#SOTNU18: Importing too much and Exporting too little; What could be the reason?

“Yet, as our Baganda people say, “Omugo oguli ku murirano, tegugoba engo” ─ (the stick in your neighbour’s house cannot help you to fight off a leopard)” Yoweri Kaguta Museveni at the State of the Nation, 2018 (06.06.2018).

I have stopped after a years to look and breakdown the whole speech of President Yoweri Kaguta Museveni. Because no one should waste that amount of time, unless your Don Wanyama, Tamale Mirundi or Andrew Mwenda. The rest of the random average Joe’s just shouldn’t waste our time with that. After 32 years, what new thing can he re-up and said, what sort of pledge haven’t he pulled out off his ass. Everything has been said, its just rewind of the previous years. There might something amazing, but you should doubt it.

That is why I will focus the passages on the growth to become a Middle-Income Country:

I hear so many people talk about the attainment of the middle-income status by Uganda. The main problem here is, actually, the problem of Uganda importing too much and exporting little. The GDP per capita today is US$776. To become a middle income country, you need, at least, US$1,006 per capita. This money is calculated in Dollars. Too much importing and too little exporting undermines the progress to a middle-income status. Therefore, Ugandans, please, buy Ugandan; travel Ugandan; health-wise, be treated in Uganda. The government will facilitate its part as outlines in this speech. All I have said above is about the economy that is being developed to create wealth and jobs for the Ugandans as well as widening the tax base for the State of Uganda. At the same time, this bigger economy provides more goods and services for Uganda’s domestic consumption and for exports. Your NRM, always looking ahead, has already negotiated and arranged with our brother and sister Africans to ensure the market integration of Africa (EAC, COMESA, CFTA), so as to provide capacity for the absorption of the greater supply of goods and services produced by the Ugandans awakened to realize their potential as we also buy from our brothers and sisters in Africa, as we all take advantage of the huge collective market of Africa. Besides the huge continental market we are creating with our African brothers, the NRM always never missing in action when it comes to African issues, we have also negotiated for third party market access to the USA, EU, Chinese, Japanese and Indian markets, in varying degrees. Hence, ladies and gentlemen, the NRM has addressed or is addressing all the factors that are necessary to open the gates to the Ugandans engaged in wealth and jobs creation. Let everybody, then, play his or her own part” (Yoweri Museveni – State of the Nation, 2018, 06.06.3028).

The ironies are staggering as the economic policies, the industrial policies and agricultural outputs of the Republic is all in the hands of Museveni. If the NRM wanted to have trade surplus, they would have put in work and made sure the industries, the agricultural output and the end-product that they wanted to put into the world market. That is if the NRM had actually cared, because most policies seems to be short-term and for the short-con, not even the long-con. The projects and projections are for short term gains, not building things.

The specialized boards for the promotion of Ugandan produce and products has been lacking. Also maybe that they haven’t configured to the standards of the world-wide markets. That is why the coffee is sold as beans and not locally branded robusta. It is blended into random blends of foreign corporations instead of being locally grinded and packed ready for the big multi-national supermarket chains. Instead they are sold with least profits as the produce and not as the product. That is what is wrong with the ideas of Ugandan business. They have not thought of how to get value for the produce. This is all because the business is fixated on quick profits, but not going the extra mile.

That is because the NRM have no incentive to this or to try to do it. If they had incentive and any ideas of this. They would have figured it out and industrialized the agricultural output. Neither is put in the cash and the investment to build juice-factories as promised in Amuru, That has been promised for so long, as people are giving up in Katakwi District. This is the reality.

Therefore, listening to the President bitch about the lack of modernization and industrialization of the Republic. Is his fault, as he has put in the work and the ability to change the business models. That is because the way the state does with investors and designate cronyism. Where the businessmen have to political connected and make sure to grease the wheels to get it running.

It is a nice idea to get Ugandans to buy Ugandan products. But then you have to deliver good Ugandan products to fair price, also make sure it is competitive. There are lacking issues and basic need to make sure the possible produce could create added-value. Instead the quick profit and direct exports is the reason for lack of more currency. That would help the republic and make more money without to heavy investments, while using what they already produce plenty off.

