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Reducing Kenya's debt
Mainat
#1 Posted : Wednesday, April 17, 2013 9:48:44 AM
Rank: Veteran


Joined: 11/21/2006
Posts: 1,590
From yesterday's speech, its good that the dynamic duo already recognises the challenging gap between spending and KRA collections which is now north of Ksh0.5trn. They need to start thinking about what they can cut asap and what revenue they can raise.
On cost cuts, getting MPs and assorted politicians to accept the new lower pay would be a good symbolic start though no saving. You then move to the increasing amounts spent on present and former VIPs. From here things look grim because we are talking about cutting silly duplications like county commissioners et al.
On the revenue side, reduce stakes in parastatals, businesses e.g. NBK, New KCC, KPL, KAA to name but a few. Finally replace short-term borrowing and increase long-term borrowing.
Sehemu ndio nyumba
tycho
#2 Posted : Wednesday, April 17, 2013 10:33:36 AM
Rank: Elder


Joined: 7/1/2011
Posts: 8,804
Location: Nairobi
Revenue collection will be a nightmare if all of us do not embrace the digital revolution and what it means.

For example, when you go to pay for your licenses at city hall, you'll find long queues, plenty of staff, and plenty of movement around, and two weeks of waiting for your license. Most of these activities are money wasters.

But each office has a computer, and the staff seem to be getting along with the equipment. Thinking about it I realize that something else needs to be done. These workers need not only to know how to use a particular application, but they also need to be educated on how digital technology can be used to create time and money.

We also need new thinking on taxation and government expenditure. For example the 'dynamic duo' need to consider a negative income tax policy on the citizen, and engage the citizen interactively and proactively on what has been referred to as 'public goods'.

There's a fine line between sound economic policy and political discourse. Political discourse is about popularity, and even its metaphor allows for fantasy. Economic policy on the other hand is about coming with the appropriate mathematical formula for political narrative and being able to execute it efficiently and effectively. So far, I am convinced that the 'dynamic duo' are making some errors in their articulation of what they want for Kenyans.

For example, the promises they are making are very much 'end oriented' that is, they are pictures of an 'ideal life'. But these ideals are like new wine in old wine skins. That is, they are not talking about new wine skins. As a result, the citizen will fail to change her ways and accord to what our leaders are prepared to offer.
josimar
#3 Posted : Wednesday, April 17, 2013 11:47:23 AM
Rank: Member


Joined: 7/6/2010
Posts: 242
I fear there will be massive retrenchments in civil service.The debt level is about 48 % of the country's GDP and still rising. Hapo kuna shida .
guru267
#4 Posted : Wednesday, April 17, 2013 1:06:53 PM
Rank: Elder


Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
I hope Ruto will scout the global market for potential investors in government firms as a possible source of revenue!

For example a global player like Munich re can come and takeover GOKs position in Kenya re and raise well over 10billion!
Mark 12:29
Deuteronomy 4:16
josimar
#5 Posted : Wednesday, April 17, 2013 2:02:18 PM
Rank: Member


Joined: 7/6/2010
Posts: 242
Quote:
I hope Ruto will scout the global market for potential investors in government firms as a possible source of revenue!

For example a global player like Munich re can come and takeover GOKs position in Kenya re and raise well over 10billion!


Why WSR in particular ? I thought there is a privatization commission..Such arrangements are perfect grounds for having a MOBITELEA.
Ericsson
#6 Posted : Thursday, April 18, 2013 11:07:29 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,684
Location: NAIROBI
http://www.businessdaily...88/-/tggi5t/-/index.html
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
symbols
#7 Posted : Thursday, April 25, 2013 9:49:13 AM
Rank: Elder


Joined: 3/19/2013
Posts: 2,552
Austerity in EU has reached the limit, focusing on growth is the priority

Hope the Kenyan government learns from them.Growth!
cnn
#8 Posted : Saturday, April 27, 2013 11:05:27 AM
Rank: Veteran


Joined: 6/17/2009
Posts: 1,619
Todays Nation....on Thursday Rwanda goes to the international markets to raise 400 million dollars(kSh 33.5 billion) through a 10 year bond with a 6.875% yield.Investors bid 3 billion dollars (251 billion Kenya shillings)...time for the guys at Treasury to think beyond the local market.
murchr
#9 Posted : Saturday, April 27, 2013 5:35:23 PM
Rank: Elder


Joined: 2/26/2012
Posts: 15,980
josimar wrote:
I fear there will be massive retrenchments in civil service.The debt level is about 48 % of the country's GDP and still rising. Hapo kuna shida .


