Oh Jesus! This is the epitome of the inexplicable, Kenyan Economic growth has more often been affected by the ICC cum Hague talk, and want to point out here at ECOKE on how Kenyan then opposition party flared emotions for selfish gains. We all know what the imminent indictment by ICC prosecutor Luis Moreno Ocampo is about, to hold those “most responsible” for the PEV” to account and its only befitting that the wheels of justice abound during this festive season, after all the injustices for which we desperately seek remedy were committed during the Holidays. Let me start with the PM, Raila Amolo Odinga; Odinga is a tenacious leader who unfortunately lacks tact and is a victim of his own missteps and impulsions, he has demonstrated over the years, time and time again, that he acts and says things without carefully thinking through first and in his position as a leader with such a national following, is dangerous. There are plenty of examples but for the purposes of the scope of the ICC, let me confine myself to 2007/208 PEV.
It is no secret that PM Odinga played a crucial role in Kibaki’s election in 2002 only to be betrayed shortly thereafter, be that as it may, so is politics. He was and still is a wounded man and when it became clear that the road to State House had narrowed considerably every passing day, he became ever more desperate and sought to whip up public emotions against the Kibaki administration way before the 2007 elections; it didn’t help matters that soon after taking office, Kibaki purged most of former President Moi’s staffers in government- most of them Kalenjin, and replaced them with what appeared to be his tribesmen, the Kikuyus. Subsequently, Odinga saw an opportunity in this turn of events and aligned himself with his erstwhile nemesis of the Moi era (the doctrine of the enemy of my enemy is my friend fit perfectly); this would have been perfectly legit but for the fact that at that moment the foundation for ethnic cleansing in Kenya was born.
Fast forward to the 2007 elections;- Odinga knew the results were a cliff hanger after Kalonzo had peeled away a sizeable number of voters from the original ODM; he had managed to turn a considerable electorate against Kibaki along ethnic lines; for example, William Ruto, clearly led the charge in Rift Valley of instigating prejudice against Kisiis and Kikuyus and so when the election results were announced, this anti Kikuyu/Kisii arsenal at his disposal was activated at a moment’s notice, he used it to his maximum benefit personally but unfortunately to the detriment of the nation as a whole. PM Odinga a.k.a. Arap Mibei explicitly called for MASS ACTION to protest the “stolen election” Odinga knew or should have known that such calls would result in violence but he did it anyway, repeatedly, and for that reason he must share the burden of the outcome of his calls. Paradoxically, the areas most affected by these protests were Rift Valley and Luo Nyanza, areas in which Odinga won handily almost to the last vote and therefore had the least reason or purpose to incite the public against fellow citizens (MADOADOA as they were referred to by ODM during the campaigns) unless of course to make a statement- it is premeditated!
There is clearly, at the very minimum, a case for “implied malice” on his part for which constructive criminal liability attaches for the purposes of the ICC. He and his estranged bed fellow William Ruto were on the same side of the battlefield, they campaigned and planned together, and they conspired together, before, during and after the general elections and I don’t get it now why and how Ruto would bear a higher burden in this than his friend the PM! I just don’t get it. Raila was the man running for President, not Ruto; besides his relatives and friends, the PM is the single greatest beneficiary of MASS ACTION, he wields executive authority; the same cannot be said of the dead, the raped many of whom contracted deadly diseases, the maimed, the displaced, the IDPs, Ruto, the PEV suspects in jail/remand- none of these people has anywhere near the rewards brought about by the calls for MASS ACTION as PM Odinga and therefore, truth be told, in balance and taking into account the Sum Total of his actions, before, during and after, PM Odinga bears the greatest responsibility for the 2007/2008 PEV in Kenya. The Prime Minister’s office in Kenya is drenched in innocent blood and it is a great thing it is going away.
Raila, Ruto, Balala, Kosgey, Kones, Larboso and many others are on record inflaming the public and when the dust settled, they strenuously defended the suspects, they said they didn’t do anything wrong because they were chasing their “stolen cows”, they tried to manipulate the ICC just as they did the Kenyan public; well guys- to those of you still around anyway, time is up- you can’t fool the world all the time. Time to pay is now.
Thursday, December 16, 2010
Monday, December 6, 2010
The Exchequer Robbed of Sh275 billion per year, but the economy is okay.
