Uhuru big pay-day as Naivasha-Kisumu is to be signed.

[RV Pundit]

I thought that is what you wanted done - when you advocated for subsidizing capital goods? Subsidy is a tool that ought to be used to spur manufacturing - I have no problem if we subsidize the major components - land, energy, transport and even taxes.

There's a major difference between actual lowering of cost and subsidizing. Subsidizing means someone else is taking up the cost, in our case taxpayers.

[hk]

I thought that is what you wanted done - when you advocated for subsidizing capital goods? Subsidy is a tool that ought to be used to spur manufacturing - I have no problem if we subsidize the major components - land, energy, transport and even taxes.

Government zero rating capital goods(which includes land and buildings) to increase productivity and recover the taxes on increased production is totally different from government having to literally pay for a service to make it viable.  Also depreciation tax shield should be introduced, this will help companies buy new equipment. Which should lead to increased productivity.

[RV Pundit]

I agree with those "soft" issues..but gov major role is to deal with hardware issues...roads,rails,electricity, water and sewage. SGR will not be subsidized for long...it going to be profitable next year.

Government zero rating capital goods(which includes land and buildings) to increase productivity and recover the taxes on increased production is totally different from government having to literally pay for a service to make it viable.  Also depreciation tax shield should be introduced, this will help companies buy new equipment. Which should lead to increased productivity.