We can't borrow even for good projects - CBK Governor

[hk]

And tax rate has not changed - we are still at mwiraria's 16% VAT - clearly the tax are not enough to meat our ambition- which is why gok is borrowing heavily. I think our private sector should blame themselves...not the public sector that is rolling out roads, railways and other ideas. As regard Early Export - I am not sure about the logistics - but what is needed is heated tankers - our RVR railway remain comatose...I think GOK approached them ..but do they have the capacity to buy those heated tankers...or they are mirred in debt? So yes it better to give it to private logistic company that wants money and can invest in those heated tankers.

VAT rate hasn't changed but the number of VATable goods and services has increased. In addition this year budget proposes vat on fuel to raise 75b annual. Excise duty has gone up and number of charged goods has expanded. Take the VAT on fuel, why do we need it now? Its to finance budget deficit caused by mega projects spending that aren't leading to more economic growth after the initial growth during construction. This projects are addressing perceived future demand not current demand (if you build they'll come mentality), also return on debt of this project is probably negative.

[RV Pundit]

That fuel VAT is bad idea from IMF - we shouldn't listen to them. Sorry but I think we need many more projects - and these projects should be long term loans - to be paid by future generations that will use them rails or roads. Treasury just need to get off domestic market - and borrow from Chinese & World bank -& ADB - who can dole out long term low interest concessionary loans - we need to take as much low cost high quality loans as the loan market is willing to lend.

VAT rate hasn't changed but the number of VATable goods and services has increased. In addition this year budget proposes vat on fuel to raise 75b annual. Excise duty has gone up and number of charged goods has expanded. Take the VAT on fuel, why do we need it now? Its to finance budget deficit caused by mega projects spending that aren't leading to more economic growth after the initial growth during construction. This projects are addressing perceived future demand not current demand (if you build they'll come mentality), also return on debt of this project is probably negative.

[Georgesoros]

And tax rate has not changed - we are still at mwiraria's 16% VAT - clearly the tax are not enough to meat our ambition- which is why gok is borrowing heavily. I think our private sector should blame themselves...not the public sector that is rolling out roads, railways and other ideas. As regard Early Export - I am not sure about the logistics - but what is needed is heated tankers - our RVR railway remain comatose...I think GOK approached them ..but do they have the capacity to buy those heated tankers...or they are mirred in debt? So yes it better to give it to private logistic company that wants money and can invest in those heated tankers.

VAT rate hasn't changed but the number of VATable goods and services has increased. In addition this year budget proposes vat on fuel to raise 75b annual. Excise duty has gone up and number of charged goods has expanded. Take the VAT on fuel, why do we need it now? Its to finance budget deficit caused by mega projects spending that aren't leading to more economic growth after the initial growth during construction. This projects are addressing perceived future demand not current demand (if you build they'll come mentality), also return on debt of this project is probably negative.

Has anyone ever thought of reducing the size of govt?
This govt is too big and feeding it requires lots of resources - meaning more taxes.

[RV Pundit]

Reducing GoK would favour a few rich people - while majority of kenyan will suffer - we need more welfare/social programs - couple with more investment in infra -- we need bigger gov - to have the capacity to deal with insecurity in northern kenya and such other areas.

Some of these ideas about reducing gok - we tried in 90s with leakey - and it backfired - and together with SAP - created more poverty & desperation.

Has anyone ever thought of reducing the size of govt?
This govt is too big and feeding it requires lots of resources - meaning more taxes.