Why Vision 2030 could just be a pipe dream-Kenyan monetary policy
Big infrastructure projects in Kenya fail to kick off and materialize due to lack of ingenuity in Kenya’s monetary policies.
Think of the huge expenditure budgets like;
KAA expansion- Kshs. 10billion
EASSY project
Vision 2030
Sondu Miriu project
These are just some of the grand projects that could jump start Kenya’s and Africas economy to the extent of being a big stakeholder in global trade talks and gain recognition as an emerging market.
The only poison that kills africas growth potential is the inability to utilize their present resources.
Think of it these way, why do African countries come up with such ground breaking projects then get overwhelmed by the magnitude of the funds required to finance these projects resorting to begging for handouts from developing countries, IMF and World Bank who impose their policies and hold the borrowers at ransom compounded by the fact that these countries fail to raise enough tax revenue from the public especially from the usurious/unorganized money market of MSMEs, ponzi and pyramid schemes investors, multi-level marketers .
Other sources that they resort to such as loan syndication from multinational banks and develpment banks do not make sense especially for projects which are for social capital like road construction where the government is not able to generate direct revenue to pay off these loans forcing the government to seek for further funds to pay off these loans like raising income tax and constructing a more unfair multi- tax system that will generate revenue for them to sink the funds further into a bottomless pit since they will lack more funds to maintain these projects and fund more projects.
What if; -
the Kenyan government could be printing more money specifically for such development and infrastructure projects. For example, tendering the KAA kshs. 10 billion contract to foreign firms then printing money at different phases of the construction to settle the construction costs, since these money will be used to pay workers, buy materials and other expenditure that will boost the local economy, this new moneys released in the market can then be recovered by the government through issuing T- Bills, and/or these foreign companies buying their currency from the central bank, saving the Kenyan government a tremendous amount of baggage that they would have had they acquired a loan
The only issue that ties African countries down is changing mindset- to solve a problem you think at a higher level than when you had the problem-
We need to realize the power of our money
what do you think
