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Kenya Economy Watch
Rank: Elder Joined: 12/7/2012 Posts: 11,911
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Kusadikika wrote:
If all the South Sudanese removed their dollars from Kenyas banks the dollar would be KES 180.
Governor Njoroge banned any locally affiliated financial institutions from commenting on the performance of the KES in public.  In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Member Joined: 3/1/2019 Posts: 170 Location: Nairobi
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Ericsson wrote:Shilling overvalued by 30 per cent - Amana CapitalKenya is operating a managed shilling than a free float currency, running a risk of making its exports more expensive. Speaking while unveiling a report that unpacks what is ailing Kenya's economy, Amana Capital chief investment officer Reginald Kadzutu said the shilling is overvalued by 30 per cent. He explained that the consumer price index which was at Sh97 in 2009 has since risen to Sh192, meaning that Kenyans are spending Sh192 to buy what could be bought at Sh100 ten years ago, translating to 50 per cent devaluation of purchasing power. ''The shilling's exchange rate which was at 72 against the dollar in 2009 is now at Sh100. This represents 20 per cent devaluation, meaning the shilling is overvalued by 30 per cent, '' Kadzutu said. Dubbed 'Kenya's Economic Puzzle', the report supports IMF's views on the shilling which were disputed by the Central Bank of Kenya. https://www.the-star.co....per-cent-amana-capital/
All these while completely ignoring the fact that the dollar itself has inflated by 20% (or thereabouts) since 2009. Also, if the consumer price index goes up, it does not automatically imply inflation, a component of it could be explained by a rise in the cost of living, which results from forces of supply and demand for those consumer goods. The IMF has its own reasons for claiming Kes is overvalued which they are not telling us, the numbers look good to me. The shilling is good, the Kenyan economy is strong, not everybody is happy about that, but what can we do....
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Rank: Elder Joined: 12/4/2009 Posts: 10,761 Location: NAIROBI
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https://www.the-star.co....orkers-sh4bn-deductions/Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 6/23/2009 Posts: 13,650 Location: nairobi
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Ericsson wrote:https://www.the-star.co.ke/news/2019-05-09-broke-uon-ku-hold-workers-sh4bn-deductions/ The two boys
COOP 255,000 ABP 15.85; KQ 484,100 ABP 7.45; MTN 23,800 ABP 5.20
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Rank: Elder Joined: 3/19/2010 Posts: 3,504 Location: Uganda
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obiero wrote:Ericsson wrote:https://www.the-star.co.ke/news/2019-05-09-broke-uon-ku-hold-workers-sh4bn-deductions/ The two boys times are tough but don't tell me its the interest cap cos these universities are already operating on bank overdraft s punda amecheka
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Rank: Elder Joined: 7/22/2008 Posts: 2,709
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obiero wrote:Ericsson wrote:https://www.the-star.co.ke/news/2019-05-09-broke-uon-ku-hold-workers-sh4bn-deductions/ The two boys UON is one of the biggest land owners in Nairobi. They just need to be creative and they can repay their debts and even generate surpluses. The problem with UON is that once people are employed they never leave regardless of performance. Believe me, if someone who was in UON 30 years ago goes there today he will find more than half of the people he left there are still there. Everybody from the groundsmen to the professors. Nothing changes, people keep their secure jobs and houses and side hustles.
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Rank: Elder Joined: 6/23/2009 Posts: 13,650 Location: nairobi
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newfarer wrote:obiero wrote:Ericsson wrote:https://www.the-star.co.ke/news/2019-05-09-broke-uon-ku-hold-workers-sh4bn-deductions/ The two boys times are tough but don't tell me its the interest cap cos these universities are already operating on bank overdraft s Macroeconomics
COOP 255,000 ABP 15.85; KQ 484,100 ABP 7.45; MTN 23,800 ABP 5.20
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Rank: Elder Joined: 12/4/2009 Posts: 10,761 Location: NAIROBI
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obiero wrote:newfarer wrote:obiero wrote:Ericsson wrote:https://www.the-star.co.ke/news/2019-05-09-broke-uon-ku-hold-workers-sh4bn-deductions/ The two boys times are tough but don't tell me its the interest cap cos these universities are already operating on bank overdraft s Macroeconomics The two boys are worse than KANU as Obiero had mentioned Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: New-farer Joined: 12/30/2018 Posts: 94
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Rank: Elder Joined: 12/4/2009 Posts: 10,761 Location: NAIROBI
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Petrol stations have now become shopping malls. They can’t really make a profit on petrol alone. This cost is one of the biggest costs to supply chains and logistics in Kenya. Remember all importers also pay for the railway levy. The government now makes more per liter of petrol than the person who drilled for it, refined it, transported it and sold it *COMBINED*. For every liter of petrol, the government takes 51% of the price as taxes, but feels that dealers who would want 10% are greedy. The government policy around petrol has made that worse. In 2010, cost of petrol had 30% of the cost as taxes. The government decided that a 10% profit margin was too high. They started regulating the price of fuel. When global crude prices fell, they quietly and mischievously introduced more taxes, took the margin that would have previously been passed on to citizens and demonized the petrol station. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
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Ericsson wrote:Petrol stations have now become shopping malls. They can’t really make a profit on petrol alone. This cost is one of the biggest costs to supply chains and logistics in Kenya. Remember all importers also pay for the railway levy.
