Category: Opinion

Abdi Timberlake

If there is an individual who deserves the full backing and the unwavering support of all Kenyans across the political divide, it’s the Pan African Dr Matsanga David.

Some of his social media followers who are not pleased with his incisive, bold and hard hitting political commentaries have always been calling him ‘Ugandan’ or ‘foreigner ‘ oblivious or ignorant to the fact that Dr Matsanga is an African treasure who is admired and respected across the continent for his vast array of knowledge and expertise.

Dr Matsanga is passionate about Kenya and it’s affairs because if Kenya burns, Uganda burns. We interdependent. He is also a taxpayer here so he has a right to speak his mind and nobody can do anything about it. We are here to stand with him as a Pan African.

Dr Matsanga has a fleet of trucks transporting goods from Mombasa to Kigali. He employs only Kenyan drivers. It’s tragic that some section of Kenyans view him as an alien yet he pay and increases tax here in their country.

He is a shining pearl for Africa and we must support him.

Law number 11 in 48 Laws of power advises them (politicians) “LEARN TO KEEP PEOPLE DEPENDENT ON YOU – To maintain your independence you must always be needed and wanted. The more you are relied on, the more freedom you have. Make people depend on you for their happiness and prosperity and you have nothing to fear. Never teach them enough so that they can do without you.”

Like politics of roads, its always on top of every politician’s eyeing seat – manifesto of which they fail deliberately to deliver so as to use it as a campaign tool for the next election to be re-elected to ‘wind up the job’.

Mumias Sugar Company is that politics of road in western kenya- the political heavyweights in the region uses it as a campaign tool being the focal economic point of the community. For every investor, they demand kickbacks and a ‘teamplayer’ investor to loot together with and exploit sugarcane farmers and workers to finance their campaigns. 

It is no secret that a huge segment of Kenya’s political campaigns have consistently been funded with money earned by politicians from domestic sale of illegally imported sugar. When Contraband sugar saga exploded in the country and sugar baron Rai was hunted by long arms of government, Kenyans saw the standing ovation Rai recieved from Members of Parliament when he appeared before the taskforce formed to investigate him on the irregualarities. He recieved handshakes and hugs from the taskforce. A turn of events that left tongues waggling and so did they give him clear bill of health and innocence.

They served their master with the hot tea.

Mumias sugar company used to produce 60% of sugar needed in Kenya before it was looted dry and put under receivership of Ponangipalli Venkata Ramana Rao. The miller was in September 2019 placed under receivership by KCB Group  to protect its assets and maintain its operations.

At some point Farmers and millers claimed there were incidences of unlicensed importation of sugar from Uganda and Bungoma, Mukenya, Masbrago, New Adatia, Mahdhav, Kiminini, Wananchi Stores, Super Store Minimax, Misiku, Kitale, Cherangany and Jaralam as areas where the imports can be traced.

As of December 2014, Mumias Sugar company was the lead miller at 20 per cent market share, followed at a distance by West Kenya Limited at 13 per cent, Nzoia 11 per cent, Sonny Sugar 10 per cent, Transmara 10 per cent, Butali Sugar 10 per cent, Sukari Industries 7%, Kibos seven per cent, Muhoroni and Chemilil both at six per cent.

In 2015, national sugar production totalled 632,000 metric tonnes. Mumias and Nzoia pumped in 184,428 metric tonnes. Six years later, a downward spiral reared in production and market share drop. By 2020, Kenya produced only 193,532metric tonnes. The market share had been overturned. All the privates had leapfrogged state entities.

West Kenya had taken the lead with a market share of 30 per cent, while Mumias wasn’t listed. Butali followed with 16 per cent, Kibos Sugar 14 per cent, Sukari Industries 14 per cent and Transmara Sugar 13 per cent. State millers Nzoia, Muhoroni and Chemilil all recorded a dismal less two per cent.

Mumias and Nzoia were boxed in by three privates —West Kenya and Butali — allegedly enjoying the patronage of the President, and Busia Sugar Industries under alleged patronage of DP Ruto and their political cronies on the ground.

On a Friday 4, June 2021 morning, Kenyans woke up to a rude shock of turn of events when Steel billionaire Narendra Raval withdrew his bid in leasing ailing Mumias Sugar Company which hasn’t been operational for over two years.

The billionaire investor was planning to inject Sh5 billion to modernise the once giant miller after winning the bid and his reason for change of plans was after tremendous political interests after western Kenya politicians questioned the process and your guess for their interest if you understand language of sugar cabals in Kenya – Yes, The billionaire isn’t a man of kickbacks and has maintained a righteous career in his life since rise to stardorm.

The Devki Group chairman said his decision was made to protect his business name and reputation from being muddied in politics.

Eight firms participated in the leasing tender and Mr Raval was the front-runner on the strength of his financial muscle and track record of running industries, people with knowledge of leasing details said.  According to Rao, many of them did not pass the test of evaluation, which was based on the technical and financial capabilities of the investor. The technical capability was given priority over the financial capability (except to the extent that the investor was considered capable of funding the revival of the operations), as the most important aspect of the leasing is the revival of the operations and assisting the community by providing the employment, the Receiver manager notes.

“I was told that I am the winner, but it is unfortunate that I will not continue with the plans to invest at Mumias because of the new political twist that has questioned the process of selection,” he said in an interview.

“Given the ongoing public interest which the matter has attracted and the call for a publicly run bidding exercise, we have found it worthwhile to take out our application. We will however express interest should the exercise be conducted in consultation with all the stakeholders,” the Devki founder said in a statement.

The matter surfaced in the Senate, where Kakamega Senator Cleophas Malala challenged the government to provide details of the lease. In his statement, the senator pointed out that the purported deal did not explain who would clear the company’s outstanding debts, workers’ arrears and billions owed to sugar-cane farmers. The senator challenged the government to produce details of the correspondence on which the decision to lease the company was based, arguing the law might have been violated in the process.

Malala’s request followed a similar demand by Nominated MP Godfrey Osotsi, who had in a letter to Speaker Justin Muturi demanded an explanation as to whether the government, the County Government of Kakamega, shareholders and the Nairobi Stock Exchange were involved, considering the government has a 20 per cent shareholding in the sugar firm.

“Devki Group, which has no experience in the sugar industry, has actively lobbied to win the leasing tender in direct violation of the Public Procurement and Disposal Act,” Mr Osotsi said in the letter in which he further demanded that KCB directors and the government be invited to Parliament to shed light on the leasing process.

The MP expressed fears that Devki Group was only interested in exploiting scrap metal resources, land and other prime properties and had no intention of helping the miller get back on its feet.

Bungoma Senator Moses Wetang’ula argued that the Privatisation Commission should have looked into all the issues afflicting the miller and prepared a report that should have been tabled in Parliament before the lease was executed. “Will the new investor compensate farmers in Kakamega and Bungoma who for years have relied on the miller for their livelihoods?” he posed, demanding an explanation from the government on who would account for the Sh2 billion bailout package.

The hungry politicians from the region are blocking every investor who doesn’t offer kickbacks and promise no political coperation ahead of next year much awaited General election. Like every other region in Kenya, Western Kenya’s main economic activity and livelihoods has been dependent on Panpaper industry, sugarcane plantation and Sugar companies. Every politician wants to take credit for the revival of the fallen projects to gain political gangster points of the region and thats why every heavyweight in the region is parroting over the exclusion in the leasing of the Mumias sugar company.

Mulembe nation is the most divided region in Kenya politically due to selfishness of the political class. Over the years upto date majority in the region settle for Nyanza’s Kingpin and chief Opposition leader Raila Odinga as their favorite Presidential candidate despite having their own Musalia Mudavadi, Moses Wetangula and many more vying for the same.

Mulembe nation is united by food and divided by Money and selfish Politicians.

By Laban Mwanabisi

When Moses Kuria told a radio talk show in 2019, that he would be vying to succeed President Uhuru Kenyatta as the fifth President of the Republic of Kenya, many including the talk show host dismissed it as hot air the straight talking politician often engages in.

