Now Kisero is the best economist in the world?

what would he say when he lands in the US and finds that a phone is free (not mulika mwizi), incalls are free, outcalls are in pennies, land calls are free within networks, you can use skype free, internet is more than 3 times cheaper, some networks even offer you free airtime when you move to their network etc etc.

The problem with economists is that they talk too much. I still want someone to tell me which economic principle or law is being used to say that

1. Buying goods cheaper is a horrific nightmare for consumers that will cause the very destruction of a people and
2. Buying airtime cheaper is an affront to good political dispensation and a constitutional crisis that demands international diplomacy.

Wacheni na hii micro-macro economics stuff. Tell me which economic principle says that a dominant and fleecing player in a market can destroy the lives of mama mboga if God forbid airtime came to 50cts per minute across all networks. hii ingine you discuss in safaricom boardrooms.

for such to come from a dr, is sad, how about reminding him to take milk after the puffs

Is that the best the safcom idealist have. That Kenya is not India or America?

Your argument was very simple. That the rates charged are impossible. The Collymore guy said "morally reprehensible". The other guy says it will destroy economies.

I have challenged you very simply. Explain how lower prices mean that Kenyans will become a dysfunctional country because Safcom can't charge lower prices?

It is my humble view that Kenya will survive if safaricom collapses tomorrow. I also propose that the Kenyan economy will not fail because prices are falling. I also propose that the days of supernormal profits are over and such companies will have to make do with normal profits in telcos the world over.

I believe in the Kenyan spirit and no amount of brainwashing will allow me to believe that a country's destiny depends on if a telco can charge 50cts or give out free airtime.

It will be a first in economics.

So stop rehashing Michael Joseph. He said 3 bob a minute was impossible. Safcom still made profits. I say 50cts and Safcom will still make money. The alternative is the company dies a slow death and i can assure you, i and other kenyans will still find a way to survive.

talk about brainwashing!

Happy New Year folks.

Interesting discussion. I thought I'd add some statistics so we continue this discussion from a position of knowledge.

According to Q1 (July - Sep 2010) KRA revenue performance report (http://www.kra.go.ke/notices/pdf2010/REVENUE-PERFORMANCE-REPORT-July_sep2010.pdf) the breakdown of tax collections is as follows:

Customs Services -36.5%
Road Transport - 0.5% and
Domestic Taxes - 63%

The breakdown of Domestic Taxes is as follows:-

Petroleum - 10.7%
Trade - 24.8%
Indirect Domestic (mostly VAT) - 22.7%
Direct Domestic (Mostly PAYE) - 40.1%
Fees & licenses - 1.6%

So the top 4 areas of collection are

1. Customs Services - 36.5%
2. P.A.Y.E - 25.2%
3. Trade - 15.6%
4. VAT - 14.3%

So to answer you Rahatupu it is not so clear after all.

I salute all the fellow new age Pan Africans on this topic. Down with Western propaganda & brain washing! Why aren't they sayng how i'll use the savings on othr taxed products and or development ventures? Shindwe!!