While the state has to figure out if they want this, because this could help them to gain another monetary gain. But they doubt they will, because right now, it is the short-con and the quick-fix instead of actually building something for the future. Peace.

Opinion: Taxes get levied deliberately, not by a mistake!

Again, the Mobile Money and the Exercise Duty Tax Amendment of 2018 are proven to be without due diligence. There so many aspects that is left behind. This time it comes from the Minister of Finance, Planning and Economic Development (MoFPED) Matia Kasaija. Whose now is trying hard to wash his hands from the added taxes on the public. Like it would make a giant difference between a half percentage or 1 percentage of the transaction in taxes to the state. Yes, there is a difference and the cost are still hitting the public and making Mobile Money more expensive before even spending it.

This is the proof the National Resistance Movement (NRM), how they have rushed these taxes to please the President. Because there hasn’t been enough consultation or proof of the possible outcome of it. Other than some numbers hitting the wall and hopeful earnings for the state. The state needs revenue, but will they bill themselves into more trouble, as they are hitting the poorest the most. Which doesn’t use banking services. They use Mobile Money for their transfers and use the Cellphones for their transactions. That is why is worrying for the public.

The Excuse from the Minister:

““The NRM caucus and Cabinet sat and agreed on 0.5% instead of 1%. I don’t know what happened,” he said. Last week, Parliament passed a 1% tax on mobile money as part of the Excise Duty amendment Bill. The opponents of this tax say that the 1% tax on mobile money will hurt the economy, its people and it is counterproductive. “I am sorry. I was out of the country when it was passed. I will have a discussion with the President and maybe by the time I read the budget next week, a solution will have been found,” Kasaija said” (Wamala, 2018).

It help to be on vacation. I wonder if the President did the same during the Age Limit debacle, as he traveled around the globe. While the skirmishes was happening in the Parliament. Now the Minister says the same. That he now will try to fix it. No matter if he reverse it, it will still add more cost to the consumers and the ones who needs the Mobile Money. A service that is needed, as the banking system isn’t for everyone and neither is the day-to-day lives of many able to even be parts of it. That is because the state has left these groups of unemployed and poor behind.

What still worries me, is that there are no scope of the possible effect and what it will do to the economy. If there will substantial growth or down-turn. If certain groups that is hit, will be worse of and struggle more. Then the question is, will the added revenue be used in other parts of the economy to boost their need for services or just to pay off old debt?

Because, these taxes will be felt by the amounts of people who struggle, who has little or nearly none. There are plenty of them. These will pay-off huge sums for them, because this is subtracted directly from their salaries and sales as hawkers and traders, farmers and whatnot. Just sending money to relatives in up-country will be more costly. This is clearly just sending the memo, that the digital age is in for the taking and the advantages are becoming more expensive.

This wasn’t error, this was deliberate, even if you we’re away Mr. Kasaija. You can try to save face, but its better to reverse before speaking out. This is you trying to look good for the spotlight before addressing the Parliament. That is all. Peace.

Reference:

Wamala, Maria – ‘Mobile money tax was passed in error – Kasaija’ (05.06.2018) link: https://www.newvision.co.ug/new_vision/news/1479138/mobile-money-tax-passed-error-kasaija

Lack of Due Diligence on the Exercise Duty Amendment Bill of 2018!

The nine page memo on the Exercise Duty Bill Amendment of 2018 is an insult to everyone who cares about governance. The leaked Report from the Ministry of Finance, Planning and Economic Development (MoFPED). Is really just a carbon copy of the initial taxes and rubber stamping the bill without any considerable efforts, arguments or questions to the new taxes.

