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.
I have issues with President Uhuru Kenyatta and Corruption. He has talked so long about battling it. However, nothing of substance happens. There are some political arsonists who is taken out, now and then. But the systems is more of the same. There are parts of judiciary and parts of government that are supposed to work directly against Corruption. Neither does them seem very interested to touch the high-ranking ones and their connected elites. Which eats of the embezzlement, graft, kick-backs and money laundering. This is done at a scale, which isn’t funny.
Why I don’t believe the President isn’t only because of NYS Scandal 1.0 and 2.0, the Ministry of Health tricks, land-grabbing by random individuals within the government or the Eurobond. But because of the report alone, which stated in June 2018, that Kenyatta’s government since 2013 until 2018 the rate of corruption had grown with 240%. That is why I doubt that this man, who is in his second term and final. Really cares about the fight on Corruption. He can lie to Western Media and the BBC. But the reality is that his government is rampant with Grand Corruption and we know it.
Some key quotes from yesterday:
“It is something I am committed to do. It is what I want my legacy to be—the fight against corruption, and transparency, and to ensure that the nation’s resources are used in the manner it should be” (…) “As a government, as an individual, I am committed to this fight. This is an animal, this beast of corruption, is an animal that we intend to slay. What is remaining now is for our independent judiciary to do its job, and give justice for and on behalf of the people of Kenya” (…) “We can even go back to my grandfather, great grandfather. . . What we own, and what we have is known to the public. If there is an instance where someone can say what we have done is not legitimate, say it, and we are ready to face any court” – In an exclusive interview with the BBC Hard Talk’s Zeinab Badawi, President Uhuru Kenyatta” (Patrick Lang’at – ‘Kenyatta: Lifestyle audit can go back to my great grandfather’ 29.08.2018 link: http://www.theeastafrican.co.ke/news/ea/Uhuru-Kenyatta-on-Lifestyle-audit/4552908-4734014-143fnxi/index.html).
I have hard time believing this will be his legacy, the fight against corruption. Especially with his track-record. He is more likely about to tarnish the stability of the Kenyan Shilling and add enough debt to the Chinese. So, they have to trade away vital Mombasa Port or even rent away the whole Standard Gauge Way. As the Belt and Road Initiative (BRI) is made for that sort of transactions. That is if he is careful with his outstanding debts, as the state officials are eating more and more of the tab. This while the president claims to fight the rampant grand corruption.
He is maybe playing like a big-shot on BBC. However, when he comes home, it is back to our time to eat. He can be the king and the fighter abroad, but when he comes home. He will stay cool, only take out the ones who are in his way or to prove to point. The rest will get away with the evident thieving and grand corruption. That is to be expected, the ones who is charged is political motivated and done to take down, the previous power or the ones the Jubilee doesn’t need.
If this was his legacy, all the governing bodies wouldn’t have become worse in his time, but had stopped growing since Kibaki. Alas. That isn’t the case. Peace.
This week the Kenyan President Uhuru Kenyatta have stopped his signature development projects just a few months into the second term as a President. This must be connected with the agreement with the International Monetary Funds (IMF) done earlier in the year. Because that would make sense. The Jubilee is clearly not delivering, while the prices are surging and also the growing debt of the Republic. Kenyatta is surely following the protocol of the IMF, but he is putting like it is his idea. But when you looking into the documentation from the IMF, you can see the connection between the two. First is the review of the IMF and also Kenyatta statement from this week.
IMF review of Kenya:
“The mission welcomed the authorities’ plans to accelerate reforms aimed at (i) increasing the efficiency and transparency of public spending, particularly on development spending; and (ii) safeguarding financial stability by strengthening capital and liquidity positions of banks and microfinance institutions, promptly addressing the capital and liquidity deficiencies in individual banks, and implementing new International Financial Reporting Standards (IFRS)” (…) “The authorities requested a six-month extension of the SBA that expires on March 13, 2018 to allow more time to complete the outstanding reviews of the IMF-supported program. In support of this request, the authorities have committed to policies to achieve the program objectives, including reducing the fiscal deficit and substantially modifying interest controls. Discussions on the details of these policies will continue in the coming weeks” (IMF – ‘IMF Staff Concludes Visit to Kenya’ 07.03.2018).
“President Kenyatta said the directive is aimed at stopping wastage of resources and the habit of government agencies abandoning incomplete projects before jumping onto others. “There will be no new projects that will be embarked on until you complete those that are ongoing,” said the President who spoke at the Kenyatta International Convention Centre where he addressed a meeting bringing together all government accounting officers including Principal Secretaries, Parastatal Heads, Vice Chancellors of Public Universities and Chairmen of State Corporations. The President said projects that might be exempt from the freeze will be only those that are directly aligned to the Big Four Agenda but even then there must be a written authorisation from the National Treasury. “Even if new projects are aligned to the Big Four they cannot be started without express authority from CS or PS of the National Treasury,” said President Kenyatta” (PSCU – ‘President Kenyatta Freezes All New Government Projects Until Current Ones Are Completed’ 19.07.2018).
Because when you connected from the review and Kenyatta you get this:
First: “The mission welcomed the authorities’ plans to accelerate reforms aimed at (i) increasing the efficiency and transparency of public spending, particularly on development spending” (IMF, 2018) and than the President saying: “There will be no new projects that will be embarked on until you complete those that are ongoing” (…) “Even if new projects are aligned to the Big Four they cannot be started without express authority from CS or PS of the National Treasury” (Kenyatta, 2018). Because they are stating the same sort of things. Even stating that the authorities are ordering to stop new projects and stop spending, just like the IMF. This is proof of the connection and the reason for the push to stop the purse-string and austerity measures in the line of the IMF. This must be because of the growing debt and also the extensive spending that has been done over the first years of the Jubilee government.
To see this, is to see how the IMF is playing the cards and controlling the debt-ridden republic, which has the graft-drifting and embezzlement from high-ranking officials. That is why the growth of corruption in Kenya has been up 240% by the Jubilee government alone. This should be a warning because of the massive loans and corrupt behavior. Even with the stop of the development projects. Also, abolishing for now the Big Four Agenda, the baby of this administration.
Therefore, the Kenyan is pocketed and controlled, that is why we know that the Republic is indebted and have lost a bit control of their tab. When they have to stop spending and issuing this sort of order per request of the IMF. That is not a sign of strength, but out of weakness. Peace.