But Kuria went on to suggest that he will be deputized by Deputy President William Ruto, opposition leader Raila Odinga and two-term Makueni Governor Kivutha Kibwana.

At that time, Kuria had just posted a flag of Democratic Party (a party that was founded by former President Mwai Kibaki) on his social media pages with a claim that the party would be the choice of Mt. Kenya leaders.

In October 2018, during an interview with Capital FM, the two-time Gatundu South MP said his self-supporting Presidential bid would address among other things, eradication of poverty and the long standing challenge of tribalism.

“I know my stuff and I do not believe in losing. I am very poor at that,” Kuria told Capital FM

His intention to vie on the DP ticket, was dealt a blow after the party’s National Chairman Esau Kioni declared that Kuria would have to square it out with other like-minded politicians who would want to fly the party’s flag.

The drive by the self-styled political activist to ensure that Mt Kenya region’s interests are overlooked, became apparent in December 2018 when he ‘called out’ President Kenyatta for taking development ‘elsewhere’ at the expense of the region that gave him overwhelming support for his re-election.

Since then Kuria’s political stature in the region has grown to the extent through his little known party People’s Empowerment Party (PEP) has now been identified as a partner of the Hustler Nation, which is an informal movement tailored to popularize Deputy President William Ruto’s 2022 presidential bid.

Kuria’s political active career started when he was drafted into the (President Kibaki re-election vehicle) Party of National Unity (PNU) through his association with Kenyatta (the KANU Chairman and Deputy Prime Minister), he would later be appointed as The National Alliance (TNA) Director of Strategy during President Kenyatta’s first term.

Despite being the President’s MP, Kuria has openly been at the forefront in criticizing the head of state, opposed the Building Bridges Initiative (BBI) constitutional amendment drive in favour of executing popularization meetings to market Ruto in the region.

His impact as a force to reckon with was witnessed recently when it took the intervention of the DP to compel Kuria to withdraw PEP’s candidate from the July 18, Kiambaa Parliamentary seat by-election.

PEP, smarting from an unlikely victory in the May 19, Juja Parliamentary Seat by-election, had insisted on fielding a candidate to battle it out against the ruling party Jubilee and United Democratic Alliance (UDA) associated with the DP. However, Kikuyu MP Kimani Ichungwah and Mathira’s Rigathi Gachagua would hear none of it as they claimed that Kuria must back down.

“PEP’s message of hope and renewal was endorsed by the voters of Gaturi ward in Murang’a on December 15, 2020, and Juja constituency on May 18, 2021.  We wanted to present this message for approval by the people of Kiambaa constituency on the July 15 [by-election],” said Kuria.

The Gatundu South MP went on to say that “However, this did not go down well with my colleagues, particularly [Mathira MP] Rigathi Gachagua and [Kikuyu MP] Kimani Ichungwa. I held extensive discussions with my boss and friend Dr William Ruto on this matter. To make my two colleagues happy and above all for the unity of the Hustler nation, PEP will not be fielding a candidate for the Kiambaa by-election.”

Following the tactical retreat, Murang’a Senator Irungu Kangata equated Kuria’s move to that of a master strategician.

“Moses Kuria, an astute politician in Hustler Nation., is a ranking member of Tanga Tanga. By his two wins in Juja and Gaturi, he has eclipsed pretenders to DP throne in Hustler Nation, at least from my own perspective. Happy that he has agreed to look at the wider picture in Kiambaa,” Kang’ata stated.

However, columnist Barrack Muluka says “It’s too early to conclude that Kuria is in charge or is stepping up to be the kingpin. This is nothing new to Mt Kenya residents. They will shape up their own path but it’s still early to call it a win for Kuria.”

Kuria is among Mt Kenya leaders who criticized Speaker of the National Assembly Justin Muturi’s coronation as the region’s spokesperson recently, saying it is insignificant to the political future of the region.

“This so-called coronation of Muturi is nothing but vanity. It’s an exercise in futility, it’s like an opinion poll in China, accurate but of no value,” Kuria said during a television interview last week.

The retirement of President Uhuru Kenyatta in 2022 has set the stage open for a fierce political battle among the Mt Kenya leaders who are aspiring to succeed him as the region’s kingpin

Will Moses Kuria live up to his dream to be a political force in the vote-rich Mt Kenya political base, only time will tell.

By Graham A. N. Wright and Anup Singh

MSMEs are facing an existential crisis. The economic impact of the COVID-19 has been as bad as we had feared … possibly worse.

About 17% of businesses surveyed by MSC in India, Indonesia, Kenya, and the Philippines have closed due to local restrictions and low demand for goods and services, while micro and small enterprises (MSEs) in the informal sector fared worse. A recent World Bank report suggests that in Kenya, one-thirdof household-run MSEs have not been operating for months.

Declining income and rising expenses is a double whammy for enterprises in such trying times. On the demand side, the income of businesses declined due to reduced footfall, lower customer demand, and reduced purchasing power of customers. At the household level, MSME owners have had to pay for increased household expenses for basic goods, electricity, and the education of children. On the supply side, the factors contributing to the decline in income included disruptions in the supply chain and limited operating hours for the businesses impacted by the lockdowns and restrictions on movement.

Entrepreneurs have experienced severe challengesrelated to cash flow. This was due to three key issues—limited access to goods on supplier credit, most sales being conducted on credit, whichresulted in increasing receivables, and the rising cost of supplies. MSMEs have resorted to running down their life savings, borrowing from their social networks, and even selling off business and household assets to meet their cash flow requirements.

In Kenya, with other expenses gradually stabilizing, repayment of loans has emerged as the biggest challenge for entrepreneurs. They have beenstruggling to repay new loans taken during the pandemic or pay penalties on old loans, or both,due to delays in installments.

MSMEs have struggled to borrow from formal financial institutions as they encounter more stringent terms, such as higher costs of credit and requests for physical collateral. Financial service providers are also reluctant to offer loans, let alone discounted interest rates as the pandemic devastated their cash-flows. But many MSMEs need credit to be able to revive their business, restock, and survive the crisis. In December, 2020, 50% of the respondents reported that they applied for the loan compared to 39% of MSMEs in September, 2020.

This situation is not unique for entrepreneurs in Kenya and is replicated worldwide—as seen from studies by MSC and the World Bank. Both the studies note that local enterprises now have limited access to cash and credit for business. In the absence of credit for MSMEs, they will be unable to restart their businesses or reach their previous scale—as their efforts to respond to the pandemic have eaten into much of their working capital.

How has the inclusive finance sector respondedto these challenges?

The response from the inclusive finance sector to this crisis has been largely traditional—and, as a consequence, we risk losing an important opportunity to “build back better”.

Governments and donors remain largely focused on traditional solutions, such as supporting microfinance institutions and credit guarantee initiatives that are managed largely by traditional banks. For example, in December, 2020, the Government of Kenya launched the credit guarantee scheme (CGS) by allocating an initial seed capital of KES 3 billion (˜USD 30 million). This approach may be necessary and relatively easy in the short run, but we should think more strategically.

We should not let this crisis go to waste. It provides us the opportunity to accelerate several interrelated transitions to allow MSMEs and the financial institutions that serve them to realize the full potential of the digital revolution.

Most micro- and many small enterprises remain informal and thus do not qualify for the stimulus packages of governments. The fallout from COVID-19 could provide the push needed for these enterprises to register and formalize. Using COVID-specific cash transfers, access to government procurement as well as credit facilities, and support for digitization as incentives, governments may encourage informal enterprises to formalize. Countries could introduce a low–touch and paper–lite registration for informal enterprises to allow them to qualify for support in the event of a disaster. Such a system would have to recognize the disincentives to formalization, in particular the entrepreneurs’ fear of falling into the tax net, and set reasonable levels of revenue for enterprises as a threshold to be taxed.

