This archive report was first published on 21 November 2019.
Economist David Ndii Warns of Kenya's Economic Meltdown ¶
Kenya's economy has been deteriorating over the last few years due to overwhelming debt, high levels of unemployment, and massive job losses.
On November 20, 2019, economist David Ndii took to his Twitter handle to claim that he had predicted the economic meltdown four years ago. He attributed the meltdown to the government's appetite for borrowing combined with a shortfall in revenue collected by the Kenya Revenue Authority (KRA).
According to Ndii, the huge infrastructure projects being undertaken in Kenya courtesy of Chinese loans were sucking money out of the economy. He noted that unlike in mineral-rich countries where new infrastructure is linked to increased production and export of minerals, Kenya's infrastructure projects were not yielding any economic benefits.
President Uhuru Kenyatta has been launching multi-billion infrastructure projects since 2013 when the Jubilee regime ascended to power. The Standard Gauge Railway (SGR) from Mombasa to Suswa is one of the projects that has gobbled billions of shillings with little return on investment.
Speaking to KTN News on July 9, 2019, Ndii said all indications were that the mega SGR project was not viable, saying the government lied on its ability to repay the expensive loans. He argued that the project failed on four parameters: making money, economic benefits exceeding cost, promoting equity, and sustainability.
Netizens on Twitter expressed mixed reactions to Ndii's post, with some agreeing with his assessment and others disagreeing.
