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.

Kenya: Drought Alleviation (Government Food Subsidy) Programme (15.05.2017)

Port of Trouble: IVS Pinehurst arrival story and origin from the Jubilee doesn’t make sense!

The ship coming to the Port of Mombasa in Kenya, the IVS Pinehurst, which is owned by the Nisshin Shipping Co. Ltd, which is part of the Pool Operation at the Hansa Tankers. That is based in Bergen, Noway, so the Pinehurst is a bulk carrier. It is flagged through the Philippines. It’s call sign is DUHUB and it was built by Tsuneishi Cebu in 2015.

On Vessel Finder, the 13^th January 2017the Pinehust was in Mumbai (ex. Bombay), India at 13:04 UTC. The next port it was in was Toamasina, Madagascar, which was on the 19^th February 2017 at 11:04 UTC. The last port before Mombasa was at Port Louis, Mauritius on the 22^nd April 2017 at 12:03 UTC. As the Port of Mauritius reveals, is that the vessels discharging coal. Therefore, the vessel had to be filled with maize before leaving for Mombasa. Carriers from Port Louis to Mombasa on route alternatives takes about 19 to 22 days. Therefore, the vessel couldn’t really have been so many days in between the tracking on Vessel Finder and suddenly in Mombasa. Especially, since it delivered coal to Mauritius.

So when the Government of Kenya says this about the vessel, you start to wonder if they even know how to google or even if other people knows how to search for maritime vessels. I don’t really do that, but found quickly out this information from sites that verifies this.

Therefore, the verified news from from Business Daily Africa:

“However, Transport Principal Secretary Dr Paul Mwangi said the maize was stored in South Africa and the vessel took only five days after importers were given the nod to ship it into the country.“The white maize was imported from South Africa from Mexico last year when there was a shortage in that country. The excess amount was stored in Durban and sold to Kenya by Inter Africa Gains PTY of Johannesburg,” Dr Mwangi said at the Mombasa port. “The maize is therefore Mexican White maize which was transhipped into Kenya from South Africa. The ship takes only five days to sail from South Africa to Mombasa and that is why the maize arrived quickly,” he added” (Marete, 2017).

So I wonder if Dr. Mwangi knows the internet and the inner-works of this. As it doesn’t take much searching for me find all these information, if the PS Mwangi, think that wasn’t enough. The Mexican Embassy in Nairobi has today officially said: “MEXICO DENIES direct deal on maize with Kenya and has no declarations on any commercial transactions, embassy in Kenya says” (NationBreakingNews, 15.05.2017). So that the PS Mwangi are saying this seems to be a lie. There are certainly something the Jubilee isn’t telling, as the Duty Free was decided and quickly as the duty free maize and sugar. Came into effect just days ahead of the shipments coming to ports. Peace.

Reference:

Marete, Gitonga – ‘ Maize was shipped through South Africa, State now says’ (15.05.2017) link: http://www.businessdailyafrica.com/news/Maize-was-shipped-through-South-Africa-govt-says/539546-3927934-p0wqcl/

Communique of the Embassy of Mexico on the Sale of Non GMO White Maize to Kenya (15.05.2017)

New Study Finds Worrying Climate Trend in Karamoja Over Last 35 Years (20.03.2017)

Released in Kampala today, the ‘Impacts of Climate Change on Food Security and Livelihoods in Karamoja’ found that temperatures have been rising in Karamoja over the last 35 years.

KAMPALA, Uganda, March 20, 2017 – A new study carried out by the Government of Uganda and its partners has found a new weather pattern that threatens to worsen food insecurity in the Karamoja region if no action is taken.

The study found that the average monthly rainfall in the region increased over the last 35 years and that the rainy season is now longer by two months. However, the rains – which now fall from around March to the end of the year – increasingly varied in volumes. This unpredictability was found to undermine agricultural production, thereby threatening to aggravate food insecurity in Karamoja.

Released in Kampala today, the ‘Impacts of Climate Change on Food Security and Livelihoods in Karamoja’ found that temperatures have been rising in Karamoja over the last 35 years.

The rising temperatures threaten to increase the frequency, intensity and duration of heat waves in the region, therefore reducing availability of water for crops and animals. This too undermines food security.

A large majority of people in Karamoja, particularly women, were not aware that changes to the climate had been taking place over decades, the study states. However, most of the people that had perceived changes to the climate had not taken any action to adapt, typically because they did not know how to do so. Where trees were planted as an adaptation measure, the sale of charcoal and firewood were also a common measure that people took in response to climate-related crop failure.

Sponsored by the Swedish Government, the study was carried out in 2016 by the Ministry of Water and Environment with support from the United Nations World Food Programme (WFP) and the CGIAR Consortium’s Research Programme on Climate Change, Agriculture and Food Security.

