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Archive for the tag “LAPSSET”

PBO: Kenya is borrowing without all requisite policies in place (Youtube-Clip)

“The government is borrowing without proper revenue planning or policies that factor in revenue growth challenges. This, according to Parliament’s Budget Office, coupled with the growing need to finance projects, will see the level of Kenya’s debt increasing in the coming year, which is already a cause for concern for some” (Kenya NTV, 2016)

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Opinion: Jubilee Government, are they fiscal responsible for their current running debt?

Kenyatta Ruto 09.08.2016

Today is a day where I have questions and they are big because when you crunch the numbers for the last three fiscal years and estimated debt ratio it’s start to be worrying. It isn’t a sweet and tender way of asking. I know, but the numbers and the citizens will have to repay the amounts of borrowed cash at one point. As the Japanese will not deliver second-hand vehicles to the hospitals forever like they did during either this or last week in Kenya; Kenyan Government shouldn’t base their budget on handouts, but on tax-monies. The budget now is worrying as the levels of budget that are borrowed as it is going directly to portfolios that are day-to-day business instead of giant infrastructure development.

Why do I say that? Because each year you can question the ratio between the debt and the development projects; like in 2013/2014 the debt we’re 330bn, but the development 224bn. That is a 100bn used on day-to-day instead of building roads to Ethiopia or planning the Standard Gauge Railway. Take look!

In the 2013/2014:

At the fiscal year ending the 25th July 2014 the budget debt we’re 330,440,692,719.35. That means there 330bn debt, which we’re 25.8% of the National Revenue. National Government budget spent on development we’re 224,355,607,699.00 or 224bn.

In the 2014/2015:

At the fiscal year ending 24th July of 2015 the budget debt we’re 400,249,353,175.10. That means there 400bn debt, which we’re 25.1% of the National Revenue. National Government spent on development we’re 270,320,838,230.00 or 270bn.

In the 2015/2016:

At the fiscal year ending the 22nd July of 2016 the budget debt we’re 683,479,898,203.50. That means there 683bn debt, which we’re 36.9% of the National Revenue. National Government spent on development we’re 333,170,357,469.90 or 333bn.

So as you see, the FY 2013/2014 isn’t the worst. FY 2014/2015 is the start of loose government spending. The Jubilee all of sudden borrow 400bn and spends 270bn. That is 130bn that is used on day-to-day business, with loaned fiscal funds instead of the ordinary tax-base that the government should be fixated on. So with the last year FY 2015/2016 the Jubilee went all out in the stratosphere and borrowed from any bank or institution possible; as the debt we’re 683bn and the development we’re 333bn. That is 350bn that are used to day-to-day business and not development. The question remain why the sudden giant loan ratio towards the last year before election and why the lack of projects to use the newly granted funds.

The fiscal responsibility seems weak and not there when a government can splash this kind of funds and use this amount of debt on day-to-day instead of big projects and infrastructure projects needed. I am sure DP William Ruto has more friends that can be sub-contractors for some Chinese infused borrowed road projects around Kisumu. But, the ability to sustainable development with the steady rise of debt is worrying. That the IMF and World Bank is saying the debt ratio is still feasible should be worrying. As the IMF and World Bank never had control of the worst years before the Greece defaulted and needed saving grace from the world around it. The worst comes to worst when the Kenyan Government starts to default and reach it’s limit they have to have a mercy on the Jubilee and the counterparts who are paying for loose fiscal behaviour. The worst comes to worst with the giant amount of added fiscal funds might give the economy a edged inflation and bank rates that weakens the Kenyan Shilling as the deficit between reality and what is really used.

You can wonder why the Jubilee wants to hedge up so much loans and government debt. When the FY 2013/2014 and FY 2014/2015 we’re the net domestic borrowing around 300bn, but by FY 2015/2016 it become 500bn. That is a jump of 200bn of Domestic Borrowing. That should also be questioned together with the ratio already in the budget. This doesn’t seem like a healthy fiscal policy. The public should question the use of the borrowed domestic and total ratio of debt. The governance levels and accountability of the funds should be asked from Opposition and also the Auditor General. The Inspectorate of Government the IGG or Ombudsman should hassle the hustling Jubilee who has gained these funds and been responsible for the allocated budget and inquired for the option for loans to development and day-to-day use.

What do you think? Peace.   

Kenyatta with a Statehouse Summit on Transport and infrastructure; not a good look for the Jubilee!

