Nipate
Forum => Kenya Discussion => Topic started by: Higgins the genius on September 01, 2018, 09:56:58 PM
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Kenya cannot be broke when china exists.
Uhuru just went for more bag full of cash money.
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Kenya cannot be broke when china exists.
Uhuru just went for more bag full of cash money.
@RVtitem, do not make light of grave matters! What is wrong with you RVs? :c002:
How China Got Sri Lanka to Cough Up a Port (https://www.nytimes.com/2018/06/25/world/asia/china-sri-lanka-port.html) (See image below) - Nasikia Mombasa port ni surety, itafuata? :o
Every time Sri Lanka’s president, Mahinda Rajapaksa, turned to his Chinese allies for loans and assistance with an ambitious port project, the answer was yes.
Yes, though feasibility studies said the port wouldn’t work. Yes, though other frequent lenders like India had refused. Yes, though Sri Lanka’s debt was ballooning rapidly under Mr. Rajapaksa.
Over years of construction and renegotiation with China Harbor Engineering Company, one of Beijing’s largest state-owned enterprises, the Hambantota Port Development Project distinguished itself mostly by failing, as predicted. With tens of thousands of ships passing by along one of the world’s busiest shipping lanes, the port drew only 34 ships in 2012.
And then the port became China’s.
Mr. Rajapaksa was voted out of office in 2015, but Sri Lanka’s new government struggled to make payments on the debt he had taken on. Under heavy pressure and after months of negotiations with the Chinese, the government handed over the port and 15,000 acres of land around it for 99 years in December.
The transfer gave China control of territory just a few hundred miles off the shores of a rival, India, and a strategic foothold along a critical commercial and military waterway.
The case is one of the most vivid examples of China’s ambitious use of loans and aid to gain influence around the world — and of its willingness to play hardball to collect.
Read more at: How China Got Sri Lanka to Cough Up a Port (https://www.nytimes.com/2018/06/25/world/asia/china-sri-lanka-port.html)
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For those who don't understand what this 16% petroleum product means....
@vooke, Bazungu just explained it as clearly as day and night can be explained! A MUST WATCH!
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nikubaya kapsaaaa kabisaaa...dollar account people
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nikubaya kapsaaaa kabisaaa...dollar account people
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TZ and UG need to build a wall. A deluge of Kenyan economic refugees is coming! (http://[tweet)
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For those who don't understand what this 16% petroleum product means....
@vooke, Bazungu just explained it as clearly as day and night can be explained! A MUST WATCH!
I do not agree with those mzungu. They want to come to africa and rip-off resources while paying zero taxes, but only provide minimum wage zero skill jobs and few tiny CSR to natives. At the same time repatriating all profits to their countries.
African leaders are often sell outs who sign bad deals so long as they have got a cut in the western investments.
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The usual nonsense from ndii
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nikubaya kapsaaaa kabisaaa...dollar account people
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Actually kenyans have already heeded your call. Check out the number of dollar accounts and deposits https://www.businessdailyafrica.com/markets/currencies/Forex-deposits-hit-all-time-high-of-Sh500bn/3815522-4681872-egddkcz/index.html . Its a hedge against the shilling. The only person who thinks kenya economy is doing well pundit. (http://[tweet)
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Tax amnesty & increase remittance - the money is flowing in external - it's not kenyans opening forex accounts.
Actually kenyans have already heeded your call. Check out the number of dollar accounts and deposits https://www.businessdailyafrica.com/markets/currencies/Forex-deposits-hit-all-time-high-of-Sh500bn/3815522-4681872-egddkcz/index.html . Its a hedge against the shilling. The only person who thinks kenya economy is doing well pundit.
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He doesn't understand with nearly 50% of economy informal & black market - it just not possible to have low tax rate - if you try that - there won't be any taxes to do anything. See Nigeria. Africa countries have to keep formalizing - and until that happens - it going to be impossible to have low tax rate.
Once nearly everyone is paying taxes like in developed world - then having low tax become feasible - although Scandinavian have shown us the reverse is desirable - high tax seem to translate to more general happiness - if gov is honest.
I do not agree with those mzungu. They want to come to africa and rip-off resources while paying zero taxes, but only provide minimum wage zero skill jobs and few tiny CSR to natives. At the same time repatriating all profits to their countries.
African leaders are often sell outs who sign bad deals so long as they have got a cut in the western investments.
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Tax amnesty & increase remittance - the money is flowing in external - it's not kenyans opening forex accounts.
