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Archive for the tag “Edward R.O. Ouko”

President Kenyatta wants to overtax the public to cover the deficit [which is half] of the budget

President Uhuru recommends revision of mobile phone transaction excise duty to 20% from 10%, bank transaction 20% & phone, internet costs 15%” (K24 TV, 18.09.2018).

When seeing the new planned taxes from the Jubilee, this meaning the Kenyan President Uhuru Kenyatta and Deputy President William Ruto. It all makes sense, as the new budget as explained underneath is really special. As the graft-ridden, debt-raising government under these fellas are continuing, even as the state is payer bigger and bigger slice of the budget to repay old debts. That is why austerity and ensuring a proper would be priority, however, the Jubilee are really planning an overkill. That is why the explained issue is very clear!

If adopted by the MPs on Thursday – during the second special sitting, the budget will reduce to Sh2.971 trillion as the government fights to bridge the huge deficit because it is only able to raise about Sh1.6 trillion” (Daily Nation, 18.09.2018).

When the Daily Nation calls it a huge deficit, it is half of the budget. It is actually over half of the budget that is a deficit. These funds has to found somewhere, if they are printing money to fill this gap, than the Kenyan Shilling will loose value and soon be valued less than the Ugandan Shilling. That is something Kenyatta doesn’t want to spoil his legacy. If this means more debt, than he he continuing an evil circle of renewing old debt, while adding new debt to pay for the deficit. This shortfall will not be covered by these taxes proposed in the Finance Bill. As these will also ensure that people are closing off from the Mobile Money, using banking less and also later less online.

The Kenyan Government instead of adding growth, they will actually tax themselves into recession and even depression. As the lack of currency will appear, as the monetary system in the way of taxing transactions and mobile money, will discourage people and make life in general really expensive for paying for needed services. They will find other informal ways of doing it or even more in cash, as they will save paying the added fees. People are made like this and the Safaricom M-Pesa will be hit, just like Mobile Money was hit in Uganda earlier this year.

Kenyatta should have learned from that experience, as the Mobile Money and Transaction Tax will hurt the citizens and also ensure that the poorest will find other ways to pay their bills. As they cannot afford and will use other ways of getting the things they needs. Therefore, if the Jubilee government did their due diligence, they would explain these taxes. Instead, they are unleashing them without paperwork. That means they are just to cover the shortfall, but not by finding ways of creating wealth, but taxing everyone. Hoping the funds will magically appear and find ways to pay old debts.

If Kenyatta could print money and just pay the creditors off, that seems like his dream. However, he knows that is a bad idea. Instead, he picks to overtax and kill the economy, as the transactions and movement of money will be costly, this will constrain the public and not create development. Certainly, this will backfire. But at what level is what known, but if the deficit of bewilderment wasn’t bad enough. The overtaxing of the citizens will really put the public over the barrel. Peace.

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Kenya: National Transport and Safety Authority – Deregistration of PSV Operator Licenses (17.09.2018)

President Kenyatta promise more austerity measures!

The Kenyan President Uhuru Kenyatta have today pushed for a lower VAT on Petroleum, not showing why it gets cuts in half, but still will charge the public more in taxes. While state is promising more cuts in all arms of government. This from a government that has borrowed more spent more and been more corrupt, than any other I can think off. The Jubilee government have a ten-fold of corruption scandals since its inception. Therefore, if the government would clear its yearly shortfall quickly, the embezzlement, frauds and tender scandals has to stop. Also, the open looting by the high-ranking officials and their cronies, which for some reasons skates by, while the funds are running short. That why it is further insult to injury of the public, that the Wealthy President and his rich cronies are asking for a sacrifice. How could he?

Here is his statement:

“Fellow Kenyans, I have spent the last few days listening to a wide cross-section of views. It is clear that you are all troubled by the effect of the rise in the prices of petroleum products, and its impact on the cost of living. I have heard and understood your concerns, which is why I have proposed, as part of my memorandum, to cut VAT on petroleum products by 50% — from 16% to 8%. Should Parliament accept this proposal, the price of super petrol will drop from KSh 127 to about KSh 118, and the price of diesel will drop from KSh 115 to about KSh 107. Just as business owners took the new VAT rate as an opportunity to increase the cost of goods and services, I expect them not to take advantage of weary citizens, and to lower their prices commensurately and without delay. But we still face a financing gap. This measure will not suffice to balance our budget, as required by law. Therefore I have also proposed wide-ranging cuts in spending as well as austerity measures across all arms of government. The cuts target less essential spending, such as hospitality, foreign and domestic travel, training and seminars, and similar categories. These budget cuts ask of us in government that we tighten our belts. It also ensures that the sacrifices made by tax-compliant Kenyans are matched by discipline from all of us in the public service” (Uhuru Kenyatta – ‘STATEMENT BY HE THE PRESIDENT OF THE REPUBLIC OF KENYA AND COMMANDER-IN-CHIEF OF THE DEFENCE FORCES, UHURU KENYATTA C.G.H., ON FINANCE BILL 2018/2019 ON 14TH SEPTEMBER, 2018’ (14.09.2018).

