Saving Kenya from an Impending Economic Meltdown

On Wednesday, Reuters reported that the Senate of Kenya voted to allow the government to break its current 9 trillion shillings ($87.29 billion) debt ceiling; In Kenya, government borrowing is pegged to the GDP due to a worsening debt burden. Kenya’s GDP is $87.9 billion and the new decision may see the country’s borrowing reach the same level. From 2013, the country has more than tripled its debt and it is now among the most indebted countries in Africa without commensurate growth in the economy. The Kenyan government defends its decision claiming it would increase infrastructure development. But Kenya is a developing country due to its low human development index as well as its poorly developed industrial base. Inflation and devaluation of the currency which will further worsen the country’s capability to pay back its debts pave the rabbit hole that only leads to worse standards of living…..

To read more, check full article on Business Insider Sub-Saharan Africa.