It’s Mad Mad Mad Mad Money

Posted on January 26, 2010

5


Lets crank through the figures listed in this video….
Exchange Rate of $1 = Ksh72.00

1.$3Billion = approximate Ksh216Billion {Economy and Develoment}
2.$560M (HIV/AIDS) = approximately Ksh40Billion
3.$600,000 (Electoral reform) = approximately Ksh43Million
4.$2Million (Political Parties and Civil Society) = approximately Ksh144Million
5.$3Million (Reconciliation and Mitigating Conflict)= approx. Ksh216Million
6.$1Million (New Constitution) = approx. Ksh72Million
7.$1.5Million (Referendum) = approx. Ksh108Million
8.$1.5Million (Govt of Kenya) = approx Ksh108Million

Some conclusions:

– This is too much money to receive through Foreign Aid. When does the cycle stop, and when it does, where will that leave us?
– There is an obscene lots of money in the Kenyan Government, hence money shouldn’t be an excuse to fail to carry out the needed reforms
– Obviously the US recognizes the strategic importance of Kenya in the region hence the need for financial support. Could this perhaps make the Kenyan Government a little hardheaded? Even if they don’t meet the necessary reform targets, could the US’ money still come in?
– This gives the US a hefty role in deciding the kinds of policies that take hold in Kenya.

– Do all these funds serve the intended purposes? Obviously not, as witnessed in the Education Ministry (See below)….

The U.S also suspended the $7 million (Sh532 million) funding for Free Primary Education pending investigation into the loss of Sh178 million. This move is understandable given that the U.S contributes so much money for the implementation of the Free Education Program.

Is it perhaps the time that the Kenya Government started exploring how life will be without all this foreign funding?

Most of the above conclusions are quite superficial. It would be interesting to see how much money the US gives to other African countries and compare it to Kenya; This will hopefully be another blog entry. I am also not sure how much of these funds are in terms of loans if any at all.

US foreign Aid to Kenya Statistics

Year………………………………………………… ’00 02 03 04 05 06 07 08
Amount. . . . . . . . . . . . . . . . . . . . . . 44 50 58 82 91 186 178 282 ([In millions of dollars (44 represents $44, 000, 000)
Sounce: US Census statistics: http://www.census.gov/compendia/statab/2010/tables/10s1261.pdf

So based on the above statistic, the official Aid by the US to Kenya over the last 7 years is a base amount of $971,000,000 which is significantly lower compared to the figure mentioned of $3billion. I have no idea where the other figures came from or to whom was given. My assumption is that the figures listed on the statistics above are directly to the government and it excludes any amount to support organizations in the country. Of course it also excludes amounts listed in the video as the result of investment by US firms in Kenya.

Advertisements
Posted in: POLITICS