The pandemic pushed some MSMEs to increase their use of digital marketing and payment channels. While the change has been more pronounced in some countries, such as India and Indonesia, it was significantly incremental in others, such as in the Philippines and Uganda. Nonetheless, formalization and the growing range of technology available to support enterprises would allow them to manage their business more effectively and create a digital footprint upon which financial service providers can make informed lending decisions. MSC’s analysis has shown, unsurprisingly, that different merchants, for example, are at different stages of readiness to make this transition.

Governments, donor agencies, and the private sector will need to work together to enhance the digital capability and the uptake and usage of digital marketing and payment systems. Thiscollaboration will require mobile money and other digital payment providers to revisit their pricing and commission systems for both cash–in/cash–out (CICO) agents and merchants. These changes are essential to encourage the move to keep money digital and to maximize digital payments. CICO agents and merchants will need to be equipped and incentivized to utilize their position as community influencers to become agents of change. The agents and merchants are uniquely positioned to do this at the key “teachable moments” when their customers come to transact.

As an integral part of seizing the opportunity provided by COVID-19 to accelerate the digital revolution, financial institutions (including MFIs) must implement digital transformation.This will allow them to deliver faster and cheaper services, equip them to serve MSME customers better, and allow microfinance institutions to utilize their strengths to continue to serve rural and urban markets.

Part of these changes will be through partnerships between traditional incumbentsand fintechs to help achieve the objectives of digital transformation. Governments and donor agencies should set up a lab, a community of practice, and earmarked funds that financial institutions can avail of on a matching fund basis to encourage digital transformation.Forward-thinking microfinance investment vehicles should help their investee organizations with the required matching funds to protect their investments.

Digital credit providers have the potential to play a leadership role in the response to the pandemic. They could offer rapid loans based on alternative data, particularly if they couldaccess the credit guarantee schemes provided by a range of agencies across the globe. Yetcurrently, many of the burgeoning digital credit operations, particularly in Africa, are focused on the consumer rather than enterprise lending. This needs to change.

The unintended consequences of aggressive push marketing, unacceptable collection practices, borrowing for sports betting, and negative listing on credit bureaus have been profoundly negative. MSC has already made a range of recommendations on how digital credit providers can make their products more user-friendly and thus profitable. However, to realize the full potential of digital credit, providers will have to both rethink their applications, user interfaces and experience (UI/UX), algorithms, and make use of the digitization of MSMEs we advocate in point 2 above. The regulators must ensure that fintechs have a level and fair playing field and build adequate provisions to protect the end-users.

We do not want to pretend that this transformation will be easy. It will require collaboration and a huge effort from governments, donors, the private sector, and fintechs. Yet it can potentially change—at a fundamental level—how enterprises conduct their business, how they access financial services,and how well they can respond to the next crisis.

Writers are Executive Directors at MicroSave Consulting-MSC.

By David King Onjili

Kenya’s justice system like many of her Commonwealth counterparts is Adversarial. Simply put, each side in a court proceeding endeavors to win the proceedings within the limits of the law and rules of the court.

The 2010 Constitution of Kenya grants every citizen under Chapter 4(The Bill of Rights); several Fundamental Rights and Freedoms, it envisages that all, irrespective of age, gender, sexual orientation are equal before the law. The Bill of Rights is noted as an integral part of Kenya’s democratic state and is the framework for social, economic, and cultural policies.

On this premise, I found Boniface Mwangi’s post on May 22, 2021, not only irresponsible but an indictment to a man who has been at the forefront of fighting for a just Kenya. I made him know my thoughts on his sentiment on both his Facebook and Twitter social media pages.

Mr. Mwangi is not an ordinary citizen in my view. He has earned his name as a celebrated photographer and activist. He has championed worthy causes whether you agree with him and his ways or not. Our society is better because of his courage but on this he erred. Funny is that some respectable members of society who spent most of their early life championing for a free and democratic Kenya keep cheering him. They see no evil, hear no evil.

The issue at hand is the Building Bridges Initiative (BBI)that remains quite emotive with the proponents and opponents of the document holding dear their various positions. Such moments in growing democracies like ours should be cherished irrespective of what side you choose to take or even remain neutral.

Proponents of Linda Katiba overwhelmingly won the case at the Kenya High Court. Feeling aggrieved by the judgment, proponents of the BBI have challenged the ruling at the Court of Appeal. One would expect a sober debate around the issue in a growing democracy. Not name-calling and trying to set up them versus us agenda. It is on this premise that I believe that Mr. Mwangi should be called out.

From where I sit, there is a growing feeling that a certain group of activists and especially Twitter users who are trying to deny our young democracy the freedoms that many have fought so hard to acquire. Anyone who is not on their side of a debate is either branded a traitor to their version of envisaged Kenya. Seldom will they ever put you down on the substance of your views, they trivialize divergent views by throwing snide remarks covered with tribal connotations.

“Every man in the world believes that their wife is the most beautiful woman in the world.” Arsene Wenger, former Arsenal FC manager when responding to the media after he was asked about his team.

That statement is quite relevant in many public discourses, once someone holds a position, they think theirs is the best. That is okay if you ask me. But it should never be at the expense of belittling or demonizing the other.

For years many have fought against state excesses, our history is rich with men and women, and events like Saba Saba are lasting reminders of the struggles we have had as a country to ensure that the State is not a small god. Why then should we allow a small group of activists and social media users to try to stifle debate?

Allow me to remind Mr. Mwangi that he is a founding member of the Ukweli Party, and below is part of what his party claims to stand for on their website.

“Ukweli Party is a social-democratic national political organization and movement of diverse citizens, working together towards a Kenya that is governed democratically and competently.” reads part of it. I hope those beautiful words ring a bell to him every time he tries to stifle debate, especially on non-substantial grounds.

An interesting occurrence recently also occurred in the social media space. I was again involved, only this time with educationist Dr. Wandia Njoya. The good Doctor has earned her credentials, I know many of her students, and the general public admire her too.

Yet, she exhibits a characteristic that is so nonacademic. I do not lay claim to being an intellectual myself. I am a simply trained accountant and currently pursuing aeronautical engineering after getting the chance to do so. However, my schooling and upbringing were one of rigorous intellectual debate. My best lectures were like battlefields, a fierce exchange of ideas amongst the learners and teachers.

Hence, I find it odd that an acclaimed academic like her would run away from any academic challenge on her ideas. That is why Economist and Public Intellectual David Ndii stands out for me. Whether for or against him, he will always labor to challenge ideas with ideas on his Twitter handle.

I understand that social media is a powerful tool, we have annoying trolls but we also have those who further stimulating debate. Why would anyone shy away from their ideas being interrogated? More so if they are a teacher.

This makes me very afraid to imagine how her lectures are conducted. Do her students have the liberty to express themselves? Does she treat those students who question her differently as opposed to those who ‘sing’ to her tune?

Gitobu Imanyara, Paul Muite, Raila Odinga, Rev Thomas Njoya, and many others did not fight gallantly for some of the freedoms we enjoy as a nation. Only for these gains to be reversed especially in the influential social media spaces by a few. We must out them and remind them, that our young Union is not perfect, and we must keep perfecting it one debate at a time.

To any social media user especially those who inform public debate, be ready to have your thoughts interrogated. Whether you agree or disagree with that, it should not be an excuse to deny others a chance to respectfully challenge you.

The writer is a trained accountant, a soccer lover, and currently pursuing aeronautical engineering.

Escalating taxations

Digital Tax Service

The Kenyan government implemented taxes on Internet businesses and entrepreneurs in January, 2021 with an aim to bring up to 1,000 companies and individuals under its tax bracket which, it claims, could generate up to $45 million (Ksh 5 billion) in revenue by June 2021. The Kenya Revenue Authority (KRA) publicised Digital Services Tax in 2020, following the Finance Act 2019. Businesses and Individuals would pay a 1.5% fee on the value of goods and services sold or offered online.

Some of these services include e-books, movies, music, games, theatre and event tickets, news platforms, magazines and other digital content.