The Uganda Minister for Water and Environment, Sam Cheptoris, said today, “These are significant findings that threaten any hope for Uganda achieving its Vision 2040 and the Sustainable Development Goals (SDGs), if no immediate action is taken.”

Cheptoris said that his Ministry was already calling for a national and regional response, advocating for climate change sensitive approaches across all Government sectors, educating the population about climate change, and undertaking emissions profiles.

“Karamoja’s population is heavily dependent on rain-fed agriculture, which is highly vulnerable to climate change,” said El Khidir Daloum, WFP Country Director for Uganda. “However, little has been known previously about the impacts of climate change on food security, and in particular, the ability of households in the region to adapt.”

WFP hopes that the findings and recommendations of the study will contribute to efforts toward appropriate adaptation measures while helping to identify policies that will safeguard the most vulnerable communities in Karamoja.

The study recommended that the Government and its partners increase investments in water harvesting and agroforestry schemes, education of the people, improved access to climate change information and the cultivation of drought-resistant crop varieties.

Within the Ministry of Water and Environment, the study was carried out by the Climate Change Department and the Uganda National Meteorological Authority.

1.6 million People affected in hunger crisis and other growing issues in the agricultural sector in Uganda!

The Republic of Uganda has certain areas that have been affected with the drought and the lacking rain, which has affected the yields and output of food. The areas that has been in dire straits since El-Nino is in Teso, Karamoja and West Nile; these areas are in different stages, but all as worrying as the 1.6 million people are in a crisis situation, while 26% of all population or 9.3 million people are in a stressed situation. Let’s take a deep breath and look at the numbers coming from the offices of Prime Minister Dr. Ruhakana Rugunda. That has delivered this numbers and they are worrying.

“An estimated 1.6 million people (5% of the total population) are in Crisis situation. Those populations are found in Central 1 (0.58 million); Karamoja (0.12 million), Teso (0.2 million), East Central (0.38 million) and South Western (0.31 million) regions. This population has widening food consumption gaps with deteriorating dietary diversity and high malnutrition rates. They are found in Central 1 (0.58 million), Karamoja (0.12 million), Teso (0.2 million), East Central (0.38 million) and South Western (0.31 million) regions. The affected population includes the poorest households with poor food consumption score, low meal frequencies of up to 1 meal a day and low dietary diversity of less than 3 food groups. They have poor purchasing power as their incomes are low and no food stocks at household level. They are mainly coping through food assistance, remittances from relatives, begging, stealing food, wild food gathering and irreversible sale of productive assets to buy food. This population currently needs assistance to bridge the widening food consumption gaps and avert worsening malnutrition” (Office of the Prime Minister, 2017).

You can wonder what is the plan of the Republic when they know that the people have poor purchasing power, while the dwindling yields of the small-farming in these regions, doesn’t have the purchasing power of central regions. The trades and lacking production has equally hurt these citizens in Teso and Karamoja. Therefore the drought and lacking rain-fall has made the situation worse, as much as the rising refugee camps also getting aid and support from United Nation organization. While the republic have not galvanized agricultural structures and supported the citizens in dire need. This shows that the state has forgotten the reason for its existence. But there are more!

“An estimated 9.3 million people (26% of the total population) are experiencing Stressed situation. Those populations are in East Central (1.88 million); South Western (1.24 million), Teso (1.1 million) and West Nile (1.04 million) regions. This population has minimum adequate food consumption, employing insurance strategies and are unable to afford some essential non-food expenditures. The prolonged dry spell due to La Nina phenomenon coupled with increasing incidences of crop and livestock pests and diseases such as Cassava Brown Streak, Cassava Mosaic, maize stalk borer, striga and Banana Bacterial Wilt grossly affected production reducing the availability and accessibility of food for this population. The low crop and livestock production negatively impacted household food stocks leading to increased reliance on markets for food. Increasing demand from external markets has induced food price increases, making it difficult for poor households to access food from the market. Deteriorating water and pasture conditions mainly in the cattle corridor have resulted in migrations of livestock keepers, reduction in livestock production and increased spread of livestock diseases. The over whelming influx of refugees from South Sudan has increased demand for food and services in West Nile region” (Office of the Prime Minister, 2017).

