The project is designed to enable the Government meet the country’s growing food and nutrition needs, while building community resilience.
JUBA, South Sudan, October 24, 2018 – The Government of the Republic of South Sudan today welcomed a contribution of US$ 43.57 million from the African Development Bank (AfDB.org) for the implementation of the country’s Short-Term Regional Emergency Response Project (STRERP).
The project is designed to enable the Government meet the country’s growing food and nutrition needs, while building community resilience, as hunger reaches unprecedented levels in the country. It will also support ongoing longer-term efforts to improve the people’s resilience and food security, including tens of thousands displaced by the ongoing conflict in eight regions – Northern Bhar El Ghazal, Western Bahar el Ghazal, Lakes, Jonglei, Unity, Western Equatoria, Warrap and Upper Nile regions.
The grant will be implemented by the United Nations World Food Programme (WFP) (WFP.org). WFP and partners are scaling up food and cash assistance to reach up to 5 million people in the worst-affected areas of South Sudan by the end of 2018. Despite the harvest in September, as many as 5.2 million people will remain in Integrated Food Security Phase Classification (IPC) Phase 3 (Crisis), not knowing where their next meal would come from between January and March 2019, with some 36,000 people forecast to be in Phase 5 (Catastrophe), experiencing famine-like conditions in parts of the country, according to the latest IPC report (bit.ly/2EGdxdD).
“We are very grateful for the contribution from the Bank,” said Adnan Khan, WFP Country Director in South Sudan. “It will go a long way in helping us provide life-saving support at a critical period and ensure people have the means to feed themselves not only today but also in the future.” WFP activities are designed both to address immediate food needs while promoting the ability of vulnerable communities to withstand future shocks to their food security. WFP provides various kinds of assistance – food for people building and restoring community assets, life-saving emergency food, emergency school feeding and the treatment of malnutrition among children, and pregnant and nursing women.
“STRERP reflects the Bank’s commitment to support its Regional Member Countries (RMCs) in addressing the drivers of food insecurity and unstable food production systems.” said Benedict Kanu, the Bank’s Country Manager in South Sudan. “The Bank’s approach goes beyond addressing the immediate humanitarian needs through food assistance, but also seeks to build resilience of the affected communities and strengthen the capacity of government institutions to effectively plan, coordinate and implement disaster risk management and humanitarian responses. We call on all development partners to work together to address the underlying drivers of vulnerability in drought-prone areas.”
The Government of Malawi, through the Department of Disaster Management Affairs (DoDMA), will from the month of September 2018, undertake a once-off maize distribution exercise targeting acute food-insecure households in 26 districts of the country, pending the final Malawi Vulnerability Assessment Committee (MVAC) report and development of the 2018/2019 Food Insecurity Response Plan.
Speaking in Blantyre when he presided over the launch of the once-off distribution, Minister of Agriculture, Irrigation and Water Development Joseph Mwanamvekha said a total of 432,729 bags of maize [21,636.5 tonnes] will be distributed to 432,729 food-insecure households in 26 districts of the country.
“Each food-insecure household will receive a 50kg bag of maize and this will be followed by the MVAC response,” said Mwanamvekha.
The once-off distribution comes after the country experienced prolonged dry spells and a severe outbreak of Fall Army Worms, which rendered many households food-insecure.
The relief maize will be distributed to households in Blantyre, Neno, Chiradzulu, Mulanje, Thyolo, Phalombe, Mwanza, Machinga, Mangochi, Balaka, Zomba, Chikwawa, Nsanje, Karonga, Mzimba, Rumphi, Chitipa, Dowa, Mchinji, Kasungu, Ntchisi, Dedza, Ntcheu, Lilongwe, Nkhotakota and Salima.
“People should not claim they are waiting for government programmes in order to develop themselves. A pig will not resist to be taken to the market for sale or slaughter just because the road is not tarmacked” – Yoweri Kaguta Museveni on the 22nd July 2018.