It is weird that the MoFPED can get away with lax work and lack of work ethic, lack of reasonable numbers and crunches of statistics. Proof that this is actually good for society, that the new taxes on Mobil Communications, Mobile Money and Cooking Oil is of an calibre good. Alas, that is not the case, the report isn’t spelling out that. It is just saying, That it is just unfair that ones actually calling is paying taxes, but the ones using mobile data is not. However, isn’t the Telecommunication Companies already paying huge level of taxes on their profits of every sale of airtime? So now just topping it off by adding taxes on Social Media Apps and on Mobile Money? Also the VAT on the Airtime as well?

You have the tax on the airtime, tax on the profits on the airtime; you will have tax on the usage of social media and mobile money. Meaning the state gets revenue from nearly all aspects of usage of the phones. Soon you cannot open anything without withdrawing money from your account as the state is billing you extra for the top services. They are calling this “over the top service” sort of like all the benefits the Members of Parliament has and is billing on the Republic.

Therefore, reading this report, that no one questioned it or had any concern, that no one said anything or looked into the amount of usage and the cost on the cell-phone user. Neither, the added cost on the basic household for any of the new taxes. Show a unpleasant disregard for the hardships of the citizens in question. You cannot expect to be enlighten on 9 pages of a report, you cannot, because your not digging deep into a problem or a situation on a 4 page brief. Your just touching the subject matter and disregarding the issues at hand. The Parliament has recklessly added this taxes, as the President ordered in his letter. The letter from 12th March 2018 dubbed “Re: Lack of Seriousness in Tax Collection”. As they are just following his words and not considering any implications. That is what is bugging me.

If these was serious MPs who cared about the constituents and the citizens in general, before imposing taxes, they would see what estimates and who would be hit. Secondly, what it would do with quality of life and consequences for the poorest of the Republic. That is if they cared about that. Apparently, they don’t, because they are just whistling after the President and his every whims.

The people should be insulted by their MPs and their lack of understanding, their lack of concern. They should be ashamed to have this sort of people representing them. That they cannot have any of these following government bodies to do, due diligence on the amendment:

Uganda Communications Commission (UCC), National Identification and Registration Authority (NIRA), Uganda Revenue Authority (URA), Ministry of Finance, Planning and Economic Development (MoFPED), and Ministry of Information and Communications Technology (MICT).

All of these should have delivered some sort of report and proper framework, the actual costs and the implications of these taxes on Mobile Money and Social Media Tax. However, the didn’t do that, because they don’t care.

Neither did URA or MoFPED. They just didn’t care to put in the work and show the reality of these proposals. They are just blindly following the blind, aka the President. That is what they do and people have to suffer because of it. Paying much more for service, being invoiced as long as they have the possibility to use the services. That is what the Exercise Duty does, that is what the state do to its citizens. Peace.

Opinion: Trump impose tariffs on Steel & Aluminum from the EU, another proof that the world cannot trust the US anymore!

The world doesn’t need enemies, it already have Trump, President Trump. He doesn’t care and shows no tact, no mercy and no sort of dialogue. That is proven again. Now that he has over night decided to impose tariffs on Aluminum and Steel from the European Union (EU). It is like Trump wants the US to be alone in the world. That is what he is getting closer to every single day.

When your not making sure the friends of United States gets to trade with reasonable tariffs, then who do you let do that? Why does the United States think they are so special that they can hit another continent like nothing. This is just like they pulled out of the Paris Agreement on the Climate, as the US don’t want to part of the global fight against climate change. We also seen the US has pulled out of the Iran agreement, making things worse in the Middle East. That is done while the US Embassy was moved to Jerusalem and weapons delivered to Saudi Arabia. This is all decisions that makes the world more fragile and hits the nerves of the regions.

Now, the EU is imposed tariffs, which are done because of Trump’s imaginary vision of supremacy, instead he is losing end. As people knows with every day, they cannot trust the United States. Even Angela Merkel said that during April 2018. There is more and more proof, that the world cannot trust Trump and the US Government. It is erratic and unstable, it is a house of cards.

President Trump policies are short-sighted and without vision of consequences. The US will not salvage this industry, this will just make the products made with this more expensive before the industry get better sights and hired more educated people to work in the industry. You cannot just build steel mills over night and nether have the educated engineers like that too. This isn’t making copyrights on random products, this is actually producing and making them.