I know that's what the writer wrote but its wrong. Lets take increase in remittance; Is it that the number of kenyans in diaspora has increased to justify increase in remittance? Or is it that diaspora is earning more to justify increase? Better yet is that kenyans in diaspora are investing more in kenya due to increase in economic confidence of kenya? Has kenyan exports increased? The answer to all those questions is No. Mind you we're talking about bank deposits in forex not forex reserves in CBK. Tax amnesty; if its what has led to increased deposits it means money being repatriated is kept in forex fortify my argument that they're hedging against the shilling. Otherwise they'd be converting into shillings.
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Remittance could be linked to booming US economy - more jobs/hours/wages - and all the digital revolution that makes sending forex easy - tax amnesty saw a spike - and generally if the forex risk that IMF were suppose to take care of - have taken care of itself. The pittance of 1.5B dollars.
Uhuru just need to sign the new finance bills - remove VAT on fuel & the economy will continue humming along.
This is a confidence game - if he keeps VAT - then everyone will wrongly thing we are in an economic crisis - which then become a self-fulfilling prophesy.
The likes of Dr Ndii have been saying the same nonsense of gov is broke for years so I won't pay attention to it.
I know that's what the writer wrote but its wrong. Lets take increase in remittance; Is it that the number of kenyans in diaspora has increased to justify increase in remittance? Or is it that diaspora is earning more to justify increase? Better yet is that kenyans in diaspora are investing more in kenya due to increase in economic confidence of kenya? Has kenyan exports increased? The answer to all those questions is No. Mind you we're talking about bank deposits in forex not forex reserves in CBK. Tax amnesty; if its what has led to increased deposits it means money being repatriated is kept in forex fortify my argument that they're hedging against the shilling. Otherwise they'd be converting into shillings.
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The economy is on steroids - going down. Mismanaging the economy has always been effortless as Moi proved.
2017/2018 - Job cuts leave 29 billion hole
https://www.businessdailyafrica.com/news/Job-cuts-leave-KRA-Sh29bn-income-tax-gap/539546-4753784-mqdh0s/index.html
2016/2017 - Job cuts leave 34 billion hole
https://www.businessdailyafrica.com/economy/Job-cuts-KRA-taxman-budget-hole-Sh34-billion/3946234-3936438-cfd2suz/index.html
The remittance increases are mostly from the politically/economically incorrect Arab menial jobs. Kenyan immigrant workers are obviously feeling the heat from Trump policies.
Talking of Trump policies; fuel prices are likely to even get higher with Iran sanctions coming. And, yes, no way Uhuru is signing the Finance Bill from parliament. It is likely they will further increase tax on alcohol!! and still retain the VAT on fuel.
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Remittance could be linked to booming US economy - more jobs/hours/wages - and all the digital revolution that makes sending forex easy - tax amnesty saw a spike - and generally if the forex risk that IMF were suppose to take care of - have taken care of itself. The pittance of 1.5B dollars.
Uhuru just need to sign the new finance bills - remove VAT on fuel & the economy will continue humming along.
This is a confidence game - if he keeps VAT - then everyone will wrongly thing we are in an economic crisis - which then become a self-fulfilling prophesy.
The likes of Dr Ndii have been saying the same nonsense of gov is broke for years so I won't pay attention to it.
I know that's what the writer wrote but its wrong. Lets take increase in remittance; Is it that the number of kenyans in diaspora has increased to justify increase in remittance? Or is it that diaspora is earning more to justify increase? Better yet is that kenyans in diaspora are investing more in kenya due to increase in economic confidence of kenya? Has kenyan exports increased? The answer to all those questions is No. Mind you we're talking about bank deposits in forex not forex reserves in CBK. Tax amnesty; if its what has led to increased deposits it means money being repatriated is kept in forex fortify my argument that they're hedging against the shilling. Otherwise they'd be converting into shillings.
The argument is about increased bank forex deposits to the tune of $600m. Remittance normally is sent in forex then converted to shilling its not kept in forex. Normally remittance would be captured by CBK forex reserve cause literally CBK buys the forex in shillings. i.e they keep the forex and sells shillings. This means Kenyans are opening USD accounts to hedge against the shilling.
Treasury is scrambling to fund $26b budget that's why they had to VAT fuel. And since economic growth has been driven by goverment spending halting of new projects will surely mean slower growth. Government can't borrow more or raise more taxes. So the liberal policy of tax and spend is over.
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He doesn't understand with nearly 50% of economy informal & black market - it just not possible to have low tax rate - if you try that - there won't be any taxes to do anything. See Nigeria. Africa countries have to keep formalizing - and until that happens - it going to be impossible to have low tax rate.
