Broke Treasury- Easiest way was to go after dynasties wealth...

[gout]

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Going after the wealth of the dynasties was low hanging fruit but they just wanted to negotiate and get a cut. Now they get the flak and no end in sight of the economic mess.


Counties have got nothing since November. Those which have broken down internally generated income systems have ground to a halt. Grants will help some limp along.

https://nation.africa/kenya/counties/pain-suffering-as-thousands-go-without-pay-in-20-counties--4185306

[RV Pundit]

Ruto is too soft.

If you cant give people money

Give them blood of the villains.

or their heads.

At least people will understand why they are broke.

It dereliction of duty to accuse Kenyattas of sinking kenya economy and do nothing about it.

It total BS - GO HARD ON THEM - HANG THEM - Let people at least know they are all suffering

[Georgesoros]

Ever thought about cutting spending??
Start with Cutting 2% 6 months, and raise revenue by the same.

If you are a regular supplier to govt, chances are youll never get paid.
My friends went bankrupt waiting for payment and that was Kibaki time.
Nowadays there are specialists who know the system and bilk the govt.

[gout]

Sioni any other way around the economy where according to Kroll report, Gideon Moi had traceable wealth of up to 50 billion while the national budget was a mere 260 billion.  That was 20 years ago!

[Kadudu]

Make a new Kroll report and your idol William Ruto will play a central role.

Guys, wake and and realise William Ruto cannot is since 2013 part of the dynasties. How can he fight his own?

Sioni any other way around the economy where according to Kroll report, Gideon Moi had traceable wealth of up to 50 billion while the national budget was a mere 260 billion.  That was 20 years ago!

[Nowayhaha]

[RV Pundit]

Yes the plan talk about state capture including an inquiry..we need it.We cannot industrialize just because you want

[hk]

Even if all the dynasties money were confiscated it wouldn't dent Kenya's economic problems. Besides it would take years if ever. Kenya is running budget deficit of $10b annually, our problem are recurrent expenditure and spending.  overborrowing is caused by spending and bloated government. The solution would have been big bang economic approach ; deregulate, cut spending, privatize and cut taxes. We're only delaying the inevitable. Otherwise kenya economic growth will range between 4% to 6% depending on the weather and that's not enough to reduce poverty.   

[RV Pundit]

There is some hope the VAT collections will go up with role out of ETIMS

KRA says the adjusted Value Adde Tax revenue target for FY2022/23 is Kes 330.0 billion. KRA says February 2023 VAT collections registered 100.3% performance pic.twitter.com/edWDtmJziS

— Julians Amboko (@AmbokoJH) March 7, 2023

?s=20

Even if all the dynasties money were confiscated it wouldn't dent Kenya's economic problems. Besides it would take years if ever. Kenya is running budget deficit of $10b annually, our problem are recurrent expenditure and spending.  overborrowing is caused by spending and bloated government. The solution would have been big bang economic approach ; deregulate, cut spending, privatize and cut taxes. We're only delaying the inevitable. Otherwise kenya economic growth will range between 4% to 6% depending on the weather and that's not enough to reduce poverty.   

[RV Pundit]

The problem is gov is unable to borrow.
17% subscription for 10yr bond at 14%.

Now treasury might resort to taking overdraft from central bank - printing money

𝐌𝐰𝐚𝐧𝐠𝐨 𝐑𝐨𝐮𝐧𝐝𝐮𝐩 𝐨𝐟 𝐓𝐨𝐩 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐂𝐨𝐧𝐭𝐞𝐧𝐭 [𝟔𝐭𝐡 𝐀𝐩𝐫𝐢𝐥]:

1. The government's latest issue of a 10-Year treasury Bond was massively undersubscribed, registering a performance rate of only 17.85%:

Here is some perspective on why from @Sang252:… pic.twitter.com/WeTMcOOWpc

— Mwango Capital (@MwangoCapital) April 6, 2023

?s=20

[gout]

The quasi-judicial state capture commission was to quicken the pace of slow moving EACC, ARA, courts, police.

There are so many intended and unintended economic benefits for confiscating dynasties wealth. Take Kenyatta's and Mo'is land - give prime land to Chinese to repay their loans and then build us affordable housing and engage in large scale farming or just divide it out to those stuck in slums.
Northlands only is costed at $5B.

In banking, Treasury is at the mercy of Kenyattas and Ndegwas despite forex criminalities.

The 100 billion ufool used outside budget should be surcharged to his estate. Now he is getting millions before nurses and doctors. These evils were to be stopped!
https://www.businessdailyafrica.com/bd/economy/uhuru-kenyatta-starts-receiving-his-sh1-32m-monthly-pension--4186538
 

Even if all the dynasties money were confiscated it wouldn't dent Kenya's economic problems. Besides it would take years if ever. Kenya is running budget deficit of $10b annually, our problem are recurrent expenditure and spending.  overborrowing is caused by spending and bloated government. The solution would have been big bang economic approach ; deregulate, cut spending, privatize and cut taxes. We're only delaying the inevitable. Otherwise kenya economic growth will range between 4% to 6% depending on the weather and that's not enough to reduce poverty.   

