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

CS Bett blames consumption of UNGA for the UNGA Crisis!

Certainly, one of these days the Jubilee government Cabinet Secretaries going to wake-up from their sleep and start to act with common sense. Since the release of subsidized maize and opening imports, the markets has not overflowed with Unga. Neither, the reality that some of the millers kept stockpiles of it, as they knew they would be subsidized from the state. So why sell it months ahead, when you can keep it steady and unleash when you get double bonus. The Jubilee government knows this and therefore right on the day of the subsidized maize and the possible export provisions came into effects. Boats with foreign maize came pouring in through the ports of Mombasa.

“He witnessed the arrival of 12,000 bags through the Rift Valley Railways yesterday. “To ensure every Kenyan enjoys the Sh90 subsidised maize flour, all maize from Mombasa will be removed using SGR, RVR and trucks,” Bett said. In two weeks, the market has been experiencing a shortage of unga. “Since we started the subsidised programme, we have witnessed more Kenyans preferring unga, thus the high demand for maize flour,” he said” (Ngotho, 2017).

CS Willy Bett, need some guidance, needs some reassurance and some sort of stiff upper-lips for insulting fellow citizens. It isn’t the sudden love for UNGA. This the staple food. This is what Kenyans are known to eat. UNGA, Ugali or Posho (Ugandan I know). Still, the maize flour meals is not a well-kept hidden secret. It would be like taking potatoes as out of the equation when feeding massive parts of Northern Europe. That is just the staple food. Period.

The CS clearly, has some internal issues and need to stop thinking he can deceive fellow citizens. As the indicated exports combined with the stockpiling was very evident. That people are buying lots of it now, is because they might even fear for more scarcity. Since it isn’t only drought, but man-made problems that has given way to shortage of UNGA.

It is time to wake-up for Mr. Bett and smell the UNGA. Time to see and relieve his fellow brothers and sisters. Not just find excuses upon excuses and think it can save his grace. You do not take away some-ones staple and think you can get away with it. Seriously, that is insulting. The insinuation and undermining of the needs and the will of Kenyans. Are evident in his approach to the UNGA crisis. This should not be forgotten, because his grace has clearly not done his job and then blames the citizens for either their staple food! Peace.

Reference:

Ngotho, Agatha – ‘Kenyans eating more ugali to blame for unga shortage – CS’ (20.06.2017) link: http://www.the-star.co.ke/news/2017/06/20/kenyans-eating-more-ugali-to-blame-for-unga-shortage-cs_c1582605?platform=hootsuite

Kenya: Seem like a public deception with artificial prices on Maize as the “GoK stamped” Maize arrives in stores!

You know something is fishy when the markets suddenly has maize flour in the stores as the 2 kg packaged that is produced in Kenya and milled in Kenya. This comes as the fixed subsidized prices comes into effect. Cabinet Secretary Willy Bett, the Ministry of Agriculture, Livestock and Fisheries, who has been in Port of Mombasa in the recent days. Being proud of the delivery of imported maize flour.

That their been shortage and that the markets has had less in storage is the evidence of the escalating prices. Therefore when COSMO millers comes with milled in March 2017 and is expiring in August 2017. Also, that the shortfall in between the fixed price and the balance has to be covered by the state. As the prices has clearly gone to high and than the government stepped in. But the ones coming of the boat during this week. Couldn’t suddenly appear in the shop. It had to be taken care of and repackaged, even milled if it was pure corn.

That the package of the milled maize flour now has the label of GoK, as the Jubilee fronting their good work. As they trying to look like they stopped a scandal and shortage. The Government clearly has either ordered the millers, agreed with the millers or tried to put a shortage to suddenly see the likes of COSMO filling the market with stock. The 30,000 tons of IVS Pinehurst couldn’t jump into the market this quickly and change into subsidy “GoK 90/-”, which is today’s new feature in Kenya. They want to look like a saviors, instead of the ones who created this. But it is suspect that milled in March dropped on the marked instant after the subsidized maize we’re released. It seems like clockwork.

So the questions doesn’t stop with the sudden drop and the evident approach. As Port of Mombasa and Millers clearly has worked in accordance with the government. As they had the papers for the package of flour and could quickly deliver it to the shops. Therefore, this seem like a planned enterprise as the delivered flour, which should gone from port to millers. Really hit the stores in amp-speed. Little two quick for that amount.

It makes it seem like it all was a short-con by the Jubilee, to gain popularity on the staple-food. As their stories of origin of the vessel and the maize, that even been countered by the Mexican Authorities, as well as the vessel came from Mauritius and not South Africa. There are certain aspect of this story, that seem like a ploy. To get the prices down, but at the same time make sure the millers are getting more for the maize, than they did before. Also, make sure the profits are steady on the grounds of drought and yields. As the subsidized maize flour will surely benefit the private producers, who already earn on the higher prices.

There are questions that will not be answered, the reality is that there are certain signs that Kenyans shouldn’t be duped. Surely, the price is better now after the subsidize from Jubilee. Still, the look of artificial prices and sudden drop that the government can do. Also, that the millers could label GoK so quickly. Shows there certain aspects that the Jubilee and the Millers didn’t consider. The suspicious intent is because the Jubilee has always been more promotion and PR than actually considering their policies. That is the legacy they will leave behind. Peace.

Press Statement: Food security to remain stable or improve slightly during March to May long rains in Kenya (30.03.2016)

Rainfall across Kenya has been light and erratic, but it is expected the March to May long rains will be fully established by early April and an on­time harvest is still likely. The long rains are forecast to be near average in cumulative amount, partially influenced by the ongoing El Niño.

Household food security is expected to improve slightly in most pastoral areas, starting in April, as the long rains restore pasture and water resources. Households are migrating their livestock back to homesteads at this time, resulting in increased household milk consumption and providing income from the sale of livestock products. Despite slight improvements in food security conditions, the majority of pastoral households will remain Stressed (IPC Phase 2).

Household food security in marginal agricultural areas is likely to remain stable, supported by the previous above­average short rains harvest. Agricultural wage labor is available at typical levels, with land preparation ongoing and dry planting in some areas. Most households will remain in None (IPC Phase 1) through at least June when the green harvest will be available.