Once nearly everyone is paying taxes like in developed world - then having low tax become feasible - although Scandinavian have shown us the reverse is desirable - high tax seem to translate to more general happiness - if gov is honest.
I do not agree with those mzungu. They want to come to africa and rip-off resources while paying zero taxes, but only provide minimum wage zero skill jobs and few tiny CSR to natives. At the same time repatriating all profits to their countries.
African leaders are often sell outs who sign bad deals so long as they have got a cut in the western investments.
Why do we have large informal and black market? Its partly due to high taxes that prevent formalization. He points out that even nike can't put a sweat shop in africa cause labour is very expensive due to taxes and low productivity.
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Well that is your theory - but the story says -"Foreign currency deposits in local banks have risen past the half a trillion mark for the first time, mainly driven by Kenyans sending money home to take advantage of the tax amnesty programme."
With regard to gov public investment and 26-30B budget - I think as we wait for 2nd Q figures - the first Q1 figures were really good - agricluture - which is still the elephant in the house (25% of gdp - and probably twice as industry) - is generally kicking butt this year - and none of the sector was down !!!
I think economy is doing fine - it's just hiccups otherwise its very likely the economy will grow by 6.5% and here we are crying.
I know that's what the writer wrote but its wrong. Lets take increase in remittance; Is it that the number of kenyans in diaspora has increased to justify increase in remittance? Or is it that diaspora is earning more to justify increase? Better yet is that kenyans in diaspora are investing more in kenya due to increase in economic confidence of kenya? Has kenyan exports increased? The answer to all those questions is No. Mind you we're talking about bank deposits in forex not forex reserves in CBK. Tax amnesty; if its what has led to increased deposits it means money being repatriated is kept in forex fortify my argument that they're hedging against the shilling. Otherwise they'd be converting into shillings.
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The argument is about increased bank forex deposits to the tune of $600m. Remittance normally is sent in forex then converted to shilling its not kept in forex. Normally remittance would be captured by CBK forex reserve cause literally CBK buys the forex in shillings. i.e they keep the forex and sells shillings. This means Kenyans are opening USD accounts to hedge against the shilling.
Treasury is scrambling to fund $26b budget that's why they had to VAT fuel. And since economic growth has been driven by goverment spending halting of new projects will surely mean slower growth. Government can't borrow more or raise more taxes. So the liberal policy of tax and spend is over.
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That is probably one reason - and I think parliament & treasury just need to beef up their research capacity - to fine-tune taxation and budget making. As for Nike - there are so many factors outside taxes -- and only solution is to enact several EPZ or Special Economic Zones - where anything goes - as long as they can employ million people - they get tax holidays/competitive labour/free land - that is what Uganda are using to kickstart their manufacturing.
Kenya we just need to have 47 Special Economic Zones in each county. Those are zones that will be employment centers --- but investors have to get free land, tax holiday, subsidized electricity and cheap power --- as long as we make sure these are export-oriented industries.
Looking at our budget - I am not sure there is any space to cut spending. We need to be spending more.
If treasury are having trouble - it's time to sell some assets - Safaricom is sitting at around 400B kshs - 35% of Kenya Gov shareholding there. People are making noises about Jubilee because they've leverage externally debt - but nobody is telling us how many assets Kibaki sold.
Why do we have large informal and black market? Its partly due to high taxes that prevent formalization. He points out that even nike can't put a sweat shop in africa cause labour is very expensive due to taxes and low productivity.
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Well that is your theory - but the story says -"Foreign currency deposits in local banks have risen past the half a trillion mark for the first time, mainly driven by Kenyans sending money home to take advantage of the tax amnesty programme."
With regard to gov public investment and 26-30B budget - I think as we wait for 2nd Q figures - the first Q1 figures were really good - agricluture - which is still the elephant in the house (25% of gdp - and probably twice as industry) - is generally kicking butt this year - and none of the sector was down !!!
I think economy is doing fine - it's just hiccups otherwise its very likely the economy will grow by 6.5% and here we are crying.
Yes that's my theory and I have given reasons why. Agriculture might do ok due to good rains. But for sure manufacturing,trade and services are struggling. For economy is supposedly booming how come there are so many layoffs and profit warnings?
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That always happens - some are layoff - some are hiring. Nakumatta went down and all their stores have been snatched by foreign and local supermarkets. The same is true for other companies. If not local - china man is of course killing everyone everywhere.
Yes that's my theory and I have given reasons why. Agriculture might do ok due to good rains. But for sure manufacturing,trade and services are struggling. For economy is supposedly booming how come there are so many layoffs and profit warnings?
