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Kshs 5 trn mineral discovery...no celebration!!!NKT!!!
Rank: Elder Joined: 2/27/2007 Posts: 2,768
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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This is Kenya for you... possunt quia posse videntur
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Rank: Veteran Joined: 11/14/2006 Posts: 1,311
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The mining company will still pay 30% of their profit as income tax.
Any monies paid by this company to their group as consultancy and other fees will still attract 20% management / consultancy fees withholding tax.
However the government should ensure there is a limit to the number of expatriates brought to Kenya by such companies. In fact we should have a law like Nigeria where for every expatriate working in Kenya, a Kenyan should be sent out to another country as an expatriate by the employing company.
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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Lets not forget the 10% dividend tax KRA will be raking in!  Mark 12:29
Deuteronomy 4:16
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Reportedly, GoK will also have a 10% free-carry shareholding on behalf of the people of Kenya. Sovereign Wealth Fund (SWF)
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Rank: Chief Joined: 3/24/2010 Posts: 6,779 Location: Black Africa
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Cde Monomotapa wrote:Reportedly, GoK will also have a 10% free-carry shareholding on behalf of the people of Kenya. Sovereign Wealth Fund (SWF) http://mobile.bloomberg....in-mining-projects.html
#Foresight Kenya also envisages becoming a minerals-trading and processing hub, Balala said. “My plan is to have a metal and minerals exchange, to have a gold refinery and exchange in Kenya and also to be a value-addition center for gemstones, iron ore, manganese and the heavy metals,” he said. The proposed new law calls for the creation of a Mineral Sovereign Fund into which a quarter of mining royalties received by the government will be held for future investment, Balala said. The state is proposing that three- quarters of total royalties go to the national government, 20 percent to county administrations and 5 percent to local communities, he said. GOD BLESS YOUR LIFE
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Rank: Elder Joined: 2/27/2007 Posts: 2,768
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Liv wrote:The mining company will still pay 30% of their profit as income tax.
Any monies paid by this company to their group as consultancy and other fees will still attract 20% management / consultancy fees withholding tax.
However the government should ensure there is a limit to the number of expatriates brought to Kenya by such companies. In fact we should have a law like Nigeria where for every expatriate working in Kenya, a Kenyan should be sent out to another country as an expatriate by the employing company. Quite true, but then don't forget this: 1. machinery capital cost 2. beneficiation costs 3. staff salaries 4. further explorations Items 1,2 and 4 presents some delicious loopholes which can easily be exploited by the mining company to astronomically inflate the cost of liabilities... These loopholes may be very difficult to seal...exempli gratia, the company might wish to extract the ore here (in Kenya), but the beneficiation is done elsewhere (abroad)...this is where we lose badly!!! A good example of our product is coffee and tea. How much does our farmer get compared to how much the end product costs??? The declared profit may end up being so small...a fraction of the value of the find... ...besides, the presence of a safe alone does not signify that there is money inside...
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Rank: Veteran Joined: 4/4/2007 Posts: 1,162
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Key thing: how to ensure the quantities mined are correct and the value given is true.
The other issue: who came up with the KES 5 trillion figure? It may be KES 8 trillion.
All in all, the Govt should be very careful we don't become like Zambia where there is nothing to show for their copper.
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Rank: Elder Joined: 2/27/2007 Posts: 2,768
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Cde Monomotapa wrote:Reportedly, GoK will also have a 10% free-carry shareholding on behalf of the people of Kenya. Sovereign Wealth Fund (SWF) Nothing to be happy about here, ati 10%...Botswana have been thoroughly screwed by De Beers (Openhemier and company) through Debswana where the GOB owns I think 10-15% shareholding...GOB knows very little of what is happening in Orapa, Letlakane and Jwaneng diamond mines...Marketing has always been done by De Beers and I think the GOB knows very little on how much the resource is fetching in the international market...The Botswana government have been crying all along on the near zero return on their diamonds... I expect almost the same situation here... ...besides, the presence of a safe alone does not signify that there is money inside...
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Rank: Elder Joined: 12/2/2009 Posts: 2,458 Location: Nairobi
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dont worry.. the 400billion is for the 40 million Kenyans.. the remaining trillions will be shared by Individuals in GoK, GoK middlemen and the mining companies.. at some point expect some rebels tired of the 20B to the local community, getting into the fray for a larger share... Welcome to the trickle down effect capitalism..
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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@Kaiga the Botswana gava owns a 15% stake in De Beers...De Beers is the parent company of Debswana...they were offered more shares but refused to take them up....elsewhere in Nam...Namdeb is a 50:50 joint venture between the Namibian Gava and De Beers...so the Nam Gava shares in the profits in addition to the royalties & taxes they get....what you calling for is nationalisation where the mine belongs to the state.
...in other words socialism/communism....btwn what are the cash costs of extracting this resource?
