Nipate
Forum => Kenya Discussion => Topic started by: RV Pundit on October 31, 2022, 01:32:56 AM
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Copied from Ephraim Njega
9h
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One way the government could encourage people to save and invest is by demystifying investment in government securities. M-Akiba bond was a good idea which should have been improved progressively. It is a shame the project was discontinued without any basis.
There is no reason why CBK shouldn't have an App that can allow people to invest in T-Bills and T-Bonds. The current process of opening CDS accounts which is manual and convoluted puts off many people. Investor education is also wanting.
Trading and investing in government securities has been made to appear like a league reserved for the elite and big players. This shouldn't be the case.
The current CBK Governor has stifled innovation by focusing too much on anti-money laundering procedures. His puritanical and mechanical implementation of the regulations has been a disaster for our our digital finance. There is need for flexibility and pragmatism in domesticating global regulations.
The government should also lower the withholding tax on interest earned from government securities especially for tax compliant investors. If someone has already paid taxes, why charge them tax on income earned from their savings and yet the original income had been taxed? Isn't this multiple taxation?
The government should in particular make it easier for Kenyans abroad to invest in T-Bills and T-Bonds. Many Kenyans in diaspora are conned while trying to invest in real estate projects locally. Such investments are hard to monitor hence the ease with which people are conned.
With T-Bonds now giving 14% return and with the shilling's depreciation, it would make sense for a Kenyan abroad to invest in them than do a housing project which they will struggle to monitor. One can do the housing project in future when they are available locally or when they they have the funds to invest in reliable professionals.
The government needs to diversify its sources of funds. Issuing diaspora bonds is one way it could do so. Kenya is the world's capital for digital finance. CBK shouldn't be left behind.
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Opus Dei is a rock integrity wise - but innovation wise - he is deaf stone.
Prof Njunguna was rock innovation wise.
This is why sometimes a little corruption may be better than zero corruption zero imagination zero innovation.
People who've done business will tell you - the best employers are sometimes very crafty - ambitious - risk taking - the worse will wait for you to do everything - you can as well become self-employed.
In short integrity is not an end to itself - you can fold your hand/brainss and not steal anything - but it better if your brains open up and see opportunities.
Africa cannot afford leaders who are not creative, problem solvers, innovative, ambitious, and go-getter. The developed (the past tense) can - as people worries there are just maintaining the status quo - of living same standards like their parents.
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Anyway, my prayer is Ruto will pick another Njunguna at the central bank - someone not afraid to experiment policy wise - while taking care of the bottom-line. There is time for everthing. Cheserem use to personally sign everything as he came to CBK at time of serious graft by Kotut. Mulei start well before Angoleasing took him.
Njunguna became hero for m-pesa and agent banking. Now his brief is to find another hero like him to drive financial innovation further - maybe even ban cash transactions in kenya.
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This time and age I am still required to physically go to the bank and open a CDS account. This has totally put me off, that is inspired of holding 3 different accounts with Kenyan banks and all.my details.
Why shouldn't it be easier if it was linked to one account and opened via an app?
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Central bank remain archaic as opus dei fear innovation