There are some ironies with today, especially the mixed messages from President Yoweri Kaguta Museveni. As he was saying that the public should not expect the government to deliver programs for their development, while he is supporting and his government through the Operation Wealth Creation (OWC) and the State Minister for Tourism Godfrey Kiwanda who was starting Kisboka SACCO in Mityana District. So, it is weird that he is donating money to a project for development, while saying people shouldn’t expect the state to contribute funds. Is he dumb? Just take a look!
“Our Commander in Chief H.E President Museveni officially launched and accepted to be the Patron of the poverty eradication drive called Kisoboka (It is possible) in Mityana North. The drive, that was initiated by State Minister for Tourism Hon. Godfrey Kiwanda aims to bring about positive mindset change towards poverty eradication, job creation and wealth creation mainly though agriculture; It is already very popular in North Mityana Constituency with over 250 households joining the bid to earn at least 21.5 million shillings per annum” (Operation Wealth Creation, 22.08.2018).
“I gladly accept the request that I be the patron of Kisoboka SACCO and I will make a Shs50 million contribution towards its activities” (Museveni, 22.08.2018).
It is really not much to say, but if this works, the SACCO might do something positive to the public and citizens of North Mityana Constituency, however the OWC is not known for good seedlings and neither well-organized model of development. Therefore, this might fall flat and be empty promises to the district and constituency. We can hope for something else, but it might change for a very selective few.
This might just be another PR Stunt and a way for Kiwanda just to pocket money from the taxpayers or even shield his funds he is earning as a State Minister and MP. What is more ironic, is that the President talks of not waiting for the state to deliver development, while his state is launching possible development projects through the OWC. It is should be obvious. If he was a sincere man, he would see that.
He talks of not getting promises of development, while delivering a development projects… It doesn’t make sense.
That is just me though… I cannot be alone, but when you just have empty suits and yes men around you. You turn into this creature, this bloated arrogant prick who doesn’t see poverty; while living in lavish luxury on the state. Peace.
That the Northern Uganda have been in deep end of the stick in many eyes is evident, by how lax the state has been to take care of their needs and their rights. That can now be proven by the forceful evictions from land in Apaa Village in Amuru District/Adjumani District. Where the previously have been attempts to make a giant farm for an investor called Bruce Martin and also become sugar cane plantations and factory for Kakira Sugar Factory owned by the Madhvani Group, this goes all the way back to 2006. Therefore, the plans to evict these people has been slow process from the state.
Now in 2018, the Uganda Wildlife Authority (UWA) have evicted dozens upon dozens of the local residents from their lands. As the purge on the village and the area continues, this has been in the making, but the ones losing their lands get nothing, but lose their homes and their livelihoods at the same time. The government authorities have torched the houses and left nothing behind, as they are continuing to evict people. Their lives are no meaningless, as they have to flee their land and are living on the United Nations Compound in Gulu, while awaiting their future, as the state, UWA and the Uganda People’s Defence Force have been evicting them over the last two months. Surely, the hurt is felt and real.
Who can wonder if the state is finalizing the agreement with Madhvani Group to deliver his second sugar factory and also sugar plantation in the area or they are making a game drive from Bruce Martin. However, this is still grabbing the land without any forewarning and also taking their livelihoods without any compensation for the hurt.
The District Land Board and Area Land Board cannot been informed or care to inform the people, as the army and UWA have been busy evicting people with force. They are just pawns on the chess-set, and the authorities in Kampala let it happen. The leadership from afar are accepting it and have gazetted the land and taken the land. Therefore, the people who has settled in Apaa have to flee or be evicted from the land, without any justice or law helping them out. No compensation and nothing left for them.
This sort of play has to stop; I am sure the State House is fully aware and let it happen, as they are getting their cut of the transaction of the land for whatever purposes it has. Its been planned for years, but doesn’t make it better, when they could have had solutions back-in-the-day as the government knew this would come. They were already in talks with both Kakira and with Martin. They knew perfectly well, what was up. There is even a third scenario where the land is sold to someone else named Linton Brimblecombe.
Clearly someone forgot the memo and left it stranded. They just evicting people in the favour of one lucky bastard who capture all lands, without paying the needed ones who was actually living their and done so for generations. This is a violation of the trust between the citizens and the government. Because someone accepted the trade of the land people where living on and had rights too.
