1. We've been telling you that the consequences of running a budget deficit of 9% on avge over 10 yrs would catch up with you eventually. Kwani where did you think the money to pay for these deficits would come from? Even those who were singing "webe ni ure ure" are now crying!
2. You have invested billions in Galana Kulalu but where is the food? Your current & former energy ministry officials have side IPP hustle businesses that are making your electricity bills unbearable. Your new SGR was supposed to bring cost of doing business down but......
3. it costs double what you used to pay the truck owners to transport a container from Msa to Nairobi. Forget it paying for the huge debts used to build it, your tax money is in fact paying for the running of the SGR to the tune of Ksh 1B a month! Ghai!
4. Your troubles have just begun my frens. You have to pay for a full 10 years of fiscal indiscipline,wastage, corruption & looting etc through the fuel pump, the supermarket cash register, transport, school fees & everywhere else you make a move.
5. Yet many of you still think your problems can be solved by the same people who created them. Just because they've now rebranded as CBC instead of 8.4.4. It is going to get worse before it gets better because a sovereign would rather tax its citizens to death than to default!
I think many would take that mkate nusu if you offered them today!

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More from @WehliyeMohamed

12 Jun
1. You build a railway costing Ksh 500b.
2. You borrow the money from a Chinese bank.
3. You give the contract to a Chinese company.
4. The Chinese Bank pays the company in China.
5. The Chinese Co. brings everything needed to build the railway from China. Including labour
6. When it is time to pay the debt, you collect taxes from Wanjiku in Nyathuna (who never sold cement, steel or even food to the Chinese) and pay the Chinese.
7. The Chinese money stayed in China. The tax money also goes to China. China has the 500b it gave you plus more!
8. Because u have to pay more money to the Chinese every other year, you tax Wanjiku in Nyathuna even more.
9. Wanjiku sees nice roads and railway but has zero money in her pocket & there is nothing the roads or the railway can do to earn her enough money (after tax) to survive
Read 6 tweets
10 Jun
More taxes will not solve our debt and deficit crises. In fact, it will make it worse, because no matter how robustly our tax revenue grows and no matter how much they tax poor Wanjiku, this administration will always find a way to spend everything it collects -- plus more
This administration is operating on the assumption that there is no way to fix our chronic budget problems without more money. Its main message during every budget day has been that the tax revenues simply are not enough to cover the cost of government. .
That the reason why we have a hihe national debt is because Kenyans have not been taxed enough. That the country is running sustained deficits because Kenyans are taxed too little and/or that there are revenue leakages somewhere. That is a red herring
Read 4 tweets
30 Apr
Let's do the maths.

A county project is awarded for 100m.

VAT is 16%

Money going into the actual project is 84m? Wait!

The winner of contract most likely pays 10% of the original 100m to be awarded the contract. That is 10m

project money reduces to 74m.
Because of pending bill problems & also greed, the winner of the contract plans for at least 20% mark up - of the original amount. That is 20m target.

74m less 20m is 54m.

Work that was supposed to be done for 100m is now going to be done using 54m?

Oh wait!
An engineer has to certify that the 54m work is worth in fact worth 100m. Eats 10% of the 54m or no certification. Remember the work is only worth 50m. The guy who is supposed to release the 💰wants his/her share.
Read 6 tweets
22 Apr
Good to see Saudi Arabia at number 3 re remittances to Kenya (after US and UK). Remittances are now number 1 foreign exchange earner for the country. Whereas the US & UK markets have matured, the Saudi & GCC mkts have more capacity for further growth

businessdailyafrica.com/bd/economy/tan…
The market is also not about just domestic workers. We have Kenyan doctors, university lecturers, consultants, bankers, engineers, nurses, hotel managers etc. Kenyan professionals are highly regarded in the region. These lot also are in influential positions to recruit more!
For example, Riyadh is currently in the final stages of putting in place a metro. Some of the key players like Mwangangi, Shaaban & Opondo are Kenyans. These folks also did the Dubai & Qatar metros. They are folks who built a reputation of being able to deliver quality work
Read 14 tweets
4 Dec 20
1. You are supposed to run smaller deficits in times of growth & run big ones to support the econ during recessionary periods. Jubilee doing the opposite. Taxes might not yield much more revenue but could actually see acceleration of businesses closing down - counterproductive
2. Whereas the govt needs money, from macroeconomic perspective, it doesn't make sense to hike taxes when the economy is flirting with recession. You just might tip it over. We are still in the middle of the pandemic and most governments have extended the Covid support measures
3. For corporates, lower tax measure accorded them some extra headroom which probably went to keep a few more workers employed. For households anyone with a pay cheque has been helping GoK to support others.The extra 5% was like a direct stimuluswith - a huge multiplier effect
Read 5 tweets
4 Dec 20
1. Some of the BBI amendments cannot even be practically implemented. Let's look at the amendment to article 203 that caps the revenue the county with the highest per capita allocation will get, to 3 times the lowest.
2. Let's use the current allocations of Ksh 316 transferred to counties in 19/21 FY. Tana River & Lamu get the highest per capita allocation of Ksh 18,533 & 18,033 respectively. Nairobi county gets the lowest at Ksh 3,621. Meaning no county should get more than Ksh 10,863.
3. 9 counties in total will be above this threshold and the cap means they would have to surrender Ksh 9.687b. This is where the problems start. First, there is no suggested method to share what will effectively be taken away from these 9 counties.
Read 12 tweets

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