The government now makes more per liter of petrol than the person who drilled for it, refined it, transported it and sold it *COMBINED*. For every liter of petrol, the government takes 51% of the price as taxes, but feels that dealers who would want 10% are greedy.
The government policy around petrol has made that worse. In 2010, cost of petrol had 30% of the cost as taxes. The government decided that a 10% profit margin was too high. They started regulating the price of fuel.
When global crude prices fell, they quietly and mischievously introduced more taxes, took the margin that would have previously been passed on to citizens and demonized the petrol station. The Kenya economy is dead and buried under this tax regime.Fuel is a big factor of production and goods produced in other countries will always be cheaper.
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Rank: Member Joined: 2/20/2015 Posts: 467 Location: Nairobi
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Ericsson wrote:Petrol stations have now become shopping malls. They can’t really make a profit on petrol alone. This cost is one of the biggest costs to supply chains and logistics in Kenya. Remember all importers also pay for the railway levy.
The government now makes more per liter of petrol than the person who drilled for it, refined it, transported it and sold it *COMBINED*. For every liter of petrol, the government takes 51% of the price as taxes, but feels that dealers who would want 10% are greedy.
The government policy around petrol has made that worse. In 2010, cost of petrol had 30% of the cost as taxes. The government decided that a 10% profit margin was too high. They started regulating the price of fuel.
When global crude prices fell, they quietly and mischievously introduced more taxes, took the margin that would have previously been passed on to citizens and demonized the petrol station. Our Somali Brothers are running petrol stations profitably(or so I think)
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Rank: Veteran Joined: 7/1/2014 Posts: 917 Location: sky
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https://www.businessdailyafrica.com/news/Sh300bn-Turkana-oil-deal-to-remain-secret/539546-5171844-xdshhvz/index.htmlKenya has signed a deal with Turkana oil exploration firms that will see them source up to Sh300 billion ($3 billion) funding from international financiers, but Petroleum Secretary John Munyes says the agreement will be kept secret from taxpayers. Petroleum Ministry bureaucrats cited official secrecy and commercial confidentiality while declining to disclose details of the agreement reached with three oil majors for development of the South Lokichar oil basin.These secret deals will come to haunt us one day. A day will come when we will be told we cannot benefit from our oil production for 30 years because the government signed certain agreements and that how prices of petrol will remain high in kenya for decades despite the much celebrated oil production There are only two emotions in the stock market, fear and hope. The problem is, you hope when you should fear and fear when you should hope
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Rank: Member Joined: 12/1/2007 Posts: 539 Location: Nakuru
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kawi254 wrote:Ericsson wrote:Petrol stations have now become shopping malls. They can’t really make a profit on petrol alone. This cost is one of the biggest costs to supply chains and logistics in Kenya. Remember all importers also pay for the railway levy.
The government now makes more per liter of petrol than the person who drilled for it, refined it, transported it and sold it *COMBINED*. For every liter of petrol, the government takes 51% of the price as taxes, but feels that dealers who would want 10% are greedy.
The government policy around petrol has made that worse. In 2010, cost of petrol had 30% of the cost as taxes. The government decided that a 10% profit margin was too high. They started regulating the price of fuel.
When global crude prices fell, they quietly and mischievously introduced more taxes, took the margin that would have previously been passed on to citizens and demonized the petrol station. Our Somali Brothers are running petrol stations profitably(or so I think) Laundry For investors as a whole, returns decrease as motion increases ~ WB
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Rank: Elder Joined: 12/4/2009 Posts: 10,761 Location: NAIROBI
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Our goal of achieving 500,000 affordable houses by 2020 will require about USD 13 Billion in financing, we are calling upon investors to support this noble course ~ @PSCharlesHinga Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 12/7/2012 Posts: 11,911
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Ericsson wrote:Our goal of achieving 500,000 affordable houses by 2020 will require about USD 13 Billion in financing, we are calling upon investors to support this noble course ~ @PSCharlesHinga 2020,  Hii Jubilee bure kabisa. In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Member Joined: 7/6/2018 Posts: 175 Location: Kinshasa
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Support? As in "handouts"? Somebody tell him that investors are in the business of investing (for a profit). Why GoK not simply create conditions conducive for the investors then the CS needn't sound this desperate? Enyewe ignorance is bliss.... All that most govt officials seem to do these days is pay lip service to the so-called Big 4 agenda. The idea's being bandied by any sycophant for self-expediency. If it don't make dollars, it don't make sense
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Rank: Elder Joined: 12/4/2009 Posts: 10,761 Location: NAIROBI
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https://www.standardmedi...h67b-goes-down-the-drainWealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 6/23/2009 Posts: 13,650 Location: nairobi
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Ericsson wrote:https://www.standardmedia.co.ke/article/2001331585/pensioners-suffer-as-their-sh67b-goes-down-the-drain Almost cried while reading this
COOP 255,000 ABP 15.85; KQ 484,100 ABP 7.45; MTN 23,800 ABP 5.20
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Rank: Veteran Joined: 1/20/2011 Posts: 1,820 Location: Nakuru
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obiero wrote:Ericsson wrote:https://www.standardmedia.co.ke/article/2001331585/pensioners-suffer-as-their-sh67b-goes-down-the-drain Almost cried while reading this Hujuma... Dumb money becomes dumb only when it listens to smart money
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