tag:blogger.com,1999:blog-9317825.post2730676889791927558..comments2023-10-30T15:29:59.720+03:00Comments on Bankelele: 2008 Budget A to Zbankelelehttp://www.blogger.com/profile/01180926084939364063noreply@blogger.comBlogger13125tag:blogger.com,1999:blog-9317825.post-67851601077976524442008-06-26T14:54:00.000+03:002008-06-26T14:54:00.000+03:00Bankelele,Thanks for your highly useful posts on K...Bankelele,<BR/><BR/>Thanks for your highly useful posts on Kenya's business scene. I had a question though, why has it become conventional wisdom in Kenya that fewer banks are better? I refer to the budget proposal to raise the minimum capital requirement to Kshs 1bn and the subsequent Daily Nation editorial at <A HREF="http://www.nationmedia.com/dailynation/nmgcontententry.asp?category_id=25&newsid=126011" REL="nofollow"></A><BR/>stating that the country needs fewer banks. I am surprised that folks believe that increasing control of the sector by a few banks is an economically sound policy.bolingowarriorhttps://www.blogger.com/profile/09748312078365997931noreply@blogger.comtag:blogger.com,1999:blog-9317825.post-3730382598896010742008-06-15T21:56:00.000+03:002008-06-15T21:56:00.000+03:00America now knows that Ben Bernanke's policies are...America now knows that Ben Bernanke's policies are responsible spiralling the US into a recession. <BR/><BR/>CBK has done well. Higher interest rates will be painful - but they are necessary to check the current levels of liquidity! We do have a problem of excess liquidity. Remeber the 110+ Billion forked out by Retail investors???<BR/><BR/>Lowering interest rates can be destructive as the most likely result will be an increase in "bad liquidity" (disposable cash from loans). Markets will adjust prices of goods and services to reflect the increase in spending power (basics of demand vs supply) hence the purchasing power of KSH will deteriorate.<BR/><BR/>Since salaries will be mostly paying off loans, and cost of goods will have gone up, it wont be long before a labor crisis crops up as employees demand higher salaries to meet increased cost of living. <BR/><BR/>Company margins will thin out resulting in retrenchments and other cost cutting measures...<BR/><BR/>Result: Economic slowdown, higher joblessness, higher inflation.<BR/><BR/>Staglation's a bitch aint it? Its not just timely action that's needed from CBK - its the right action. I think they have started off in the right direction.Maishinskihttps://www.blogger.com/profile/02919244949716240090noreply@blogger.comtag:blogger.com,1999:blog-9317825.post-28972156995077169092008-06-15T11:22:00.000+03:002008-06-15T11:22:00.000+03:00The Budget was a feel good one but it lacked speci...The Budget was a feel good one but it lacked specifics on how the money will actually be raised to finance all these schemes.<BR/><BR/>KRA depends on growth in the income and corporate sector for it to collect more taxes.<BR/><BR/>Massive domestic borrowing by government is likely to impact negatively on the credit markets for the private sector. Higher interest rates. Companies with little cash may find it hard to finance growth projects and may instead hold on and even cut jobs.<BR/><BR/>The Central Bank jokers who rarely come up with any coherent policy will not help in this regard especially as they are still living in the era of narrow-casting policies - they claim that the Bank cannot affect the current inflation - a fact that is disputed by Ben Bernanke in his criticism of how the US Fed responded to the 1970s crisis - high oil prices and commodities - high inflation etc which are analogous to the situation in Kenya.<BR/><BR/>In short I think it is a risky budget in practical terms- in political terms it was a masterpieceAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-9317825.post-22216600839384123602008-06-14T15:02:00.000+03:002008-06-14T15:02:00.000+03:00Will the thieves and murderers approve taxes on th...Will the thieves and murderers approve taxes on their own salaries? Have our MPs finally realized they are not "gods" but human beings like other Kenyans?<BR/><BR/>I am eagerly waiting to see what will happen. I hope they dont increase their salaries in amounts proportionate to the tax to hoodwink wananchi!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9317825.post-49452587756356406892008-06-14T14:57:00.000+03:002008-06-14T14:57:00.000+03:00@ Anon In Cali,Sorry I was a bit rude. Morning blu...@ Anon In Cali,<BR/><BR/>Sorry I was a bit rude. Morning blues perhaps.<BR/><BR/>I dont believe in stifling debate so feel free to voice your opinion.<BR/><BR/>Cheers!<BR/><BR/>:-)Maishinskihttps://www.blogger.com/profile/02919244949716240090noreply@blogger.comtag:blogger.com,1999:blog-9317825.post-8068892694306855422008-06-14T04:36:00.000+03:002008-06-14T04:36:00.000+03:00Stimulus cheque? Hahaha! Yeah, that would definite...Stimulus cheque? Hahaha! <BR/><BR/>Yeah, that would definitely help "jumpstart the economy" (sarcasm intended).<BR/><BR/>Why work when you can get free money from the government?<BR/><BR/>You are entitled to your opinion, but, for me, I think the coalition budget was a PEOPLE's BUDGET.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9317825.post-84719743091245398612008-06-13T22:28:00.000+03:002008-06-13T22:28:00.000+03:00@ maishinskircession and budget are two different ...@ maishinski<BR/>rcession and budget are two different things no need to get agitated - i wa s just highlighting a process. i didn't say or suggest the US is perfect - the budgetary process is a threat to democracy. my job is not to be a govt cheerleader. im just voiving my opinion if the if the govt is trying to help wnancnhi why not just give them a 'stimulus check' and let them decide instead of giving it to MP to decide for them via CDF's soccer funds and youth funds after all not everyone is businessman.