The Apaa village and Apaa community deserves better, all of the Acholi deserves better. They are being misused and taken for granted by the government. They are just pawns on the chess-set. No value, the first one in the battle-line to take out so the ones of value can be put into play. That is how it looks from the outside.
This have been planned for decades and now it happens.
Amuru Land Grab: What is ours, is OURS; What is their’s, is OURS; and Whatever is your’s, is still OURS. Peace.
If you wonder why suddenly the prices are running high for the UNGA again in Kenya. That is because the state has added taxes, they are trying to collect more money again. This is happening because its months since the elections and the subsidized UNGA is history. Therefore, expect rising prices, the maize and milk cartels want their profits. If they happen to in the pocket of the government at the same time. Is just convenient, even some of the companies earning on the sky-rocketing prices is the President himself and his own companies. I am sure the DP also owns connected businesses that could eat of the this plate too. While the ordinary and poor population will struggle to have ends meet as the government are taxing them even more.
Added Taxes:
“Poor households would be more exposed in the amendments with sweeping implications on many sectors, as the State seeks to raise Sh1.75 trillion in the next financial year. Most basic commodities are not taxed to cushion the poor, but the changes that will be proposed in the national budget will end that. “We are looking at exemptions on several products that are widely consumed, but not on VAT such as milk, sugar, maize flour, wheat flour…,” said Benson Korongo, a commissioner of Kenya Revenue Authority” (Michira, 2018).
Prediction of the reaction to the taxes:
“Milk and cream, not concentrated nor containing added sugar or other sweetening matter” (…) “Suppliers of the affected supplies will not be able to claim any input tax incurred in making of such supplies. This cost will be borne by the final consumers. Reverting to exemption of these basic commodities a year later after they had been zero-rated will lead to an increase in their prices rendering them less affordable to the ordinary Citizens” (…) “The supply of maize (corn) flour, ordinary bread and cassava flour, wheat or meslin flour and maize flour containing cassava flour by more than 10% in weight” (…) “Reverting to exemption of these basic commodities a year later after they had been zero-rated will lead to an increase in their prices rendering them less affordable to ordinary Citizens” (Ey Global Tax Alert Library, 2018)
It is special when Ernest & Young (EY) whose is known for their advice for potential investors and people who plans for invest in a republic. They have usual advice, which shows the potential and the grips of reality. Their analysis from April are now coming in effect in the end of May, as the local papers like Standard write about it now. But they say it might happen in July.
The state has favorably subsidized it and also imported on its own, that might happen again. But the added tax will hit the public. Make the staple food more expensive, because of added taxes. The shops, the importers, the distribution companies will not take the hit. The hit is always ending up at the consumer, the buyer and not the ones who produce, distribute and sells. That is known and the way we play. Seriously, when the state plans with these taxes to earn over a trillion shillings, nearly two, means they are anticipating selling enough of the needed goods and services connected with the new taxes to actually be sold.
So the prices on the staple is rising, because the Jubilee Government, the President and his party is doing it. This is their orders and their will, it is not the international market or a drought, it is initial planning and what the state does to get more revenue.
Jubilee whose are eating all of the state, needs more revenue to make another NYS Scandal, take more funds from the likes of NHIF and inappropriately use unaccounted funds in the various government bodies. Peace.
Reference:
EY Global Tax Alert Library – ‘Kenya issues Tax Amendment Bill, 2018’ (April 2018)
Michira, Moses – ‘Red alert: Why the cost of food will go up in july’ (16.05.2018)
It is hard to see any significant change of the Uganda Coffee Development Authority, as the law of 1994 is planned to be repealed, as the Cabinet accepted a new bill yesterday at the State House. Let me explain, It would seem more reasonable, if someone leaked the text of the law, but the short tide bottlenecks of information leaked. That information is showing, that it is more of the same. Just some new buzz-words, to keep the donors buzzing.
