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Ksh 1.4 Trillion national budget
Rank: Member Joined: 6/27/2011 Posts: 301 Location: Nairobi
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The budget is being reported to be 1.4 Trillion Kenya shillings.
Our current debt is about 51% of the GDP.
Constitution places a cap of the amount of debt the country should take on.
Government is too ambitious on its growth plans and projects, How will they finance these plans given that they have reached the constitutionaly acceptable debt level???
Further taxation.
I hope we are not looking to introducing austerity measures to increase goverment revenue.
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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eboomerang wrote:The budget is being reported to be 1.4 Trillion Kenya shillings.
Our current debt is about 51% of the GDP.
Constitution places a cap of the amount of debt the country should take on.
Governement too ambitious on growth projects, How will they finance these ambitions given that they have reached the acceptable debt level???
Further taxation.
I hope we are not looking to introducing austerity measures to increase goverment revenue. I can swear you are an accountant "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Member Joined: 6/27/2011 Posts: 301 Location: Nairobi
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murchr wrote:eboomerang wrote:The budget is being reported to be 1.4 Trillion Kenya shillings.
Our current debt is about 51% of the GDP.
Constitution places a cap of the amount of debt the country should take on.
Governement too ambitious on growth projects, How will they finance these ambitions given that they have reached the acceptable debt level???
Further taxation.
I hope we are not looking to introducing austerity measures to increase goverment revenue. I can swear you are an accountant I'm actually not an accountant. I just summarized what was commented on these clips Clip 1Clip 2
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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eboomerang wrote:murchr wrote:eboomerang wrote:The budget is being reported to be 1.4 Trillion Kenya shillings.
Our current debt is about 51% of the GDP.
Constitution places a cap of the amount of debt the country should take on.
Governement too ambitious on growth projects, How will they finance these ambitions given that they have reached the acceptable debt level???
Further taxation.
I hope we are not looking to introducing austerity measures to increase goverment revenue. I can swear you are an accountant I'm actually not an accountant. I just summarized what was commented on these clips -I should have indicated so :) Clip 1Clip 2 An Accountants opinion. I await to hear what the money is intended to do. U have to use money to make money "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Member Joined: 3/20/2009 Posts: 348
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am hoping someone becomes honest with Kenyans and tells them the country cannot afford the new form of government
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Rank: Member Joined: 8/29/2008 Posts: 571
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ITZ:You are mistaken!! Kenya govt can afford Shs 1.4T budget.What of oil in turkana?? Simply put,borrow money till the oil starts flowing in 6yrs.As simple as ABC.....
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Rank: Member Joined: 3/26/2012 Posts: 232 Location: Nairobi
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Ali Baba wrote:ITZ:You are mistaken!! Kenya govt can afford Shs 1.4T budget.What of oil in turkana?? Simply put,borrow money till the oil starts flowing in 6yrs.As simple as ABC..... But the public rate its at 51% of GDP capped by the constitution. So the idea of borrowing Nah.. Just expect widening tax rates from Githae My folks told me that my very first word was 'billionaire'
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Rank: Member Joined: 6/27/2011 Posts: 301 Location: Nairobi
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ralp_mutu wrote:Ali Baba wrote:ITZ:You are mistaken!! Kenya govt can afford Shs 1.4T budget.What of oil in turkana?? Simply put,borrow money till the oil starts flowing in 6yrs.As simple as ABC..... But the public rate its at 51% of GDP capped by the constitution. So the idea of borrowing Nah.. Just expect widening tax rates from Githae In addition, if we really know that we shall gain revenue from Oil, why can't we wait until the exploration activities begin generating revenues and in that case we will be in a position to support our growth organically without having to incur extra capital costs which are converted into tax ? This will be a retrogressive move, it will most likely lead to increase in corporate tax which will again detract potential investors. We will have managed to create a stalemate and a Greeceey situation.
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Rank: Elder Joined: 10/11/2006 Posts: 2,304
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itz wrote:am hoping someone becomes honest with Kenyans and tells them the country cannot afford the new form of government The County gov. are going to take some of the functions performed by the National gov. currently so the issue of affordability does not arise. Also note that the county gov. as designed will be centres of production so more profit centres. NB: Currently a minister has too many roles if you ask me. Imagine earning out of being an MP, a cabinet minister and possibly some other functions e.g directorships. So really the new system of gov. should create more jobs for more pple?  Conventional thinkers waste time building shelters when they are unnecessary and then have no shelters when they need them the most. Socionomists do the opposite.