This here shows how he thinks and manoeuvre, instead of thinking directly how the elites, the cronies and the central leadership to pay for the shortfall, the added debt and growing corruption will cost the public and not them. The austerity and the lack of service providing, even salaries and lack of needed services will come with time. As the defaulting debt and the restructuring that is programmed through the IMF will hurt the communities.

Kenyatta knows this, but trying to deflect and finds ways to smoothing the hurt, but not initially changing the paradigm. The reality is that the state are struggling financially, have over-borrowed and secured massive debts, it now has to pay with interests, while also swiftly embezzled funds to the high-ranking elites, which are not paying for the short-fall, but the tab is put on the public instead. That is the insane reality and the swindle of the century.

There are usually two sides to ever story, and two side to every coin, but the man who has both created it the issue, are now trying to find ways to billing the debt on the public, without taking direct responsibility or going after the ones who created this in the first place. They are off the hook and off the books. While the public will be left with the costly back-payment and figuring out to pay it back. Day-by-day. Peace.

Opinion: Why isn’t Chiloba in more trouble?

We can start to wonder, what does it take to go from an internal audit of tenders and files within the Independent Boundaries and Electoral Commission (IEBC) after the General Election and Fresh Presidential Elections of 2017 to go into a real inquiry and direct investigations into the manners of what really was done during that period?

Because now in 2018, there been internal problems and deflections, as the IEBC has tried to shield themselves and tried to make themselves clean without even during cleaning. They have tried to fix things, without doing anything else, but for appearances sake.

Today’s news:

POLICE ARREST Chiloba PA Abednego Ominde and acting IEBC Finance director Agatha Wahome after attempt to sneak out 14 procurement files” (NationBreakingNews, 13.09.2018).

The suspension of Ezra Chiloba haven’t changed anything, there are Commissioners who has returned as they was even paid while they had quit their offices. Therefore, the whole IEBC seems shady as it is and Wafula Chebukati doesn’t seem to handle it very well. As the trust of the organization is lack-luster already and today’s activity is just a long string of ill-activity from the government organization.

Chiloba must really be shielded by the high-above, Chiloba have to be connected up-high and gotten suction from either the DP or the President. Because Chiloba are suspended, but still pulling strings within the organization. The Internal Audit which is continuing, are not seemingly addressing the manners of 2017 or anything that glaces trust towards the electorate. There are just more mere saga of drama, without any smoking gun.

Chiloba can act all out and play innocent in these manners, but we know there are more to it. As the rigged elections, lack of transparency and lack of electoral reforms are the reasons for the issues that are there today. That Chiloba continued and Chebukati, as well as the rest of team, expect for Roselyn Akombe who has left the scene. The rest have returned and the reality right now is that IEBC can do whatever and get away with it. As the IEBC gave the results the Jubilee needed and now they just need to make a circus so that it seems to changes of guards, but the reality is they are gearing up to do more of the same later. Without anyone looking into the servers, the connections to Cambridge Analytica or the OT Morpho. Everything are just moving like nothing.

Chiloba is just half-stepping and gets away, the IEBC does the same. There is no promise. Chiloba are just acting out and so does the organization. Chebukati doesn’t feel this or acts stressed. They are just playing the public without any smoke or fire. It is just acting out, but no real change. That should worry Kenyans, but they have more dire needs with more cost of life, more taxes and a broke state with growing debts. Peace.

Kenya: Energy Regulatory Commission – Statement on Reported Boycott, Intimidation, and Economic Sabotage by a Selection of Petroleum Re-Sellers (05.09.2018)

Kenya: Minister of Energy and Petroleum CS Kamau – “Re: Computation of Value Added Tax on Regulated Petroleum Pump Prices Exclusive of Levies” (04.09.2018)

Kenya: The Judiciary – Memo on ‘Robing in Court’ (29.08.2018)

Kenya: Energy Regulatory Commission – Addendum to the Maximum Retail Petroleum Pump Prices Released on 14th August 2018 (01.09.2018)

Kenya Revenue Authority: Value Added Tax Charge on Petroleum Products (01.09.2018)

Kenya: DPP’s Press Statement on Investigations into the Allegations of Misappropriation of Public Funds through Mismanagement of Fuel Consumption (31.08.2018)

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