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Moi times report.....
1039411979847385089[/tweet]] (http://[tweet)[/url]
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WE OWE NOBODY ANY DEBT
By Dr Wandia Njoya
The Kenyan bourgeoisie here are getting scared by my saying that we shouldn't pay back debts incurred by people we did not elect, and in our name without asking us.
And you better be scared.
The French Revolution, was a bloody ten years of upheaval that was caused by guess what? Debt.
The Royalty had racked up a big national debt that was caused by building a huge palace in Versailles and by France fighting wars. Things were made worse by the 14-year old Austrian princess, Marie Antoinette, who was entertaining herself and her friends at the cost of the public. As you can imagine, when the Parisians had no bread, they would get so angry that they're starving while their taxes pay for Marie to party. That's where the rumor that she had said people should eat cake started.
Remember also that there were 3 estates in France: the clergy, the nobility and the rest. Only the rest paid taxes, and yet they were the poorest.
In the rural areas, the story was the same. The dictatorship of debt. The peasants were required to work the land, and from the produce, they were supposed to give a significant portion to the landlord to pay back a debt that would never end.
While Paris was in distress, the king and his family remained in Versailles. Versailles was becoming a challenge to the people's power that was strong in Paris. The people's anger was made worse by reports in the emerging 4th estate that Versailles was holding lavish banquets at the expense of the people.
So in October 1789, a group of women marched six hours to Versailes. After a long stand off, they forced the king and his family to go back to Paris, where he would have no choice but to listen to the people's assembly that had taken over government.
My point here is that the people who live in State House and work in Treasury have no idea what it feels like to live on our side of the street.
They tell us we need an expensive railway, when what we need is good healthcare, education and jobs. They fly to Washington and Beijing, where Trump and Jinping tell them what our problems are, as if we have no mouths and brains to tell State House and Treasury ourselves.
We've made Muigai's foreign travels a joke, when in fact, we should do what the women of Paris did: tell him to sit his butt down in Nairobi and burn the midnight oil sorting this mess out. We don't want to hear about foreigners we did not elect. Let him work like the rest of us and stop globe trotting.
As the French Revolution shows, there comes a time when debt becomes enslavement and becomes an injustice which we cannot accept to pay.
Ironically, the greatest debt we have ever had is being incurred by a party called Jubilee. Yet the biblical Jubilee was the year when all debt was written off, whether it was paid in full or not, and the people of Israel were allowed to start working on a fresh slate.
We cannot be obliged to pay debts which were incurred through injustice.
We need a political party, in the style of Malema's EFF, to campaign on that platform, and promise international guys that we owe them nothing.
We can still trade, but we the people don't owe them anything. If we're really nice, we can invite them to get their money back from the wealth of the rich 8,000 Kenyans who own 62% of the country. And that's after we take back the people's property like the land.
Now, a word to you educated Kenyans reading this.
You have been seriously, seriously, like seriously, miseducated. The way I see you panicking on my wall when I talk of strategic planning and freedom form debt is extremely strange. You pretend you are commenting on what I've said, when all you're doing is repeating what you hear teachers and private sector say.
You went to school. The last thing an idea should make you do - whether you agree with it or not - is panic. Your fear means that you are invested in this dysfunctional system as it is, and that when you criticize GoK, it is because you fantasize that our problems are not systemic but a problem of human error.
But centuries of racist capitalism is not human error. It's a system designed to fail. And the worst part for me is watching educated Kenyans hopelessly unable to grasp the idea of a bad system. That's why they keep telling me "why are you blaming X?" or "the problem isn't the system but the people in it."
You, you educated Kenyans are the people preventing change from happening in Kenya. You want the system to remain intact, but just the people within it to change. Every time the people start saying something is wrong, you start accepting calls from government ministers, visiting their offices and promising to draft policy to be tabled in Parliament.
All that is the same nonsense of Jomo's approach of "conservative modernization," where we lobby for inclusion in the colonial state without overturning the state.
The thing we need to do is to explain to the people what the problem is, so that they demand for change where they are, not in workshops and manels in hotels. Soon enough, the Kenyan people are going to storm into our hotel workshops and tell us off, the way Nalongo Nana did in Uganda.
For the rest of us, this truth remains. We cannot pay this debt. We must not pay it. And maybe if we said it loud enough, this government will stop gambling with our lives.
Forget what the titled professionals tell you about economic theories and whatever else.
Justice demands that we cannot, and should not, pay back any loans incurred by Muigai and Rotich. Let them pay back that money from their own pockets.