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Fees, Taxes, Stupidity - 'clean' business is very tough in Kenya
livie
#11 Posted : Monday, March 07, 2011 12:00:35 PM
Rank: Veteran

Joined: 11/1/2008
Posts: 834
Honestly why should I pay more so that you can keep a job?
If the job can be done more efficiently and saving me money, why not?
Just develop anther skill or add on to what you have and keep the job if you can - it is a terribly competitive world out here abd only those who can keep their cost down will survive...!peni mbili
If you are going to be thinking only one thing, you might as well be thinking big. -Donald J . Trump
muganda
#12 Posted : Monday, March 07, 2011 12:05:39 PM
Rank: Elder

Joined: 9/15/2006
Posts: 3,907
I think I understand @VVS point. He'd like us to discuss the framework/industry without running down the Safaricom vs Airtel hole.

Isn't that a fair point @Jamani @livie?
@VVS question, is the government positively facilitating telecoms industry?
Mobile firms push for review of spectrum levy

muganda wrote:
A couple of months ago I touted CCK as one of the regulators with consumer interest paramount.

@VituVingiSana, you are on to something as my post was clearly one dimensional. The money in this industry draws the ugliest of hawks:
- all licenses are issued through questionable intermediaries (Mobitelea, Sameer)
- spectrum, the vital lifeline, can only be obtained from shell companies who receive the same from CCK (Onecom)
- roll out of infrastructure must fit political interests of MPs in their areas for the company to survive
- and the industry in Kenya is most taxed - 4th highest in Africa - contributing 26% direct, 30% corporate, 35% import duty; and now this Universal Service Fund.

A case for better balance across the board.

milken
#13 Posted : Monday, March 07, 2011 12:12:11 PM
Rank: Member

Joined: 4/25/2008
Posts: 192
Location: Nairobi
My concern is slightly different. Everytime a new regulatory body is formed, it gazettes a new levy to be paid by the industry it is operating in. Considering that the services being rendered are statutory, shouldn't all these levies be collected my KRA and paid in to the consolidated fund?

While our parliamentarians are crap, they still remain the representative organ of the Kenyans, hence IMHO, they should exercise control over all forms of taxation.
Itari muting'oe ihuragwo ngi ni Ngai
Jamani
#14 Posted : Monday, March 07, 2011 12:25:19 PM
Rank: Elder

Joined: 9/12/2006
Posts: 1,554
milken wrote:
My concern is slightly different. Everytime a new regulatory body is formed, it gazettes a new levy to be paid by the industry it is operating in. Considering that the services being rendered are statutory, shouldn't all these levies be collected my KRA and paid in to the consolidated fund?

While our parliamentarians are crap, they still remain the representative organ of the Kenyans, hence IMHO, they should exercise control over all forms of taxation.


This is exactly my point, we should address this is issue at a certain point and be in control of our country and economy
Jamani
#15 Posted : Monday, March 07, 2011 12:31:06 PM
Rank: Elder

Joined: 9/12/2006
Posts: 1,554
muganda wrote:
I think I understand @VVS point. He'd like us to discuss the framework/industry without running down the Safaricom vs Airtel hole.

Isn't that a fair point @Jamani @livie?
@VVS question, is the government positively facilitating telecoms industry?
Mobile firms push for review of spectrum levy

muganda wrote:
A couple of months ago I touted CCK as one of the regulators with consumer interest paramount.

@VituVingiSana, you are on to something as my post was clearly one dimensional. The money in this industry draws the ugliest of hawks:
- all licenses are issued through questionable intermediaries (Mobitelea, Sameer)
- spectrum, the vital lifeline, can only be obtained from shell companies who receive the same from CCK (Onecom)
- roll out of infrastructure must fit political interests of MPs in their areas for the company to survive
- and the industry in Kenya is most taxed - 4th highest in Africa - contributing 26% direct, 30% corporate, 35% import duty; and now this Universal Service Fund.

A case for better balance across the board.


@Muganda, we cant talk in isolation we must have examples and the telco example came in, I agree we have to look at addressing all these and be in control. we cant have issues addressed by undercutting the market its dangerous for the economy and nation at large.
Jamani
#16 Posted : Monday, March 07, 2011 12:38:04 PM
Rank: Elder

Joined: 9/12/2006
Posts: 1,554
livie wrote:
Honestly why should I pay more so that you can keep a job?
If the job can be done more efficiently and saving me money, why not?
Just develop anther skill or add on to what you have and keep the job if you can - it is a terribly competitive world out here abd only those who can keep their cost down will survive...!peni mbili


Not really, you shouldnt pay more to save jobs you should pay for efficiency and high technology that makes life easy. Having said that paying less under the current situation means you will be paying more eventually how? old inefficient technology, pour equipments that have high radiation leading to hospital expenses, no innovation and a likely scenerio of company closures with a possibility of a monopoly, there goes your saved money
Jamani
#17 Posted : Monday, March 07, 2011 12:39:48 PM
Rank: Elder

Joined: 9/12/2006
Posts: 1,554
For Sport wrote:
@ VVS and Jamani
...happy to watch this one from the sidelines...again. smile


Happy to keep you watching and glued on wazua...
VituVingiSana
#18 Posted : Monday, March 07, 2011 12:46:29 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,371
Location: Nairobi
@milken - The ERC is next!

I have seen the Annual Report for ERC for 2008. They make way too much for doing very little. They charge 3cents/kwh to KPLC + charges on fuel imports + other levies.

Basically, the overpaid bastards do jack shit!

See where NOCK is going to screw us through charging OMCs [& taxpayers] for lying about loading dates!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
VituVingiSana
#19 Posted : Monday, March 07, 2011 12:48:05 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,371
Location: Nairobi
We have CCK, KEBS, ERC, etc... all these bodies add charges [hidden from the public] to what we consume. Often these charges are simply for positions or political jobs.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
VituVingiSana
#20 Posted : Monday, March 07, 2011 12:51:11 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,371
Location: Nairobi
NSE & CMA charges/levies are way too high! The CMA charges us for fancy offices, huge salaries yet they have not helped really expand the market OR provided effective oversight.

ERC charges/levies.

CCK charges/levies.

Many others! There is KEBS. Which others?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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