Clown Hasora in court over bottom up economic model

[gout]

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For those who have not resigned over hasora nation revolution it is desperation/panic (installation of kdf), gnashing of teeth, panic but this come near the most absurd.

https://nation.africa/kenya/news/businessman-claims-ruto-s-bottom-up-economic-plan-3622708

A google search will tell any one bottom up has been there in engineering since when I don't; in politics and economics and now the mouths of Kenyans.

This is a 2003 piece Ndii has been sharing from HBR.

https://hbr.org/2003/08/bottom-up-economics

Pundit has his robust thread stuck here.

[GeeMail]

A man is hustling bandia hustler to get something small.

[RV Pundit]

Busy body

[sema]

Can someone explain this bottom's up economic model to me in light of the fact that Africans make nothing. There's basically no manufacturing of any kind. How can you create wealth when you make nothing short of basic agricultural farming? How will this work in countries that are facing severe demographic pressures and why do you think Kenya, which is approaching 50 million people is immune to these economic pressures? Saw a tweet by DAvid Ndii saying 50% of Kenyans are under the age of 15!! this is a demographic disaster

[hk]

Bottom up isn't an economic ideology but a political slogan, david ndii will be the first to admit that

Its clear. #BottomUpEconomics is a political ideology, not a policy program. We’ve shifted discourse from identity politics—reggae, tribal kingpins “our turn in State House” and all that to politics of the economy. Are you Top/trickle down OR #BottomUpEconomicsKE
Rest is detail https://t.co/ZIuvvNFEYc

— David Ndii (@DavidNdii) July 28, 2021

. Economic growth is calculated by Y=F(K,L) where Y is total output K is capital and L is labour. The bottom up proposal is focus on government to provide capital, basically more government spending. Supply side economics (pejoratively referred as trickle down by liberals)would be to make sure private sector is enabled to provide capital. Business policy of focusing on the bottom(equity bank, grameen etc) isn't an economic policy. Its a business decision to focus on where mass market is.
Bottom up and dynasty are both espousing more government spending (keysian or hybrid). The only person who's mildly suggesting a supply side economics model is Mudavadi. I.e Unleashing capital from private sector by first dealing with debt, lowering interest rates by reducing budget deficit, further liberalization and privatization, and finally cutting taxes on investment. 

[RV Pundit]

Private sector growth in a country like Kenya - which is 3rd after Namibia in income inequality - will not spread the benefits. This problem with trickle down economics. You want to have South Africa - rich country for 5 percent - or a country for everyone.

So indeed bottom up economic policy is socialisms. It's not capitalism. But like it has been shown by Keg beer - CSR project that breweries started as its contribution to fighting illegal beers - social project can lead to transformation. KEG beer now account for most volumes by KBL and is most likely the most profitable brand. CSR turn profitable.

MPESA began as DFID/NGO social project in thika - it has grown to become the juggernaut it is - last year we did 130B dollars- and Safaricom is heading to 20b dollars in valuation...and 1B dollars in net profit.


In short - gov business is not to make money - it's to tax private sector - get 30 percent - and then use the money on infrastructure, regulate the private sector and what remain should be invested in social impactful projects.

In long run social investment in education, healthcare, housing and poor - plus in basic infrastructure like railways or roads - will catapult the private sector to grow.

But if we continue with short termism of trying to make profit for a few - we will end up in South Africa - we are just 10 percent below them in income inequality - and results will be more crime/violence - as the excluded majority fight back.

Unleashing capital from private sector by first dealing with debt, lowering interest rates by reducing budget deficit, further liberalization and privatization, and finally cutting taxes on investment. 

[hk]

Private sector growth in a country like Kenya - which is 3rd after Namibia in income inequality - will not spread the benefits. This problem with trickle down economics. You want to have South Africa - rich country for 5 percent - or a country for everyone.

So indeed bottom up economic policy is socialisms. It's not capitalism. But like it has been shown by Keg beer - CSR project that breweries started as its contribution to fighting illegal beers - social project can lead to transformation. KEG beer now account for most volumes by KBL and is most likely the most profitable brand. CSR turn profitable.

