Gov is broke

[RV Pundit]

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They are borrowing money at shylock rates of 20-30%

http://mobile.nation.co.ke/blogs/The-high-interest-rates-/-/1949942/2901874/-/format/xhtml/-/sa6qs8/-/index.html

[Omollo]

In my own private economy, I try to ensure I only spend money I have and that spending is within the limits of income. Since Uhuru came to power I noticed an extravagance that pointed at a man with no discipline. He used state resources the way he splashed his brother's money leading to him being placed on a strict budget.

How long will they hide it? The speculators already know and they gonna raid the shilling to reduce it to the shell it is.

[Georgesoros]

As long as there's no anyone opposing or making noise it's ok. Reminds me of george bush .

[MOON Ki]

There are more important things to deal with, such as who fixed the Hon. Deputy President.   

[Georgesoros]

Moon Ki yes there are more important things. Sad!!!

[gout]

My signals went up when profit alerts and warnings were issued all over at start of the year ..... What this means is tax evasion and evading is now at all time high .... I believe mainly it is in reaction to high level corruption (private sector way of protests) and fact that most of the companies are owned by those close to power doesn't help (what explains Java 1 b taxes while we never hear of Brookside among top taxpayers??) ... SMEs have followed ...then individuals ...

Left with only public sector PAYE and some VAT it was not going to take long before we got here (can we really say public sector workers paid by taxes can pay taxes or Treasury just does funny monkey business with KRA and declares TSC biggest taxpayer) ... It is still a golden opportunity to bring sanity to public spending but no one has the discipline and the moral authority 

http://www.businessdailyafrica.com/Corporate-News/Dividend-drought-looms-as-12-firms-in-profit-warning/-/539550/2631908/-/86ef9p/-/index.html

As long as there's no anyone opposing or making noise it's ok. Reminds me of george bush .

it is not a matter of opposing - state of economy hits hard and is personal... already MPs are crying, teachers September salary, counties 3 mths arrears....now think of knock on effect of just that; unpaid debts/suppliers(private sector) all over the country

[MOON Ki]

it is not a matter of opposing - state of economy hits hard and is personal... already MPs are crying, teachers September salary, counties 3 mths arrears....now think of knock on effect of just that; unpaid debts/suppliers(private sector) all over the country

That's a lot of affected people.   So what are doing about it?   What are they even just saying about it?    As long as people meekly take it, they will continually have it socked to them.

[Omollo]

GoK ios either keeping quiet about being broke or using proxies to deny. The bills are piling. I saw many roads whose contractors have parked the machinery and stopped working. Reason No Money. Now we know schools have not received their money leading to non teaching staff going without salaries. County Governments are crying out and Parliament had electricity disconnected. The JSC has no cash. The list is long.

[MOON Ki]

GoK ios either keeping quiet about being broke or using proxies to deny. The bills are piling. I saw many roads whose contractors have parked the machinery and stopped working. Reason No Money. Now we know schools have not received their money leading to non teaching staff going without salaries. County Governments are crying out and Parliament had electricity disconnected. The JSC has no cash. The list is long.

I have no doubt that the list is long.   So, are the affected people doing much, or planning to do anything, or even just talking excitedly about it all?

[Georgesoros]

Pundit said the economy is growing so spending was not a problem.

[Kim Jong-Un's Pajama Pants]

Think of the hospitals.  Broken machines.  Long lines.  Does CORD care enough?

[Pajero]

All energy and money channelled to ICC

[Georgesoros]

Govt perks to mpigs are finally catching up. GREECE!!!

[Georgesoros]

Govt perks to mpigs are finally catching up. GREECE!!!

Borrow!!!
http://www.reuters.com/article/2015/10/09/kenya-loans-idUSL8N1292P120151009

[MOON Ki]

I recall two phases of EXCITEMENT over Kenya's Eurobond thing.  ($2 billion, later "tapped" by an additional $0.75 billion.) 

