Moi standard group on its deathbed

[RV Pundit]

• Tweet

Standard Group to all its staff:

"Please accept our apologies for the ongoing salary delays...We assure you that the Company Management is doing all it can to ensure that the business tums around and returns to payment normalcy... We must remain committed and fully engaged to… pic.twitter.com/4YaNvpInNe

— Mwango Capital (@MwangoCapital) March 20, 2023

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[hk]

Other than banks which have been making a killing which other sector is doing well in kenya? Royal media is the only media company doing well because they have innovated to remain relevant.

[RV Pundit]

ICT companies including safaricom generally doing well.
Agri - doing better with more export value.
Manufacturers - not heard of one going down - I see more cement, beer, etc.

Other than banks which have been making a killing which other sector is doing well in kenya? Royal media is the only media company doing well because they have innovated to remain relevant.

[patel]

Mind to list some of those innovations?
Last time I tuned in some of their channels all I could here is gambling and more gambling.

Other than banks which have been making a killing which other sector is doing well in kenya? Royal media is the only media company doing well because they have innovated to remain relevant.

[hk]

ICT companies including safaricom generally doing well.
Agri - doing better with more export value.
Manufacturers - not heard of one going down - I see more cement, beer, etc.

Other than banks which have been making a killing which other sector is doing well in kenya? Royal media is the only media company doing well because they have innovated to remain relevant.

ICT There's hardly any growth, the mercy startups are struggling just burning venture funds e.g twiga foods, copia, and all the so called startups that shutdown. Safaricom revenue growth has slowed down no wonder the stock is tanking
Agri, due to drought production has gone down by more than 40% .
Manufacturing companies are idling plants due to lack of inputs. The point is there's hardly any growth the new companies are just scrabbling for market share not expanding the overall market.  e.g the new craft beer businesses are stealing market share from KBL the overall beer market is actually shrinking.

[hk]

Mind to list some of those innovations?
Last time I tuned in some of their channels all I could here is gambling and more gambling.

Other than banks which have been making a killing which other sector is doing well in kenya? Royal media is the only media company doing well because they have innovated to remain relevant.

vernacular programming especially tv, this has captured a lot of advertising ksh. in the market. Things like viusasa have created another revenue stream. The inooro Tv obituaries makes more money than both nation and standard newspaper obituary ads.

[RV Pundit]

Let see Q4 data for last year - yes things must be tough - I saw lost of closed business - SMES in Nairobi. Bars are mostly empty except a few.

ICT companies including safaricom generally doing well.
Agri - doing better with more export value.
Manufacturers - not heard of one going down - I see more cement, beer, etc.

Other than banks which have been making a killing which other sector is doing well in kenya? Royal media is the only media company doing well because they have innovated to remain relevant.

ICT There's hardly any growth, the mercy startups are struggling just burning venture funds e.g twiga foods, copia, and all the so called startups that shutdown. Safaricom revenue growth has slowed down no wonder the stock is tanking
Agri, due to drought production has gone down by more than 40% .
Manufacturing companies are idling plants due to lack of inputs. The point is there's hardly any growth the new companies are just scrabbling for market share not expanding the overall market.  e.g the new craft beer businesses are stealing market share from KBL the overall beer market is actually shrinking.

[Kadudu]

Even major hospitals in Kenya not doing well. The Karen Hospital is struggling to pay salaries. My good friend works for a big hospital in Nairobi as auditor and says his contract will not be extended past this year. Hospital is not doing well and has not recovered to pre covid times.

[RV Pundit]

Yes many business did not recover from COVID - because 2022 was another huge hit with Ukraine(NATO)-Russia war. That was double blow for anyone who was over-extended. I have seen many sad people who lost mortgages, had their trucks auctions, house auction.

Now 2023 looks to be as bad as 2022.

Anyone who had or has loans - will go down. Only business like Bahindi that operate without much loans will survive.

Even major hospitals in Kenya not doing well. The Karen Hospital is struggling to pay salaries. My good friend works for a big hospital in Nairobi as auditor and says his contract will not be extended past this year. Hospital is not doing well and has not recovered to pre covid times.

[hk]

Even major hospitals in Kenya not doing well. The Karen Hospital is struggling to pay salaries. My good friend works for a big hospital in Nairobi as auditor and says his contract will not be extended past this year. Hospital is not doing well and has not recovered to pre covid times.

AAR is also struggling , its bleak out there.

[RV Pundit]

The only saving graces - kenyans since 1990s - are prolific hustlers - they will open small business to keep them going - so they will just join informal sector or relocate abroad. They are countries like south africa - where blacks for some reason cant do business or farming - and just sit there waiting for gov help.

Kenya like Nigerians - people will survive with economic crush. Some countries where entrepreneurship is not well established will struggle.

[hk]

The only saving graces - kenyans since 1990s - are prolific hustlers - they will open small business to keep them going - so they will just join informal sector or relocate abroad. They are countries like south africa - where blacks for some reason cant do business or farming - and just sit there waiting for gov help.

Kenya like Nigerians - people will survive with economic crush. Some countries where entrepreneurship is not well established will struggle.

Yes the only game in town is black economy, the informal sector will explode. What does that portend to a government that hopes to collect 3t in taxes?