MPESA began as DFID/NGO social project in thika - it has grown to become the juggernaut it is - last year we did 130B dollars- and Safaricom is heading to 20b dollars in valuation...and 1B dollars in net profit.


In short - gov business is not to make money - it's to tax private sector - get 30 percent - and then use the money on infrastructure, regulate the private sector and what remain should be invested in social impactful projects.

In long run social investment in education, healthcare, housing and poor - plus in basic infrastructure like railways or roads - will catapult the private sector to grow.

But if we continue with short termism of trying to make profit for a few - we will end up in South Africa - we are just 10 percent below them in income inequality - and results will be more crime/violence - as the excluded majority fight back.

Unleashing capital from private sector by first dealing with debt, lowering interest rates by reducing budget deficit, further liberalization and privatization, and finally cutting taxes on investment. 

Private sector especially informal sector is the engine of kenya economy. These are the employers and the owners of capital in kenya not necessarily the much hyped private sector KAM or KEPSA. In aggregate the informal is much bigger than formal sector, so unleashing capital held by informal sector would stimulate the economy. Lowering taxes and interest rates would mean more capital for everyone to invest. To do that budget deficit the albatross around the neck of the economy has to be dealt with. Private sector is mainly informal sector i.e SMEs, in a nutshell unleashing private capital is unleashing the bottom. Government led economic growth is what exacerbates inequality cause its crony capitalism. Only people with access to government gets to benefit. EABL is benefiting from keg cause it was given special tax exemption (crony capitalism). Every local distiller or brewer would have been given same tax rate for using local raw materials. The government is clearing dictating who's the winner in the marketplace. 

[RV Pundit]

You're about to get it. Now informal sector is focus on bottom up. Now those guys are informal - they are not getting taxed. If you go informal sector - and ask them what there problem is - taxes is the last thing on their mind. They have not seen KRA except through
indirect taxes.

What ails the informal sector -

1) Overregulation leading to harassments from kanchos, and 30 gov bodies looking for 30 stupid licenses. Gov can fix this by simply having one certificate of registration - and waive regulation for business making say less than 5 million per annum.

2) Lack of capital - cheap capital - not shylocks like - Ngao credit or plantinum or banks - or guys loaning out cars - then repossing them - and charging punitive penalities.  Will lowering of bank interest trickle down in commercial banks? Very unlikely. It appears to me we need special state banks - but then we have corruption problem? Maybe gov can subsidize commercial loans given to informal sector? Like kenya mortgage refinancing is attempting to.

3) Lack of economies of scale - this is where cooperative comes in - to organize these people so they can get group discounts, can imports as groups, and even sell as groups. This will also deal with licensing and regulation. Sacco will handle all the regulation - and members do not need to be bothered.

For local brewers - their major problem is regulation - otherwise you're allowed to do that and get tax rebate. But regulation in beer industry with KRA wanting to inspect everything making very hard for local brewers to operate.

Bottom line - at least we have finally having the right conversation.

NOT KAM or KEPSA - who are cronies of political class - but millions of kenyans. Any benefits given to KAM or KEPSA - will never trickle down - it will probably trickle out to Swiss Banks.

Private sector especially informal sector is the engine of kenya economy. These are the employers and the owners of capital in kenya not necessarily the much hyped private sector KAM or KEPSA. In aggregate the informal is much bigger than formal sector, so unleashing capital held by informal sector would stimulate the economy. Lowering taxes and interest rates would mean more capital for everyone to invest. To do that budget deficit the albatross around the neck of the economy has to be dealt with. Private sector is mainly informal sector i.e SMEs, in a nutshell unleashing private capital is unleashing the bottom. Government led economic growth is what exacerbates inequality cause its crony capitalism. Only people with access to government gets to benefit. EABL is benefiting from keg cause it was given special tax exemption (crony capitalism). Every local distiller or brewer would have been given same tax rate for using local raw materials. The government is clearing dictating who's the winner in the marketplace. 