I don’t think that Trump knows this, he thinks of ancient ways and wants to be Cesar and rule everything without any consequences. But Trump should know that the EU will react to this, they will put reactionary tariffs on products and American goods valued the same as the industries they hit in the EU. So that the different partners are making sure the Americans get to feel it too.

The US should know, that all of this doesn’t make friends, but more people looking at them and mind boggling thinking. The US Government, we cannot trust or really count on. They are just using everyone and making sure the rest is hit. While the US wants to get away without any responsibility. But the reality will hit them, when the EU answers with imposing tariffs on US goods too. That would be a natural reaction. Hopefully hit a nerve with the President and his allies. Since that was what the EU planned in the past to answer it.

Let’s see how this goes. But it is not a good look. Only making things more hostile and letting the world know. The US cannot be trusted, they are misusing their position and will only make the global diplomacy harder. Peace.

Uganda is still not ready for IMF’s PCI!

“The Policy Coordination Instrument (PCI) is a non-financing tool open to all members of the International Monetary Fund (IMF). It enables them to signal commitment to reforms and catalyze financing from other sources. The establishment of the PCI is part of the Fund’s broader effort to strengthen the global financial safety net—a network of insurance and loan instruments that countries can draw on if confronted with a crisis.” (International Monetary Funds – ‘IMF Policy Coordination Instrument (PCI) 26.07.2017).

This here is really spelling out the missing dots in the budget and monetary policy wise, as the IMF has concluded a visit, but told that certain aspects are missing. Even explaining that the Republic have to be careful about borrowing money. As the Republic tend to do these days for all sorts of projects and building infrastructure all around the country. However, the IMF isn’t praising Uganda, the IMF is telling what it needs, if they want to be part of the PCI. That is important, because being part of that, then the state will have systems and ways to gain outside sources of funding and also safety mechanisms in the needs of rainy days. Therefore, following this program would be healthy for the economy, but will the National Resistance Movement and President Museveni comply to this? Would they?

“The authorities have made progress in setting economic policy objectives for FY18/19 and the medium-term. Fiscal policy seeks to keep public debt at a sustainable level which requires raising tax collection and prioritizing spending needs, while protecting key infrastructure projects and social expenditures. Monetary policy targets core inflation of 5 percent. Bank of Uganda aims to maintain international reserves at 4 to 4½ months of imports. Structural reforms would focus on revenue mobilization, public financial and investment management, reducing domestic arrears, enhancing financial sector stability and development, and putting in place the remaining elements of the framework for managing future oil revenues. The mission reached agreement on many key elements of a possible 3-year program under the Policy Coordination Instrument, but further progress in some areas is still needed. Once the FY18/19 budget has been approved as agreed, the mission could resume discussions” (International Monetary Funds – ‘International Monetary Fund (IMF) Staff Concludes Visit to Uganda’ 31.05.2018).

It isn’t the first time the IMF and World Bank says there policies and monetary programs needs changes, needs to be amended and fixed, so it is safer. This is something that always comes back. The NRM are clearly not listening or interested in listening. They are pre-occupied with the handshakes of the State House and the insider trading that they like to do. Not have accountability and transparency, because then all the tools of the shed is in the open. President Museveni doesn’t want his ghosts, his fake projects and his forged paperwork to be in the open. That would hurt his pride and also humiliate him. That is the reality of it all.

Therefore, the state has a long walk ahead still, even with the new revenue sources, as they are not considering the implications yet on the public. Just more revenue for revenues sake, but not how hard the new taxes really will have. They will hurt the public and the poorest the most. Nevertheless, they are not a concern for the state; they are more bargain chips for needed donor funds anyway.

President Museveni will not be interested in opening the books and showing the reality. We know that, therefore the PCI will not introduced shortly, neither will the accountability or transparency change either. It is not in his interest to revolutionize that. Then he would humiliate himself, which he only does to Opposition leaders, not to himself. Peace.

Uganda: The lowest paid civil servants would be hit by the Social Media Tax, up to about 20% of their total yearly salary!