State House Summit 08082016

“I understand that everyone in the rural areas,the MPs, the MCAs,Governors and all aspirants are claiming responsibility for any upcoming infrastructural project.They are fighting about who lobbied for what and who talked with whoever and who met whoever……..it’s not a question of who lobbied for any development be it roads,electricity connection,building of schools and many more….it’s a question of giving service to the forty to forty two million Kenyans who pay taxes.Hii Maneno ingine yote haina maana” – Uhuru Kenyatta

President Kenyatta has today a State House summit on transport and infrastructure projects in Kenya under his leadership and the Jubilee Government. That has soon finished their first term in the presidency. They had pledges upon pledges when they went into government.

They wanted to build a giant and fantastic electric quick railway. The Standard Gauge Railway and also develop the Lamu Port through the LAPSSET project with fellow neighbors. The Pipeline of crude-oil from the Northern Kenya in Kerio Valley in the Lokichar Basin to the upgraded Lamu Port; where the Jubilee Government also wanted the Lake Albert crude oil from Uganda to go to. Something that fell through as the licensed companies in Uganda though it was too costly to build through Kenya compared to Tanzania. So the Kenyan Government has to do it on they’re own. As the LAPSSET it is waiting for private enterprise to engage and use their monies on the planned infrastructure.

KAA Changes

The other issues are stadiums not built in regions where it was promised the fields of glory never came. It was easy to promise the district towns a sports facility, but none of them came to fruition. The others developments we’re that from Kenya had 30 Air-strips before Jubilee and by now they have 50 of those. Still, the discussion on the failed development project and upgrade of Jomo Kenyatta International Airport (JKIA) have not been an issue as the embarrassing project it is for the ruling regime and their PR team.

“There is corruption at the port. Find out who among the people in this room are thieves” – Uhuru Kenyatta.

There are always some issues and even after years in power and set change with rule of law. The Jubilee government tends with the same fractured system, the corrupt Mombasa port where the monies that makes all import more expensive and still they haven’t instilled checks and balances to Ports and therefore the extra taxation of the imports happen on a daily basis. As the corrupt mind and bodies continues to thrive with the speaking up against it, but not dealing with it in Parliament or by sanctions of law.

The Jubilee government has dozens of plans and pledges, as much as they have foreign loans to build the projects from the World Bank, International Monetary Fund and the Chinese. The extent of debt collected by the recent new loans has come to 49% of GDP. In April 2016 the Jubilee Government had collected $1.35 billion in debt, while fixing a massive deficit in the Kenyan budget. Still, this is worrying as the debt and interest has to be repaid to the International lenders and development banks which the tab is taken from.

Kenyan President Uhuru Kenyatta (L ) and his Chinese counterpart Xi Jinping (R) stand together during a signing ceremony at the Great Hall of the People in Beijing, China 19 August 2013.

Kenyan President Uhuru Kenyatta (L ) and his Chinese counterpart Xi Jinping (R) stand together during a signing ceremony at the Great Hall of the People in Beijing, China 19 August 2013.

This was not discussed at the Summit and where is the money for the development projects coming from as they shouldn’t just surface out of thin air. Just like the roads and rails need wages, plans, dialogue and trade to get built. As the landowners need to be compensated together with the companies building the roads need paid for service rendered. Therefore the business of infrastructure is expensive as the giant projects cost a fortune because they are supposed to stay for long and be kept for decades on.

The same with all the roads not taken care of as the feeder roads of the Northern Kenya, which is left in mud and dust; the focus on three Nairobi by-passes to fix the congestion of the capital. Not thinking of other towns who could need extra bypasses like Eldoret or other where the Jubilee doesn’t deliver the needed infrastructure, except if it is fitting with the border-passes and agreement with nation on the other side who needs roads of exporting through Kenya there. Therefore the Summit is more a PR Show, than proving real progress as the corrupt, the debt and all the other problems are destroying the champion sound and roar from the Jubilee Government under President Kenyatta. Peace.

13th Summit of the Northern Corridor Integration Projects – Joint Communique (23.04.2016)

13 NCIP Joint Communique P1 201613 NCIP Joint Communique P2 201613 NCIP Joint Communique P3 201613 NCIP Joint Communique P4 201613 NCIP Joint Communique P5 2016

The Battle for the Oil the Coast; Double pipelines seems to be the END-game: Kenyan on their own, while Uganda picks route through Tanzania!

Kenyatta Ruto

There was not too far ago when the Government of Kenya was dreaming in their wild pipedream to advance their own ideas and manage to hook the Ugandan Government so they wouldn’t continue with the progressive agreement with Tanzanian counter-parts. In the end it seems like the waves are long gone. The wind from Lake Albert never seemed to turn.