[hk]

You're about to get it. Now informal sector is focus on bottom up. Now those guys are informal - they are not getting taxed. If you go informal sector - and ask them what there problem is - taxes is the last thing on their mind. They have not seen KRA except through
indirect taxes.

What ails the informal sector -

1) Overregulation leading to harassments from kanchos, and 30 gov bodies looking for 30 stupid licenses. Gov can fix this by simply having one certificate of registration - and waive regulation for business making say less than 5 million per annum.

2) Lack of capital - cheap capital - not shylocks like - Ngao credit or plantinum or banks - or guys loaning out cars - then repossing them - and charging punitive penalities.  Will lowering of bank interest trickle down in commercial banks? Very unlikely. It appears to me we need special state banks - but then we have corruption problem? Maybe gov can subsidize commercial loans given to informal sector? Like kenya mortgage refinancing is attempting to.

3) Lack of economies of scale - this is where cooperative comes in - to organize these people so they can get group discounts, can imports as groups, and even sell as groups. This will also deal with licensing and regulation. Sacco will handle all the regulation - and members do not need to be bothered.

For local brewers - their major problem is regulation - otherwise you're allowed to do that and get tax rebate. But regulation in beer industry with KRA wanting to inspect everything making very hard for local brewers to operate.

Bottom line - at least we have finally having the right conversation.

NOT KAM or KEPSA - who are cronies of political class - but millions of kenyans. Any benefits given to KAM or KEPSA - will never trickle down - it will probably trickle out to Swiss Banks.

Private sector especially informal sector is the engine of kenya economy. These are the employers and the owners of capital in kenya not necessarily the much hyped private sector KAM or KEPSA. In aggregate the informal is much bigger than formal sector, so unleashing capital held by informal sector would stimulate the economy. Lowering taxes and interest rates would mean more capital for everyone to invest. To do that budget deficit the albatross around the neck of the economy has to be dealt with. Private sector is mainly informal sector i.e SMEs, in a nutshell unleashing private capital is unleashing the bottom. Government led economic growth is what exacerbates inequality cause its crony capitalism. Only people with access to government gets to benefit. EABL is benefiting from keg cause it was given special tax exemption (crony capitalism). Every local distiller or brewer would have been given same tax rate for using local raw materials. The government is clearing dictating who's the winner in the marketplace. 

Clearly you don't know informal sector, informal sector pays taxes. From your economic adviser David ndii https://mobile.twitter.com/davidndii/status/1372073922368319488
When taxes are lowered the government collects more. Lowering broadens and simplifies taxes, leading to more compliance, case in point 10% rental income tax.
Deregulation and liberalization is supply side economics (think chile under pinochet). Regulation for the most part can be dealt with at the county level while liberalization at national level.
Capital: Lowering interest rates will mean banks will start lending to private sector . To do that government has to stop crowding out the private sector. This means budget deficit has to be lowered. Banks have to lend money money to make money either to government or to private sector. The solution is to cut government borrowing so that private sector can get credit. This is what happened during narc administration.
Economic of scale is wonderful if its earned not forced clusters. Otherwise monopolies are created that end up hurting the intended beneficiaries. Case in point cooperative societies in coffee.
For distillers to get tax rebate it would mean they'd have to become brewers. The taxation of base alcohol i.e ethanol is higher even when producing a low percentage alcoholic drinks. I can produce a 5-7% alcohol per vol. coffee based cocktail but I'd not get a rebate even if I used sorghum.
More government spending and involvement in the economy as proposed by both bottom up and dynasty is what I am against. The solution for our economy isn't more government its  more private free markets.

[RV Pundit]

Established SMES - is private sector. It's not informal sector. Our challenge is formalize them - through forced cooperatives - low regulation - free market - then they can pay taxes and we can low the tax rate.

For now reducing budget and reducing taxes is an oxymoron. How will we finance deficit without borrowing? Unless we sell gov assets? Or we totally cut to back on development budget - meaning no roads or such projects.  Fighting corruption is easier said than done.

Kibaki was able to have low budget deficit by selling parastals, by getting donors back from Moi era cut back and by negotiating entry into paris club for cheap loans.