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Rank: Veteran Joined: 5/13/2010 Posts: 869 Location: Nairobi
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I am just hoping that whatever they plan to do:- 1. Does not increase my taxation 2. Does not make me pay more for basics 3. Allows me to invest easily 4.MP's pay hefty taxes, commensurate to their perks. And that they send off packages are taxed too. Pretty much like any bonus a normal Kenyan gets! ....above all, to stand.
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Rank: Member Joined: 6/27/2011 Posts: 301 Location: Nairobi
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Ms Mkenya wrote:I am just hoping that whatever they plan to do:-
1. Does not increase my taxation
2. Does not make me pay more for basics
3. Allows me to invest easily
4.MP's pay hefty taxes, commensurate to their perks. And that they send off packages are taxed too. Pretty much like any bonus a normal Kenyan gets! The first two items are most likely going to take place. It could be either one of them or both.
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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eboomerang wrote:ralp_mutu wrote:Ali Baba wrote:ITZ:You are mistaken!! Kenya govt can afford Shs 1.4T budget.What of oil in turkana?? Simply put,borrow money till the oil starts flowing in 6yrs.As simple as ABC..... But the public rate its at 51% of GDP capped by the constitution. So the idea of borrowing Nah.. Just expect widening tax rates from Githae In addition, if we really know that we shall gain revenue from Oil, why can't we wait until the exploration activities begin generating revenues and in that case we will be in a position to support our growth organically without having to incur extra capital costs which are converted into tax ? This will be a retrogressive move, it will most likely lead to increase in corporate tax which will again detract potential investors. We will have managed to create a stalemate and a Greeceey situation. So are you saying that the building of roads/railways that are leading to the oil sites should stop until the oil starts flowing? Come on i thot wazuans are brighter than that....? "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Elder Joined: 10/11/2006 Posts: 2,304
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KRA should just seal loopholes that tax defaulters use. The proposal to tax landlords is a nice one. With the prediction of fall in shilling's value as well as heightened political activity, basic goods will definitely cost more. Conventional thinkers waste time building shelters when they are unnecessary and then have no shelters when they need them the most. Socionomists do the opposite.
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Rank: Member Joined: 3/26/2012 Posts: 232 Location: Nairobi
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eboomerang wrote:Ms Mkenya wrote:I am just hoping that whatever they plan to do:-
1. Does not increase my taxation
2. Does not make me pay more for basics
3. Allows me to invest easily
4.MP's pay hefty taxes, commensurate to their perks. And that they send off packages are taxed too. Pretty much like any bonus a normal Kenyan gets! The first two items are most likely going to take place. It could be either one of them or both. Red Flag VAT on exemptions and reintroduction of Capital gains tax.. My folks told me that my very first word was 'billionaire'
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Rank: Member Joined: 6/27/2011 Posts: 301 Location: Nairobi
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murchr wrote:eboomerang wrote:ralp_mutu wrote:Ali Baba wrote:ITZ:You are mistaken!! Kenya govt can afford Shs 1.4T budget.What of oil in turkana?? Simply put,borrow money till the oil starts flowing in 6yrs.As simple as ABC..... But the public rate its at 51% of GDP capped by the constitution. So the idea of borrowing Nah.. Just expect widening tax rates from Githae In addition, if we really know that we shall gain revenue from Oil, why can't we wait until the exploration activities begin generating revenues and in that case we will be in a position to support our growth organically without having to incur extra capital costs which are converted into tax ? This will be a retrogressive move, it will most likely lead to increase in corporate tax which will again detract potential investors. We will have managed to create a stalemate and a Greeceey situation. So are you saying that the building of roads/railways that are leading to the oil sites should stop until the oil starts flowing? Come on i thot wazuans are brighter than that....? That is not what I meant. I haven't seen the actual budget but prioritizing and carefully choosing where to invest in stages would spread the costs over time and reduce the risk created by going all out on capital intensive expenditures for 5 years in a row.