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Rank: Member Joined: 7/16/2010 Posts: 158 Location: world
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poundfoolish wrote:dont worry.. the 400billion is for the 40 million Kenyans.. the remaining trillions will be shared by Individuals in GoK, GoK middlemen and the mining companies.. at some point expect some rebels tired of the 20B to the local community, getting into the fray for a larger share... Welcome to the trickle down effect capitalism.. Until we develop the capacity to explore for and exploit our own resources this will be the order of business. The Europeans, Americans and Chinese will explore,exploit and carry away the resources while leaving to the locals bread crumbs.
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Rank: New-farer Joined: 10/27/2010 Posts: 26 Location: NBI
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mdudu wrote:poundfoolish wrote:dont worry.. the 400billion is for the 40 million Kenyans.. the remaining trillions will be shared by Individuals in GoK, GoK middlemen and the mining companies.. at some point expect some rebels tired of the 20B to the local community, getting into the fray for a larger share... Welcome to the trickle down effect capitalism.. Until we develop the capacity to explore for and exploit our own resources this will be the order of business. The Europeans, Americans and Chinese will explore,exploit and carry away the resources while leaving to the locals bread crumbs. I dont think the issue is in extracting the resources I think its in the usage. do we have use and a market for Niobium? Even the oil can we use all of it? or enough of it locally to make it viable? WTF
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Rank: Member Joined: 12/7/2010 Posts: 520 Location: Epicentre - Ngamia 1
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mdudu wrote:poundfoolish wrote:dont worry.. the 400billion is for the 40 million Kenyans.. the remaining trillions will be shared by Individuals in GoK, GoK middlemen and the mining companies.. at some point expect some rebels tired of the 20B to the local community, getting into the fray for a larger share... Welcome to the trickle down effect capitalism.. Until we develop the capacity to explore for and exploit our own resources this will be the order of business. The Europeans, Americans and Chinese will explore,exploit and carry away the resources while leaving to the locals bread crumbs. Mentioned this on the Kenya Debt Watch thread karibu nipewe kichapo cha mbwa. Build your own dreams, or someone else will hire you to build theirs - Farrah Gray.
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Rank: Elder Joined: 11/7/2007 Posts: 2,182
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look at the river turn, do you see anything to smile about? ~ Morgan heritage LOVE WHAT YOU DO, DO WHAT YOU LOVE.
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Rank: Veteran Joined: 12/4/2009 Posts: 1,982 Location: matano manne
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IMHO, The people who negotiate contracts for the GoK are either very dump or "already compromised" (in the sense of "dead on arrival" sense of the word). They are double dealers who sell their motherland for a song.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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@McDoba come for your people please. 
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Rank: Chief Joined: 3/24/2010 Posts: 6,779 Location: Black Africa
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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the deal wrote:@Kaiga the Botswana gava owns a 15% stake in De Beers...De Beers is the parent company of Debswana...they were offered more shares but refused to take them up....elsewhere in Nam...Namdeb is a 50:50 joint venture between the Namibian Gava and De Beers...so the Nam Gava shares in the profits in addition to the royalties & taxes they get....what you calling for is nationalisation where the mine belongs to the state.
...in other words socialism/communism....btwn what are the cash costs of extracting this resource? Leave alone extracting, the costs of research sinks in millions of $$$ they just dint show up at that hill they tested several places and hit a dead end thereby loosing their money, so when they finally get their sweet spot, the companies try to get their best. A country like Kenya that has no capacity in research or development of minerals is bound to get a raw deal. We cant blame the govt yet we never encourage our children to take up training in mineral exploration/exploitation. UON has a curriculum, i wonder those where those who take it up end up. "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
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Rank: Veteran Joined: 11/14/2006 Posts: 1,311
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Kaigangio wrote:Liv wrote:The mining company will still pay 30% of their profit as income tax.
Any monies paid by this company to their group as consultancy and other fees will still attract 20% management / consultancy fees withholding tax.
However the government should ensure there is a limit to the number of expatriates brought to Kenya by such companies. In fact we should have a law like Nigeria where for every expatriate working in Kenya, a Kenyan should be sent out to another country as an expatriate by the employing company. Quite true, but then don't forget this: 1. machinery capital cost 2. beneficiation costs 3. staff salaries 4. further explorations Items 1,2 and 4 presents some delicious loopholes which can easily be exploited by the mining company to astronomically inflate the cost of liabilities... These loopholes may be very difficult to seal...exempli gratia, the company might wish to extract the ore here (in Kenya), but the beneficiation is done elsewhere (abroad)...this is where we lose badly!!! A good example of our product is coffee and tea. How much does our farmer get compared to how much the end product costs??? The declared profit may end up being so small...a fraction of the value of the find... I guess the alternative is to have the minerals remain "unextracted" and do away with mining activities as a country. We don't have capacity and competences to do the mining ourselves here. We don't even have any use of these minerals. If a company has spent money exploring, and they want to extract the minerals and generate economic activities in such an area like kilifi.... Create employment, develop infrustracture, pay taxes, loyalties, etc.....what else do you want? Don't you think they have to make profit for their trouble?
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Wazua
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Kshs 5 trn mineral discovery...no celebration!!!NKT!!!
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