For next gov -  to do bottom up - somebody has to pick the tabs - and finance informal sector. For me the guys to get hit are the private sector - formal - they cannot hope for low taxes - I'd even tax them more - but give low taxes only to informal sector.

This is what Nordic do - Swiss do the sames - tax the rich and private sector upto 50% - and provide social services for everyone.

We want a mixed economic model - heavily tax kenyattas to provides for kamaus -"The Nordic model is a mixed-market economic system that combines elements of both capitalism and socialism"

Trickle down is saying low taxes for everyone  - and kenyattas will pass benefits to everyone. We have seen it doesnt work. Not here in developing country. Not in the US a developed country.
'
What works is countries who taxes heavily the private sector and individuals - and then finance social investment for everyone.

Clearly you don't know informal sector, informal sector pays taxes. From your economic adviser David ndii https://mobile.twitter.com/davidndii/status/1372073922368319488
When taxes are lowered the government collects more. Lowering broadens and simplifies taxes, leading to more compliance, case in point 10% rental income tax.
Deregulation and liberalization is supply side economics (think chile under pinochet). Regulation for the most part can be dealt with at the county level while liberalization at national level.
Capital: Lowering interest rates will mean banks will start lending to private sector . To do that government has to stop crowding out the private sector. This means budget deficit has to be lowered. Banks have to lend money money to make money either to government or to private sector. The solution is to cut government borrowing so that private sector can get credit. This is what happened during narc administration.
Economic of scale is wonderful if its earned not forced clusters. Otherwise monopolies are created that end up hurting the intended beneficiaries. Case in point cooperative societies in coffee.
For distillers to get tax rebate it would mean they'd have to become brewers. The taxation of base alcohol i.e ethanol is higher even when producing a low percentage alcoholic drinks. I can produce a 5-7% alcohol per vol. coffee based cocktail but I'd not get a rebate even if I used sorghum.
More government spending and involvement in the economy as proposed by both bottom up and dynasty is what I am against. The solution for our economy isn't more government its  more private free markets.

[hk]

Established SMES - is private sector. It's not informal sector. Our challenge is formalize them - through forced cooperatives - low regulation - free market - then they can pay taxes and we can low the tax rate.

For now reducing budget and reducing taxes is an oxymoron. How will we finance deficit without borrowing? Unless we sell gov assets? Or we totally cut to back on development budget - meaning no roads or such projects.  Fighting corruption is easier said than done.

Kibaki was able to have low budget deficit by selling parastals, by getting donors back from Moi era cut back and by negotiating entry into paris club for cheap loans.

For next gov -  to do bottom up - somebody has to pick the tabs - and finance informal sector. For me the guys to get hit are the private sector - formal - they cannot hope for low taxes - I'd even tax them more - but give low taxes only to informal sector.

This is what Nordic do - Swiss do the sames - tax the rich and private sector upto 50% - and provide social services for everyone.

We want a mixed economic model - heavily tax kenyattas to provides for kamaus -"The Nordic model is a mixed-market economic system that combines elements of both capitalism and socialism"

Trickle down is saying low taxes for everyone  - and kenyattas will pass benefits to everyone. We have seen it doesnt work. Not here in developing country. Not in the US a developed country.
'
What works is countries who taxes heavily the private sector and individuals - and then finance social investment for everyone.

Clearly you don't know informal sector, informal sector pays taxes. From your economic adviser David ndii https://mobile.twitter.com/davidndii/status/1372073922368319488
When taxes are lowered the government collects more. Lowering broadens and simplifies taxes, leading to more compliance, case in point 10% rental income tax.
Deregulation and liberalization is supply side economics (think chile under pinochet). Regulation for the most part can be dealt with at the county level while liberalization at national level.
Capital: Lowering interest rates will mean banks will start lending to private sector . To do that government has to stop crowding out the private sector. This means budget deficit has to be lowered. Banks have to lend money money to make money either to government or to private sector. The solution is to cut government borrowing so that private sector can get credit. This is what happened during narc administration.
Economic of scale is wonderful if its earned not forced clusters. Otherwise monopolies are created that end up hurting the intended beneficiaries. Case in point cooperative societies in coffee.
For distillers to get tax rebate it would mean they'd have to become brewers. The taxation of base alcohol i.e ethanol is higher even when producing a low percentage alcoholic drinks. I can produce a 5-7% alcohol per vol. coffee based cocktail but I'd not get a rebate even if I used sorghum.
More government spending and involvement in the economy as proposed by both bottom up and dynasty is what I am against. The solution for our economy isn't more government its  more private free markets.

