World
Debt shadow clouds Kenya’s forthcoming presidential polls
Kenya’s financial output has greater than doubled throughout President Uhuru Kenyatta’s 10 years in workplace, however a debt binge that fuelled development and funding might cramp his successor’s means to deal with rising starvation and hovering costs.
Some 22 million voters will choose a brand new president, lawmakers and county officers on August 9. The election is being overshadowed by a drought that has left 4 million folks depending on meals help whereas Russia’s invasion of Ukraine drives up world grain and gas costs.
Kenya’s financial system is now Africa’s sixth greatest, up from thirteenth when Kenyatta took energy in April 2013. Annual development averaging 3.8 p.c over 9 years has boosted gross home product (GDP) to 11 trillion shillings ($92.6bn) from below 5 trillion.
An in depth Western ally, East Africa’s most steady nation additionally hosts the regional headquarters of worldwide corporations like Alphabet Inc and Visa.
Debt ranges have surged, nevertheless, to 9 trillion shillings ($75.7bn), or 67 p.c of GDP, from simply 2 trillion, or 40 p.c of GDP, when Kenyatta was elected.
“The rise in debt has been alarmingly quick,” stated Robert Shaw, an impartial financial coverage analyst based mostly in Nairobi.
Kenyatta, who’s standing down after serving the constitutional restrict of two phrases, says borrowing, together with $8bn from China, funded much-needed infrastructure and helped spur improvement.
His authorities has modernised Kenya’s crumbling, century-old railway community and constructed extra kilometres of paved roads than the earlier 4 administrations mixed – over 10,000, Kenyatta advised parliament in November.
He additionally stated then that the variety of households linked to the electrical energy grid had tripled to greater than eight million.
In 2018, the Worldwide Financial Fund (IMF) categorized Kenya as at excessive threat of debt misery. That threat stays, the IMF’s Kenya head of mission Mary Goodman advised journalists final week.
The yield on Kenya’s greenback Eurobond due 2024 hit a document excessive of twenty-two p.c on July 15, as rising United States rates of interest and the Ukraine battle make riskier belongings much less enticing to traders.
However Julius Muia, principal secretary in Kenya’s Ministry of Finance, stated debt is sustainable beneath 70 p.c of GDP, including: “The priority about debt may be very misplaced.”
Tabitha Karanja, an opposition United Democratic Alliance candidate for the Senate, stated the federal government’s give attention to infrastructure had left many susceptible folks behind.
“You may’t construct roads for people who find themselves hungry,” she stated.
Debt dilemma
Kenyatta’s most well-liked successor, veteran opposition chief Raila Odinga, has pledged to renegotiate phrases for the debt to elongate its maturity and unencumber money to fund social interventions and improvement.
His essential opponent, Kenyatta’s estranged Deputy President William Ruto, says he would cut back borrowing and stimulate small enterprises to assist drive development and generate revenues.
However surging residing prices, which many Kenyans blame on corruption, are uppermost in voters’ minds.
“Dad and mom with kids at school are struggling quite a bit. Meals costs are additionally hurting them,” stated Steve Otiende, a small store proprietor in Nairobi.
The federal government has spent 12.6 billion shillings ($106m) offering meals for hunger-stricken communities, however says it wants extra.
“The persistent drought has left us with a useful resource hole of greater than 15 billion shillings required for interventions,” stated Margaret Kobia, the minister in command of particular programmes.
Investor confidence may very well be shaken additional by the election: two of the final three presidential polls had been marred by violence, with 1,200 folks killed in post-election clashes in 2007.
“It is vitally a lot unclear if the financial system has the resilience to handle the approaching quarters with out disaster,” stated Matthew Vogel, a London-based fund supervisor at FIM Companions, which specialises in frontier markets.
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World
Israel keeping its ‘eyes open’ for Iranian attacks during Trump transition period, ambassador says
Israel’s U.N. Ambassador Danny Danon tells Fox News Digital that his country is keeping its “eyes open” for any potential aggression from Iran during the Trump transition period, adding it would be a “mistake” for the Islamic Republic to carry out an attack.
The comments come after Iranian Foreign Minister Abbas Araghchi vowed earlier this week that Iran would retaliate against Israel for the strategic airstrikes it carried out against Tehran on Oct. 26. Araghchi was quoted in Iranian media saying “we have not given up our right to react, and we will react in our time and in the way we see fit.”
“I would advise him not to challenge us. We have already shown our capabilities. We have proved that they are vulnerable. We can actually target any location in Iran. They know that,” Danon told Fox News Digital.
“So I would advise them not to make that mistake. If they think that now, because of the transition period, they can take advantage of it, they are wrong,” he added. “We are keeping our eyes open and we are ready for all scenarios.”
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Danon says he believes one of the most important challenges for the incoming Trump administration will be the way the U.S. deals with Iran.
“Regarding the new administration, I think the most important challenge will be the way you challenge Iran, the aggression, the threat of the Iranian regime. I believe that the U.S. will have to go back to a leading position on this issue,” he told Fox News Digital.
“We are fighting the same enemies, the enemies of the United States of America. When you look at the Iranians, the Houthis, Hezbollah, Hamas, all those bad actors that are coming against Israel… that is the enemy of the United States. So I think every American should support us and understand what we are doing now,” Danon also said.