Since the UCDA are already in charge of monitoring, pricing and promoting coffee, both internally and externally. They are supposed to help raise the quality of the coffee and educate farmers, both in production of better coffee, but also raise the yields for the cash-crop. The UCDA is rally a state organized body in both education, trade and promoting of coffee. Where all parts of the transaction from the seedlings to the trade of the ready beans has been in connection with the government body.
That is why the Cabinet decision that is released to the public, the one page dossier, as the law and the new provisions aren’t out, but if these footnotes are the realization of the changes from 1994 to become the new law in 2018. There are really just putting in the word sustainable and harmonize the roles of all the roles. Which is fancy lingo, for making sure everyone along the line is taxed and made sure they pay for the government services. Since they are already having the mandate by the law of 1994.
As sub-section 4 in the UCDA Act of 1994 states:
“The functions of the authority shall be— to issue certificates in respect of the grade and quantity of coffee; to register in accordance with guidelines issued by the Minister, from time to time, on the advice of the board, all organisations and bodies applying to market coffee; to liaise with the Bank of Uganda in respect of repatriation of foreign exchange obtained from the sale of coffee; to set the quality control standards under which coffee is sold; to certify all coffee exports; to collect, maintain and disseminate statistical data in respect of all aspects of the coffee industry; to advise the Government on the mechanism for determining the minimum price for the sale of coffee; (h) to monitor world market price changes and adjust the minimum price on a day-to-day basis to reflect the changes; (i) to research and make extension arrangements through the Ministry responsible for agriculture or any other organisation established in the country for the purpose; (j) to reconcile coffee subsector policies with the macroeconomic policies of the Government; (k) to liaise with the International Coffee Organisation and be responsible for the administration of the stamps of the organisation; (l) to liaise with other international organisations and promote Uganda’s coffee on the world market; (m) to be responsible for the overall supervision of the coffee subsector, including related industries, and advise the Government on coffee subsector policies; (n) to organise training for technicians, coffee processors and quality controllers” (CHAPTER 325 THE UGANDA COFFEE DEVELOPMENT AUTHORITY ACT, 1994).
So when I read from the spreadsheet from the Cabinet meeting at the State House, where the gist is to replace the 325, because they want to development of competitive, equitable and sustainable coffee, promote Coffee research, good Coffee farming practices, domestic coffee consumption and add value to the Coffee. Also, provide the Authority regulate all on-farm and off-farm activities in the Coffee Value Chain, streamline and harmonize the institution in the development of the Coffee Sector and to promote the Coffee sub-sector.
As what I see, the UCDA Act of 1994, not only hold the grabbing hands on all of this, but the mandate of the Authority is already, just not managed well, apparently. If the state cared about the Authority, they wouldn’t lack needed staff, as the Auditor General Report of December 2016, said the staff had 29 open positions, I don’t know if its as bad today, but wouldn’t be shocked if there was openings that the UCDA couldn’t fill, because of lack of funds.
What is striking to me, is that what the Cabinet Meeting of 21st May 2018, is what is in the statute of 1994. It just using a few different words, but if they cared about the UCDA, they would fund it properly and also actually have proper oversight of the operations. As the UCDA has often given away bad seedlings to Coffee farmers, in the same fashion as the Operation Wealth Creations has to its SACCO’s around the Republic. Like the Auditor General report of December 2016 says: “ Failure to plant and maintain coffee seedlings that were distributed and received by the farmers is wastage of Government Funds and eventually leads to failure to achieve planned coffee outputs at national level. Further, beneficiary lists withfarmers that never received inputs may be an indicator of irregular dealings on the part of seedling suppliers” (AG Report on UCDA December 2016, P: 19).
Therefore, the changing of words within the law is not fixing the remedy of the goodwill to generate more coffee and better yields. It is actually giving the king, what the king needs. That is not more fancy lingo, but actually actions and funds, also accountability, so that the farmers and the other part of the coffee production chain. Can all benefit from the Authority. On December 2017, the MoFPED delivered the National Budget Framework, which said this: “Continued implementation of the Coffee 2020 road map aimed at achieving 20million bags of 60Kg each per annum, including supporting research interventions at the National Agricultural Coffee Research Institute (NACORI) to produce high yielding coffee varieties and disease resistant tissue culture plants for coffee as well as development of a National Coffee Bill, 2017 that focuses on developing the entire coffee value chain and enable the country consolidate its dominant position in export earnings and employment” (MoFPED, P: 18, December 2017).