The COVID-19 induced disruption and has moved several businesses online, and the KRA expects this to work in its favour in 2021 as many business have resorted to online service delivery as demand for it have since been on the rise at the expense of recovering business.

Only India, Italy, France, the UK, Mexico, Hungary, Austria, Czech Republic, Turkey, Belgium and Spain are in the process of implementing the process. These aren’t even Kenya’s peers in terms of Economy index ranking. Kenya is the only African country to have implemented the Digital Tax Service.

As much as KRA is implementing its programme thinking they’re being innovative and ahead of time — they’ve killed and continue to kill business and they might be left with a handful to tax and will revoke more pins for individuals and business not filing their annual returns.

In the wake to economic recovery after covid19 wrath, what’s the essence of the Government lobbying for foreign and local loans which end up in dirty hands of cartels in the name of tenderprenuers.

As the Jubilee Government which has become Handshake Government continue to lobby for more loans and bonds and continue to recieve more aids and grants from international community – it has equally stretched out its hands to siphon money from small business and individuals by overtaxing them to meet their revenue target. 

Goods exempt from taxation in Kenya

On September 17, 2013, President Uhuru Kenyatta ordered the Kenya Revenue Authority and the National Treasury to clarify on the list of VAT exempt goods in Kenya. This presidential order was in a bid to deter unscrupulous traders from overpricing goods and taking advantage of the ‘local mwananchi’.

The offense of charging VAT on exempt goods or services carries a fine of even up to one million Kenya shillings or a jail term of three years. Here is a detailed list on goods that have been exempted from the Value Added Tax in Kenya.

Below is a list of VAT exempt goods in Kenya according to their categories.

1. Materials used to prepare the cleaning dairy apparatus.

2. Mosquito nets

3. Seeds for sowing, for example, cotton seeds, sunflower seeds, mustard seeds, sesamum seeds, safflower seeds, cola seeds, linseed and mustard seeds.

4. Inputs for the use of in the manufacture of agricultural products

5. Floriculture, Agriculture and Horticulture inputs

6. Fertilizers 

7. Electrical Energy Saving bulbs

8. Specialized solar accessories and equipment 

9. Hotel equipment marked, printed or engraved with any hotel logo 

10. Education as well as educational materials and articles

11. Museums and exhibits

12. Relief goods imported mainly for emergency use in areas where a natural calamity has occurred. The importation must be made within a span of six months not exceeding 12 months.

13. Speed governors

14. Computer software and media that contains computer software 

15. Plants and machinery designed specifically for garbage collection are some examples of VAT exempt vehicles.

List of VAT exempt transactions and VAT exempt services in Kenya 

1. The following financial services are VAT exempted:

*The operation of current, deposit, or savings accounts as well as the provision of account statements.

*Issuing of credit and debit cards.

*ATM transactions excluding the supply of the machines and the software to run it.

*Cheque handling, processing, clearing as well as cancellation of cheques.

​2. Insurance and reinsurance services excluding actuarial services, management, and related insurance consultancy services and services of loss adjusters.

3. The supply of education services

4. Medical, dental, veterinary, and nursing services.

5. Agricultural and horticultural services.

6. Burial and cremation services.

7. Transportation of passengers by any means excluding international air transport.

8. Supply by way of sale, leasing, renting, letting or hiring land or residential premises.

9. Community, social and welfare services provided by National Government or County Government.

10. Stock exchange brokerage as well as tea and coffee brokerage services.

11. The supply of services rendered by educational, religious, welfare, political and other philanthropic associations to their members.

12. Stage and cultural performances which are conducted by educational institutions and approved by the Cabinet Secretary for education as part of the learning curriculum.

13. Accommodation and restaurant services provided or operated by an educational training institutions and also approved by the Cabinet Secretary.

14. Conference services conducted for educational institutions.

15. Car park services rendered by National Government, County Government.

16. The supply of airtime by any person other than the provider of cellular mobile telephone services or wireless telephone services.

17. Leasing, hiring, and chartering of aircrafts

On 23 December 2020, the Kenyan President assented to the Tax Law Amendment Act (No. 2) of 2020 (the Act). The Act amends the Income Tax Act and the Value Added Tax (VAT) Act of Kenya.

The key amendments made through the Act include the reinstatement of: (i) the resident corporate income tax rate to 30% from 25%; and (ii) the highest individual income tax band to 30% from the 25%. Additionally, the VAT rate was reinstated to 16% from 14% through a legal notice in accordance with the law.

These rate changes became effective on 1 January 2021. Some of the notable introductions into the tax landscape is the minimum tax at the rate of 1% of the gross turnover, a digital services tax at the rate of 1.5% of the transaction value and also the introduction of a Voluntary Tax Disclosure Program, which will run for a period of three years beginning 1 January 2021.

This Alert summarizes the tax proposals contained in the Act and insights into the other critical tax changes that took effect on 1 January 2021. Refer to EY Global Tax Alert that summarizes all the tax changes enacted by the Finance Act, 2020.

Kenyans have a government which operates like matatu sacco business which grasps the opportunity to siphon passengers by doubling the fare when it rains. In the midst of a pandemic, the Government saw a great opportunity to bloat its accounts by overtaxation and reinstatement of old laws to increase its revenue.

Overtaxation in an economy where the Head of State himself Uhuru Kenyatta admitted that KShs. 2 billion – $20 million tax payers money is lost on daily basis to money launders in the government. Corruption at its best.

The government wants more but cant even manage the little they have. The more they get, they more public coffers loot.

The Treasury have even now proposed to remove syringes from the category of goods exempt from taxation, in the Finance Bill of 2021. A sign that exempted Goods and Services in the Healthcare sector will soon be almost all taxed as the treasury seems to also want to grasp the opportunity in the demanding healthcare service due to the pandemic.

It also turns out Government is against local chang’aa brewers not because the brewers are producing substandard Chang’aa – liquor but because the Government isn’t / can’t getting / get enough tax from the brewers. A jealous partner.

Soon they’ll tax the church since that’s the only lucrative business not being taxed and clergy are ripping big. As Corona continues to swipe out humanity, your Government is assisting it by overtaxation. Total Economic sabotage instead of Economic recovery.

Public debt

Kenya, möge der allmächtige Gott mit dir sein

Kenya, Ilaaha Qaadirka ahi ha kula jiro

كينيا ، الله تعالى مع

Kenya, que Dieu tout-puissant soit avec vous

Kenya, que Deus Todo-Poderoso esteja com você

Different monkeys, same forest.

When Competition Authority of Kenya first found French and world’s second largest Retailor Carrefour guilty of abuse of power to local suppliers in Kenya and hike of prices last year 2020 and again this year 2021, many Kenyans have had mixed reactions with some suggesting boycotts while some are of the opinion that the retail giant is innocent.

Initially, Competition Authority of Kenya (CAK)  ordered Carrefour, through its franchise holder Majid al Futtaim’s (MAF), to expunge six items from its supplier contracts that are said to give the store the power to offer ultra-competitive pricing to boost sales and increase market share. The clauses included forcing suppliers to pay a non-refundable fee to do business with it and forcing merchants offering the retail chain goods to provide extra rebates or discounts.

Carrefour was found to be in breach of the law for forcing suppliers to post their own staff at its outlets at the expense of the suppliers. It was also accused of rejecting goods already delivered. Carrefour was accused of abusing its buyer power and risked a financial penalty equivalent to 10 percent of its gross sales, which stood at Ksh14 billion ($140 million) in 2018, if it failed to review the “offending provisions.”

Prior to which the retail was already fined Ksh124,767 ($1,247) for exploiting yoghurt supplier, Orchards Limited, and the fine was equivalent to 10 percent of the sales generated from the dairy products supplied by the firm in 2018.