Ecoke has been looking at official economic data released by the KNBS in the past five years and wondered why they rily do not add up. For instance two years ago, as the bureau of statistics released data indicating that the Kenyan economy grew by a narrow margin of 1.6 per cent, I got even more interested in the art of measuring economic growth and what economic parameters were considered.Sales across our product range grew by more than 20 per cent yet some of the official data was showing that the economy expanded by a thin margin of less than two per cent. “There is certainly something wrong in the way we are measuring growth.” Hundreds of Kenyans have increasingly had to face junior economist predicament after failing to reconcile the level of economic activity they see in their neighbourhoods with what official data says.
Parliament’s Budget Office (PBO) says the answer lies in Kenya’s large and rapidly expanding underground or grey economy that is never captured in official data but now accounts for nearly half of the country’s Gross Domestic Product. Kenya’s underground economy has expanded rapidly in the past five years to become a mammoth Sh825 billion industry that is denying the government at least Sh275 billion in uncollected revenues, the PBO says. This means Kenya Revenue Authority (KRA) is tapping only half of the estimated Sh750 billion tax revenues potential, leaving those already in the tax bracket with the heavy burden of financing public services and ultimately economic growth and effectively means the national economy is nearly twice the current estimate of Sh1.6 trillion.The underground economy – commonly defined as commercial transactions that go unreported or unrecorded for tax purposes – has traditionally been made up of hawkers, small-scale farmers, carpenters, dressmakers, watchmen, construction workers and domestic workers (maids and gardeners).
In the past couple of years however, the real estate and agriculture sectors have attracted big money without a commensurate rise in tax revenues raising doubts on the effectiveness of the revenue collection machinery.
Economists say it is these underground consumers who are driving the growth of sales for companies like ARM without getting captured in the official data. The PBO says allowing millions of people to gain from the economy without contributing to the national revenues has become a major threat to wealth distribution and social stability in Kenya that the country must immediately confront.This is because evading taxes makes it harder for those who are being taxed to compete with those outside the tax bracket besides creating price distortions in the marketplace. It estimated that goods produced by those who pay taxes are, for example, 16 per cent more expensive that that from the tax cheats.
Though workers’ salaries have risen steadily over the past five years, high levels of inflation and the accompanying erosion of purchasing power has effectively offset the gains forcing millions to cut back on consumption.“The size of the underground economy reflects a lack of information by the Government that ultimately hampers policy choices,” the PBO says in a status report published last month. “It therefore becomes easier for the Government to continue taxing those who are easy to get and leaving the formal sector workers with the burden of sustaining the economy,” says the report.Growth in the number and volume of businesses outside the tax net has continued despite KRA’s heavy investment in new structures to expand its reach.
Since coming to power in January 2003, the Kibaki government has applied a mix of enticement and coercion to get the number of registered tax payers needed to finance a budget that has nearly doubled in the past seven years. In January 2008, for instance, the Government introduced a three per cent turnover tax targeting small and medium-sized firms with annual total sales of between Sh500,000 and Sh5 million.But tax experts say revenue leakage remains massive leaving the tax burden on the shoulders of the few players in the formal sector. “The situation is such that small businesses are not registering or the system is so weak to capture and follow them,” Its apparent that chasing small taxpayers is an expensive assignment but maintains that the cost could be significantly offset with the right compliance machinery.Treasury’s latest report indicates that cumulative revenues stood at Sh132.9 billion or 4.9 per cent of GDP at the end of September, against a target of Sh154.9 billion or 5.7 per cent of GDP, putting the government on a tight leash that points to spending cuts or heavy borrowing in the coming months.
It is expected that the resulting financing gap will force the government to scale back some of its investment plans or push Treasury further down the path of deficit financing beyond the Sh105 billion cap set for domestic borrowing the in the current financial year. “If the underground economy remains untaxed, the government will continue losing billions of shillings in revenue and as more people move into the informal sector to escape the burdensome taxation, it will become increasingly difficult for the government to hit its revenue targets,” .
Parliament’s Budget Office (PBO) says the answer lies in Kenya’s large and rapidly expanding underground or grey economy that is never captured in official data but now accounts for nearly half of the country’s Gross Domestic Product. Kenya’s underground economy has expanded rapidly in the past five years to become a mammoth Sh825 billion industry that is denying the government at least Sh275 billion in uncollected revenues, the PBO says. This means Kenya Revenue Authority (KRA) is tapping only half of the estimated Sh750 billion tax revenues potential, leaving those already in the tax bracket with the heavy burden of financing public services and ultimately economic growth and effectively means the national economy is nearly twice the current estimate of Sh1.6 trillion.The underground economy – commonly defined as commercial transactions that go unreported or unrecorded for tax purposes – has traditionally been made up of hawkers, small-scale farmers, carpenters, dressmakers, watchmen, construction workers and domestic workers (maids and gardeners).