Therefore, the Cabinet meeting has initially decided to follow the guidelines of the National Budget Framework, as it was in December 2017. That is not surprising, but what is weird is the wording and how little change it is from the original law, that they are repealing. Unless, they have some magical formula sprinkled over it, making it a beautiful cake, instead of a boring bun with a little whipped cream. Because that is what it seems.
If you read the objectives of 1994, it doesn’t seem so far away from 2018, does it?
“The objectives of the authority shall be— to promote, improve and monitor marketing of coffee with a view to optimising foreign exchange earnings and payments to the farmers; to control the quality of coffee in order to ensure that all coffee exported meets the standards stipulated by the contract between the seller and the buyer; to monitor the price of coffee in order to ensure that no export contract for the sale of coffee is concluded at a price below the minimum price; to develop and promote the coffee and other related industries through research and extension arrangements; to promote the marketing of coffee as a final product; (f) to promote domestic consumption of coffee” (UCDA Act of 1994).
That seems a lot like the spreadsheet of the Cabinet from yesterday, right?
Its only the value chain and add value on the coffee that is very new, but the rest more of the same. I am baffled or even shocked by this. It is like the Cabinet haven’t read the old bill or cared about the provisions there and thought. Maybe we should have better oversight of the Authority, instead they are changing wording and thinking that is magic wand to change the current predicament. If they wanted real change, they would have reformed the organization internally and used the provisions already there. But it is easier to make a leaflet, than change people’s mind and allocate funds.
Good morning and smell the coffee, well, I smell it, but more of the same. Just attached “sustainable” on the package, but taste is the same as yesterday. Peace.
The Spreadsheet of the aka National Coffee Bill of 2018!
“He explained that the NRM manifesto is anchored in Vision 2040 and the second National Development Plan. It commits to deliver Ugandans into middle income status and to ensure sustainable development” (Mubiru, 2018).
Well, it is that time of the year. To prove the National Resistance Movement (NRM), that their empty promises. Because when you collect the news together. It is easy to see how things doesn’t add up. If the NRM was on their way to sustainable development, like Prime Minister Ruhakana Rugunda talked about earlier last week. Then all of the news coming wouldn’t fit. The narrative cannot be growth and development, when all of these issues are happening at the same time. It doesn’t fit. The glove has to fit the hand. The three things that doesn’t add up is the missing funds for the Presidents own Village Poverty Program, relief food for Karamoja and also a missing sugar factory.
Village Poverty Program:
“State House has said it needs at least Shs 5bn to roll out the model village poverty alleviation initiative by President Yoweri Museveni. In the request contained in the Ministry of Presidency’s policy statement and budget estimates for 2018/2019, State House said the existing Shs 1bn budget for the project is too little and therefore a 500 percent increase is vital. The current Shs 1bn has only managed to establish small scale commercial agricultural farms in 21 model villages. The country, according to Electoral Commission of 2016 data, has 59,700 villages” (Okello, 2018).
Donate relief food:
“The government of China has donated food aid worth $5 million (about Shs 18bn) to the World Food Programme (WFP) to support a feeding programme for vulnerable groups threatened by malnutrition in the Karamoja sub-region. More than 2000,000 people mostly school going children, infants and mothers are threatened by malnutrition in Karamoja according to official figures” (Lyatuu, 2018).
No existent Sugar Factory:
“It is five years, since Atiak Sugar Factory under Haryal investment Holdings Limited was rolled out in Amuru District, to commence sugar production, but has since stalled, leaving a number of sugar cane farmers stranded. “The people shifted from food crops with hope to earn from sugar cane. Out growers are now worried that the factory will not take off in time to fully untilise the 4,000 acres planted,” reads part of their petition. Kilak North MP, Anthonu Akol who read out the petition to the Speaker said that the farmers are stuck with no factory to sell their sugarcane and questioning why the minister of Finance, Matia Kasaija, sold to them hot air” (Kyeyune, 2018).