Buyer Power is the ability of a buyer to obtain terms of supply more favourable than a supplier’s ordinary contractual terms. Carrefour has been accused of using the supplier contract to depress their earnings (suppliers) and gain market advantage through competitive pricing. And in recent tribunal verdict, it has been found ‘guilty’ and been ordered to review contracts of 700 local suppliers within 30 days.

Since launching its Kenya operations in 2016, the franchise has grown far faster than expected and this seems to have awaken goose bumps of some cartels who want to frustrate the giant to bribe them or kill their local success dream in the country through KRA frustrations of which already happened, Competition Authority of Kenya etc.

In case of KRA : The owners of Carrefour in November 2019 received various VAA assessments for January 2018 to May 2018. The total was Sh523,009,184. In 2018, KRA introduced value added tax auto assessment system to detect inconsistencies between purchases and sales invoices declared.

Majid Al Futtaim immediately filed its objection to the tax demand and invited KRA to conduct a physical assessment. Its objection was based on the fact that the implementation of VAA effectively places an obligation on the supermarket to ensure its suppliers declare output VAT and remit the same to KRA, which it said contravenes tax laws.

Secondly, it said the inconsistency between the input tax claimed by KRA and the output tax declared by the supplier does not necessarily imply noncompliance or tax leakage.

And since November 15, 2019, KRA has not rendered a decision on the objection raised by the supermarket owners, while the principal tax assessment amounts continue to reflect and accrue interest.

In January this year 2021, the French retailer Carrefour sued the taxman for rejecting a Sh523 million VAT refund claim over inconsistency with filings from its suppliers under a new digital system.

Locally, suppliers set a recommended retail price for their products and approach retailers. Retailers then calculate how much profit they would want per item and in the end come up with a shelf price that meets the needs of both parties. Carrefour’s proposal meant that over and above such gains, suppliers were to be paid their dues less this incremental extra rebate with negotiations happening only if sales targets were not met.

The Paris-based retailer like any other demanded that suppliers pay at least Ksh10,000 ($100) for every new item they launch in the market. This amount was payable for every store where the goods were stocked, a rule that they are accused of being extortionists, but even the government demands non-refundable fee from tender applicants. 

At first before writing this article, I had a different antagonistic opinion against Carrefour and fully supported how the authorities were fighting them- from the time of racial abuse incident at their Karen hub branch that occured in 2017 and of which after indepth thinking I came to a conclusion that the incidence was just insensitive and the enemies tried to insinuate and take advantage that Carrefour isn’t locally owned and so spread the hatred of racism like every white-foreigner are always racist.

Mistakes that Carrefour are being accused of are the same and the norm of the competative business. Even world’s largest retailer Walmart has such issues not that they aren’t aware but that’s the game and that’s it. I felt I’d be preaching water and taking wine by castigating Carrefour and supporting frustrations and decisions made by CAK who might be on payroll by likes of Quickmart to kick out the giant out the Kenyan Market.

Quickmart is no better than all that Carrefour is being accused of. It’s only that they’ve silenced the system but soon the truth will prevail. Currently there is no expensive supermarket compared to Quickmart. Their prices are super-hiked and they’ve strategically managed to open a branch in almost every corner in the country taking advantage of lazy customers. Carrefour is far much cheaper than Quickmart, their goods ever discounted for customers, best service providers so far. 

I was of the opinion to to encourage Kenyans to boycott Carrefour as that’s the only way they would exit the market even if they went ahead to bribe CAK. In the process, I felt guilt of unfairness without revisiting history – and doing my research – I came to learn of previous similar incident where Africa Richest man Dangote was about to set his cement company in Kenya but later changed his mind not to – after Kenyan authorities demanded Ksh 1.5 billion bribe so as to be given pass and connected the dots to the current situation Carrefour is facing now. Cartels frustrating foreign investors and killing dreams and denying jobless Kenyans opportunities  if they aren’t bribed.

Carrefour is an international food store giant and has nothing to lose when kicked out from the Kenyan market. It is Kenyans who will loose jobs and forced to buy expensive goods from Quickmart.
It is the local suppliers who need to up their game and standard to meet the International standards of Carrefour. Let them embrace the change. As the world is embracing Elon Musk’s Tesla – Kenyan authorities want to embrace Turkana’s tuk tuk.

When these suppliers applied for the tenders, they agreed to the terms and and conditions but when it came to a point of implementing these conditions as suppliers they became overwhelmed and hence many had their contracts terminated.  This is a contract the suppliers knew and they acquainted with full information dealing with international firm who is offering international standards. No more no less.

I am concerned how the authority keep on frustrating foreign investors with trumped up charges and accusations to reap bribes from them at the expense of Kenyans who have been employed by these investors.

Blowing off someones candle to make yours shine brighter this time will be a mission impossible. We must provide favourable condition for foreign investors in this Country.

Stay tuned, in my next segment you’ll get to know more about what’s unfolding at Quickmart. Calling a spade a spade not a big spoon.

The same sun that’s melting the butter of these foreign investors and hardens the eggs of these Quickmart like entities must work the other way round until a fair play ground is leveled up.

“This exact time last year, it was said I was in quarantine with Corona. Today, you guys have fired me [from ODM], then what will you do next year, kill me?” This was the question Orange Democratic Movement secretary-general Edwin Sifuna asked on April 9 following a social media rumour he had been fired by his party boss Raila Odinga.

For the record, a secretary-general is hired and can only be fired by party National Executive Committee, not the party leader. So, I guess, Sifuna has his job secure until this organ communicates otherwise.

However, in my considered opinion, the question Sifuna should be asking himself is why the public, who are perhaps Orange party supporters, were wishing him the sack.

There are as many opinions on his conduct as there are people to think about it, but mine is: his sharp tongue is his worst enemy. His not so-thought-out public pronouncements often give the corporate ODM party a bad image. With his tongue, Sifuna has broken bridges where ODM should have build some, often with costly consequences.

In any institution, the office of secretary-general encapsulates organisational authority, power and importance. It is the face of the organisation and whatever comes from the office, advertently or advertently, often times, it becomes the party position on the matter.

Being combative, abrasive, adversarial, confrontational, polarising and or sharp-tongued should not be part of the attributes of the office holder, rather accommodation, wisdom, persuasion and diplomacy should punctuate their traits.

For instance, what does a secretary-general seek to achieve in “fooling” party members because it’s April Fool’s day? Does he imply his is a party of chumps who fall hook, line, and sinker for jokes? It is simply unacceptable!

Again, in Kenya we’ve learned that politics has no permanent enemies first hand. I, therefore, find it myopic when Sifuna chooses to call possible future Raila partners all manner of demeaning names. They may look desperate and “pretentious” today because they are in the other camp, but if tables turn tomorrow and Sifuna finds himself in their camp or vice versa, will he have the guts to face them or will they trust him for any meaningful business?

It is in the interest of ODM to tame Sifuna soonest because he is costing them dearly. It is not lost on the party supporters he has variously been accused of costing the party elective seats, especially in Matungu and Machakos, recently.

In politics, they say, there’s nothing like bad publicity, but bad news isn’t always good for business. Parties should think twice before entertaining leaders who are often in the news for the wrong reasons.

Without qualifying the description of Sifuna by ANC Musalia Mudavadi’s adviser Kibisu Kabatesi, he should not be allowed to “bring political juvenile delinquency to the high table”.

What Sifuna should find himself busy with is what directly affects ODM voters, and Kenyans at large —the rising public debt, Covid-19 impact, reforms in the energy sector and the push for zero-rating of essential commodities. Coining of phrases such as ‘band of pretenders’, ‘celerac alliance’ or ‘niachie alliance’, in reference to perceived or real political rivals, does not advance the interests of the people he is employed to serve in any way. I rest my case.

— The writer comments on social issues — [email protected] SUZZANNE NATELA

By Donald Kipkorir

Deuteronomy 24:14-15

You shall not oppress a hired
servant …

You shall give him his wages … before the sun sets…
Our legal System was imported from England and the foundation is thus Anglo-Saxon law. In turn, Anglo-Saxon Law is rooted in Judeo-Christian traditions and beliefs. The laws and judgements of England as at August 12, 1897 are binding on our courts.