You know that is wrong, when the state is issuing taxes that is insane. This is really banishing the poorest from certain aspects of life. By the time of November 2017, the lowest paid salaries for certain government employees are yearly about 250,000 shillings likes the U8 Local Government Workers. Others are the likes of U7 Primary School Teachers about 380,000 shillings. These are the lowest paid staff in and around in the Republic. Meaning this will be hit by the newly minted taxes that the state has imposed today in Parliament. This being the Excise Duty Amendment Bill 2018. These are on all different aspect of life and on needed services, products that people need, that will all become more expensive.

The reports said this about it!

Parliament has passed the Excise Duty Amendment bill 20l8 by imposing one percent tax on every mobile money transaction and 200 shillings on social media. The tax measures approved by parliament are close to 1 trillion shillings and government argues that they will help in improving the tax base of the country” (Mbarara Sun, 2018).

The approval implies that each person using platforms like WhatsApp, Facebook, Viber and Skype among others, will be subjected to a daily levy of 200 Shillings while each mobile money transaction will be subjected to a 1 percent excise duty. The government is projecting to collect 284 billion Shillings from the measures” (Open Gate FM, 30.05.2018).

There are also some that has calculated it be costing the citizen up to 70,000 shillings on a given year, as the person has to pay the 200 shillings for the use. That will happen from the 1st January 2019. If that is so. Out of the lowest salary, if your paying the total on the Social Media Tax, you will go from 250k to 180k. That is 28% of the salary paying for being on social media alone. That is the poorest of the poor, the salaries which is usually not on time and they are even not getting by. They are the ones that is closed out of the new services and places for information like the Social Media. This is shutting out the poorest from the Social Media, this is only making sure the elite and wealthy can log-on, but the rest will not afford it.

Who wants to use 20% of their salary to go on Facebook, Twitter, Viber and WhatsApp? Who wants to do that? Will people use the VPN to not show their IP Addresses to still come into the Social Media Accounts without paying for the barrier that the Republic has put forward.

This is really making sure the society and space of voices sounding disconcern on social media and in general on the internet. This is closing the web for the poorest. Taking a bargain of about 20% of their check in big swoop. I just wonder how they will enforce this and how they will monitor all accounts, all the log-ins and the grand issue of technical framework to put in place within the spectrum of 6 months too.

It is not like the same state together with the Mobile Industry was able to roll-out the registered Sim-Cards and whatnot over the last two years. It has been hectic, a charade and a mess. It hasn’t been professional or sincere, there been backpedaling and all sort of fatigue within the system. You cannot say the Sim-Card saga was smooth. Then you look into all the government organizations and the orders, which went back- and forth.

Time will tell how the state will enforce this one, this is not just adding a tax, but also the software and the addition of systems on the Mobile Phones. If they all have to be updated and get agreements for payment walls on the Social Media Apps and such. Will that also be on the Computers and whatnot? What is the legal framework that puts this in? Other than the 200 shillings per day!

We should really get people to address the 70k shillings a year possibly, that is lot of money. For some about 20% of their salary. That is just too much for browsing on their phone and looking at what Maureen made for dinner and what Steve wrote about Mao. But that is just what the National Resistance Movement (NRM) are doing.

200 shillings is really nothing, but when you take the whole piece of the puzzle collectively, just imagine all the other taxes put in this bills too. Are they taking 9 slices of the bread and leaving one behind to the taxpayer. Is that what the state is trying to do? Since they are already just on the Social Media Tax alone on the poorest civil servants and the local government workers who cannot afford to go there, because they have to decide to pay rent, food or school payments. Because when this is becoming this much of the salaries. You know just know this hurts the people in general.

This isn’t funny. This is serious. This is theft of the opportunities for the poorest in society. Peace.

Reference:

Mbarara Sun – ‘Parliament Endorses Tax On Social Media, Mobile Money’ 30.05.2018 link: http://mbararasun.com/index.php/2018/05/30/parliament-endorses-tax-on-social-media-mobile-money/

Opinion: Is the White House for Sale?