So it is bad that 1.6 million people are lacking resource, possibility to produce food, but also that the state doesn’t deliver help or aid to the people. The other numbers of affected people, shows even more the systematic defaults of the state to achieve good production of agricultural output, as the problems with crops, livestock and diseases that shown with Cassava Brown Strak, Cassava Mosaic, Maize Stalk Borer, Sriga and Banana Bacterial Wilt. All of these should be worked on and nourished by the state, through agricultural programs that stops the spread of diseases. This should be important at this stage by not only the Office of the Prime Minister Dr. Ruhakana Rugunda. Minister of Agriculture, Animal Industry and Fisheries Hon. Vincent Bamulangaki Ssempijja should have used the institutions to find solutions to the added strains in the agricultural industries, together with one of his State Ministers.

That the Ministry of Agriculture and Hon. Ssempijja has been lacking guidance as well as funding, most been shown when the millions of affected citizens are the result of little or no plan on important industry as it is. Where so many work and could need state structures to help and guide. There are lacking instruments and use of government institutions to help out in the dire need. Even find out ways to stop the growing problems that makes such a big part of population affected. When a state has 26% of it affected by various issues and the State can find ways to sort it out, than that should be priority, not to buy airplanes and cut taxes for the MPs, but to fix the agricultural yields and water-irrigation that needs. Peace.

Reference:

A Publication of the Office of the Prime Minister – Department of Relief, Disaster Preparedness and Management – “The Official Government of Uganda Inter- Ministerial/Agencies Monthly National Integrated Multi-Hazard Early Warning Bulletin

15th FEBRUARY to 15th MARCH 2017” Volume 01. Series No. 01. Issues No. 04.

South Sudan: UNICEF sounds alarm on ‘catastrophic’ food insecurity in country (06.08.2016)

5 August 2016 – The United Nations Children’s Fund (UNICEF) said today that it is responding to a growing food security emergency causing malnutrition in children in both rural and urban areas of crisis-gripped South Sudan.

“The situation in South Sudan is catastrophic, and even more so for children,” UNICEF spokesperson Christophe Boulierac told a news briefing in Geneva, where he also pointed out that so far this year, the agency has treated 120,000 children under age five for severe malnutrition; a nearly 50 per cent increase over the same period in 2015.

Initially, UNICEF had been planning to provide support to 166,000 children in 2016, but that figure has been revised to more than 250,000, he added.

Seven out of the country’s 10 states have reached the malnutrition-rate-emergency threshold of 15 per cent, while in Northern Bahr el Ghazal, the malnutrition rate stands at 33 per cent, he explained.

UNICEF has also noted a sharp rise in malnutrition in South Sudan’s urban areas, including the capital, Juba, where the rates of children admitted for malnutrition to UNICEF-supported Al-Sabbah children’s hospitals were some 20 per cent higher in the first six months of 2016 than for the same period last year. The spokesperson cited the country’s inflation rate as one of the main reasons for the high increase, explaining that it made basic household staples too expensive for many families.

Mr. Boulierac stated that while UNICEF could not provide figures of children dying from starvation, “one quarter of a million children in South Sudan are facing severe malnutrition.”

According to the spokesperson, with a number of roads inaccessible, the ongoing conflict has further limited UNICEF’s ability to respond – leaving, in the most urgent cases, the more expensive option of air transport for delivering supplies.

Additionally, Mr. Boulierac stressed that “due to insecurity and the rainy season, UNICEF staff in South Sudan are unable to be fully mobile and deliver their goods and services.”

Mr. Boulierac said that of the $154.5 million UNICEF needs for South Sudan in 2016, the Fund had, to date, received only $52 million to assist with water and sanitation; child support services; nutrition; health; and education.

He indicated that more than 900,000 children have been displaced in the country, which – with 1.8 million children, or 51 per cent of school-age youngsters out of school – also had the highest proportion of out-of-school children in the world.

“An estimated 16,000 children had been recruited by armed groups, and there were concerns that the renewed violence would lead to a further expansion of that practice,” explained the spokesperson.

He also called attention to the fact that sexual violence and rape had been used as a weapon of war, saying “all the ingredients were there to be extremely concerned.”

Between 8 and 25 July, at least 72 civilian deaths and 217 cases of sexual violence had been documented in Juba alone.

The spokesperson for the Office of the UN High Commissioner for Refugees (UNHCR), William Spindler, added that the total number of South Sudanese refugees in the region stood at 917,418 – most of whom are sheltering in Uganda.

The recent fighting in South Sudan between rival forces – the Sudan People’s Liberation Army (SPLA) loyal to President Salva Kiir and the SPLA in Opposition backing First Vice-President Riek Machar – erupted in and around Juba, on 7 July, close to the fifth anniversary of its independence.

The young country has faced ongoing challenges since a political face-off between the two leaders erupted into conflict in December 2013. The crisis has produced one of the world’s worst displacement situations with immense suffering for civilians.

Jebel Marra Crisis – Fact Sheet (24.03.2016)