in 2022) @WehliyeMohamed @MwangoCapital

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DICKSON MAGECHA

@Dicksonmagecha

5 years

@surambaya @Inde_Fatigable There was nothing wrong with 8-4-4 for its time/age.... But it's sorely misplaced for the future. This is the informational age, you don't need to learn everything by rote- what you require are analytical, research, organization etc skills that enable you navigate and excel

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DICKSON MAGECHA

@Dicksonmagecha

5 years

Between sept '18 & Aug '19 our fiscal debt increased from 5.146trn to 6.009trn, an increase of 863bn. In the meantime revenues barely increased by 130bn. The trajectory is frankly extremely worrying- we need to start running primary surplus budgets to curb further debt expansion

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DICKSON MAGECHA

@Dicksonmagecha

1 year

@allarick3_ Think it's more of a Jubilee first term moment - unbridled infrastructure development at all costs. Great intentions but fraught with medium term fiscal risks. Kibaki ran very conservative budgets with very low fiscal deficits (and borrowing).

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DICKSON MAGECHA

@Dicksonmagecha

1 year

@AlinurMohamed_ @OleItumbi How? Only through production can the cost come down - and the government doesn’t produce any goods. Lowering taxes will mean more printing (which is how we got here in the first place ) which debases the currency and devalues the kenya shilling, increasing costs if imported

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DICKSON MAGECHA

@Dicksonmagecha

7 months

@Lutta10 @RkrPeti @paulinenjoroge I don’t think leaders seek to cause hurt . Sometimes good intentions lead to bad outcomes. We had, and still do, an infrastructure deficit issue. Calibrating how much should be done via debt or taxes isn’t easy. We just went a little further than we should have with debt. But I

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DICKSON MAGECHA

@Dicksonmagecha

5 years

Brent Crude jumps 3.3% to 6-months highs above $74 with USA signaling no more waivers for Iranian crude purchases beyond the May 2 expiry- which will drain 1.1mio barrels a day in an already tight oil market. For KE-Expect a lot of pain at the pump in the next 2 ERC reviews

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DICKSON MAGECHA

@Dicksonmagecha

2 years

@paulinenjoroge These were not financed and blew the deficit to 8 trillion in a few years - debt service interest is growing faster than revenues. To avoid a full fiscal meltdown 500bn+ must be cut from recurrent expenditure. Jubilee Voodoo economics nearly sunk Kenya. You can't print forever

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DICKSON MAGECHA

@Dicksonmagecha

1 year

Effects of the Kenya shilling adjustment in action. A weaker currency, while increasing cost of imports, is on the other hand underpinning a renaissance of Kenya exports to the rest of Africa. Official trade figures show the value of Kenya’s exports to Uganda had increased by

Mohammed Hersi : Mr Optimist

@mohammedhersi

1 year

Kenyans please don't kick yourself too hard , we may not agree politically but never ever hate Nation Kenya. While you see and even focus on doom & gloom others see green grass across their fence.

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DICKSON MAGECHA

@Dicksonmagecha

5 years

This is a terrible move by parliament. It Might look like they are helping individuals, but we are urbanizing fast & in future folks won't have a 'shagz' to retire to. We will end up with a lot of destitute + homeless old folks. Pension savings should be compulsory for all

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DICKSON MAGECHA

@Dicksonmagecha

6 years

Vide a Gazette notice, the MinFin has reduced Kenya's revenue target by 5% to 1.61 trn from 1.69 trn. This reflects the lower collections over the first 5 months of the fiscal year @WehliyeMohamed @alykhansatchu

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DICKSON MAGECHA

@Dicksonmagecha

4 years

@hamzanuur33 @ahmednasirlaw @DonaldBKipkorir @makaumutua That's the attitude EU took when Asia went on a lockdown-But where are they now? The US is still avoiding hard decisions, but NY showed what might happen jana. You can't put the economy over people's lives, because if all goes south, you won't have one without a healthy nation

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DICKSON MAGECHA

@Dicksonmagecha

1 year

@188parker Stay positive..never limit your dreams. They say if your dreams don't scare you, they aren't ambitious enough. @vonsigliere

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DICKSON MAGECHA

@Dicksonmagecha

4 years

The only winner yesterday is the 'truth' that a document can't lead to fair elections. The celebrated chaos & violence (+ trends towards autocracy) lends credence to the call that strengthening our institutions is the only way to insulate our elections from politicians antics

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