All of these issues shouldn’t be at this state, if the state was seriously developing and on the way to Middle-Income status. There are so many issues that is missing, not only the ghosts and the added debt ratio in the budgets. This is all minor measures in the bigger picture, but it proves the lack of governance and accountability, when the state can grab land in Amuru district, but never deliver the promised the factory. As this been going on for years.
That the middle income cannot be fulfilled when the village poverty is so prevalent, that the scale is not fitting the needs. You know that the state lacks resources and well-funded plans to even achieve this. The President should have made sure and ensured the progress and at the planning stages, it this is his program, to be sure about the right amount and needed facilitation to deliver to the needed villages. That is apparently a mixed bag wooh-ha and nonsense.
Last but not least, is the donating of food to Karamoja, which in it self a sign of lack of progress. When your not able to meet the needs of your population and have good enough agricultural policies and output to feed yourself and your own kind. You know that the Middle Income Status is far-fetched, when this is still an issue. You know there are miles afar from the promise land. That the NRM and the President is clearly not delivering. There is no excuse in the book, that can fix the grandest issues of not being able to feed all communities and districts of Uganda. You know they are far from Middle Income, when China has to donate food to you….
Ramaphosa has promised to speed up the transfer of land to black people, but has stressed the need to preserve food security.
JOHANNESBURG, South Africa, March 28, 2018 – South Africa’s new president Cyril Ramaphosa will need to call on all his dealmaking skills to overhaul ailing state-owned firms and tackle land reform if he wants to capitalise on Moody’s decision not to downgrade the country’s debt to junk.
Moody’s said its decision to keep South Africa’s rating at investment grade reflected its view the country’s institutions would regain strength under more transparent and predictable policies – though the new government had to stay on track.
Since replacing Jacob Zuma in February, Ramaphosa has reappointed the finance minister his predecessor fired in 2015, sacked some ministers allied to Zuma, put another respected former finance minister in charge of struggling state-owned firms and suspended the head of the revenue service.
“It’s a big deal,” political analyst Ralph Mathekga said about Moody’s decision. “What he has been able to achieve in two months is to reverse some of Zuma’s influence in key sectors. The message he sent is: ‘I can do more’.”
After his whirlwind start, Ramaphosa’s challenges now include keeping the unions on side as the government overhauls cash-strapped national carrier South African Airways (SAA) and heavily indebted state power utility Eskom.
Perhaps his stiffest test will be to push through land expropriation, as promised, to address racial disparities in ownership – while keeping the left wing of the ruling African National Congress (ANC) on board and not scaring off investors.
Parliament passed a motion last month seeking to change the constitution to allow land expropriation without compensation. Ramaphosa has promised to speed up the transfer of land to black people, but has stressed the need to preserve food security.
“A big deliverable is to initiate the land debate under his leadership to control the narrative and discourse. Should he fail to do this, he runs the risk of undoing the good work already done,” said Daniel Silke, director of Political Futures Consultancy.
Ramaphosa’s negotiating skills have been respected for decades, ever since Nelson Mandela turned to the former trade union boss to lead the successful negotiations to end white minority rule.
More recently, Ramaphosa had to strike a fine balance between applying pressure on Zuma to go, while still affording him a dignified exit. Now, same analysts say land reform is Ramaphosa’s litmus test.
“Are we over-estimating Ramaphosa’s ability to deal with this land issue? It is undoubtedly one of his biggest challenges. Investors are worried about this and watching him very closely,” said independent political analyst Nic Borain.
‘GOOD NEGOTIATOR’
When it comes to South Africa’s struggling state-run companies, Ramaphosa will need to perform a similar balancing act and he has already named respected former finance minister Pravin Gordhan as minister of public enterprises.
Eskom and SAA are both weighed down by massive wage bills but the country’s powerful unions are likely to dig in their heels at any attempt to cut jobs, especially with elections looming in 2019.
Influential labour leaders, sections of the ANC and the opposition Economic Freedom Fighters are also likely to balk at any moves to partially privatise the companies, which is one strategy backed by the Treasury.