After that date, they are persuasive, strongly persuasive. Few are judges in Kenya or even in Singapore, Canada or South Africa who will demur with decisions of UK Supreme Court and House of Lords. How can a child dissent from his mother?
The recent judgment of United Kingdom Supreme Court in Uber BV & Others vs Aslam & Others, [2021] UKSC 5 in respect of whether Uber drivers are independent contractors of employees of Uber will have far reaching implication in Kenya and entire world that uses Anglo-Saxon law.

In its unanimous decision, the seven judges held that Uber drivers are employees of Uber and must enjoy full benefits that employees are entitled to.
The Supreme Court reached that decision on inter alia, the grounds that Uber drivers have no say once they download the Uber app. The court held that ordinary legislation on employment must be interpreted purposively to avoid undermining the mischief that employment laws intended to cure.

In employment contracts, employers are in a superior position of bargaining and employment laws is to create a fair bargaining position for an employee.

In Kenya, M-Pesa agents and outlets are as ubiquitous as our matatus and Boda Boda: they are everywhere. All major banks have signed onto it. Every village has an M-Pesa shop. Safaricom earns about Sh40 billion from its M-Pesa services annually. Safaricom is the owner of the intellectual proprietary rights to the M-Pesa app. Those who download it, once licensed by Safaricom have no say on the terms.

All M-Pesa agents have to pay certain agreed commission or share of profit to Safaricom. This arrangement makes Safaricom the employee of all agents of M-Pesa app.

Our employment law is derived from several sources including the Constitution, Acts of Parliament, Subsidiary Legislation and International Conventions. And the laws and case law of England as described at the beginning above.

In 2007 there was a review of the national employment laws, which had been of concern to both the Kenyan public and the Government for a long time due to the tremendous changes experienced in the local labour market such as structural adjustments, liberalisation of the economy and technological innovations.

The review was aimed at ensuring the laws were responsive to contemporary, economic and social changes, as well as achieve a new set of reformed, updated labour legislation, through a coordinated consultative process.

By Charles Kibiwot

Garissa county government under the leadership of Governor Ali Korane has perfected the art of looting all while giving false promise to the people of Garissa.

The Governor in conjunction with some few county executives have grossly stolen and misappropriated billions of taxpayers funds all while their promises and pledges to implement key flagship campaign projects is still unfulfilled.

Where are the investigative arms of the government? Why are the DPP, DCI and others not swinging into action and make arrests, knowing very well funds meant for the following projects have been looted by the Governor and his county executives and henchmen?

Korane is full of deception, he keeps us busy by feigning meekness and blaming others for his own incompetence. Apart from commissioning a couple of donor funded projects he has absolutely done nothing tangible with the billions he receives from the exchequer.

Where is the free WiFi?
Where is the 500M meant to water projects , yet our people are still contending with jerrycans to get the commodity?
Where is the revolving funds?
Where is the 2000 km roads?
Where is the 64m school bursaries?
Where is the 1.2 millions hectares Gababa irrigation scheme?
Where is Mathenge power plant?
How about the largest meat processing plant in Africa he promised?
Was it stories?

The Governor alongside powerful Cecs Roble Nunow, Ahmed Nadhir and the county secretary Abdi Sheikh must be investigated and prosecuted for abuse of office and misappropriation of funds.

The people of Garissa are watching!

Before Covid19 Pandemic hit the world, debate over ‘who’ – who is the most patriotic cadre of frontline workers in serving the nation, whether Healthcare workers or Kenya Defense Forces comparison rented social media streets everytime whenever healthcare workers strike for better pay.
Paid influencers to antagonise healthcare workers would frequently tell off HCW to feel no better than our KDF soldiers who left their families to fight terrorists at the border. I wonder whether Doctors, Laboratory officers, Nurses, Clinical officers don’t go to the field. Smh!

Lets break some of the factual elements between these two controversial entities:

1. Lowest grade Healthcare worker is C+ student while a KDF is a D form four drop out. Academic dwarf vs Academic giant.

2. Covid19, the terrible invisible  enemy that neither KDF nor any other defense force couldn’t fight and ruthlessly swept lots of lives in a flash of time. Brought the whole world to a standstill, locked everyone in their homes and out off streets for months. Science unarguably took full control of the world.

It needed intervention of healthcare providers fraternity and scientists to help control this pandemic – invisible enemy.

Some will argue that terrorism is more of inhumane – manslaughter act but not malaria, cancer or even pneumonia but statistics have it and COVID has proven it that the ruthless killer is health matters – biological warfare.

Government sets aside budget of billions and trillions of money to secure armoury, riffles, suvs and all that defense forces need and even in excess but Healthcare workers begs to be given PPEs, delayed salaries, low wages, poor working conditions when all these two entities  are both frontline workers of the nation.

3. Countries which prioritises weapons and millitarization are forever at war and insecure and rarely gets to prosper in the midst of lawlessnes with drunken masters in power.

4. African countries led by Dictators enjoys militarization to cling to power and terrorise outspoken Government antagonists.

5. If you live by the sword, you die by the sword. 

Well, some of these facts are discriminative in but none is ill-thought. Government should just give Caesar what belongs to Caesar.

The big Q

As our Nation’s National anthem articulates about Unity, values of unity and for unity, equality and equity, Justice be our shield and defender. But why do Healthcare providers get inadequate supply of PPEs and when they are supplied then they’re of substandard quality while our Defense soldiers never runs out of full body armour and of standard quality.
Where is the equality, equity and Justice in it?

Why would government hospital fail to procure routine full hemogram equipment or any other essential laboratory equipment and if they fortunately do procure then they restock reagents and diluents once in a bluemoon while our soldiers have more than enough riffles, grenades, machine guns. Where is the equality, equity and justice?

The blame game shouldn’t/ can’t be corruption. That shouldn’t/ can’t be an escape goat to not paying healthcare workers their wages, risk allowances like our defense soldiers gets without delay. 

Health has become the most life threatening terrorist in this nation, colon cancer has hit men tremendously, breast cancer has hit our women and mothers tremendously. The harsh Economy has changed the lifestyle of majority making them prone to cheap and affordable carcinogenic foodstuffs. Day in day out thousands of Kenyans travel to India to seek advanced treatments, day in day out many poor Kenyans seek healthcare fund drives through social media at an alarming rate. Health insurance companies have become the most lucrative business entities enjoying larger junk of money than any other entity.

60% of Kenyans are unable to afford and if they afford then minority sustain private hospital charges and so their sole refuge is government facilities whose healthcare providers are overworked under pressure with no motivation, no allowance, no salaries – wages and many succumb to stroke, depression, heart attacks, some left homeless after their properties get auctioned due to heavy bank- shylock debts, unpaid salaries.

