Why Kenyans Should Worry About Uhuru’s Frequent Trips to China.
As President Uhuru Kenyatta keeps running to China for solutions to Kenyan problems it seems he is always coming back home with more problems.
Kenya’s rising appetite for Chinese money has made the Central Bank of Kenya to consider embracing Yuan as a trading currency in China-Kenya debt trade.
Kenya’s current public debt stands at approximately 4.884 trillion Kenyan shillings (USD$49 billion) or 56.4% of the country’s gross domestic product.. This is up from 42.8% in 2008. In other words,the country owes more than half the value of its economic output (GDP).
Its estimated that by 2022 Kenya’s debt would have hit Kenya Shillings 7 trillion but this could be more considering how the current government is mismanaging public resources and allocating huge chucks of money in elephant projects.
When will we seat as a nation and find solutions to our problems?
African problems demand African solutions because the same people trying to solve these problems caused them in the first place.
There are Africans ready to provide solutions to problems our leaders have created.
Chinese business men are wrecking havoc by creating industrial milk,plastic rice and other products that pose a serious health threat to the Kenyan people.
Led by their desire to make a kill in Kenya’s vibrant market,they are openly trading as hawkers in Nairobi and scattered throughout the country thus creating unfair business competition to already struggling economy.
Just recently that President banned Chinese fish in Kenya as they had dominated Kenyan market and drove Kenyan fish out of market.
Every time President Uhuru goes to China,he is coming with more debts and after the embracing of Yuan; Kenya would have surrendered its economy to direct manipulation by China.
In the past China has been accused of unfair monetary practices.
What is currency manipulation?
A country can intentionally undervalue its currency by selling its own currency to drive down its value, making its exports cheaper and more competitive.
Policies that systematically induce a country’s currency to appreciate in bad times lower its risk premium in international markets and, as a result, lower the country’s risk-free interest rate and increase domestic capital accumulation and wages. Currency manipulations by large countries also have external effects on foreign interest rates and capital accumulation.
Embracing Yuan will increase it’s value and nations who have taken debt in dollars will end up paying more in Yuan.
Here are Top 10 African Countries with the Largest Chinese Debt
Source: Africa Facts Zone.