By KE morning time most will have read biz daily & seen the numerous tax increment articles on paraffin, diesel, water etc. A new water bill system similar to kplc's fuel & inflation variables to be charged. The reversal of tax exemptions etc. All documented and promised to the IMF by yours truly treasury & cbk. Power bill subsidies have been removed in UG causing bills to spike & inflation as well. In Nigeria fuel subsidies have been removed spiking fuel prices. In both countries, strikes are now active. KE is following the same script... No wonder citigroup expects inflation to remain high in the EAC region.
Revenue collection slide with gaping gok debt holes will see KRA pressure on tax hikes come to life with the hardship effect passed on to poor wanjiku... A rock & a hard place this for gok trying to balance funds for katiba, kdf, daily expenses & GE. Gok paper rates will keep spiking...
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!