The pain is inexcess while the gain is long overdue.

~~~~~~~~~~~~~~~~~~~

Lipa Kama Tender

As a healthcare provider, my sole objective ethicaly is to provide holistic healthcare to patients in need — with utmost favor and improvise any resource at my disposal to save lives but when I need to earn more to sustain my family back at home then am crucified like a selfish hyena, am ridiculed like a worn out politician. Like I just spent years and paid hundreds of thousands for my school fees only to paid peanuts in return? When I need more, am told am a biased ‘son of a bitch’ by the very same people whom tomorrow come begging for my service when they’ve mere headache.

A genuine and bold reminder to these drunk -arrogant authorities in power and any other enemy of healthcare provider is the fact that Doctors will forever be your Second god, will forever be the bridge between your life and death. Besides God’s natural Oxygen, we have the Oxygen plant. We treat and God heals. We’re 2 in 1.

Perhaps setting up Health Service Commission in the controversial BBI could’ve been atleast better move for the HCW fraternity. Like Teachers have Teachers Service Commission (TSC) has made work easier, their grievances have been adressed amicably, they always win the war. 

Until when should MLOs -Laboratory Officers, Nurses, COs, MOs and other cadres beg to be employed as PnP – Permanent and Pensionable? Until when will they be on the street? For how long will the Employer misuse the power fire and hire everytime it oppresses its Employees? For how long will the Kenyan government champion for Universal Health Coverage (UHC) when it cant even sustain to care for basic welfare of the Healthcare providers? 

In the wake of the collapse of SportPesa a company once listed as the most profitable business in Kenya after Safaricom, another is walking in the same thin line. Like a borrowed template, betting firm MozzartBet a company associated with ex-minister Musa Sirma is battling a Sh640M money laundering scandal in which the state says it’s complicit to.

Interior minister Fred Matiang’i wedged a war on betting firms an effort that saw the deportation of SportPesa’s and other red flagged fraudulent managers. In the center of the woods is the allegations of involvement in money laundering. While in the public face they engage in pure gambling activities, they engage in dirty businesses while blowing air on wounds with donations to the community as it was in the case of SportPesa.

https://twitter.com/fredmatiangi/status/1334857267955511296?s=21

SportPesa in its helm was seen as a clean firm at least in the public face, they sponsored many sporting activities, engaged in community work in fact SportPesa co-founder Guerassim Nikolov, the flamboyant, charming but ruthless Bulgarian billionaire while engaged in high volume money laundering prided in himself as a philanthropist.

Nikolov, who had worked himself up from a croupier in a casino in the Bulgarian capital of Sofia, to a billionaire in Kenya, understood just what money in the right pockets could do.

 

Away from charity, however, the deep pockets of the man wanted in Sofia were felt by the right people in the right places in Nairobi. Politicians. Cabinet Secretaries. Principal Secretaries. Key figures in Parliamentary leadership committees. A section of the State Law Office. Name it. There was also enough money to get lawyers who would get judges to grant them favourable injunctions whenever it got to that.

He, however, ran out of luck when the government woke up one day and decided to tighten its controls on the betting industry. SportPesa protested and threatened to close shop, citing an unfavourable operating environment. The government stayed put, and the fortunes of the betting giant that had taken over the country and was splashing billions of shillings in big football and motoring sports abroad started falling.

Running in the same track, MozzartBet that is under investigations over Sh640 money laundering is also engaging in a cleansing marketing exercise. The company which is fighting the negative press from the illegal activity is currently running laundry campaign including building wells and heavy media publicity in an high velocity PR drive.

They’ve borrowed from the SportPesa’s template with donations and publicity to blind focus on the illegal money laundering scandal.

MozzartBet is in the spotlight after a State agency questioned the source of more than Sh600 million the company had wired to a businessman’s bank accounts in a span of five months.

In court documents, the Assets Recovery Agency has flagged the transactions as suspicious, questioning the source of Sh640 million that the betting firm wired to Kimaco Connections between February and August.

This indicates that the agency believes the money was not generated from gambling activities under MozzartBet, which operates in a sector that has recently come under increased scrutiny from the State.

The ARA, which is seeking to seize and forfeit the cash to the State, has dismissed MozzartBet’s explanation that it paid the money to acquire from Kimaco Connections a software, which the latter subcontracted another firm — Open Skies Management Services, —to deliver.

Peter Kiilu, the owner of Kimaco Connections, allegedly wired Sh242 million to Open Skies Management Services, which is owned by Zimbabwean Emmanuel Charumbira and a shareholder of Mozzartbet.

The agency says that the unclear source and wiring of the cash to a web of accounts, including some owned by MozzartBet, point to a money laundering scheme.

“That Mr Peter Kiilu did not avail the agreement or contracts he alluded to in his recorded statement between Mozzartbet Kenya Ltd and Kimaco Connections and Kimaco Connections and Open Skies Management Services,” the ARA sys in court documents.

Court filings show that MozzartBet used its pay bill number 290059 to wire the millions through another pay bill number 311372 associated with Kimaco Connections to its pay bill 311372.

The highest amount sent was Sh50 million in a single day while the lowest was Sh1.8 million. The ARA says that MozzartBet sent a total Sh256 million within five days to Kimaco Connections, flagging the funds as suspicious. The funds were later moved to an account at Co-operative Bank.

From the account, Mr Kiilu moved Sh150 million to a fixed deposit account and left a balance of Sh101 million.

The company had between February and June received Sh384 million from the betting firm, pushing receipts from Mozzartbet to Sh640 million over five months.

MozzartBet is now on Matiang’i list of betting firms likely to be stricken off should the investigations affirm the money laundering accusations. SportPesa attempted to blackmail the government for reinstatement by cutting off sponsorships to local sports teams an attempt that didn’t bare fruits.

Mozzartbet would also need something to say look we may be playing dirty but we’re giving back to the community. Eyes are now on the investigations and how the no nonsense CS will handle the eventualities.

Betting firms have perfected the art of money laundering denying the tax collector revenue through tax evasion while engaging in cosmetic philanthropy to be seen as saviors which is not the case. As a result, the effects of betting has been adverse and ruined many lives. While the gullible gamblers run their pockets dry, the owners of the firms keep getting fatter pockets.

The raging debate on why more Kenyans are embracing alternative energy sources to escape the Kenya Power Limited high tariffs is a timely discourse on the future of an important sector.

Energy is a key ingredient for development. Besides lighting homes and freeing from darkness more hours to income-generating activities, energy is also an enabler of manufacturing and other industrial processes. For Kenya with its stated ambitions of industrial take-off and middle-income nation status, availability, access and affordability of energy are critical.

With an electricity penetration of over 70 per cent, the country has made impressive strides in the right direction. The World Bank regards the pace of Kenya’s electrification as among the fastest in the Sub-Saharan region. The Last Mile Connectivity that targeted nationwide connectivity is a good example of a purposed drive to make energy a truly basic amenity.

But at what cost? A significant number of connections under the Last Mile Connectivity are today in limbo because targeted beneficiaries are unable or unwilling to foot consumption costs. This is especially the case in rural setups where, strictly speaking, electricity is not the cheapest, most available form of energy.

For consumers seeking connectivity independent of government-sponsored subsidies, the applying fees can be daunting. A single-phase connection to a grid that is only a few metres away can be as high as Ksh 200, 000! The price rises absurdly for three-phase connections.

Clients often have to contend with inordinate delays in processing applications. Deliberate frustrations designed to nudge clients towards parting with bribes to shorten the delay are not uncommon.

Regionally, Kenya has the highest energy cost per unit besides Rwanda. At Ksh17 and Ksh20 per kWh for industrial and domestic consumption respectively, the country’s prices compare unfavourably with the equivalent of Ksh1, Ksh10 and Ksh18 for Ethiopia, Tanzania and Uganda respectively. The cost is also uncompetitive against prevailing prices in Egypt (Ksh4), South Africa (Ksh13), India (Ksh8), China (Ksh8) and Turkey (Ksh 9).

This comparison is especially important for bulk industrial consumers. Energy is, after all, a major cost of production. For Kenyan-based manufacturers eyeing local, regional or global markets, it portends a serious disadvantage in the competitiveness of market-bound products against similar goods from rival countries.

Tied to the factor of cost is energy stability. The diversification of energy sources away from traditional hydro-based supply has significantly boosted electricity stability in Kenya. This means that there are fewer outages and blackouts. Still, the World Bank estimates that on average, Kenyan firms lose 11 working days annually to power outages. This translates to more than five per cent loss of annual sales.

