jubilee backdoor plan to kill devolution

[Ole Ole]

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I know this sounds like a good idea on paper but it will be a matter of time before these counties start defaulting loans, then declared
bankrupt. before you know it counties are dissolved. Counties should not be quick to take this loans they need to get more devolved funds from central government.

http://www.standardmedia.co.ke/business/article/2000135978/county-governments-set-to-access-external-loans

[RV Pundit]

Sounds like a good idea. All we need are debt ceiling and guarantees from treasury. A count for example should on borrow what i can pay...after deducting salaries and other fixed costs.

[Omollo]

Good as long as the same County obtains a private guarantee or sets up collateral with the approval of the electorate. The National government should stay out of it to ensure that some counties - like Nyeri ha done - do not borrow cash and expect everybody to pay once they default.

However this is NOT an alternative to 40 - 60

[RV Pundit]

I fully agree. In case of a default; county assets should be sold.

Good as long as the same County obtains a private guarantee or sets up collateral with the approval of the electorate. The National government should stay out of it to ensure that some counties - like Nyeri ha done - do not borrow cash and expect everybody to pay once they default.

However this is NOT an alternative to 40 - 60

[Omollo]

I fully agree. In case of a default; county assets should be sold.

There are investment banks that arrange these guarantees for a fee. Citigroup used to be the leading - I think it utilized free petrodollars. The County simply needs to undertake to pay. The bank would then collect from the county's accounts on a regular basis in event of a default.

[Olekoima]

They need to desist from these loans until they have proper and functional structures. Going on a borrowing spree only to burn the cash on useless foreign trips by the MCAs is counter productive.

[Ole Ole]

precisely, structure should be put in place first. If counties are going to take loans or issue counties bond that matter should be subjected to a ballot and let the electorate have a say not the governor making decisions that might turn out costly down the road. also in case of default, like pundit said before treasury steps in with tax payers money  county assets should be auctioned first.

All in all i think this is a bad idea just look at california and how many cities have declared bankruptcies due to this kid of loans

 

They need to desist from these loans until they have proper and functional structures. Going on a borrowing spree only to burn the cash on useless foreign trips by the MCAs is counter productive.

[Kichwambaya]

People have tasted devolution and they like it warts and all.  Jubilee is therefore fighting a losing battle.  Any successful attempts by Jubilee to block this train will be costly for them in the future because it only gives CORD more amunition against them. Its like multi-party, Moi successfully delayed it and blocked it for years but the train had already left the station.  Devolution is the same, ouru and ruto need to claim it and embrace it if they want longevity in politics otherwise they will be crushed by this powerful but very decievingly slow moving tsunami. You go to sleep fine then you wake up with your bed floating in water.

[Omollo]

You can imagine that so far the highest the Counties have got is 12% of revenue. Just have a look at the projects carried out and the changes. See how the people feel empowered? With that in mind, grant them FOUR times what they already have!

Gentlemen (and ladies) GEMA aint gonna like this one bit however you present it! If you use parliament to enact 40% for real (and remove all the traps), it is still 40%.

I get very amused when the Kikuyu Intelligentsia grab on to some "initiative" and pronounce it a winner to beat OKOA. When Oloo and Sakaja proposed a parliamentary option, the KI sung kumbaya! Then it fizzled out and we heard some Governors were proposing their own referendum - it turned out to be the same 40%. In fact the man who was to be the savior has since become the enemy - Isaac Ruto! The reason: 40%!! GEMA does not want to part with 40%. That is why they are using old figures to avoid fairly sharing out the revenue at minimum 15% as provided for under the Katiba.

They fear that a referendum bill will block them from using old figures. They could get a few CORD rebels to aid them pass 30%. There is a problem! GEMA cannot even accept 30% or 25% or even 20%.