This is a question that the Americans should ask themselves? Because, I am wondering as a foreigner, if my Kingdom doled some funds on Jared Kushner or on Ivanka Trump’s bank-accountants. Would  the Foreign policy will change because of that? That is a important paradigm shift from the Trump Administration.

Other, then being supportive of horrific migration policies towards immigrants and the ones who has liven there for generations, because it is only White America who deserves to live in the United States. The rest just living their and squatting there for time being. That is the memo the White House is sending out recently.

However, are the for rent signs on the lawn in front of the White House? Are there ads on Craigslist? Or is there unknown LLC that are in connection with the White House and delegates the newly operations from the Trump Organization abroad. As the Trump Organization and Kushner Companies continues to operate more abroad, getting loans from Qatar and Saudi Arabia. If not getting dozens upon dozens of Chinese Copyrights, while trying to build Hotels and Golf Courses all around the world.

Is this how the arrangements are done now? That you shake hands, trade-off deals with foreigners to companies in connected with the Trump Royal Family and then let-off the hook of the Nation in question. So if the need the US Army, the US Trade or lifting of sanctions, that will be softer after signing of deals with Ivanka or Jared. Because the Foreigners will deliver them a few silver coins, if their sanctions are lifted or trade of state companies get a better deal with the US; Because they gave some little money to the White House Royal Family.

The royal family, which is allowed to be revised over 40 times and as they didn’t follow procedure for their forms. Still to get security clearance and all the perks of the White House. This is happening as they are still enlarging their pockets and trading away their value at the Public Office. They are really playing high stakes with the Republic.

It is like they can buy and trade policies now, the foreign interference is evident and the change of narratives comes quickly, especially if the ones in this Trump Administration gets a pay-off. If there is need in a government agency, if the lobbyist or company needs changes of policies.

Remember pay someone off, especially pay off the Trump Family and relatives, then you get the princess and the whole kingdom. They are easily giving way, as long as the profits are returned and delivered to a random company of the Trump Organization. If it is money laundering or any other operation. As long as the Trump businesses get their cut, they don’t mind, that is what they do.

The White House is for sale, a giant haul sale and the evidence is in every story published, as the days go. I wonder how much does it cost to get them colluding with the Russians? Because surely that had a initial price. Surely, cost more than a box of crisps and a trademark in China. Peace.

DP Ruto: Your gig is up!

Deputy President William Ruto is one of a kind. The kind that uses fine words and speeches, the ones are defending values, but his actions differs from that. He has finessed the game, using his influence and his value in the system to gain monetary funds. This at a rampant speed, that the check-books cannot recover or even account for the funds. His play-by-play book is made for unaccounted funds and for forging results.

Therefore, a man who has earned a well-fortunate salary in his position, still his wealth over the years has risen astronomically. His houses, his business and his ownership is like a Jeff Bezos of Kenya. The DP has a village called home, own newspapers and whatnot, who knows he has gotten in his hands and pockets. It’s like a giant fountain of money that spiralling in his veins.

He is the guy that praises the rule of law, but orders to not respect the court orders. He is the sort of man who speaks of fighting corruption, but is corrupt as hell. He is the sort of man who speaks of accountability and transparency, while he himself accepts bribes, graft and unaccounted funds in boatloads. He is the man who speaks in twisted tongue, but expect people to speak honest to him.

DP Ruto, we know you now, we know what your up too. We have seen it for years. It isn’t cool anymore, we know that your in your place for one reason, not to serve Kenya, but serve yourself. You are in position to enrichen yourself and your family, not to be representative for Kenya. If it had been so, you wouldn’t be the famous hustler and the famous go-to-get wealthy politician vibe. Because that is true.

We know you own K24, The Star, Karen Homes, Osere flats in Rongai, Major Amaco Insurance, Oseng Properties Limited, Orterter Enterprises Limited, Weston Hotel, 680 Hotel and Uasin Gishu Residence. This you have gotten on your meagre salary. Billions upon billions in property and ownerships of companies, while earning only millions. You cannot make this up. You have also bought a copper and whatnots of cars within your time in office. Therefore, we know you speak, but do financial warfare.

