Especially in an economy that's developing like ours, it's not prudent for the government to take loans from the local banks. We have a shortage of credit, if the government borrows it's more attractive than the mwananchi. Reduce loans available to the citizen, and make it more expensive to get the same debt for both SME's and individuals...

And the government does borrow from local banks, when it won't affect the credit available to the nation. The reason mortgages etc are becoming more pervasive is because the banks, to bolster their business are forced to talk to the individual. We now have banks offering pasha loans etc....

On Wed, Jun 1, 2011 at 11:27 PM, aki <aki275@gmail.com> wrote:

@Areba, I too would like to know why we borrow from the World Bank and not local banks, some knowledge and specifics will enlighten us more on the intricate things. Also am hoping for some feedback from any onlist Kenyan BPO, who will probably know the real costs of a digitization exercise since it seems local developers/software companies have not been allowed anywhere near the project.

Asante. :-)

On Wed, Jun 1, 2011 at 11:16 PM, [ Brainiac ] <arebacollins@gmail.com> wrote:

My last one on this:

Inflation came in as an answer to "why not borrow internally to fund all those projects", there is a certain threshold beyond which borrowing internally is bad for the economy bro. Context ma broda!

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