Tax collection up 300% due to less stealing by urp thugs

[KenyanPlato]

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TAX COLLECTION rose by 23pc last month to Sh176.66bn from Sh144.06bn in April 2020 on growth in customs, domestic taxes, KRA says. pic.twitter.com/8V1uhKrxFS

— Nation Africa (@NationAfrica) May 3, 2021

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Uhuru is over working.

[Arcadian_Dreamer]

Very impressive, the way KRA seemingly manages to squeeze water from rocks every fiscal year considering the poor state of the economy. But they 've been very zealous in their tax compliance efforts last few years. Just goes to show how much tax evasion slack tey was in the system, their tough enforcement policy has paid dividends. I'm in two minds however, on one hand, its commendable they are hitting their targets but on the other you know a big junk of that tax revenue will be used to enrich Uhuru/uthamikstan illegal enterprises and their Chinese partners at the expense of the rest us ala Kemsa. It also sends a wrong message to the treasury mandarins - "you can milk this cow even more", whets their appetites for even more punitive taxation imposed on the suffering Kenyan citizen.

[RV Pundit]

Very good. This year look like KRA likely to do something great. The KRA head was head of customs and anti-graft tsar. They must be sealing big holes in customs. The huge under-declaration.

Look like if KRA seal the loopholes; they should be able to raise 20B - as one would expect from a 100B dollar economy - that taxes like crazy.

[hk]

Beating reduced collection targets. Payroll and domestic taxes are dismal reflecting the depressed current economic situation. More importantly the mad finance secretary is proposing huge budget deficit of more  than 8%. Basically even after entering IMF rescue program instead of slashing the budget government has opted to raise taxes.  Immediate spending withdraw would have adverse effect on the economy but its better to slash spending than increasing taxes and running huge budget deficit. Good luck private sector getting credit.

[patel]

More reason to justify more loans. IMF will be impressed.

[Nefertiti]

RV Pundit frowns on this Dr Mukhisa-esque macro-economic mumbo jumbo. Prof Ndung'u is working on a fresh bottom-up model. Calm down and expect miracles.

Beating reduced collection targets. Payroll and domestic taxes are dismal reflecting the depressed current economic situation. More importantly the mad finance secretary is proposing huge budget deficit of more  than 8%. Basically even after entering IMF rescue program instead of slashing the budget government has opted to raise taxes.  Immediate spending withdraw would have adverse effect on the economy but its better to slash spending than increasing taxes and running huge budget deficit. Good luck private sector getting credit.

[gout]

IMF is in town. Ukur and ufool will only be signing on the dotted lines.

Going forward, theirs is to ask how high to jump to IMF horror music.

Fire oldies working from home and steal their pension - Yes massa!

Cut transport budget - Yes Massa.

With BBI popularity contest they can only pray for better rains.

[RV Pundit]

Yes I don't understand HK reduce taxes  - then wait for trickle down. These theories don't even apply in US or developed world - leave an informal economy like Kenya. We need BOTTOM UPS.

RV Pundit frowns on this Dr Mukhisa-esque macro-economic mumbo jumbo. Prof Ndung'u is working on a fresh bottom-up model. Calm down and expect miracles.

[KenyanPlato]

Yes I don't understand HK reduce taxes  - then wait for trickle down. These theories don't even apply in US or developed world - leave an informal economy like Kenya. We need BOTTOM UPS.

RV Pundit frowns on this Dr Mukhisa-esque macro-economic mumbo jumbo. Prof Ndung'u is working on a fresh bottom-up model. Calm down and expect miracles.

Hk model works,well

[RV Pundit]

No. It doesn't. Equity Bank is clearly example that bottom up works better. Lowering taxes for a few big corporation will not transform the bottom of Githunguri. Deliberate actions like Githunguri Dairy will. Without deliberate action like organizing farmers of Githunguri to form their dairy corporation - reducing taxes for Limuru Tea or Brooke Bond will not dent poverty in your village.