So please, don’t speak ill of corruption, when you’re the benefactor and owner of it. It wouldn’t be like this if your salary and your benefits was sincere, if your role in government and wealth was real, as your eating like there is no tomorrow. Grabbing whatever possession there is and taking it. We see that, as step by step your grabbing ownership of vital plots, of vital news organizations and also producers, which will generate more income. But in the first place, you shouldn’t have the capacity or wealth to be able to get these. Your not earning enough to be here.

So the gig is up. We know you. You can speak those fine words. But we know the reality, the fantasy is all in your mind. We know that and you cannot say otherwise. We know you will, but it is valued as nothing. None. Okay?

Just stop, it is not funny. Peace.

The simple reason for the rising prices of UNGA!

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)

Link: https://www.standardmedia.co.ke/business/article/2001280557/why-unga-prices-are-about-to-go-up

Planned established Task-Force against Corruption: What about the EACC, DPP, IGP, DCI, Ombudsman and AG in Kenya, aren’t all of them enough?

ODM LEADER Odinga says a task force to end corruption will be established, and that claims he has been silent on recent scandals are untrue” (Nation Breaking News, 26.05.2018).

That Raila Odinga has today on the 26th May 2018 has said there is soon an established a new taskforce to combat corruption in Kenya. Well, I have my doubt about there mandate and their place in the hierarchy. That is the Office of the Director of Public Prosecution (DPP) Noordin Haji, the Ethics and Anti-Corruption Commission (EACC) Chairman Eliud Wabukala, Inspector General of Police (IGP) Joseph Boinnet, Director of Criminal Investigation (DCI) George Kinoti, Ombudsman and Auditor General (AG) Paul Kihara Kariuki,

That a proclaimed new task-force seems insane and outrages, like they are playing and toying around the subject. They already has the DPP, EACC, IGP, DCI, Ombudsman and the AG. All of these should have more than enough provisions and mandate to stop the grand corruption, the minor corruption and the petty theft from public institutions. However, seemingly all of these are just cashing in their checks and take the small fry. As the Jubilee Party and the government are to preoccupied with eating, to see that they are eating state services. This corruption is so grand and big, that the state services are failing because of it. While the state is adding more and more debt to cover the shortfall, which is created by the government itself and feeding itself.

All of these agencies, institutions and security organizations should have the ability to cover, find and build cases to get people detained and convicted for corrupt behavior. However, that is not in the interest of the party and the heads of the state. They cannot be taken and their elites, which is eating of the plate. Cannot be touched or be questioned for their mischief against the state. They are allowed to steal and take public funds for personal gain. That is the evident activity.

Therefore, with this in mind. It is foolish to add-on a Task-force in the midst of all these bodies. Where is the mandate, who is it running too and what sort of legal boundaries does it have? What is the provisions for its activity and jurisdiction? Will it answer to the AG, IGP, Ombudsman, DCI or the DPP for that matter? Or will it be a part of the EACC, which is such a soft gum-ball of a government institution.

That is why it is healthy to ask what will it do, that all of these others are not already involved in and who do they answer too? Are they blind muppets of the EACC or anyone of the other organizations? Since there are so many to be under and who just needs the provisions and the legal framework to allow the Task-Force to work under them. If not are it totally separate, will to actually investigate the lack of investigations inside the others as well?

I don’t have the answers, but I feel there should be enough legal investigatory bodies within the republic to get rid of corruption. If the will was there and if the will was really there, it should be enough. All of them should have the capacity, the ability and the legal standing to combat corruption. However, they are either gutted, silenced or not being used properly, because the elites, cartels and the ruling regime is stopping what they could expose. That is how it seemingly is and how it clearly is pushed.

That since they don’t have the ability to fight it within the bodies that are there, but it is really a sign of failure, when all of these are irrelevant and the government might start yet another one. What about the rest? Are they there for the pay-check and go home? Is that it?

That is how it seems. Peace.