South African Airways runs one of Africa’s biggest fleets but years of operational losses have left it on the brink of bankruptcy. It needed a bailout in July to repay debt and 20 billion rand ($2 billion) in state guarantees to keep it afloat.
Eskom received a 5-billion rand loan in February from the state’s Public Investment Corporation (PIC), which holds a large amount of government bonds and ranks as Africa’s biggest investment fund, or it would have defaulted on its debts.
“There is going to be some tension when these job cuts are announced. It is a delicate balance because it could impact the support base of the party ahead of next year’s elections,” said Borain.
Still, Ramaphosa has already taken the politically risky step of raising value-added tax (VAT) for the first time since apartheid to try to reduce the budget deficit and analysts say he is unlikely to back down on reforms.
“He did not give in to populism on the VAT; this was a good example of him having to do something unpopular but necessary,” Borain said. “He is known to be a good negotiator.”
Finance minister Nhlanhla Nene expressed hope on Monday that S&P Global Ratings and Fitch might also look favourably on South Africa during upcoming reviews, saying investors he had met at a roadshow in London before Moody’s decision were upbeat.
S&P downgraded South African local currency debt to “junk” in November citing a deterioration in the economic outlook and public finances. Fitch cut its rating in April to sub-investment grade after Zuma fired Gordhan as finance minister. S&P will publish its review on May 25. Fitch has not given a date.
“I want to call this a honeymoon phase – and it is for that reason that we cannot be complacent about it,” Nene told Talk Radio 702.
Let it be known that the State Coffers and the Government isn’t a well-oiled machine, the Kenyan government is taking up debt to cover old debt, which is all created by the current administration and the current President Uhuru Kenyatta and Deputy President William Ruto. Both of them have taken up expensive loans for both running the government, but also development projects. However, they have run their tab and is struggling.
They have subsidized lots of things people needs, they have paid providers and importers, they have made sure the costs of importing and producing has been lower. Especially in the months in advance of the Presidential Elections in 2017 and also a little after. However, they don’t need the votes and public goodwill anymore. Therefore, the subsidizes are now ceasing to exist.
The prices of gasoline and similar products are going up now in January. The prices of electricity has already been rising. The eminent rise of prices on UNGA is also coming. All of this is coming, as the subsidizes are ceased. The Jubilee Government cannot afford the billing and the tab, they have gained so much debt, that they cannot muster enough money to pay for this too.
Expect sugar and cooking oil to go up. If the airtime for the phone companies and the charges on M-Pesa would go up as well. All the Mobile Money and Airtime could also rise. The inflation and the current instability in the economy will hit all parts of the economy. The signs are there and the government need to tax and get more fresh funds. Easiest is to charge every single costumer and citizens through what they are already needing and spending on. That is all of this.
Make sure that the needed products, the food, the electricity and the gas cost more. So that the charcoal and other ways of heating will cost more. There will be more blackouts and less businesses can afford to hold the generators working.
Parents are also feeling growing school-fees combined with payment for uniforms and extra curricular activities. All of this is adding cost and making it harder for people to send their kids to school. This all combined means that there is a higher cost of living, while the salaries are not following. Meaning that the citizens are getting poorer, by just existing and breathing in the same space as the politicians.
That the Jubilee Alliance Party have tricked the public is clear, that they are trying to earn money on the public and find ways to fix their ill-gained debt spiral with added taxes and higher cost of living. The expenses of ordinary and needed products are rising. It is worrying, the signal of a falling economy and problematic investor space. Where cartels are controlling sugar, flour-milling and imports. Where the cronies and families of the political circle are owner and involved in key businesses.
We can wonder why it had to happen just small months after the elections and the swearing-in in November 2017. That Kenyatta and Ruto have planned this for a while. That is why the Forex Levy is now being changed and making things more costly. The UNGA and Sugar subsidy are also gone, as it was just a temporary relief. The gasoline and the electricity are controlled by the state and special levy, which is now taken away.
The ones paying this is the public, its the citizens and the politicians, the government know why it happens and let it happen. We can wonder, why they are accepting making life harder for their citizens. Peace.