Phase One consisted of all the great things that would immediately follow from this expected basket or riches.   That included less and less-costly local borrowing by GoK.

Phase Two was based on the success of the offering.    This part consisted of people acting as though Kenya had earned the money or got it for free.

Well, it now appears that the money is already gone,

http://www.nation.co.ke/news/Questions-over-use-of-Eurobond-billions-/-/1056/2908230/-/5498j3z/-/index.html

and:

* At the time, GoK's was borrowing locally at below 10%; now it is looking at over twice that.

* Contrary to phase-two excitement, the money has to be repaid, with what amounts to interest.

[Georgesoros]

With an uncle like this, who cant get rich...

http://www.standardmedia.co.ke/article/2000179265/fresh-details-of-massive-looting-at-the-nys

[RV Pundit]

Very strange indeed-KNBS are reporting increasing economic activity--which should translate into more taxes.
Maybe the USD denominated loans are taking a toll at treasury; but it would seem it KRA having issues with collecting enough money;
http://www.nation.co.ke/news/Thousands-go-without-pay-amid-cash-crisis/-/1056/2908222/-/ng5kms/-/index.html

[gout]

In the 80s, 90s civil servants could go for months without pay because majority had families in the villages where subsistence farming was being practices thus cash was mainly for school fees. Today majority earning more than Kshs. 10,000 live in urban centres with little or no subsistence production back up. What we have are businesses - side hustles- which are substantially unprofitable or padded by the earnings from salaries and bribes.

When in such a situation what can you do? Evidence is in what happened during the teachers' strike. The economic realities mean you can do nothing.  The pressure from bills, loans, dependents! Just hope and pray and as the billionaires have advised, be grateful as there are millions of hopeless desperate patriotic Kenyans willing to volunteer (as we stash the billions).  My take is that there is not going to be a strike in Kenya by public sector workers for a very long time. What will they do? They will increase appetite for bribes and become more brazen in asking. They will also devote more/all time to their side hustles. We may have to forget any meaningful public goods and services altogether unless Uhuruto are able to instil discipline from the top - signs so far show nobody has moral authority to discipline.

That's a lot of affected people.   So what are doing about it?   What are they even just saying about it?    As long as people meekly take it, they will continually have it socked to them.

I have no doubt that the list is long.   So, are the affected people doing much, or planning to do anything, or even just talking excitedly about it all?

It is going to be downward trend till we (whoever we are) find discipline to reset our systems.

There is a comment under this post on understanding systems which points to how long we will be at it
The Big Ching-aso

Depending on the crappiness of the players, a game of Monopoly can go on for a long, long, time.   Typically the crappier the players the longer the game. 

http://www.zerohedge.com/news/guest-post-collapse-our-corrupt-predatory-pathological-financial-system-necessary-and-positive

[Omollo]

However you look at it, the only reason one would pack KRA with tribesmen is to ensure they favor one tribe. Tax Collectors are supposed to be non human treating all taxpayers with equal non humanity. Machines if you like.

In Kenya, we chose a model where we reward tribesmen and expect them to exempt our own people. It simply was never going top work.

I know that after complaints, they tried to bring in other tribes at senior level. But what is not told is the wholesale removal of non Kikuyus at the lower echelons and replacement with Kikuyus. KRA is pure Kikuyu.

Like I said elsewhere show me one State Org run by Kikuyus which is delivering. I could say the same of Luos or Luhyas if there were similar domination. The idea is no institution can be tribalized and expected to deliver. Never!!!

Very strange indeed-KNBS are reporting increasing economic activity--which should translate into more taxes.
Maybe the USD denominated loans are taking a toll at treasury; but it would seem it KRA having issues with collecting enough money;
http://www.nation.co.ke/news/Thousands-go-without-pay-amid-cash-crisis/-/1056/2908222/-/ng5kms/-/index.html

[Omollo]

May be we should return to the Analogue System.

http://www.nation.co.ke/news/Thousands-go-without-pay-amid-cash-crisis/-/1056/2908222/-/ng5kms/-/index.html