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<\/div>
\"Kenya's
Drowning in debt<\/strong><\/figcaption><\/figure>\n

The real problem with Kenya’s debt crisis is that it continues to spiral out of control, while the country’s leadership sings songs of “it’s for development” and “it’s not that bad”! When a country is struggling to pay it’s wage bill, let alone it’s development expenditure, you know you’re in Banana Republic territory. The country has borrowed more in the 5 years since 2013 than it did in the 50 years between 1963 and 2013; even in real terms. All this being done in the name of “infrastructure development”, economic growth and driving the country to middle income status.<\/p>\n

But, we need to look at the real picture. We don\u2019t often consider revenue management on a macro scale, but the principles are similar. Selling the right product, to the right person, at the right place, at the right price on a micro scale translates to income \u201cflows\u201d on a national scale. The inflows into a country, in a fiscal year versus the outflows. To analyse Kenya’s debt crisis from a revenue management perspective on a macro-scale would probably fry our brains, so let’s take a more conventional approach.<\/p>\n

The conventional wisdom from many experts, that has been bucked by the government, is that a debt-GDP ratio for Kenya above the 40% benchmark, is unsustainable! In the midst of Kenya’s debt crisis, we see two battling sides of the argument.<\/p>\n

Some of the arguments being bandied about by government politicians are:<\/strong><\/h4>\n