April 13, 2019 | Uncategorized | No Comments
Most of us collect debts badly because we’re too busy. It’s also not fun so debt collection gets put off. We struggled with late payments and poor cash flow until we built an automatic debt collecting system.
It’s not outsourcing. It’s a tool to save you money on your internal debt collecting processes.
It’s really quick to set up. You can start collecting outstanding debts within minutes of signing up. It works with any accounting package (even a pen and paper ones), so you don’t have to change the way you work. It only takes a few moments to enter the invoice. After that it’s all automatic. The system will send a series of gentle reminders to your clients until their bill is paid. Because the system is completely automated it you don’t have to squeeze following up on unpaid debts into your day or hire someone to do this.
As of 2016, the Kenyan Government Debt equivalent to the Gross Domestic Product was 55.20% from 38.2% in 2012, representing a steady 17% increment since 2012. Debt-to-GDP ratio is a country’s government debt (amount) and its Gross Domestic Product (years), with 60% being the accepted barometer (E.U standard criteria), meaning the National debt should not go beyond 60%. Making us believe the Kenyan Government Debt Ratio is somehow sustainable but the steady increase over the year’s means we are on track to surpass the 60% mark.
But what has prompted the steady increase of the Ratio over the years, from 38.2% (2012) to 55.2 %( 2016), what underlying factors have contributed to the increase of the Ratio overtime, has the Government deliberately encouraged the steady increase of the Ratio, has there been a positive or negative impact in the economy, can the Government manage the runaway public debt, can unlimited total overseas debt collection sovereignty help to tame the runaway Public debt.
What is Public debt? According to Wikipedia, Public Debt is how much a country owes to lenders outside of itself, which can be categorized as internal debt (owed to lenders within a country), and external debt (owed to foreign lenders), or in terms of duration; Short (1 to 2 years), mid (in between long & short), or long term (10 years or more).
As of September 2016, our public debt was Ksh 3.6 trillion from Ksh 1.5 trillion (2012), of which the external debt was Ksh 1.7 trillion, and internal debt was Ksh 1.85 trillion (Central Bank of Kenya). Meaning for every Ksh 100 collected by the Kenya Revenue Authority, Ksh 32 was spent on servicing her debts.
As the National Budget increases yearly, and K.R.A missing her revenue collection target, we are faced with Budget deficits, forcing the Government to borrow funds either externally or internally. Perpetuating a vicious cycle where the only outcome is the steady increase in our National Debt.