Formalization is a result of registration and licenses , what we call decriminalization of economic activities. Even further formalization is issuance and respect of property rights, e.g titles of slums and even vipandas. Private sector is everything that's not public, this includes individuals and households.
Cutting budget and reducing taxes isn't an oxymoron its more contrarian heterodox economic policy. In short term the consequences would be painful as funds are withdrawn from the economy. The longterm consequences would be big vibrant private economy. To fund all those social amenities and infrastructure its imperative that we have a private sector economy to be taxed to finance the public sector.
Kibaki didn't lower budget deficit, moi actually was fiscally conservative never raised budget deficit beyond 4%.  Here's what you fail to appreciate, a country can have a budget deficit of 3% and steal the entire budget and still be ok. While you can have 8% budget deficit, zero corruption and end up where we are. 
Can't compare kenya with nordic countries, it's like what Raila is proposing giving 6k to the unemployed. Kenya economy needs jump starting, already the kenyattas have capital so increasing taxes doesn't hurt them.


 

[gout]

Precisely.
It is not mainly about taxes and interest complex macro blah de blah. Mainly dignity from the top.

The monies lost to kanjo, police, lost hours due to closure as you evade these thugs in uniforms will be used to buy more stock, buy better equipment, better maintenance and social mobility (a hawker once have enough capital will move from wheelbarrow to an exhibition stall - since ufool it is reverse thus excess vacant stalls).

If you had a goat you get good proceeds you expand to two or buy a cow. If in boda boda you can operate longer hours thus two shifts meaning another job then buy another one.

Kanjos and police kill hasoras coz they don't have money for malaya na pombe or they have a stuck building - extracting small capital from the productive hasoras to useless piling up of stones upon stones. KRA closes a factory with nyororo and still expects you to pay them!

Eventually KRA has healthy micro populace of indirect and direct taxpayers.

You're about to get it. Now informal sector is focus on bottom up. Now those guys are informal - they are not getting taxed. If you go informal sector - and ask them what there problem is - taxes is the last thing on their mind. They have not seen KRA except through
indirect taxes.

What ails the informal sector -

1) Overregulation leading to harassments from kanchos, and 30 gov bodies looking for 30 stupid licenses. Gov can fix this by simply having one certificate of registration - and waive regulation for business making say less than 5 million per annum.

2) Lack of capital - cheap capital - not shylocks like - Ngao credit or plantinum or banks - or guys loaning out cars - then repossing them - and charging punitive penalities.  Will lowering of bank interest trickle down in commercial banks? Very unlikely. It appears to me we need special state banks - but then we have corruption problem? Maybe gov can subsidize commercial loans given to informal sector? Like kenya mortgage refinancing is attempting to.

3) Lack of economies of scale - this is where cooperative comes in - to organize these people so they can get group discounts, can imports as groups, and even sell as groups. This will also deal with licensing and regulation. Sacco will handle all the regulation - and members do not need to be bothered.

For local brewers - their major problem is regulation - otherwise you're allowed to do that and get tax rebate. But regulation in beer industry with KRA wanting to inspect everything making very hard for local brewers to operate.

Bottom line - at least we have finally having the right conversation.

NOT KAM or KEPSA - who are cronies of political class - but millions of kenyans. Any benefits given to KAM or KEPSA - will never trickle down - it will probably trickle out to Swiss Banks.

