×
App Icon
The Standard e-Paper
Truth Without Fear
★★★★ - on Play Store
Download Now

No, Gov't can't be broke, it's the debt

Kenya is not broke. The Government still has resources that it depends on and has the ability to tax. It has over six billion of foreign exchange reserves and has a rating that allows it to borrow cash.

A sovereign like Kenya can also never go broke in terms of the liabilities it issues in its own currency. The government, however, does have cash flow and liquidity issues arising mostly from poor planning. Even the richest corporates or banks can collapse if cash flow is not well managed. A government is no different.

Get Full Access for Ksh299/Week
Unlock the Full Story — Join Thousands of Informed Kenyans Today
  • Unlimited access to all premium content
  • Uninterrupted ad-free browsing experience
  • Mobile-optimized reading experience
  • Weekly Newsletters
  • MPesa, Airtel Money and Cards accepted
Already a subscriber? Log in