In the past couple of years however, the real estate and agriculture sectors have attracted big money without a commensurate rise in tax revenues raising doubts on the effectiveness of the revenue collection machinery.
Economists say it is these underground consumers who are driving the growth of sales for companies like ARM without getting captured in the official data. The PBO says allowing millions of people to gain from the economy without contributing to the national revenues has become a major threat to wealth distribution and social stability in Kenya that the country must immediately confront.This is because evading taxes makes it harder for those who are being taxed to compete with those outside the tax bracket besides creating price distortions in the marketplace. It estimated that goods produced by those who pay taxes are, for example, 16 per cent more expensive that that from the tax cheats.
Though workers’ salaries have risen steadily over the past five years, high levels of inflation and the accompanying erosion of purchasing power has effectively offset the gains forcing millions to cut back on consumption.“The size of the underground economy reflects a lack of information by the Government that ultimately hampers policy choices,” the PBO says in a status report published last month. “It therefore becomes easier for the Government to continue taxing those who are easy to get and leaving the formal sector workers with the burden of sustaining the economy,” says the report.Growth in the number and volume of businesses outside the tax net has continued despite KRA’s heavy investment in new structures to expand its reach.
Since coming to power in January 2003, the Kibaki government has applied a mix of enticement and coercion to get the number of registered tax payers needed to finance a budget that has nearly doubled in the past seven years. In January 2008, for instance, the Government introduced a three per cent turnover tax targeting small and medium-sized firms with annual total sales of between Sh500,000 and Sh5 million.But tax experts say revenue leakage remains massive leaving the tax burden on the shoulders of the few players in the formal sector. “The situation is such that small businesses are not registering or the system is so weak to capture and follow them,” Its apparent that chasing small taxpayers is an expensive assignment but maintains that the cost could be significantly offset with the right compliance machinery.Treasury’s latest report indicates that cumulative revenues stood at Sh132.9 billion or 4.9 per cent of GDP at the end of September, against a target of Sh154.9 billion or 5.7 per cent of GDP, putting the government on a tight leash that points to spending cuts or heavy borrowing in the coming months.
It is expected that the resulting financing gap will force the government to scale back some of its investment plans or push Treasury further down the path of deficit financing beyond the Sh105 billion cap set for domestic borrowing the in the current financial year. “If the underground economy remains untaxed, the government will continue losing billions of shillings in revenue and as more people move into the informal sector to escape the burdensome taxation, it will become increasingly difficult for the government to hit its revenue targets,” .
Friday, December 3, 2010
Kenyas’ Safaricom,A bitter option _Finally I Was robbed
It was on Thursday 2nd dec 2010, i left the office early though with lots of unfinished business, and with lots of phone calls to make before the end of my busy schedule,as usual I bought a 100 shillings scratch card voucher from a nearby safaricom vendor, but to my surprise after topping up the network only updated 10 shillings out of the 100, where did 90 bob go?
For clarity
The Bamba 100 pin no. Was 426983888373 and its serial no. 1004698300057
-Upon petitioning the firm through their customer care executive, he implied that the serial number was for a bamba 100 while the pin number was for a bamba 10, but how is this possible if the two are contained in the same card?
-He further pointed out that the serial no. Had been used on wed (1st dec 2010) by another number, but my question is, how then is it possible for a card with the same serial number to be used twice without the system detecting?
Being a loyal customer for 8 years am rilly disappointed by safaricom antics.
For clarity
The Bamba 100 pin no. Was 426983888373 and its serial no. 1004698300057
-Upon petitioning the firm through their customer care executive, he implied that the serial number was for a bamba 100 while the pin number was for a bamba 10, but how is this possible if the two are contained in the same card?
-He further pointed out that the serial no. Had been used on wed (1st dec 2010) by another number, but my question is, how then is it possible for a card with the same serial number to be used twice without the system detecting?
Being a loyal customer for 8 years am rilly disappointed by safaricom antics.
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