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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 13th 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 19th February 2017 at 11:04 UTC. The last port before Mombasa was at Port Louis, Mauritius on the 22nd 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)

Kenya’s Political Parties Vulnerable to Cartels? (Footage)

Suddenly, President Kenyatta want to deal with souring food prices, but has no solution outlined!

You know something is wrong when the basic food items like Maize flour, Rice, Milk and Sugar are going up in Kenya. This has happen during the term of President Uhuru Kenyatta and Deputy President Willam Ruto, the Jubilee Coalition. That the President takes so easily on it during the campaigns, proves that he has forgotten the common plight. This isn’t just a drought that brought the higher prices, there is systemic defaults that the government has to be concerned about. Therefore, the President coming out and saying this!

In his speech the President also criticised the opposition, which he described as a coalition crafted to get job for its four leading figures. He described the leader of the opposition as “a man who does not know how to solve problems but only knows how to talk about problems”. The Head of State said the Government is working on an appropriate plan to deal with the rising cost of maize flour. He revealed that Parliament will be recalled soon to come up with legislations to deal with the issue of food prices. We have been quiet about this issue but we have been working on a plan and soon Parliament will resume soon and it will come up with a lasting solution,” said the President” (The Presidency, 2017).

That he says the Opposition only talks about it, it is him who has the power and have the majority government. President Kenyatta has had all the possible time to create and make sure the citizens and businesses could thrive. Instead their been years of problems for Mumias, corruption scandals and in general not the sort economic policies that the Kenyan people or businesses needs. Therefore, the news of 10 coastal hotels closed in the recent months. The higher prices on electricity and other basic food items. Proves that the government has not facilitated it for citizens.

This can be proven with the added debt and deficit that the Kenyan government has risen. That the loans have been misspent as well as corruption scandals, which has proven that it isn’t only the Port of Mombasa where it is, but the central government has certainly their mismanagement. There been chickens inside the IEBC, NYS Scandal, JKIA, and so many others.

Inflation in the month of Aril has been reported to have increased to a record high of 11.48 percent. This was as a result of the ongoing drought that has hit most parts of the country and therefore forcing commodities to increase in prices so as to reach the markets set target” (Shawiza, 2017).

Just as Barclays has spelled gloom over the Kenyan economy, because the President cannot like going into a tight and highly anticipated campaign when the state struggles with this:

In various supermarkets around major towns, shoppers are being met by empty shelves. Those who spoke to Nation lamented that the increased prices had hit them hard, forcing them to forego some meals in the day, especially to save for school fees. In a country where maize remains a staple food, the price increase has left many households suffering. Even with the government intervention, the prices of a 90kg bag of dry maize is still high at Sh5,200 in Kisumu, Sh4,700 in Mombasa and Sh4,500 in Nairobi” (Daily Nation, 2017).

There we’re reasons for this, since the rise of prices doesn’t come in vacuum, the President and his government knows that, but has stayed ignorant, because they seem to confident that they will be in-charge after the coming election. Therefore, he should trade the waters more careful, unless the Jubilee is rigging it. However, the prices are hurting the citizens and the people who are supposed to support the party.

They have already struggled with months of uncertainty with the IEBC and the Doctors strike as they both have proven the systemic problems inside the republic. This is something that the Jubilee government has festered and not cleared the shop. Instead of building trust, they have tried to stop it like they detained doctors, they tried to silence the demonstrations against the corrupt IEBC board.

So with the rising state debt, the rising prices on food stuffs and the mismanagement of government funds. That the Jubilee attacks the NASA for their deals is the only good thing they have, but it is not sustainable as their own are awarded. So I cannot believe in that, that the NASA only favors and give jobs to their own. There are similarities there, but the Jubilee shouldn’t complain about giving favors, when they have built their own system doing so. Also, giving credits and envelopes to smaller parties for their support!

President Kenyatta should not for populism, but for the concern of the issues of the higher prices on the basic foods. Since this affects all citizens and their pockets, as well as stores and shops are getting empty on the shelf’s, not only Nakumatt who has struggled for months, but also others. Therefore, the are grand issues in the economy, if it wasn’t so than the banks like Kenya Chase Bank Limited taken control by the Central Bank of Kenya. If all of this issues are not handled, together this all proves there are governance structures and policies who needs changes. Since the state are clearly forgetting their sole purpose to facilitate life for their citizens, not secure wealth for the elite. Therefore, the Jubilee, has to prove they really care, as the inflation and debt ratio is rising to levels that the President should anticipate. Not try to control after it hit the fan! Peace.