[sema]

The solution would have been big bang economic approach ; deregulate, cut spending, privatize and cut taxes

Does Ndii not know this or is this something he is working on?

cut spending where? deregulate what? and cut taxes in what industries?

[RV Pundit]

Gov is broke - unable to pay even parliament salaries.

[Nowayhaha]

Very true , this is not sustainable

https://www.standardmedia.co.ke/amp/national/article/2001470443/mps-and-senators-to-go-on-easter-without-march-salaries

Even if all the dynasties money were confiscated it wouldn't dent Kenya's economic problems. Besides it would take years if ever. Kenya is running budget deficit of $10b annually, our problem are recurrent expenditure and spending.  overborrowing is caused by spending and bloated government. The solution would have been big bang economic approach ; deregulate, cut spending, privatize and cut taxes. We're only delaying the inevitable. Otherwise kenya economic growth will range between 4% to 6% depending on the weather and that's not enough to reduce poverty.

[RV Pundit]

Cheap propaganda. We've been paid pic.twitter.com/ihdIdHcQAi

— Dr Boni Khalwale, CBS (@DrBKhalwale) April 6, 2023

?s=20

[hk]

The quasi-judicial state capture commission was to quicken the pace of slow moving EACC, ARA, courts, police.

There are so many intended and unintended economic benefits for confiscating dynasties wealth. Take Kenyatta's and Mo'is land - give prime land to Chinese to repay their loans and then build us affordable housing and engage in large scale farming or just divide it out to those stuck in slums.
Northlands only is costed at $5B.

In banking, Treasury is at the mercy of Kenyattas and Ndegwas despite forex criminalities.

The 100 billion ufool used outside budget should be surcharged to his estate. Now he is getting millions before nurses and doctors. These evils were to be stopped!
https://www.businessdailyafrica.com/bd/economy/uhuru-kenyatta-starts-receiving-his-sh1-32m-monthly-pension--4186538

The Chinese have collateral for their loans e.g mombasa port, large scale farming would entail serious capital investment to recover their loans. And Northlands isn't even worth $1b as it is, for it be worth $5b a substantial construction investment is needed. Also kenya just doesn't have enough earners who can afford northland houses, so this is a longterm project e.g https://nation.africa/kenya/business/erdemann-s-sh7bn-2-720-house-plan-stalls-4172858 .  Confiscating dynasty land isn't a panacea or even a bridge to alleviate Kenya fiscal problems.
NCBA is the 4th largest bank they dont control the sector, all the top banks made roughly 8b on forex trading except coop bank is really a sacco bank. Regulations of every sector is what needs to be reviewed to rid the country of crony capitalism.

[hk]

The solution would have been big bang economic approach ; deregulate, cut spending, privatize and cut taxes

Does Ndii not know this or is this something he is working on?

cut spending where? deregulate what? and cut taxes in what industries?

What to deregulate ? https://nipate.net/index.php?topic=14901.0 , cut taxes from corporate, excise, vat to payroll taxes. Spending, every ministry has bloated budget and is over staffed.

[hk]

The problem is gov is unable to borrow.
17% subscription for 10yr bond at 14%.

Now treasury might resort to taking overdraft from central bank - printing money

𝐌𝐰𝐚𝐧𝐠𝐨 𝐑𝐨𝐮𝐧𝐝𝐮𝐩 𝐨𝐟 𝐓𝐨𝐩 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐂𝐨𝐧𝐭𝐞𝐧𝐭 [𝟔𝐭𝐡 𝐀𝐩𝐫𝐢𝐥]:

1. The government's latest issue of a 10-Year treasury Bond was massively undersubscribed, registering a performance rate of only 17.85%:

Here is some perspective on why from @Sang252:… pic.twitter.com/WeTMcOOWpc

— Mwango Capital (@MwangoCapital) April 6, 2023

?s=20

CBK is behind the curve and has to increase rates. High interest rates low growth is what we're sleep walking into, meanwhile world bank raises eurobond default risk https://www.businessdailyafrica.com/bd/economy/world-bank-wary-of-kenya-s-ability-to-retire-sh264bn-eurobond--4187468 .

[RV Pundit]

Yes they have to increase rate and issue 1-2yr bonds - which again multiply the risk of defaulting next year - as everything matures. The only way out for now
1) hope KRA improves revenue collection drastically
2) hope privatization bill sail through - sell likes of KPA to likes of Mercer or Safaricom to Vodagone - get the dollars to repay Eurobond.
3) Borrow from commercial banks abroad - try to find dollar denominated syndicated loan to repay Eurobond.

I dont see budget cut working - there is nothing much to cut - likes of education takes almost 1/3 of the budget - security and essential services in counties take another 1/3 - leaving little room for cutting.

CBK is behind the curve and has to increase rates. High interest rates low growth is what we're sleep walking into, meanwhile world bank raises eurobond default risk https://www.businessdailyafrica.com/bd/economy/world-bank-wary-of-kenya-s-ability-to-retire-sh264bn-eurobond--4187468 .

[gout]

The state capture was to circumvent these hurdles. Guilty 100%. No recourse.

Last June, SENRA director Eduarda Rodrigues said that Angola needed to find financial mechanisms to repatriate the money without causing harm to other countries.

https://african.business/2023/03/finance-services/angola-creates-15bn-fund-from-recovered-assets