[gout]

These people are not sleeping 24-7. They are productive just that their productivity is totally bludgeoned by the government policies and kanjo by laws. People want to make manufacturing that you have a big factory. Extracting sugar cane juice is micro/cottage industry.  Thousands of Kenyans are making ice cream, yoghurts, school shoes, suits, kitenges, shirts, weldings, name it - you should also check Ndii's MadeinKenya Challenge.

https://twitter.com/hashtag/MadeinKenyaChallenge?src=hashtag_click

Can someone explain this bottom's up economic model to me in light of the fact that Africans make nothing. There's basically no manufacturing of any kind. How can you create wealth when you make nothing short of basic agricultural farming? How will this work in countries that are facing severe demographic pressures and why do you think Kenya, which is approaching 50 million people is immune to these economic pressures? Saw a tweet by DAvid Ndii saying 50% of Kenyans are under the age of 15!! this is a demographic disaster

[Dear Mami]

Since you guys are discussing economic cycles, I thought I'd drop this vid here since it helped me understand how the economic machine works! It's super fun and super interesting!

[sema]

These people are not sleeping 24-7. They are productive just that their productivity is totally bludgeoned by the government policies and kanjo by laws. People want to make manufacturing that you have a big factory. Extracting sugar cane juice is micro/cottage industry.  Thousands of Kenyans are making ice cream, yoghurts, school shoes, suits, kitenges, shirts, weldings, name it - you should also check Ndii's MadeinKenya Challenge.

If what you are saying is true, it would have been a very simple problem for say Kibaki to fix - Just change the government policies and Kanjo by laws that are bludgeoning them, but why couldn't Kibaki do it? It is really just kanjo by laws?

"The Nordic model is a mixed-market economic system that combines elements of both capitalism and socialism"

The Nordic countries are highly productive and highly efficient (they make things) and Norway has huge oil reserves. How can you compare these mzungu's to mwafrika starving in Wajir?

[gout]

Hii sio maneno ya kizungu mingi. Anyone who uses a wheelbarrow does not need to explain it to engineers, accountants and all. It is their thing. You try explaining to you granny what you do- they will just give you a blank stare and ask for the dollars. Hasoras know what ails them and are speaking loudly.

Mara Norway, Mara Finland. You must be fun in parties. Hasoras are talking about how to get out of their cesspit and they have it figured out just like Mekatilili, Samoei, Mau Mau peasantry in their quest for dignity.

[hk]

Hustlers harassment could end tomorrow and hustlers would still be mired in economic stagnation. Kenyans are borrowing 1.2b a day from Fuliza at 120% annual rate. This as a result of government crowding out business in the credit market. CRB listing was suspended after heavy government lobbing by nyamakima/ kirinyaga rd. hustlers via sabina chege, this is macro. Cost of goods has gone up due to increase in taxes from vat in fuel to excise duty on almost everything. This is what's affecting hustlers to a greater extent than lack of "dignity from the top".

[RV Pundit]

You favour uniformity in dealing with 17M poor adults - or in fact all the 50m kenyans. You think fixing the macro-economics (low taxes, low interest rate, low inflation, low budget deficit, ) will trickle down to everyone.

I favour basic infrastructure for everyone (electricity, water, roads, sewage, railway) - and then sector by sector direct intervention.

Sector by sector...

25m in school - need free primary, free secondary (remove boarding - expensive & unnecessary compoment), and subsidize university+college - with reforms to expand HELB loan and coverage.

The 2 million extremely poor in drought stricken north, the disabled, the elderly and orphaned - we continue with social safety net.  Raila half though ideas to expand this to 6k and increase coverage will bankrupt the country and is nonsense not worth of a response.

The 3-4 million in formal employment really deserve cheap housing and solution to traffic jam (for those in Nairobi) - about 2.5m in formal private sector and 1m in gov and related agencies. If they have any other issues - let them address them through unions and such channels. What gov need to do is ensure those 4 million people are financed for very cheap mortagage like use to happen in Moi era - where a gov driver could buy a house in Nyayo estate- and pay tenant-purchasing agreement.