[RV Pundit]

KRA has to figure out how to tax black economy - FINTECH - has all the tools needed - we have m-pesa and all digital economy. So basically the digitization of all gov services - will improve non-ordinary taxes. Requirement to have e-TIMS will capture VAT.

What will drop is PAYE and Corp taxes. I wouldnt care about corp taxes - time to reduce it to 20% even - we collect little.

But gov has to think about VAT - how to track business using M-pesa paybills who exceed 5M - and get them to pay VAT - maybe withholding VAT.

They need to work with M-pesa and Banks - automatically deduct 16% VAT from any payment to a paybill if you total revenue exceed 5 million KES. You can go and claim refunds if you have genuine case.

Heck I would make everything in kenya 16% (or lower) VATable -  reduce corporate taxes - reduce PAYE -  then ask banks & m-pesa to automatically deduct - 16% of any till number or paybill transaction made - and daily send the money to treasury.

Then make it hard for cash payment to happen - remove big notes - leave only 100shs for paying bus fare and such.

Yes the only game in town is black economy, the informal sector will explode. What does that portend to a government that hopes to collect 3t in taxes?

[hk]

KRA has to figure out how to tax black economy - FINTECH - has all the tools needed - we have m-pesa and all digital economy. So basically the digitization of all gov services - will improve non-ordinary taxes. Requirement to have e-TIMS will capture VAT.

What will drop is PAYE and Corp taxes. I wouldnt care about corp taxes - time to reduce it to 20% even - we collect little.

But gov has to think about VAT - how to track business using M-pesa paybills who exceed 5M - and get them to pay VAT - maybe withholding VAT.

They need to work with M-pesa and Banks - automatically deduct 16% VAT from any payment to a paybill if you total revenue exceed 5 million KES. You can go and claim refunds if you have genuine case.

Heck I would make everything in kenya 16% (or lower) VATable -  reduce corporate taxes - reduce PAYE -  then ask banks & m-pesa to automatically deduct - 16% of any till number or paybill transaction made - and daily send the money to treasury.

Then make it hard for cash payment to happen - remove big notes - leave only 100shs for paying bus fare and such.

Yes the only game in town is black economy, the informal sector will explode. What does that portend to a government that hopes to collect 3t in taxes?

The point of going informal is to avoid paying taxes and pricing goods at affordable rate that depressed consumers can afford. Any system can be rigged to eke out a living and consumers with limited resources will hunt for bargains. Shadow economy is reduced by lowering taxes, regulations and simplification of tax system. A flat minimum tax of about 10% would help rope in more taxpayers and increase overall tax collection.

[RV Pundit]

I think M-pesa is becoming invaluable.
So gov just need to be tightening the cash-based economy and kill it.
Then introduce a flat rate - no exemption - no stories - it can be 10% or 16%.
That will simply KRA work - Treasury just wait for Safaricom to bring their money.

Of course, some people will avoid - mpesa till number/paybill - and use personal number.
You can ask safaricom to reject payment received that look like business transactions into personal number.

Eventually remove cash - except for small coins  - let it be kept in bank vaults.

The point of going informal is to avoid paying taxes and pricing goods at affordable rate that depressed consumers can afford. Any system can be rigged to eke out a living and consumers with limited resources will hunt for bargains. Shadow economy is reduced by lowering taxes, regulations and simplification of tax system. A flat minimum tax of about 10% would help rope in more taxpayers and increase overall tax collection.

[sema]

e.g the new craft beer businesses

and how many kenyans can afford craft beers? those are for the barbies we see on youtube.  Majority are drinking changaa in the slums and village, but your point about how they expect to collect 3T in taxes from a dying economy is an interesting one.

How are the stockbrokers at the NSE doing?

[hk]

e.g the new craft beer businesses

and how many kenyans can afford craft beers? those are for the barbies we see on youtube.  Majority are drinking changaa in the slums and village, but your point about how they expect to collect 3T in taxes from a dying economy is an interesting one.

How are the stockbrokers at the NSE doing?

Enough to sustain more than 4 craft brewers, not every product has to be for mass market. Java coffee has turnover of more than $30m , their customers are not the slums dwellers or villagers.

[hk]

Let see Q4 data for last year - yes things must be tough - I saw lost of closed business - SMES in Nairobi. Bars are mostly empty except a few.

ICT companies including safaricom generally doing well.
Agri - doing better with more export value.
Manufacturers - not heard of one going down - I see more cement, beer, etc.

Other than banks which have been making a killing which other sector is doing well in kenya? Royal media is the only media company doing well because they have innovated to remain relevant.

ICT There's hardly any growth, the mercy startups are struggling just burning venture funds e.g twiga foods, copia, and all the so called startups that shutdown. Safaricom revenue growth has slowed down no wonder the stock is tanking
Agri, due to drought production has gone down by more than 40% .
Manufacturing companies are idling plants due to lack of inputs. The point is there's hardly any growth the new companies are just scrabbling for market share not expanding the overall market.  e.g the new craft beer businesses are stealing market share from KBL the overall beer market is actually shrinking.

Pundit,
Safaricom financial report was released, not good. This a bellwether company  an economic indicator.

[hk]

Actually the earnings aren't bad, but growth is decelerating.

[gout]

The entry costs to Ethiopia can explain the decline in profits. With Mpesa license granted that is a goldmine.

Very important to inspire ambitions among African firms and entrepreneurs.