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9317825.post-3793489046432106002008-06-13T14:32:00.000+03:002008-06-13T14:32:00.000+03:00Anon, what the f_ck are you on about?You're not ma...Anon, what the f_ck are you on about?<BR/><BR/>You're not making sense at all. If the US budget is so great, why are they in a recession?<BR/><BR/>Come down to earth my friend - those clouds aint real.Maishinskihttps://www.blogger.com/profile/02919244949716240090noreply@blogger.comtag:blogger.com,1999:blog-9317825.post-72677396020902043242008-06-13T13:48:00.000+03:002008-06-13T13:48:00.000+03:00jfmarcelo; what can i say? Anon: the garbage truck...jfmarcelo; what can i say? <BR/><BR/>Anon: <BR/>the garbage truck clause was across east africa<BR/>- also what the minister says are proposals, many of which require new legislation, they don't become law overnight<BR/><BR/>Discomuthenya: <BR/>if road sector is cleaned up, and railways get rolling, Kenya is halfway there<BR/><BR/>Gitts: <BR/>- that was a godsend for KQ<BR/>- mobile companies wanted tax on calls to be reduced, but will take the equipment tax cuts (esp. econet and orange)<BR/>- we wait and see about MP's<BR/><BR/>tumwijuke: i still don't see motobikes taking over the nairobi roads yet, they'd have to invade like a swarm (in numbers) to teach car drivers to respect them and give them waybankelelehttps://www.blogger.com/profile/01180926084939364063noreply@blogger.comtag:blogger.com,1999:blog-9317825.post-40197968122909393562008-06-13T13:30:00.000+03:002008-06-13T13:30:00.000+03:00Very useful breakdown. Thanks. I'm going back to...Very useful breakdown. Thanks. I'm going back to re-read and review.<BR/><BR/>Just ... one thing caught my eye. The zero tax on motorcycles. Gear up for bodaboda madness my friends. Gear up.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9317825.post-24542916700014446712008-06-13T10:45:00.000+03:002008-06-13T10:45:00.000+03:00good to see telcoms and airlines have been remembe...good to see telcoms and airlines have been remembered.<BR/><BR/>I really wonder whether MPS will actually approve taxing of their allowancesGittshttps://www.blogger.com/profile/05905389053866428616noreply@blogger.comtag:blogger.com,1999:blog-9317825.post-52108321563176446902008-06-13T10:14:00.000+03:002008-06-13T10:14:00.000+03:00while i agree with anonymous about the track and t...while i agree with anonymous about the track and the soccer i think we also need to apprciate the rest of the budget that is wholly directed at making things easy for the mwananchi.this is nai not cali so the same things do not apply.if you see the trucks collecting our gabbage you would be too concerned where they came from just as long as they do come.<BR/>as for funding of the budget lets remember that ours is now a budget with MINIMAL donor fund factored in. our neighbour have no such luxury and their economies would wither and die without that surplus. lets focus on what can be done rather that what should be done.we're out of time and falling far behind in the rat race.2030 is notin the next century its tomorrow!<BR/>no country or city is without it issues hell even the gorvernator has his hands full.our streets are clean and lit.as a mama i can wlk across town in the night without (much) fear and even potholes get filled almost as soon as they form. is it enough? of course not but its a start and thats a whole lot more that we had six years ago. lets stop acting like we've come from such a good place and this is purgatory.its the other way round we are in a good place now so lets make sure it stays that way or make it better. we've got much to loose if we don't.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9317825.post-54501797211831764732008-06-13T07:24:00.000+03:002008-06-13T07:24:00.000+03:00clever by half budget seems to me the govt is hea...clever by half budget seems to me the govt is heavily intervening in business. - me thinks funding for stuff like narc and power sector can be done better using different mechanisms. For example building powerstations, the port, thsi CDf soccer is just increasing scope for corruption. All that stuff can be done better using incentives and public private investment there is a ton of money in the middle east that needs to be parked not to mention the overs subscribed safcom money.<BR/><BR/>anyway me thinks projects like roads and long term physical infrastructure should be funded with bonds. <BR/><BR/>And instead of having this small projects here and there to create employment the govt should establish a comprehensive social welfare dept. <BR/><BR/>and this business of duty free dump trucks - smell a rat. somebody in the know knows something we dont know kwani GM cannot assemble this trucks in kenya ? what about all the body builders ? i smell a rat lets watch and see who gets the contract for cleaning up nairobi and mombasa and who are the silent shareholders.<BR/><BR/>regardless the budget process is fucked up - the budget should be taken away from the executive and moved to the legislature(a reformed one i.e) mixing new laws and the budget is not a great idea the budget should be about the budget - but i guess thats waht we get from having no separation of power. the executive is in effect assuming the legislative role by blackmailing parliament to pass specific laws in order for the budget to pass.<BR/><BR/><BR/>where i live in california the budget takes almost 6months to be negotiated everybodys voice is hard and there is back and forth between the governor and the legislature.The budget originates form the legislator but it has to include the governors proposals - since he can veto it. <BR/><BR/>so anyway with CDF's, Youth funds, soccer funds to buy kit and balls,<BR/>womens funds etec etc all controlled by MP'sAnonymousnoreply@blogger.com