Kenya is very broke

[High Roller]

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There's no money in the treasury at all - DP Rigathi Gachagua pic.twitter.com/5ExCinLqOz

— Kenyans.co.ke (@Kenyans) September 18, 2022

[Georgesoros]

Is this propaganda???

Money comes from taxation and fees, did KRA stop collecting after Uhuru left?
Uhuru took KRA with him??
Then how come they keep spending if there is no money??

[gout]

They need to give a billion funding to Assets Recovery Agency in the supplementary budget.  Let it go after the saboteurs named in Auditor reports and state capture commission with a hammer.

[gout]

This is Agenda 1.2.3 -100. 

In my considered opinion an integral part of President William Ruto's agenda in re-building the country/reviving the economy must entail recovery of the trillions stolen by the blue eyed boys/girls of Uhuru govt...including the low hanging fruits of the 4 CSs dollar Billionaires

— Ahmednasir Abdullahi SC (@ahmednasirlaw) September 19, 2022

[Kim Jong-Un's Pajama Pants]

There's no money in the treasury at all - DP Rigathi Gachagua pic.twitter.com/5ExCinLqOz

— Kenyans.co.ke (@Kenyans) September 18, 2022

Faruku Kibitz went to loot the vault and found nothing.  Yoh!

[RV Pundit]

Treasury is broke if total KRA collect monthly is not enough to meet debt repayment+consolidated accounts requirements+salary+development.
KRA collects 150-200B per month.
Treasury also tries to borrow every month - another 50-60B - this normally takes care of debt repayment - we are refinancing basically.
Problem is the 150B - enough to meet consolidated payments+pension+salaries+recurrent expenditure+ development.

[hk]

Kenya debt distress started all the way back in 2018, that's when it was forced to impose vat on fuel by IMF. All that time government has been borrowing and spending to keep the economy afloat. Whitewashing the 1st jubilee government and going after second term thieves wont cut it. The reality is government economic policy has to be driven by prevailing conditions.

[RV Pundit]

When they put the Borana I knew it was dead. Nobody want to touch it now because you spend all your time on phone calls trying to raise money - instead of spending or looting money. Borana has eaten the last bit of it

Kenya debt distress started all the way back in 2018, that's when it was forced to impose vat on fuel by IMF. All that time government has been borrowing and spending to keep the economy afloat. Whitewashing the 1st jubilee government and going after second term thieves wont cut it. The reality is government economic policy has to be driven by prevailing conditions.

[Georgesoros]

When they put the Borana I knew it was dead. Nobody want to touch it now because you spend all your time on phone calls trying to raise money - instead of spending or looting money. Borana has eaten the last bit of it

Kenya debt distress started all the way back in 2018, that's when it was forced to impose vat on fuel by IMF. All that time government has been borrowing and spending to keep the economy afloat. Whitewashing the 1st jubilee government and going after second term thieves wont cut it. The reality is government economic policy has to be driven by prevailing conditions.

So is there money coming in or not?

If so, how short and what is the solution?
Give exact figure, because stolen is so broad.

Whoever stole let govt go after them, stop politicizing it.
Sounds like someone has no plan and keeps repeating "stolen" and in this case they dont have to do anything.
Beside Ruto was in govt as a VP

[RV Pundit]

Tulia.
The details will emerge soon.
What is not in doubt - gov is broke.
Ruto will not be judged for his vp or dp record.
He will be charged - 5yrs from now.
You will need a lot of patience.
This is not a week even.

So is there money coming in or not?

If so, how short and what is the solution?
Give exact figure, because stolen is so broad.

Whoever stole let govt go after them, stop politicizing it.
Sounds like someone has no plan and keeps repeating "stolen" and in this case they dont have to do anything.
Beside Ruto was in govt as a VP

[Georgesoros]

Tulia.
The details will emerge soon.
What is not in doubt - gov is broke.
Ruto will not be judged for his vp or dp record.
He will be charged - 5yrs from now.
You will need a lot of patience.
This is not a week even.

So is there money coming in or not?

If so, how short and what is the solution?
Give exact figure, because stolen is so broad.

Whoever stole let govt go after them, stop politicizing it.
Sounds like someone has no plan and keeps repeating "stolen" and in this case they dont have to do anything.
Beside Ruto was in govt as a VP

If he knew what was going on and kept mum, then in my opinion he lost credibility. Take responsibility and stop the propaganda. Going forward, whatis the solution???
He was in govt as a VP, let him not deny it. He must be judged on his performance, otherwise.... He was privy to what was going on - if there is anything.
Let the law take care of law breakers.

