Japan Vs Kenyans? Is the comparison making sense?
Kenyans could here none of it when Kenya’s President Uhuru Kenyatta compared Kenya’s economy status to that of Japan during his state of the nation address on Friday evening.
From economists and finance experts to laymen who took to social media, Kenyans refused to swallow the fact that Kenya could be compared to Japan in economy.
Japan's +200% Debt to GDP ratio cannot be compared to Kenya. Almost all of Japan’s debt is owned by the central bank and the domestic financial system. If it did not repay, it will default against itself. Much of ours is external. If we default, we will be thrown under the bus!
— billow kerrow (@bkerrow) December 29, 2018
Japan’s debt is mostly in ¥¥¥, a global & liquid currency & is held by its own citizens. It can adjust interest rates at low levels so that repayment values stay low relative to the overall debt level. More than 50% of ours is in FX. Slight macroeconomic turbulence & BOOM!
— Mohamed Wehliye (@WehliyeMohamed) December 28, 2018
This is an argument i have seen used also by politicians & surprisingly by Treasury mandarins who should know better. You can’t compare our debt/gdp ratios to the US, Japan etc ones. US has reserves of over $3 trillion. Japan over $1.2 trillion. Both $ & ¥ = reserve currencies
— Mohamed Wehliye (@WehliyeMohamed) December 28, 2018
My sentiments exactly people who produce nuclear reactors and jet aircraft can’t be compared to us who can barely produce maize and are told to produce avocados the president needs proper advisors. those slay kings he has are good for only posting on Instagram not strategising
— Lehder (@dassault900) December 28, 2018
We flood our roads with Japanese cars and we are here comparing ourselves with them. Ghai???. Japan currency is extremely volatile, have dirty float policy. Those guys can cut debt by half in a snap. Japan sio mwenzetu. Their ethic is impeccable.
— Kung’u ka Wambui (@BanditEconomy) December 28, 2018
Mnataka nifanye nini
Jameni? pic.twitter.com/ZoKA8hVuAt— Obaman (@obai316) December 28, 2018
it’s a disgrace based on our economic status. If govt controls. 1.wasteful investment 2. Cap corruption. https://t.co/xurEblIgvM salary standards. Because we are heavily loosing, money lost in corruption is more than enough to build cancer facility that will b part of income
— Andrew More (@andiesmuru) December 29, 2018