IRAN HIDING MISSILE, DRONE PROGRAMS UNDER GUISE OF COMMERCIAL FRONT TO EVADE SANCTIONS
Danon spoke as the U.S. vetoed a draft resolution against Israel at the U.N. Security Council on Wednesday.
The resolution, which was overseen by Algeria, sought an “immediate, unconditional and permanent cease-fire” to be imposed on Israel. The resolution did not guarantee the release of the hostages still being held by Hamas within Gaza.
“It was a shameful resolution because… it didn’t have the linkage between the cease-fire and the call [for] the release of the hostages. And I want to thank the United States for taking a strong position and vetoing this resolution,” Danon said. “I think it sent a very clear message that the U.S. stands with its strongest ally with Israel. And, you know, it was shameful, too, to hear the voices of so many ambassadors speaking about a cease-fire but abandoning the 101 hostages. We will not forget them. We will never abandon them. We will continue to fight until we bring all of them back home.”
Fox News’ Benjamin Weinthal contributed to this report.
World
Fact-check: What do we know about Russia’s nuclear arsenal?
Moscow has lowered the bar for using nuclear weapons and fired a missile capable of carrying a nuclear warhead into Ukraine, heightening tensions with the West.
Russia’s nuclear arsenal is under fresh scrutiny after an intermediate-range ballistic missile capable of carrying an atomic warhead was fired into Ukrainian territory.
President Vladimir Putin says the unprecedented attack using the so-called “Oreshnik” missile is a direct response to Ukraine’s use of US and UK-made missiles to strike targets deep in Russian territory.
He has also warned that the military facilities of Western countries allowing Ukraine to use their weapons to strike Russia could become targets.
The escalation comes days after the Russian President approved small but significant changes to his country’s nuclear doctrine, which would allow a nuclear response to a conventional, non-nuclear attack on Russian territory.
While Western officials, including US defence secretary Lloyd Austin, have dismissed the notion that Moscow’s use of nuclear weapons is imminent, experts warn that recent developments could increase the possibility of nuclear weapons use.
Here’s what we know about Russia’s inventory of atomic weapons.
How big is Russia’s nuclear arsenal?
Russia holds more nuclear warheads than any other nation at an estimated 5,580, which amounts to 47% of global stockpiles, according to data from the Federation of American Scientists (FAS).
But only an estimated 1,710 of those weapons are deployed, a fraction more than the 1,670 deployed by the US.
Both nations have the necessary nuclear might to destroy each other several times over, and considerably more atomic warheads than the world’s seven other nuclear nations: China, France, India, Israel, North Korea, Pakistan and the United Kingdom.
Of Moscow’s deployed weapons, an estimated 870 are on land-based ballistic missiles, 640 on submarine-launched ballistic missiles, and potentially 200 at heavy bomber bases.
According to FAS, there are no signs Russia is significantly scaling up its nuclear arsenal, but the federation does warn of a potential surge in the future as the country replaces single-warhead missiles with those capable of carrying multiple warheads.
Russia is also steadily modernising its nuclear arsenal.
What could trigger a Russian nuclear response?
Moscow’s previous 2020 doctrine stated that its nuclear weapons could be used in response to an attack using nuclear or other weapons of mass destruction “when the very existence of the state is put under threat.”
Now, the conditions under which a nuclear response could be launched have changed in three crucial ways:
- Russia will consider using nuclear weapons in the case of a strike on its territory using conventional weapons, such as cruise missiles, drones and tactical aircraft.
- It could launch a nuclear attack in response to an aggression by a non-nuclear state acting “with the participation or support of a nuclear state”, as is the case for Ukraine.
- Moscow will also apply the same conditions to an attack on Belarus’ territory, in agreement with President Lukashenko.
Is there a rising nuclear threat?
The size of the world’s nuclear stockpiles has rapidly decreased amid the post-Cold War détente. The Soviet Union had some 40,000 warheads, and the US around 30,000, when stockpiles peaked during the 1960s and 70s.
But FAS warns that while the overall number is still in decline, operational warheads are on the rise once again. More countries are also upgrading their missiles to deploy multiple warheads.
“In nearly all of the nuclear-armed states there are either plans or a significant push to increase nuclear forces,” Hans M. Kristensen, Director of the Nuclear Information Project at the Federation of American Scientists (FAS), said in June this year.
Is the West reacting?
When Putin approved the updated nuclear protocol last week, many Western leaders dismissed it as sabre rattling.
German Foreign Minister Annalena Baerbock said Germany and its partners would “not be intimidated” and accused Putin of “playing with our fear.”
But since Russia used a hypersonic ballistic missile capable of carrying a nuclear warhead in an attack on Dnipro, European leaders have raised the alarm.
“The last few dozen hours have shown that the threat is serious and real when it comes to global conflict,” Polish Prime Minister Donald Tusk said on Friday.
According to Dutch media reports, NATO’s secretary-general Mark Rutte is in Florida to urgently meet President-elect Donald Trump, potentially to discuss the recent escalation.
NATO and Ukraine will hold an extraordinary meeting in Brussels next Tuesday to discuss the situation and the possible allied reaction, according to Euronews sources.
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