[Georgesoros]

Kenya debt distress started all the way back in 2018, that's when it was forced to impose vat on fuel by IMF. All that time government has been borrowing and spending to keep the economy afloat. Whitewashing the 1st jubilee government and going after second term thieves wont cut it. The reality is government economic policy has to be driven by prevailing conditions.

HK.
What I see in Kenya, those who are well off pay no taxes at all. The working class takes care of all the bills. They have had it. Fuel tax is a burden on the working class, yet if i have 10 apartments I pay little to no tax. If I own 1mil acres of land I pay NO TAX. Yet a matatu driver must pay tax every time he she gets out of the house. It is a rich eating the middle class in Kenya, and politicians joining in. Also too many regulations that impede development - why should AirBnB be classified under big hotel? Counties also impose ridicilous tax on any business - thus discouraging development. Man more. My 2 cents.
Ruto has been in govt and never said a word, now pretends to have an imaginary plan. Where is it? I believe in action not talk.
I want to hear "next month we will do such and such", not they stole crap.

[RV Pundit]

When Ruto run gov - btw 2013-2017 - not one day did he shrink his responibility - not one day did he fail to defend his record - then it was 50-50 coalition. Jubilee got elected by 5% more votes. Huge. They defended their record. Economy was booming. There was electricity, tarmac, name it everywhere. People were happy and looking forward for another 5yrs of Jubilee.

Ruto was promptly kicked out in 2nd term

You have to be totally insane to demand Ruto take responsibility for a gov he was a spare tire.

The spare tire that never got used.

People of kenya are more sane than you - they punished Uhuru - and rewarded Ruto.

Ruto has had a chance of leadership - from MP, Minister, DPORK an now PORk.

Everytime he delivers..

If he knew what was going on and kept mum, then in my opinion he lost credibility. Take responsibility and stop the propaganda. Going forward, whatis the solution???
He was in govt as a VP, let him not deny it. He must be judged on his performance, otherwise.... He was privy to what was going on - if there is anything.
Let the law take care of law breakers.

[High Roller]

Is this propaganda???

Money comes from taxation and fees, did KRA stop collecting after Uhuru left?
Uhuru took KRA with him??
Then how come they keep spending if there is no money??

It is obvious KRA is missing revenue target and are falling behind. Expenses are exceeding revenue. The government need to find ways to increase revenue generated, reduce expenses, or a combination of the two.

[sema]

The government need to find ways to increase revenue generated

For this to happen, the people need to become more productive. They need to make things that people want or need. I keep asking what it is that Kenya makes that other countries NEED?

[Wa Njambi]

Omera this is not good 'dialogue' by Riggy D. Someone tell him the meaning of You Touch It You Own It. In Politics, you'll own the blame for what inherit period. Your duty is better the mess you inherit and do more. For a tenure of 60 months, you don't have time/luxury to go after akina Murathe. Plus somethings are best left for boardroom discussion to avoid public panic. Another path can be to leak it to Journalists and let them drive it. I wonder Kibaki inherited from Moi, and look at the public confidence and optimism he built!

Treasury is broke if total KRA collect monthly is not enough to meet debt repayment+consolidated accounts requirements+salary+development.
KRA collects 150-200B per month.
Treasury also tries to borrow every month - another 50-60B - this normally takes care of debt repayment - we are refinancing basically.
Problem is the 150B - enough to meet consolidated payments+pension+salaries+recurrent expenditure+ development.

[RV Heavy Hitter!]

Omera this is not good 'dialogue' by Riggy D. Someone tell him the meaning of You Touch It You Own It. In Politics, you'll own the blame for what inherit period. Your duty is better the mess you inherit and do more. For a tenure of 60 months, you don't have time/luxury to go after akina Murathe. Plus somethings are best left for boardroom discussion to avoid public panic. Another path can be to leak it to Journalists and let them drive it. I wonder Kibaki inherited from Moi, and look at the public confidence and optimism he built!

Treasury is broke if total KRA collect monthly is not enough to meet debt repayment+consolidated accounts requirements+salary+development.
KRA collects 150-200B per month.
Treasury also tries to borrow every month - another 50-60B - this normally takes care of debt repayment - we are refinancing basically.
Problem is the 150B - enough to meet consolidated payments+pension+salaries+recurrent expenditure+ development.


From Githongo, Moi left Kibaki with a very fat Treasury in billions that kept Kibaki Rolling on day one. Uhuru left less than 100 millions shillings in the Treasury. Come to think about it and most of us in the diaspora were richer than Kenya's Treasury.   