LAPSSET_South-Sudan_Kenya_Pipeines-and-Lamu_Refinery_Map

We had to wait until 23rd April 2016 to be reassured that the President Museveni and his NRM could not be persuaded to be a continued or locked into the LAPSSET:   Lamu Port Southern Sudan-Ethiopia Transport. So it would be from Hoima, Western Uganda into the Northern Kenya bypass into the prospected lines would go there both from Ethiopia and South Sudan down to the shores and bays of Lamu Port.

Instead Uganda have continued and promised to honour the 2015 Memorandum of Understanding with Tanzania the Uganda–Tanzania Crude Oil Pipeline (UTCOP); that goes from Hoima or Lake Albert through the Tanzanian nation down to the shores of the Tanga Port. This is also because of the agreements and assurance of both governments and also the new Oil-Drilling companies in Uganda like Total and ENI. They have also spoken their peace and does not feel safe as where the Pipeline goes through uncertain areas of Kenya.

Tanzania-Uganda-Pipeline_0

So there will be two pipelines and in close reach and also with distinguished end-game; as the economic prospects are changed, the rates for oil-transport will be lost in the sight of Kenya. The Kenyan cannot now have future prospects of the oil-rates and jobs as a Pipeline gives. They will have cough-up the funding and most likely more borrowed money for the grand infrastructure.

The Ugandan will use funds and borrow monies to fund the pipeline-building and also give tax-payers and jobs in Tanzania. The rates by just transporting the oil from A-B will be a good tax-base for the Tanzanian Government. President Kenyatta hoped that his close relationship would help him and also with his Deputy Ruto also campaigning for Museveni to give something back. Seems like that didn’t help as the President Kikwete already have sweetened the tea and offered something that also helps to calm down the Oil-Drilling investors and their envelopes.

Keter Citizen TV

CS Keter of Kenya must be disappointed as his detained moment in Tanga Port came to nothing and the KDF forces inside Somalia are the reason for the fallout. Though I doubt that is the main reason. That is the diplomatic reason from the Ugandan Government. Ugandan Government and NRM-Regime is about money. They are all about the money, therefore the non-accountability and non-open tax-regime. The Ugandan Government would never say that is the main reason, but if Total, ENI and CNOOC words and tax-base is the current controlling the reasons for President Museveni. As he wants them on his side; so he can have secret deals with the Oil-Companies and keep the low-key taxes; not to talk about the un-disclosed agreements between them and the government of Uganda.

Therefore I am not surprised I think they only went into the talks in Kenya to please their neighbour and trading-partner as the relationship have soften over the last few months and the President of Kenya and President of Uganda have cherished more time together. As President Museveni have played the big-man and asked for suitors while waiting for the words from the Oil-Companies. The excuse of not taking Kenya is certainly been given by the Oil-Companies as the Ugandan President will only take the highest rates and the lowest fees for the construction. We can see that the borrowed monies that will be used should have low-charges and be clearly not too bad to GDP or the national inflation.

Kenyatta Museveni

Still, the matters remain how the relationship really is between Uganda and Kenya. As they have fought over the little Migingo Island and chicken export fiasco. An the Recently also covered a squabble over Yellow Fever Notes to give to Border Patrols to be relieved and be allowed to Enter into Kenya from Uganda. So with the decision to abandon all hope for Kenya and totally give way to Tanzania; will be hurting the pride of the Harambee in the coming weeks. Especially since the Kenyan has tried to get the Ugandan’s to use their port instead. This backfired and didn’t work.

I hope that this doesn’t stop the other Northern Corridor Integration Projects (NCIP) as of the Standard Gauge Railway and others that can connect the nations and bring softer transport of people and goods between the East African nations. Certainly the matter is at hand and the justification would be “terrorism” as why the pipeline didn’t get extended. Though I believe it is much more to say “cash money” and in general the black gold revenues.

This here will certainly be uncovered over time and the real reason will show-up by the Al-Shabab is a deflection and we know the gig is up. Peace.

The Marsabit Expedition (Youtube-Clip)

“The Isiolo – Merille-Marsabit Road is part of the Lamu-Port-South Sudan Ethiopia Transport (LAPSSET) corridor funded by the government and the European Union at a said cost of 13.7 billion shillings.The entire road is smooth apart from a few areas still undergoing construction such as bridges and a stretch of 30km to Marsabit Town” (KBC News, 2016).

Statement by the Heads of State of Kenya, Uganda, Ethiopia and South Sudan on the Lamu Port Southern Sudan-Ethiopia Transport (LAPSSET) Corridor Project

EA State

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