Author Topic: Kenya is very broke  (Read 2881 times)

Offline hk

  • VIP
  • Enigma
  • *
  • Posts: 1406
  • Reputation: 16501
Re: Kenya is very broke
« Reply #20 on: September 21, 2022, 11:45:54 AM »
Quote
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?
https://data.worldbank.org/indicator/NE.EXP.GNFS.CD?locations=KE kenya exports. Kenya exported $11b worth of goods and services  in 2021, those are things that other countries need or kenya has competitive advantage. There's really no difference between Bangladesh sweatshops and flower farms in Kenya. Actually I'd argue that horticulture has greater economic impact on an economy since it combines asset owner( small farmers) producing goods from their asset than just hired labor in sweatshops.
The question is how do we increase productivity and climb value chains in the things we do well. Take something like beverages, tea and coffee we're world beaters, how about combining tea or coffee with abundance of tropical fruits available to create soft drink we can sell locally and to the world? Basically kenya just needs a few true entrepreneurs in key economic sector to develop.

Offline hk

  • VIP
  • Enigma
  • *
  • Posts: 1406
  • Reputation: 16501
Re: Kenya is very broke
« Reply #21 on: September 21, 2022, 11:57:00 AM »
Low and middle income earners are overtaxed in Kenya. The elitist peddles the myth that this group does not pay taxes. 
Yes low and middle income earners pay taxes mainly indirectly, its the reason why indirect taxes are high. Someone making 15K per month paying PAYE at 15% is being overtaxed and not to mention increasing the cost of labor for the employer. Surely someone making less than 30k shouldn't be paying paye at 15% plus pay all the other indirect taxes. There's empirical evidence that lowering and broadening taxbase increases tax revenue.  Landlord rate was reduced to a flat rate of 10% gross, now kra is collecting more taxes from landlords.

Offline sema

  • Enigma
  • *
  • Posts: 1199
  • Reputation: 0
Re: Kenya is very broke
« Reply #22 on: September 21, 2022, 05:16:52 PM »
Besides coffee, tea and flowers what else? what services? agriculture not enough for  a growing population that will surpass 50 million

Offline hk

  • VIP
  • Enigma
  • *
  • Posts: 1406
  • Reputation: 16501
Re: Kenya is very broke
« Reply #23 on: September 21, 2022, 06:10:47 PM »
Besides coffee, tea and flowers what else? what services? agriculture not enough for  a growing population that will surpass 50 million
Of course its not enough that's why we not only need to increase productivity in agriculture, moving up the value chain is paramount if kenya is to develop. Agriculture underpins manufacturing in kenya. Any development would occur without investments(entrepreneurs),  so basically Kenya needs investors more than anything.

Offline Georgesoros

  • Moderator
  • Enigma
  • *
  • Posts: 4517
  • Reputation: 7043
Re: Kenya is very broke
« Reply #24 on: September 21, 2022, 08:07:40 PM »
Besides coffee, tea and flowers what else? what services? agriculture not enough for  a growing population that will surpass 50 million
Of course its not enough that's why we not only need to increase productivity in agriculture, moving up the value chain is paramount if kenya is to develop. Agriculture underpins manufacturing in kenya. Any development would occur without investments(entrepreneurs),  so basically Kenya needs investors more than anything.

One thing that attracts investors is rule of law. Recent supreme court made Kenya look really good. (Uhuru could have messed it but he did not utter a word). Strengthen institutions. Professional law enforcemnent, professional court system, etc.
I absolutely agree with you regarding changing the tax code. All need to pay. Everyone who owns property needs to pay tax, even if it if 100 shillings. Use the money to fund building schools. Counties should administer the money collection and use of these money. 5% can go into administration while the rest goes into building projects.
Businesses are leaving China in large numbers - attract them with tax incentives on capital invesrtments.

Offline KenyanPlato

  • Moderator
  • Enigma
  • *
  • Posts: 6682
  • Reputation: 6183
Re: Kenya is very broke
« Reply #25 on: September 21, 2022, 08:13:43 PM »
Besides coffee, tea and flowers what else? what services? agriculture not enough for  a growing population that will surpass 50 million
Of course its not enough that's why we not only need to increase productivity in agriculture, moving up the value chain is paramount if kenya is to develop. Agriculture underpins manufacturing in kenya. Any development would occur without investments(entrepreneurs),  so basically Kenya needs investors more than anything.
fruits, spices, meat, French beans a lot. we can export fish if we get the farming supply chain issues right. Kenya potential is in competitive advantage not export substitution

Offline KenyanPlato

  • Moderator
  • Enigma
  • *
  • Posts: 6682
  • Reputation: 6183
Re: Kenya is very broke
« Reply #26 on: September 21, 2022, 08:14:25 PM »
in my area we are now farming purple tea. we hope to have enough of it to start a separate factory line for it

Online gout

  • VIP
  • Enigma
  • *
  • Posts: 4063
  • Reputation: 1374
Re: Kenya is very broke
« Reply #27 on: September 22, 2022, 09:22:44 AM »
Service industry is doing well - the national internet framework and deals with Paypal should make it work even better.