[RV Heavy Hitter!]

Omera this is not good 'dialogue' by Riggy D. Someone tell him the meaning of You Touch It You Own It. In Politics, you'll own the blame for what inherit period. Your duty is better the mess you inherit and do more. For a tenure of 60 months, you don't have time/luxury to go after akina Murathe. Plus somethings are best left for boardroom discussion to avoid public panic. Another path can be to leak it to Journalists and let them drive it. I wonder Kibaki inherited from Moi, and look at the public confidence and optimism he built!

Treasury is broke if total KRA collect monthly is not enough to meet debt repayment+consolidated accounts requirements+salary+development.
KRA collects 150-200B per month.
Treasury also tries to borrow every month - another 50-60B - this normally takes care of debt repayment - we are refinancing basically.
Problem is the 150B - enough to meet consolidated payments+pension+salaries+recurrent expenditure+ development.

From Githongo, Moi left Kibaki with a very fat Treasury in billions that kept Kibaki Rolling on day one. Uhuru left less than 100 millions shillings in the Treasury. Come to think about it and most of us in the diaspora were richer than Kenya's Treasury.   

[hk]

Kenya debt distress started all the way back in 2018, that's when it was forced to impose vat on fuel by IMF. All that time government has been borrowing and spending to keep the economy afloat. Whitewashing the 1st jubilee government and going after second term thieves wont cut it. The reality is government economic policy has to be driven by prevailing conditions.

HK.
What I see in Kenya, those who are well off pay no taxes at all. The working class takes care of all the bills. They have had it. Fuel tax is a burden on the working class, yet if i have 10 apartments I pay little to no tax. If I own 1mil acres of land I pay NO TAX. Yet a matatu driver must pay tax every time he she gets out of the house. It is a rich eating the middle class in Kenya, and politicians joining in. Also too many regulations that impede development - why should AirBnB be classified under big hotel? Counties also impose ridicilous tax on any business - thus discouraging development. Man more. My 2 cents.
Ruto has been in govt and never said a word, now pretends to have an imaginary plan. Where is it? I believe in action not talk.
I want to hear "next month we will do such and such", not they stole crap.

Government is fixated on easy to collect taxes such as paye,vat, excise tax and import duty etc. Someone making 15k is taxed at 12% paye, there hasn't been any serious effort to broaden tax base. There's no incentive to formalize, there're several impediments to formalization mainly cost of complying.  The ideal situation would be to lower taxes and rope in everyone who's engaged in any economic activity. There's really no reason why someone making 15k should be paying paye , the starting rate should be at 30k and top rate should be someone making 300k not someone making 150k.
Bottomline kenya economy will remain informal until there's change of tax regime. Simple, broad and flat tax would be ideal. Its been 20yrs since etr were introduced a major upgrade connected to ecitizen is overdue.

[gout]

Low and middle income earners are overtaxed in Kenya. The elitist peddles the myth that this group does not pay taxes. 

Kenya debt distress started all the way back in 2018, that's when it was forced to impose vat on fuel by IMF. All that time government has been borrowing and spending to keep the economy afloat. Whitewashing the 1st jubilee government and going after second term thieves won't cut it. The reality is government economic policy has to be driven by prevailing conditions.

HK.
What I see in Kenya, those who are well off pay no taxes at all. The working class takes care of all the bills. They have had it. Fuel tax is a burden on the working class, yet if i have 10 apartments I pay little to no tax. If I own 1mil acres of land I pay NO TAX. Yet a matatu driver must pay tax every time he she gets out of the house. It is a rich eating the middle class in Kenya, and politicians joining in. Also too many regulations that impede development - why should AirBnB be classified under big hotel? Counties also impose ridicilous tax on any business - thus discouraging development. Man more. My 2 cents.
Ruto has been in govt and never said a word, now pretends to have an imaginary plan. Where is it? I believe in action not talk.
I want to hear "next month we will do such and such", not they stole crap.

Government is fixated on easy to collect taxes such as paye,vat, excise tax and import duty etc. Someone making 15k is taxed at 12% paye, there hasn't been any serious effort to broaden tax base. There's no incentive to formalize, there're several impediments to formalization mainly cost of complying.  The ideal situation would be to lower taxes and rope in everyone who's engaged in any economic activity. There's really no reason why someone making 15k should be paying paye , the starting rate should be at 30k and top rate should be someone making 300k not someone making 150k.
Bottomline kenya economy will remain informal until there's change of tax regime. Simple, broad and flat tax would be ideal. Its been 20yrs since etr were introduced a major upgrade connected to ecitizen is overdue.