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.
“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.
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)
Today’s news that the National Youth Service (NYS) is hit with another wastage and corruption scandal is like having the issues of 2015/2016, all over again. The Jubilee Government shows they are all talk about corruption, but their institutions and government are not doing anything about it. Seemingly, similar fashion of siphoning funds continues. That is why now two years after the previous scandal in the same government organization, the same sort of affair is exposed.
The new one is with a new Cabinet Secretary Margaret Kobia and a new NYS Director Richard Ndubai, they are both doing the same biding as the ones in the past. The same sort of tricks and issues, that are really just showing the indifference in eating the public’s money. This while doing favors and dropping funds on ghosts and cronies. Who knows where the monies has ended, but it has not done what it was supposed to do. Therefore, the new brigade of leaders, are doing exactly the same as the ones in the first term of Jubilee. This is carrying on tradition!
It is a tradition to finds methods of thieving public funds, as the lack of oversight and governance is built in within the system. You have agencies and legal organizations whose supposed to look into this, but they are not really interested into investigating their own. Unless, they are slapping a minor fine on people who has stolen billions. They are thieving billions, while paying a minor fine of a one million or two. Therefore, the crime is paying-off the elites, they don’t have to mind, because they won’t suffer anyway. They get away with it and smiles to the bank.
That is why the Jubilee are in the midst of another NYS Scandal, this time 2.0. They are on another level, this time with tenders, which was served with ghosts. In the last go around it was fictitious companies and projects connected to the Director who got cash. Who wonders who earned on the fake tenders this time. Someone had to earn fortunes for doing nothing, while the state piled monies into their accounts. It most have been great days to sell nothing and getting millions into the accounts.
NYS Scandal 2.0. was anticipated, the grand corruption are following Kenyatta and his government. That is maybe why he asked people to donate to Red Cross recently, because he knew giving money to his government, someone he knows will eat it. It will not help the public. It will only help the elite and the ones in close connection to the any given ministry.
There isn’t anything positive to take from this, but just proving the impunity of the state. When they can just ditch all guidelines and steal directly from state organization. They do it without any scruples and thinking, no one will mind, no one will say anything and they know it will cost very little. The price to pay for doing it is minimal and nearly none. When you take billions, you pay a meager million. That is profitable. To say otherwise is naive. To be blind to the fact, that being corrupt is grand business, it is enriching and who cares of the consequences.
Because you get rich doing practically nothing, you can sit in the shade of the sun, build mansions, own SUVs and go to expensive shopping-malls, while the rest is slumming. Since you are eating and can enjoy the spoils of the state, as you are feeding ghosts and non-existing ideas. That is fating your pockets. That is why you don’t have to care and worry, you will get paid anyway, while the supposed activity is never happening. Peace.