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Price controls debate
VituVingiSana
#11 Posted : Friday, November 27, 2009 7:55:00 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,354
Location: Nairobi
@kizee makes an EXCELLENT point. There are taxes & duties on all sorts of stuff that are considered 'essential'...

Petrol is highly taxed (50%) & this drives the cost of everything else higher... Diesel is also heavily taxed (albeit at a lower rate) & it is used in farming,transport,thermal fuel generation...

Electricity attracts VAT (recently reduced slightly) & pushes up production costs for manufacturers. Ask Bidco,EABL,BAT,Olympia,etc

Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
kizee
#12 Posted : Friday, November 27, 2009 8:09:00 AM
Rank: Member

Joined: 1/9/2008
Posts: 537
vvs is very rite

we the wanjirus are subsidizing the inefficiencies of this government...take for instance the fact that our country has 8 water bodies and yet everyone on this board living in kenya experiences shortages...wen we had zeo water bodies we all had water....econ 101 ia clear on subsidizies and controls...price caps lead to cuts in production and shortages....maybe maina wants engineered shortages so that the cost of essential goods can skyrocket...the haves like him always make money when the country experiences shortages...
VituVingiSana
#13 Posted : Friday, November 27, 2009 8:18:00 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,354
Location: Nairobi
@kizee - I have to disagree on the water argument... The reason for our current shortages is two-fold...

1) We have been destroying our water catchment areas... Mau is just one... there are many others that are smaller... Most forests act as water catchment areas including Karura...

2) There is a drought. That is might not be (entirely) man-made in that the rains have failed. Same problem in Tanzania,India,Sri Lanka... all who rely on the monsoons & Indian Ocean currents...

**** I think having 'independent' water bodies is the way to go. They may not be 'private' but they need professionalism... I did not discuss 'public goods' earlier but water is a 'public good'... Not just essential but VITAL...

Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
kizee
#14 Posted : Friday, November 27, 2009 8:22:00 AM
Rank: Member

Joined: 1/9/2008
Posts: 537
i agree and disagree

some of these shortages are engineered....theres no shortage of private water suppliers
VituVingiSana
#15 Posted : Friday, November 27, 2009 8:31:00 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,354
Location: Nairobi
@kizee - The 'private suppliers' shows the resilience & ingenuity of private enterprise BUT they supply a very small portion of Kenya's water needs. Mostly in urban areas.

Also they use boreholes which are NOT sustainable sources without being recharged by rain or other 'natural' sources. A reduction in the water table is dangerous & can lead to structural collapse of nearby 'land'...

Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
kizee
#16 Posted : Friday, November 27, 2009 9:50:00 AM
Rank: Member

Joined: 1/9/2008
Posts: 537
still disagree...kwanza in karen kajo trucks were busy sellin water which they got from supply meant for residents...these shortages yes were causd by enviromental factors BUT inefficiencies greed and such made a bad situation worse...
VituVingiSana
#17 Posted : Friday, November 27, 2009 10:50:00 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,354
Location: Nairobi
@kizee - Oh,I agree... that corruption & inefficiencies make the problems grow worse... exponentially worse!

Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Mainat
#18 Posted : Monday, November 30, 2009 2:32:00 PM
Rank: Veteran

Joined: 11/21/2006
Posts: 1,590
Nothing like buying underwear where you should have bought a vest eh?
Engineer-as he has proved all his life doesn't know (a) problem (b) solution.
The reason prices for basics have been increasing is due to (1) scarcity caused by PEV and drought, disincentives (2)cost of manufacturing these products related to fuel/stima et al.
The solution for these problems is not price controls. Or rather, price controls should be introduced for prices paid to farmers...
Sehemu ndio nyumba
VituVingiSana
#19 Posted : Monday, November 30, 2009 2:55:49 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,354
Location: Nairobi
@mainat - I want a price control on the Mpigs allowances... Where is ephraim's bill on that????
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
tony stark
#20 Posted : Tuesday, December 01, 2009 12:59:41 AM
Rank: Veteran

Joined: 7/8/2008
Posts: 947
Price control No.
Reducing taxes is also a big no no! The goverment needs to fund infrastructure and provide jobs for guys in kenya ASAP and we cant continue to rely on donor cash.
We need to be increasing more people into the tax bracket. Outsource collection of tax from jua kali sector to other bodies eg matatus tax collection can be outsourced to matatu owners association and give them a cut of the proceeds.
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