Get out of ivory towers - and go to villages - and fix the issues there. If it means start cooperatives like was done in 70s - DO IT. If it means start micro-finance like was done in 90s DO IT.  If it means spending billions employing idle to build cabro roads...do it.

It has to be deliberate! We cannot wait for the magic of trickle down.

Hk model works,well

[KenyanPlato]

No. It doesn't. Equity Bank is clearly example that bottom up works better. Lowering taxes for a few big corporation will not transform the bottom of Githunguri. Deliberate actions like Githunguri Dairy will.

Hk model works,well

You join your fellas in stealing. Let kikuyus teach you biashara. Uhuru is a industrialist while ruto is govt employee.ruto is consumer while uhuru is acproducer

[RV Pundit]

Let's keep it a little cerebral. I  know you want to drag us to the bottom and beat us there.

If you lower taxes - how many Kenyans will feel it - there less than 2M paying taxes.

The bottom pyramid are living in informal economy - growing their crops and eating it - maybe they buy sugar and few such items - but most of their purchases is untaxed food.

You raise or reduce taxes - it has almost zero effect - in the informal economy. It;s like South Sudan or deep in Maasailand.

Majority of kenyans live in that kind of extreme poverty! Famr their crop for food subsistence - maize and vegetables name it - they feed from their farms - you raise taxes for LPG - they don't care - they use firewood - you raises taxes for beer - they brew their illegal beer:) - they grow their tobbaco and make their cigarettes (remind me the guy I bought a plot in Nakuru had huge tobbaco pile - destined for Transmara from Nakuru). They don't even buying cooking oil - they make their own butter and use it - or get it from the butchery.

The only thing rural kenyans will complain about is maybe SUGAR prizes. They are yet to figure out they can make their own jaggeries and use honey. The Mhindi did a number on kenyans - by ensaring them with sugar.

You join your fellas in stealing. Let kikuyus teach you biashara. Uhuru is a industrialist while ruto is govt employee.ruto is consumer while uhuru is acproducer

[RV Pundit]

Bottom up is NOT complicated.
Equity Bank is an example. They deliberately targetted the UNBANKABLE - and now they are LARGEST BANK in east and central Africa - easily 10B dollars in assets.
EABL - KEG BEER is good example. Began as CSR - and now EABL leading brand in VOLUME. And supply chain of sorghum farmers - and Keg bars. The amount of lives it saved from illicit brew !!!
The micro-packaging by industries in Kenya are good example.
One Acre fund - targeting farmers with less than acre of farm - now have I think a million farmers in 10yrs - large than any KTDA or such
MPESA is good example. - began as CSR from DFID donation to some microfinance in thika and now the global lifeline for telcoms.

These simple yet scalable solutions CAN BE DONE.

Come up with beer as cheap as local brew - yet hygienic and safe
Come up with energy as cheap as firewood - yet clean and safe.

What is gov role here? Work with private sector to come up with bottom down products? Gov has to also deliberately target the bottoms? Not wait for trickle down fiscal policy Mumbo JUMBO.

If you're targeting the bottom - you should get tax waivers! As for middle class and the rest - they can fix their problems -or wait for mumbo jumbo from HK fiscal economic abracadarbra.

Give these bottom pyramid people some few years - and you start taxing them - you make CRAZY MONEY. Tax M-PESA now - and you're gonna get so much money!!! Tax 2shs of KEG BEER - and that is more money than all the Tuskers. SCALE!!!!!!!!!!!!!

The reason - everyone IS ON BOARD - you're gonna be taxing 25M adult kenyans - not 2m!!!

[Arcadian_Dreamer]

Yes I don't understand HK reduce taxes - then wait for trickle down. These theories don't even apply in US or developed world - leave an informal economy like Kenya. We need BOTTOM UPS.