The 3-4 million middle and upper class kenyans represent 4 million cheap gov funded housing market - that will reduce the informality of housing sector - with only 16K mortagages - and houses being built everywhere in Kayole/Zimmerman style that is not conducive to raise families and is slumification of Nairobi and other cities. Housing maths has been done...Uhuru has failed the implementation. It just need Ruto to implement it...flood Chinese contractors and investors. Pass the housing Levy fund. Ensure the mortage refinancing is working. Dealing with mass housing - will also freeing lots of money in that sector by Kayole Slumscrapper investors to be invested in productive sector of the economy. Slumscrapper investor will not be able to compete with Chinese and gov backed housing...they will look elsewhere into commercial farming, manufacturing and trading.

Now we get to the bottom - the Hustlers. This about 17M adult able Kenyans.

1) One group are farmers - mostly small holder - Kenya has about 7 million farmers - this largest component.
2) The other group are non-farming SMES hustlers - small time informal traders in all secondary and tertiary sectors - food, accommodation, transport and manufacturing.
3) The last group is those employed informally - Watu wa Mjengo/Maids/ name them - they are not doing business - they are informally employed.

1) Small holder Farming is easy. They are proven models that work like ONE ACRE FUND.  KTDA is a proven model that works. Dairy cooperative are working. Coffee sub-sector is blot on cooperative movement.
Bottom line farming is easy - Quality inputs +good husbandry. Quality input cost money that poor smallholder farmers dont have - so we need to invest in subsidizing quality inputs or providing them with cheap loans (one acre fund) - but ultimately like KTDA has shown farmers have to be organized so they can benefits from economies of scale - KTDA can negotiate favourable terms because they place large orders for inputs.

The worst enemy of small holder farming is further fragmentation - both of land - and their farming operations.

2) Hustlers - Non-farming informal SMES. This MOST difficult group to deal with.

3) Informally employed - Gov public investment in large infrastracture, kazi mtaani type, and manufacturing incentives can deal with this group. Gov can only create jobs for this group by investing more - and also having thriving private sector that invest - without investment (mean bigger budgets) - they are dead. Gov continue investment in basic infrastructure plus bring in chinese to invest in mass housing plus slumscrappers investor investing in factories - instead of new Kayoles - will comfortably employ these 2 million people - and even as high as 4 million in five years - FORMALLY. Chinese investor building 100,000 units - can keep Mjengo guy who works today and doesnt tomorrow as Kamau Slumscrapper fundi - will be assured of work for a long time with Chinese.

I believe you're interested in ideas of dealing with Hustlers - Non-Farming business - informal SMES. This group has previously been shown to do as good as those formally employed if they have the same education standards. So it not a very hopeless group. What they need is recognition and formalization without taxation/levies/regulation. They also need a capital injection that is subsidized below the market rate. They need peace to operate in urban areas without threat of eviction - gov has to work with them to ensure they are selling without compromising hygiene/order/etc.

For me before money - they need to be organized into saccos - Matatu sector madness ended with it - now we need to do the same for all of them - boda bodas, hawkers, shop keepers, mama mbogas, salon owners, mechanics. No sacco - no right to operate informally. If you want to be a mechanic - you should belong to a mechanic sacco. Then gov can come and assit you build a temporary or permenant shed for working.

Gov should issue assistance to only saccos, it should decriminalize only if saccos will take care of order, it should allow traders to build temporary good stalls - without threat of random eviction. Hawkers should hawk if they have uniform and belong to Saccos..saccos officials should work with city hall to ensure there is law and order.

In Uganda all the street or highways hawkers have uniform - different uniform for different towns - we need to do the same. They should have aprons of certain colour with their details printed out.

Hustlers harassment could end tomorrow and hustlers would still be mired in economic stagnation. Kenyans are borrowing 1.2b a day from Fuliza at 120% annual rate. This as a result of government crowding out business in the credit market. CRB listing was suspended after heavy government lobbing by nyamakima/ kirinyaga rd. hustlers via sabina chege, this is macro. Cost of goods has gone up due to increase in taxes from vat in fuel to excise duty on almost everything. This is what's affecting hustlers to a greater extent than lack of "dignity from the top".