[/url]The biggest mistake that Kenyans are making is to believe that @Williamsruto primitive procurement rackets is our biggest corruption problem. Nah. The mother of corruption is state capture by the crony capitalist cartels fronted by @UKenyatta
— David Ndii (@DavidNdii) June 7, 2018
[/url]A legacy of Corruption: 5.3 Trillion Shillings Allegedly Stolen Since 2013 Under the UhuRuto administration https://t.co/jTeOUoh4Q7 via @sokodirectory
— David Ndii (@DavidNdii) June 7, 2018
But he just characterized Ruto as a complete idiot while praising Uhunye for smart stealing. He is real Uthamakistan
There's no doubt that the increased budget size isn't commensurate with expenditure or return on investment.
IMF estimate our GDP to be 88B (WB 86B) dollars now - how could it have risen from the lows of 50s(2012/2013) - if it wasn't commensurate - where would the extra nearly 40B have come from? Jubilee have nearly doubled our GDP in 5yrs!Kenya rebased its economy 2014 that's account for the huge jump of GDP. For the money supposedly spent we should average well above 8%. TZ or Rwanda haven't had expansionary budgets like kenya yet managed to grow faster.
What more rate of return - when GDP growth rate has averaged 6% - only better by likes of Ethiopia, TZ & Rwanda?There's no doubt that the increased budget size isn't commensurate with expenditure or return on investment.
Kenya rebased its economy 2014 that's account for the huge jump of GDP. For the money supposedly spent we should average well above 8%. TZ or Rwanda haven't had expansionary budgets like kenya yet managed to grow faster.
Kenya 2012/13 budget was $12b, 2018 is $25b more than double.
That is good thing. It shows our revenues have grown; and so has our debt leverage; and so has the economy. 25B is small change - when South Africa are doing 120B dollars.The only reason why KRA is collecting more money is because of increased government expenditure. KRA most of the time ensures taxes are paid by anyone being paid by government. So literally its like shifting money from right pocket to left pocket while obviously increasing debts. Its not like the increased collection is coming from improved private and individual household spending. By now all the mega projects growth should be kicking in but wapi? Now its doubling down on big 4.Kenya 2012/13 budget was $12b, 2018 is $25b more than double.
The only reason why KRA is collecting more money is because of increased government expenditure. KRA most of the time ensures taxes are paid by anyone being paid by government. So literally its like shifting money from right pocket to left pocket while obviously increasing debts. Its not like the increased collection is coming from improved private and individual household spending. By now all the mega projects growth should be kicking in but wapi? Now its doubling down on big 4.
Our tax to GDP is around 18-20% - our budget is slightly above that - that mean even if gok get 20-30% income tax from employees & VAT from rest - GOK contribution to TAX - would be 20% of 20B - about 3-5B dolllars - leaving private sector & individuals working outside gov contributing more than 10B dollars - mostly 2M formal employees (income tax) +VAT + corporate taxes.PAYE accounts for almost a quarter of all tax collection then corporate taxes, individual etc makes for less than a quarter probably 20%. Government is the largest employer with over 600k plus parastatals that also employ a significant number. If one is a contractor working with government or parastatals it means the paye for employees is literally coming from government and the income they pay. Not to mention VAT paid. So government has oversized imprint on the economy if its the driver.
Which mega projects are those?. SGR is starting to kick in and we have 5yr grace period to repay the loan - half of it concessional & other half commercial - I don't expect the public to repay that loan - I think the rail will repay itself? And we have only completed the section to Nairobi - we need to get to Naivasha & then Kisum & Malaba & Uganda can complete they part. The passenger trail is already huge success with sustained 95% seat occupancy - including post promotional period. The cargo is just started - dealing with teething problems & - there is no doubt that once it iron out minor issues - it will be hauling lot more cargo.
Electrification - ours is world fastest electrification (faster than when US was electrifying) - and Jubilee who inherited about 1M power connections - in 5yrs - made that 6M (albeit with 4M active)! That is huge and is acknowledged world-wide as praise-worthy - we still have lot of places esp in Western Kenya - where power connection is around 10% ( from Bomet all the way to Busia) --- those we need to move to 80% like rest of the country - and therefore we need to keep investing in subsidized power connection & facilitating Ketraco to lay the network. These are mostly once-off investment - once we have ensured everyone has power - it done and dusted forever.
The number of road under construction is crazy - Jubilee have build or are building more roads than all previous regime combined!!!!!!!!! Jubilee inherited tarmac road network of around 12,000Kms - and what is under construction now is anything upto 10,000 - with plan to tarmac 30,000 kms of new roads! These are mostly low seal roads - but definitely there are many areas of these countries that are opening up.
The throwing in what the county gov are doing - building tarmac for first time in Turkana, Marsabit, Wajir & such place - crazy opening up of rural economy by building murrams roads - building of dispensaries - early childhood education.
The failure or work in progress in my view is water & irrigation - it pains me to see Nairobi people still buying water in jerricans & rest of country have water supply worse than Uganda - except for few counties in Central - this requires a marshall plan - well there are plans to move supply of clean water to 70% of kenyans - let hope this succeed.
PAYE accounts for almost a quarter of all tax collection then corporate taxes, individual etc makes for less than a quarter probably 20%. Government is the largest employer with over 600k plus parastatals that also employ a significant number. If one is a contractor working with government or parastatals it means the paye for employees is literally coming from government and the income they pay. Not to mention VAT paid. So government has oversized imprint on the economy if its the driver.
Electrification, yes we maybe the fastest but at what expense? Instead of first building transmission lines to evacuate cheap power and retire expensive thermal power we embark on connecting people who can't afford power. So its being subsidized by ones who can afford making it expensive for everyone. The key would have been to lower cost of power by connecting cheaper producers to the grid. That would have increased demand for connection leading to universal electrification eventually. Kind of what happened to fibre optic cable, now almost every town has fibre purely driven by demand.
I think first argument is self-defeatist - if gok is getting lot of taxes from itself - where is the beef?The beef is to finance that spending the government is borrowing about $10b local and foreign. And incase of foreign eurobond the government had to make sure it borrowed $1.5b standby loan to protect the shilling. To get it treasury had to agree to loan conditions of VATing petrol and to reduce budget deficit below 5.5% of GDP.
The second argument I don't agree with - our power is expensive - not because of millions of household who uses very little power (there has been no increase in power demand) - but because we are expensive renewable power (geothermal?) - which is 3 times more expensive than hyrdo (and maybe 7 times more expensive than coal). Jubilee have made once-off investment in transmission - it expensive because of all way leave acquisition & equipments - but once it's done it's done - the electrification otherwise has been more on densification - connecting more people to already existing transformer.
I know HK you come from an area (NYERI) where all these things are sorted - you have power, good roads, water, name it - so it's not a priority for you - but majority of country - esp northern, coast & most of western kenya baldy requires PUBLIC INVESTMENT.
Let stop being selfish - there are places in Kenya like Siaya or Bomet or Kakamega - where electricity connection is still at 10% - there are places in Northern Kenya who have never had tarmac --- we need to continue investing massively in public projects - and private sectors should realize this is for their good - the pilferage notwithstanding.
What would be purpose of private sector that outside the 5 main cities - has no market for anything!
Once we sort out supply issues - let worry about demand issues. Once everyone is connected to power - let worry about the price of that electricity. We can start burning coal from there. Otherwise right now KPLC only have 600 consumers who consumer 60% of the power.
— David Ndii (@DavidNdii) June 20, 2018[/url]