Due to power supply unreliability, 66 per cent of Kenyan firms have invested in power back-ups. The comparative figures for South Africa and Mozambique, for example, is 18 and 25 per cent respectively. Inevitably, such investments are a cost that is loaded on the final product further eroding the market competitiveness of made-in-Kenya goods.

Cheaper cost and more reliability will understandably rank high among the considerations driving Kenyans and local firms’ search for alternative energy supply. Equally understandable is KPLC’s inclination to self-preservation in the rattling of alarm bells at the growth of solar energy and other alternatives. A more useful approach for KPLC would have been to seize the opportunity to redeem itself with a better pricing regime, greater operating transparency and willingness to tap into these alternatives for complementary revenue streams.

For manufacturers and other investors, investing in independent energy supply could be a death-or-life decision on their future. At the very least, it determines the pricing of their product and the competitiveness of the same. The average consumption of a mid-sized firm can vary from 100,000kWh to 150,000kWh per month. This translates to an energy bill of Ksh1M to Ksh1.6M based on an 11kV peak tariff rate of Ksh.10.90 per kWh.

Any for-profit investor would want to avoid or at least mitigate such costs. Examples abound of firms that are successfully doing this. On Nairobi’s doorstep, Tatu City, the 5,000-acre mixed-use, mixed-income development, has for instance invested in a 1MW solar plant on the roof of one its clients, Dormans Coffee. The project took just two weeks to install. By putting solar on the roofs of businesses in Tatu Industrial Park, Tatu City estimates it will capture 30MW of solar power or a third of all its power requirements.

Indeed, one of the distinguishing features for the various Special Economic Zones set aside by the government is the provision of a cheaper energy regime. For investors in industries that are heavy energy consumers, a below-market rate tariff would be a good incentive to set up shop. The discount currently applying to electricity supplied to SEZs is however too little to have a significant effect on operating budgets.

There are a number of things that the government can do to boost access and stability of energy supply. First, it needs to commit to a fast-tracked removal of the KPLC’s monopoly which is inimical to the larger national economic interests. This can be done by opening up the sector to more competition. Rather than generating power to sell to KPLC at the buyer’s dictated prices, independent producers should be allowed to sell directly to consumers at competitive prices.

To its credit, the government has been investing in geothermal, wind and solar among other alternatives. The question of value-for-money in these investments is a moot topic. The International Energy Agency (IEA) estimates that by exploiting clean energy, reducing dependency on bioenergy and boosting energy efficiency, Kenya can easily supply energy to an economy six times bigger than its current one.

To fuel such mammoth growth, the government must be willing to review the policy regime around energy investments. Friendlier taxation, less bureaucracy in the licensing of independent power producers and fewer restrictions in accessing potential clients can be the catalyst for this growth.

Another useful policy change would be to allow big consumers to buy power directly from KenGen. Currently, the parastatal that is vested with electricity generation sells power to KPLC that, in turn, sells the same to consumers. Essentially therefore, KPLC is an institutionalised broker with a chokehold of the market. Cutting out this middleman and his bad habits should ideally save on delivery costs and therefore the final power bill.

The author is the Managing Director, Maven Design & Build Ltd, a Kenyan-based construction consultancy.

The public service has been associated more with graft, ineptitude and impunity. Civil servants are considered to pursue personal aggrandisement to the detriment of the public good. Soldiers espouse a public image of discipline and purpose. The strict and clear hierarchy of leadership ensures fidelity to authority, obedience to command and respect for rank.

Here are some of the Public agendas that millitary have transformed in a twinkle of an eye after being given opportunity:

Kenya Meat Commission (KMC)

In September, 2020, Agriculture Cabinet Secretary Peter Munya through a directive by President Uhuru Kenyatta directed Livestock Principal Secretary Harry Kimtai to facilitate the transfer of Kenya Meat Commission (KMC) to the Ministry of Defence.

Recently The Kenya Meat Commission cleared the bulk of debts it owed livestock farmers and other suppliers since it was taken over by the military in September.

They’ve managed to clear Ksh.250 million debt owed to livestock farmers. A further Kshs. 150M has been allocated to clear debts to other general suppliers in this financial year.

“We have lost opportunities to develop KMC under the frameworks we had. We kept sinking money in billions. It is because of incompetence, poor management and corruption that the parastatal could not move. I believe what we want is results. We need to focus on results and not processes,” Super CS Dr. Matiangi said.

He also said that the management  handover of the loss-making parastatal to the  the Kenya Defence Forces had also led to a nearly 30 per cent increase in the number of livestock supplied to the Athi River-based meat processor.

Nairobi Metropolitan Service(NMS)

NMS was put into office on March 18, 2020, by the President nearly a month after Nairobi Governor Mike Sonko handed transferred four key functions to the National Government.

The transferred functions include county health services, transport, public works, utilities and ancillary services and county. Most importantly is the fact that head of NMS is Millitary Major General Badi.

Formation of NMS and transition of powers to it was a  move which was legally challanged in the Justice system and caused stir concerning its ‘illegality’ but its formation just proved those who caused turmoil wrong and proved right those who trusted in it because the service delivery has been tremendous under the millitary man’s watch.

The decision went against the spirit of the 2010 Kenyan Constitution, which established county governments to promote democratic accountability by devolving some powers to the local level.

Up-to-date the NMS has achieved much more than what Governor Sonko’s administration achieved in 3 years in office. A fact which has cost a rift between the flamboyant PR Governor and NMS head Badi as he(Governor) feels that NMS is overshining and overshadowing him and as sensational dancehall singers Tarrus Riley and Sheensea said in this hit song “Lighter” – Baby Sonko when your bright light starts to fade, fire up your lighter – your development lighter not rift and hatred lighter.

The team has elevated 35 tanks, completed 20,903 meters of extension piping as well as the daily distribution of 200,000 litres of water to informal settlements using water bowsers.

NMS was also tasked to work with NAMATA to implement Nairobi urban mobility plan, come up with pedestrian walkways, dedicated cycling and pedestrian lanes on Wabera Street, Kenyatta Avenue and Muindi Mbingu Street within 100 days. Of which they completed and have tranformed Nairobi City CBD look like a walk in the park.

President Uhuru Kenyatta on Tuesday, 17 Nov 2020 launched the revamped Nairobi Commuter Rail Service (NCRS) and the refurbished Diesel Multiple Units (DMUs). The system consists of new 11 DMUs and Commuter Rail Buses. The project is part of the Nairobi Metropolitan Transport Master Plan that is aimed at carrying out a modernisation and expansion of underutilised railway transport to reduce congestion on city roads.

NMS aims by 1st Dec to eradicate PSV congestion in cbd by constructing new bus stations away from the cbd to shine more light to the capital city.

Major General (Rtd) Gordon Kihalangwa was promoted as Principal Secretary, State Department of Immigration, when it had wrangles. He is now Public Works PS, a department that is a key delivery pillar of the Big Four agenda and all is well now.

President Kenyatta has gone further to place all government airplanes and helicopters hitherto outside the KDF under military management of the elite Kenya Air Force. These include the Police Air Wing, Kenya Forestry Services, Kenya Wildlife Services and the Kenya Pipeline Company. This move is believed to had been made after misuse of these assets by Police bosses whom turned government choppers to family means of transport, frequent air accidents which have led to loss of billions of taxpayers money. Under millitary watch, non of the incidents have been reported and everything seems to be under protection and control.

With Millitary- I believe there wont be 2nd Covid19 millionaire wave. If not millitary , then re-allocation of the BBI refurendum funds will be to the same monkeys from different forest, of which wont be any better than 1st wave of covidmillionaires looting spree.

Sugarcoating the Corrupt Civilian rule marinated with corruption and thuggery and yelling at the Millitary rule will be like preaching water and taking wine.

As much I support use of millitary to push goodwill government agenda without looting and mismanagement of public funds, I dont support misuse of millitary to push extrajudicial killings by those in power to cling onto power or silence critics or murder innocent citizens like during 2007/2008-2017 post election violence.

Civilian rule in some Public service dockets have proven time and again waste of public resources hence the exlusion of civilians and inclusion of millitary to reclaim the lost glory and of which have truly responded positively.

The influence of power might lead to clinging into these civilian positions by the millitary of which might cause call for an alarm as it might result to full transformation to colonial era millitary state.

But with Civilian rule continuing to be deep rooted in graft, the warmth service of the military rule is starting to be felt as common wananchi need service and getting true value of their tax in return.