Very possible, those working in Ministries that evaporated might be among those to face the axe. That of the PM, Ministry of Northern Kenya and Arid lands blabla.

I would personally want to see secretaries, teagals, messengers some drivers done away with, some of these services can be outsourced. Anyone who cant draft a letter & type in this day and age should not be in office.
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
Rahatupu
#10 Posted : Tuesday, April 30, 2013 6:20:47 PM
Rank: Veteran


Joined: 12/4/2009
Posts: 1,982
Location: matano manne
murchr wrote:
josimar wrote:
I fear there will be massive retrenchments in civil service.The debt level is about 48 % of the country's GDP and still rising. Hapo kuna shida .


Very possible, those working in Ministries that evaporated might be among those to face the axe. That of the PM, Ministry of Northern Kenya and Arid lands blabla.

I would personally want to see secretaries, teagals, messengers some drivers done away with, some of these services can be outsourced. Anyone who cant draft a letter & type in this day and age should not be in office.


The political cost would be too BIG especially if the expected dividends are not realised at the lowest levels. Look at it from an utilitarian perspective.
kaifastus
#11 Posted : Tuesday, April 30, 2013 7:05:29 PM
Rank: Member


Joined: 8/17/2011
Posts: 207
Location: humu humu
murchr wrote:
josimar wrote:
I fear there will be massive retrenchments in civil service.The debt level is about 48 % of the country's GDP and still rising. Hapo kuna shida .


Very possible, those working in Ministries that evaporated might be among those to face the axe. That of the PM, Ministry of Northern Kenya and Arid lands blabla.

I would personally want to see secretaries, teagals, messengers some drivers done away with, some of these services can be outsourced. Anyone who cant draft a letter & type in this day and age should not be in office.

I wish you had a glimse of the proportion of the wage bill per cadre...the political elite take a very big chunk! The lower cadre like support staff driver etc take a very small %. Of the proffessionals,Teachers and policemen take another significant chunk..The way forward is growth.
Obi 1 Kanobi
#12 Posted : Tuesday, April 30, 2013 7:21:00 PM
Rank: Elder


Joined: 7/23/2008
Posts: 3,017
A typical parastatal has training allowances and other useless staff costs that are higher than the basic salary, they need to focus on this cost, my bet is they can claw back upto Sh100B by simply eliminating this cost.

I have never undrstood why gava/parastatal employees need to leave their offices (which are generally 3 times the size of those in the private sector) go to a hotel accross the road to brainstorm on a task they should be doing on a day to day, and then procced to claim all manner of allowances.

They should also think of paying a basic salary at market rate and peg it to delivery of services, they can then do away with house allowance, extraneous allowance, responsibility allowance and whichever other allowance they pay to justify using up the budget.
"The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
jguru
#13 Posted : Tuesday, April 30, 2013 8:42:18 PM
Rank: Veteran


Joined: 10/25/2007
Posts: 1,574
Procurement. That's where most of the money disappears. It is sad that government always pays the highest price for every item it tenders for. I have seen a government ministry buy a ream of photocopying paper for Ksh4500 (retail cost - Ksh350). It's ridiculous! The police bought some knock-off Chinese Chery cars for the same price of Rav4s at Toyota. Shame! Government can save billions if they streamlined procurement.
Set out to correct the world's wrongs and you will most certainly wind up adding to them.
Mainat
#14 Posted : Wednesday, May 08, 2013 3:50:23 PM
Rank: Veteran


Joined: 11/21/2006
Posts: 1,590
KRA collection targe for next financial year is Ksh0.9trn (22% higher than this financial year) against Ksh1.6trn target expenditure.
Fill in the blank
Sehemu ndio nyumba
josimar
#15 Posted : Wednesday, May 08, 2013 4:51:34 PM
Rank: Member


Joined: 7/6/2010
Posts: 242
The government will definitely have a big challenge on how to finance its budget . Apart from revenue collection , we must be prepared to see funny taxes being loaded on us come June budget. The salary demands by MPIGS and now county assembly will definitely provide reason for teachers , nurses , doctors to demand the same.
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