RV Pundit frowns on this Dr Mukhisa-esque macro-economic mumbo jumbo. Prof Ndung'u is working on a fresh bottom-up model. Calm down and expect miracles.

Tax reduction is always good, reduce for both consumers and companies. I believe tax rates should be capped. Kenya is currently being strangled by over taxation.

[hk]

1. The opposite of supply side economics is demand side economics. The examples of keg,equity, cited are perfect example of supply side economics working. Government lowered taxes on keg, making it more affordable, thus creating a huge industry. Equity was a lowly building society before 2002, processing tea and coffee payments for farmers. What led to explosive growth was after kibaki government(David ndii working for anyang nyongo planning) stopped crowding out the private sector by Mwiraria reducing banks capital reserves and lowering interest rates. The banks started lending to individuals, SME etc and that's how equity capitalized on that by becoming banker to informal sector. Prudent fiscal policy led to growth of equity bank.
Demand side economics example universal electricity connections. This how you end up with almost 1m idle connections and kplc bankrupt. supply side  dictates that addressing cost(supply side) would've been the right policy which would have led to demand.
2. The more apt diagnosis of kenya economic problem would be government led growth vs private sector led growth. Government led growth is what Jubilee embarked on which has landed us where we are. Borrowing, taxing and spending model end up in disastrous results. The good news is that kenya has reached an inflection point just as in 1993. There's no fiscal room or increased taxation to keep public led growth model going. So just like what musalia did( big bang economic reforms) is needed. Private sector( big, small and micro) led economic policy that ensures fiscal prudence, low taxation, deregulation, registration and decriminalization of small enterprises is what needed. Almost all presidential candidates will adopt some version of this cause its the only option available. The days of government led growth are over, government can't tax enough to keep it going or borrow.
This is why despite heady GDP numbers kenyans are poorer. 

[RV Pundit]

Before the taxation someone had to come up with KEG as bottom products.Before kibaki came  I had gone to Equity bank to get the cheapest bankers cheque for UoN school fees.The same with derided mpesa.What your are missing is deliberate action to reach the informal economy.It cannot happen with magic..

[Arcadian_Dreamer]

1. The opposite of supply side economics is demand side economics. The examples of keg,equity, cited are perfect example of supply side economics working. Government lowered taxes on keg, making it more affordable, thus creating a huge industry. Equity was a lowly building society before 2002, processing tea and coffee payments for farmers. What led to explosive growth was after kibaki government(David ndii working for anyang nyongo planning) stopped crowding out the private sector by Mwiraria reducing banks capital reserves and lowering interest rates. The banks started lending to individuals, SME etc and that's how equity capitalized on that by becoming banker to informal sector. Prudent fiscal policy led to growth of equity bank.
Demand side economics example universal electricity connections. This how you end up with almost 1m idle connections and kplc bankrupt. supply side  dictates that addressing cost(supply side) would've been the right policy which would have led to demand.
2. The more apt diagnosis of kenya economic problem would be government led growth vs private sector led growth. Government led growth is what Jubilee embarked on which has landed us where we are. Borrowing, taxing and spending model end up in disastrous results. The good news is that kenya has reached an inflection point just as in 1993. There's no fiscal room or increased taxation to keep public led growth model going. So just like what musalia did( big bang economic reforms) is needed. Private sector( big, small and micro) led economic policy that ensures fiscal prudence, low taxation, deregulation, registration and decriminalization of small enterprises is what needed. Almost all presidential candidates will adopt some version of this cause its the only option available. The days of government led growth are over, government can't tax enough to keep it going or borrow.
This is why despite heady GDP numbers kenyans are poorer.

Bingo! Prioritizing Micro, small & Medium enterprises (MSME) is the key along with deregulation and reducing taxes. Infrastructure mania will get us nowhere.

[RV Pundit]

MSME is bottom up. Infrastructure is the hardware. You need to fix it before you go to software issues - deregulation and reducing taxes.