Garments and leather - we need to exceed those AGOA quotas. We are yet to scratch the surface even with special power tariffs and tax holidays.

Affordable housing can graduate a million fundis with global standard skills to be on standby for hire anywhere in the world.
I underestimated the heartbreaks visited by hasla revolution

Offline RV Pundit

  • Moderator
  • Enigma
  • *
  • Posts: 37787
  • Reputation: 1074446
Re: Kenya is very broke
« Reply #28 on: September 22, 2022, 09:27:55 AM »
This 11b dollars export doesn't sound real to me

Offline RV Pundit

  • Moderator
  • Enigma
  • *
  • Posts: 37787
  • Reputation: 1074446
Re: Kenya is very broke
« Reply #29 on: September 22, 2022, 09:33:38 AM »
Get agriculture working, Get SEZ in lamu and Mombasa for EPZ kind of business... especially lamu idle deep sea port.I would go big in Lamu ..create 100,000 acre special economic zones with zero taxes, diplomatic status for investors...give them free land...then watch them employ millions and export merchandise worldwide...this should attract Chinese bound manufacturing.After 10yrs let them pay taxes...this should be top priority lamu and dog kundum.manufacturing cannot be done inland..it has to be near the port for easy raw materials shipping and export of finished goods.Lamu is ready with deep sea port..make it free port and include it as part of SEZ...fuck environmental issues about magrove....go big on solar  power...and build the coal plants

Offline Stockguru

  • Mega superstar
  • *
  • Posts: 329
  • Reputation: 0
Re: Kenya is very broke
« Reply #30 on: September 22, 2022, 12:28:02 PM »
Get agriculture working, Get SEZ in lamu and Mombasa for EPZ kind of business... especially lamu idle deep sea port.I would go big in Lamu ..create 100,000 acre special economic zones with zero taxes, diplomatic status for investors...give them free land...then watch them employ millions and export merchandise worldwide...this should attract Chinese bound manufacturing.After 10yrs let them pay taxes...this should be top priority lamu and dog kundum.manufacturing cannot be done inland..it has to be near the port for easy raw materials shipping and export of finished goods.Lamu is ready with deep sea port..make it free port and include it as part of SEZ...fuck environmental issues about magrove....go big on solar  power...and build the coal plants

manufacturing can be done in Kisumu too.. very close to major EAC markets

Offline RV Pundit

  • Moderator
  • Enigma
  • *
  • Posts: 37787
  • Reputation: 1074446
Re: Kenya is very broke
« Reply #31 on: September 22, 2022, 05:08:37 PM »
Can't scale in kisumu because our 200m plus market is very poor...we need to do export oriented manufacturing... enormous market to say US or Europe... trying to sell soap in poor DRC will not cut it.Look at Vietn. now..it's export value is greater than GDP...they export

Offline RV Pundit

  • Moderator
  • Enigma
  • *
  • Posts: 37787
  • Reputation: 1074446
Re: Kenya is very broke
« Reply #32 on: September 22, 2022, 05:10:26 PM »
They export basic stuff like bikes... someone in Europe is willing to pay 8000usd for bicycle...we can build bicycles .Import substitution is never going to cut....we need to copy east Asia... manufacturer things for Walmart that your people don't need or can't afford...get out poverty...then start import substitution... manufacture things you need...as you can now afford.Stop manufacturing soap...focus on things people in develop..

Online gout

  • VIP
  • Enigma
  • *
  • Posts: 4063
  • Reputation: 1374
Re: Kenya is very broke
« Reply #33 on: September 22, 2022, 07:05:55 PM »
African markets are hopeless.
Quote


Quote
Kenya exported Sh59.6 billion worth of goods to the US in 2021, of which more than 75 percent entered duty-free under AGOA -- chiefly apparel, macadamia nuts, coffee, tea and titanium ores -- according to the Congressional Research Service


https://www.businessdailyafrica.com/bd/markets/global-markets/us-overtakes-uganda-as-top-buyer-of-kenya-goods-3957256
I underestimated the heartbreaks visited by hasla revolution

Offline High Roller

  • Member
  • *
  • Posts: 40
  • Reputation: 0
Re: Kenya is very broke
« Reply #34 on: September 22, 2022, 10:11:15 PM »