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Rank: User Joined: 1/24/2012 Posts: 1,675 Location: In Da Hood
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Ali Baba wrote:ITZ:You are mistaken!! Kenya govt can afford Shs 1.4T budget.What of oil in turkana?? Simply put,borrow money till the oil starts flowing in 6yrs.As simple as ABC.....  . Dude you made my day . LOL gova CANNOT afford a 1.4 trillion budget that why we HAVE A VERY BIG budget deficit . lol when that day ever reach that we can have the money to do all thats in the budget ? maybe another life !
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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eboomerang wrote:murchr wrote:eboomerang wrote:ralp_mutu wrote:Ali Baba wrote:ITZ:You are mistaken!! Kenya govt can afford Shs 1.4T budget.What of oil in turkana?? Simply put,borrow money till the oil starts flowing in 6yrs.As simple as ABC..... But the public rate its at 51% of GDP capped by the constitution. So the idea of borrowing Nah.. Just expect widening tax rates from Githae In addition, if we really know that we shall gain revenue from Oil, why can't we wait until the exploration activities begin generating revenues and in that case we will be in a position to support our growth organically without having to incur extra capital costs which are converted into tax ? This will be a retrogressive move, it will most likely lead to increase in corporate tax which will again detract potential investors. We will have managed to create a stalemate and a Greeceey situation. So are you saying that the building of roads/railways that are leading to the oil sites should stop until the oil starts flowing? Come on i thot wazuans are brighter than that....? That is not what I meant. I haven't seen the actual budget but prioritizing and carefully choosing where to invest in stages would spread the costs over time and reduce the risk created by going all out on capital intensive expenditures for 5 years in a row. They said 73% of the budget is going to recurrent exp and the rest infrastructure development. The 73% is what should go down there is no hrm in spending money to get more money "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Elder Joined: 10/1/2009 Posts: 2,436
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Am amazed we are considering oil revenues yet it is not proven in the first place that the reserves are commercially viable! What if we reckon them and then they ont materialise? Si exactly hivyo ndivyo M7 alifanya in Ug, spending petro money he anticipates to earn and raiding public coffer off a cool USD 740M to buy 6-8 Su-30MK2 jet fighters?
My concern is that we get a trimmer budget (remember fewer ministries <15)that we can afford so that we don't rely on donors at at all to plug any deficit - i dont want our country to end up with crazy donor conditionalities like Burundi which relies on them for almost 50% of its budget.
For us the solution is to seal loopholes - to bring more guys under the tax net and ensure teh funds are actually well-utilised si ukora kama ya FPE,NHIP, NSSF, etc.
And I hope they allocate more money to defence - kenya needs to upgrade its military capability now that our geo-political stature is growing.
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Rank: Member Joined: 3/26/2012 Posts: 280
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mnandii wrote:KRA should just seal loopholes that tax defaulters use. The proposal to tax landlords is a nice one.
With the prediction of fall in shilling's value as well as heightened political activity, basic goods will definitely cost more. KRA will pick from LANDLORDS. Landlords will pick from tenants. No landi will accept to part with 30% of his rent without getting it back from somewhere. Expect 2 bed flats of 15K to shoot to 19-20K Secondly it will slow down housing development seriously. Why invest 5million on a flat to earn 15K less 30% (10K). DOH
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Rank: Elder Joined: 10/11/2006 Posts: 2,304
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Bachuma Gate wrote:mnandii wrote:KRA should just seal loopholes that tax defaulters use. The proposal to tax landlords is a nice one.
With the prediction of fall in shilling's value as well as heightened political activity, basic goods will definitely cost more. KRA will pick from LANDLORDS. Landlords will pick from tenants. No landi will accept to part with 30% of his rent without getting it back from somewhere. Expect 2 bed flats of 15K to shoot to 19-20K Secondly it will slow down housing development seriously. Why invest 5million on a flat to earn 15K less 30% (10K). I don't think KRA can go back on their intention to tax landlords given the gadgets they have acquired specifically for such purposes. Also other taxes hidden within the constitution to be imposed by the county gov. These are certainities.  Conventional thinkers waste time building shelters when they are unnecessary and then have no shelters when they need them the most. Socionomists do the opposite.
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