Bingo! Prioritizing Micro, small & Medium enterprises (MSME) is the key along with deregulation and reducing taxes. Infrastructure mania will get us nowhere.

[RV Pundit]

No sir. Think about this. Public Sector. Private sector. Informal sector. Before Jubilee - we had private sector led growth - everyone including imf/wb - complained that we were running on one engine - hence growth of 4% (before the rebasing)-  while some countries like Ethiopia had public sector firing.

Jubilee corrected that imbalance - and we started growing at 6% - although that growth it turned out was due to mostly agricultural production.

Now for me we need all the three engines firing. Public sector. Private Sector. Informal Sector.

How do you mainstream informal sector to be part of the economy? How we get informal sector to become MSMEs? Then when everyone is onboard - there is formal sector big enough - we can start applying those tools - of low taxes, regulation, fiscal policy?

If you go sector by sector...in financial...we are doing fine...there... in telcom...we are fine there...in retail and wholesaling...we are at 30-40% (spread of supermarkets)...you go to agriculture and livestock...HUGE MESS...totally informal except for few like KTDA...if you go to transport...there is been attempts at least on matatus....but zero on boda bodas?

Quick win.
1) Continue with the formalization of the retail and wholesaling sectors. Kill these plethoras of loss-making shops in every corner of Kenya - by having a few supermarkets - where people can buy everything cheaply.
2) Commercialize and formalize agriculture. We need more KTDAs or dairy sector. Something that can almost guarantee monthly payments to farmers. We need to organize our smallholder farmers into co-operatives and such.
3) Fix the transport sector..especially boda bodas and matatus...for example we can demand all boda boda belong to a SACCO...and assist those saccos...with finances and governances.
4) The same for the rest of the informal sectors. Look for example at all the mechanics and juakali on the road side...they need support from gov...they need to be organized into cooperatives...so they can buy better equipment, have safe environment and all that.

And that to me is the bottom up....going directly to the people operating boda bodas, juakali, mechanics, poor farmers...and mainstreaming them into the formal economy.

And most importantly encouraging the private sector to go to the bottom....like agency/mpesa did or KEG beer or name them. Find out why private sector are not reaching to informal sector and help fix that....if it mean deregulation do it...if it mean lowering taxes do it...but only for informal sector or bottom down products.

1. The opposite of supply side economics is demand side economics. The examples of keg,equity, cited are perfect example of supply side economics working. Government lowered taxes on keg, making it more affordable, thus creating a huge industry. Equity was a lowly building society before 2002, processing tea and coffee payments for farmers. What led to explosive growth was after kibaki government(David ndii working for anyang nyongo planning) stopped crowding out the private sector by Mwiraria reducing banks capital reserves and lowering interest rates. The banks started lending to individuals, SME etc and that's how equity capitalized on that by becoming banker to informal sector. Prudent fiscal policy led to growth of equity bank.
Demand side economics example universal electricity connections. This how you end up with almost 1m idle connections and kplc bankrupt. supply side  dictates that addressing cost(supply side) would've been the right policy which would have led to demand.
2. The more apt diagnosis of kenya economic problem would be government led growth vs private sector led growth. Government led growth is what Jubilee embarked on which has landed us where we are. Borrowing, taxing and spending model end up in disastrous results. The good news is that kenya has reached an inflection point just as in 1993. There's no fiscal room or increased taxation to keep public led growth model going. So just like what musalia did( big bang economic reforms) is needed. Private sector( big, small and micro) led economic policy that ensures fiscal prudence, low taxation, deregulation, registration and decriminalization of small enterprises is what needed. Almost all presidential candidates will adopt some version of this cause its the only option available. The days of government led growth are over, government can't tax enough to keep it going or borrow.
This is why despite heady GDP numbers kenyans are poorer. 

[RV Pundit]

The biggest problem keeping mwafrika down is obsession with real estate.Now informal.Muhindi has taken over manufacturing as mwafrika spend all their life savings on brick and mortar without any real investment value