Reference:

Nation Team – ‘Kenyans tighten their belts as prices of goods soar and shortages bite’ (03.05.2017) link: http://www.nation.co.ke/news/Families-hit-by-soaring-food-prices/1056-3911702-pigm45z/index.html

Shawiza, Vera – ‘Cost Of Living: High Food Prices Reason For Increased Inflation’ (03.05.2017) link: http://sokodirectory.com/2017/05/cost-living-high-food-prices-reason-increased-inflation/

The Presidency – I will work tirelessly for Kenya’s prosperity, President Kenyatta pledges’ (06.05.2017) link: http://www.president.go.ke/2017/05/06/i-will-work-tirelessly-for-kenyas-prosperity-president-kenyatta-pledges/

Uganda: Civil Society Position on Tax Revenue Measures for FY 2017/18 (21.04.2017)

Report from the MoFPED shows the growing Ugandan debt by June 2016!

Again, the Ministry of Finance, Planning and Economic Development (MoFPED) dropped another report on the fiscal policies and the fiscal health of the economy in Uganda. The National Resistance Movement (NRM) have created this environment as the growing debt and growing interest payment comes with their planned debt rise. Still, the PriceWaterhouseCoopers spelled gloom earlier in the year, as this report was dropped on the MoFPED web page today. Even if the Report was spelled out in December 2016. It is if like the NRM didn’t want this to spelled out early. Since the numbers aren’t compelling of an arts piece, more issues… just take a look!

The stock of total public debt grew from US$ 7.2 billion at the end of June 2015 to US$ 8.4 billion in June 2016. This represents an increase from 30.6% of GDP to 33.8% over the two periods. The increase was largely on account of external debt, which grew from US$ 4.4 billion to US$ 5.2 billion over the period. Domestic debt increased from US$ 2.8 billion to US$ 3.2 billion” (MoFPED, P:V, 2016).

That the debt are growing quick, as the public debt grew with US$ 1.2 billion, that the percentage of GDP went up with 3,2%, the external debt rose with US$ 0.8 billion and the Domestic debt went up US$ 0.4 billion. All of these numbers show the amount of monies that the Government are adding on their debt, as the UNRA and the development projects are suspended by World Bank. So the Infrastructure development can be questioned as the growing debt, as the government must have other uses of the growing and scaled up debt. Since the transparency of the economy isn’t there and that the sanctioned bills comes from the State House. Just look at the growing interest rates as well.

Interest Payment as a percentage of GDP stood at 2.2% as at end June 2016, up from 1.9% as at June 2015. The increase is largely explained by interest payments on domestic debt, which grew from Shs 1,077 billion in FY2014/15 to 1,470 billion in FY2015/16. There was a significant increase in the weighted average interest rate of Government debt; from 5.9% to 6.5% in June 2015/16. This followed increases in the weighted interest rates for both domestic and external debt, from 13.6% to 15.3% for domestic debt and from 0.9% to 1.2% external debt. As interest rates increase, so do the debt service obligations of Government” (MoFPED, P: 4, 2016).

The difference between June 2015 and June 2016 the percentage has grown with 0.3%, the domestic interest rate grew with Shs. 0.393 billion. The Interest rate alone went up by percentage 0.6%, as the weighted interest rates went up 1.7%. The key sentence that the report wrote and I repeat: “As interest rates increase, so do the debt service obligations of Government”.

That idea isn’t only on the interest payment percentages are running higher, but as the debt goes up, the interests goes up. So the Debt Service Obligations are going up for the Government. This is a natural outcome, that the obligations for the state goes up with the amount of debt it rises. So the government can try to portray this is controlled, and to one extent it is under control. Still, the growth in this regard proves that the NRM regime are pilling up debt and increasing their debt, as well as interests. In the end this will make the state worse. Especially knowing that the energy dams have been built poorly and many of the expensive roads haven been fruitful. This is development that the growing debt is being used to…

So the NRM regime and the Ugandan government isn’t believable… the rise of debt and interests show’s the current state of affairs. Even if the percentage is after plan, the government still has to take charge and make sure they can pay back both the debt and interests. Peace.

Reference:

Ministry of Finance, Planning and Economic Development (MoFPED) – ‘DEBT SUSTAINABILITY

ANALYSIS REPORT 2015/16’

Uganda: UPC Calls for Economic Reforms (05.04.2017)

Uganda: “Re: Unauthorised School Charges and Expenditures” (15.02.2017)

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