Category Archives: Finance

Kenya: Saitoti sits pretty in Cabinet although he has yet to answer

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From: MOSES OPADO

Mars Group Kenya Update: George Saitoti sits pretty in Cabinet although he has yet to answer for the Khs 158 Billion Goldenberg corruption scandal that brought Kenya’s economy to its knees. Kenya has never recovered from Goldenberg. It is time for Saitoti to “ stand aside ”

Last week following the departure of Moses Wetangula from the Foreign Ministry,
Kenyan President Mwai Kibaki and Prime Minister Raila Odinga replaced and
appointed Prof. George Saitoti as acting Foreign Affairs minister.

This is astonishing to Kenyans who thought that the Wetangula purge was a sign
that the two principals of Kenya’s Grand Coalition government had finally
decided to tackle graft in their government by axing tainted Ministers. Why?

George Saitoti was the Minister of Finance in the Moi regime in the 1990s when
the Goldenberg fraud was perpetrated by his Ministry and Kamlesh Pattni.
Goldenberg cost the country over Ksh 158 billion according to a Judicial
Commission of Inquiry appointed by President Kibaki in 2003. The Inquiry
identified and named over a dozen individuals as perpetrators – and George
Saitoti was on that list of shame.

Four years later in 2010, Amos Wako, is yet to prosecute his Appeal against the
Saitoti Judgement which he said turned the well known and settled principles of
constitutional, administrative, criminal law and legal jurisprudence topsy
turvy. Worse he has said nothing as George Saitoti continues to sit as his
colleague in cabinet despite his claims that he is waiting for an investigation

file on Goldenberg; and that his office had advised the Government that the
Goldenberg Scheme was illegal and unlawful. If the Attorney General claims are
true, the Attorney General has no excuse for such inaction 4 years later.

Neither does the Law Society of Kenya which took a strong stand against the
Saitoti exoneration.
We believe that the 2 principals of the Grand Coalition, Mwai Kibaki and Raila
Odinga know that George Saitoti has not been cleared over Goldenberg. Indeed
the Prime Minister once sought to bring a private criminal prosecution against
Saitoti – a charge that was quashed by Amos Wako. We believe that they know
Amos Wako is basically sitting on the appeal he should have taken to court by
now. Political expediency being what it is, Kibaki and Odinga have decided to
turn a blind eye to the biggest corruption log in the eye of the Government –
Goldenberg – whilst sacrificing less valuable politicians such as Ruto and
Wetangula. Which begs the question why is George Saitoti such a sacred cow?

Over to you PLO Lumumba – end this impunity enjoyed by George Saitoti now.

Hell will freeze over before the Criminal Investigation Department gives the
Attorney General an investigation file on their boss. Saitoti should step aside
from his position as Internal Security Minister for Kenyans to believe that he
is not frustrating the Goldenberg investigation…….

Read the Full post here: http://blog.marsgroupkenya.org/?p=2474

Shortage of funds hampered the EAC/EU negotiations for new trade agreement

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Economic and Business New By Leo Odera Omolo

The East African Community negotiation with the European Union on the signing of an economic partnership agreement is currently facing financial problems.

The EAC-EU talks have since come cropper and stalled, hampering effort to meet the initial deadline of reaching n agreement by the end of next month {November 2010}.

An impeccable source at the EAC secretariat in Arusha has hinted that if funds are not available within a month to bring the EAC team back to the negotiation table, the prospect of signing of a new trading regime with the EU will be jeopardized.

The issue was rekindled last week by the EAC Secretary General Ambassador Juma V Mwapachu when he received Jim Clarke the head of EU delegation to in Tanzania and to the EAC.

Mwapachu said the EAC was ready and willing to revive the EPA negotiations with the EU but for financial constraints and general elections in four of its member states;

Clarke who is also the head of the EU delegation in Tanzania said the EU will offer financial support to the EAC /EPA team to go back to the negotiation table.

The EAC team comprises of experts from the five, member states of Kenya, Tanzania, Uganda, Rwanda and Burundi.

“We will offer as much money as the EAC/EPA needs to enable it team to come back to the negotiation table. The EU team will come to Arusha this week to narrow down on the deal,” said Clarke.

The EU diplomat sa8d that delay in signing the Framework Economic Partnership Agreement could undermine trade relations between the two blocs. But last moth the members of the East African Legislative Assembly warned the EAC member states not to sign the EPAs until all the contentious clauses arte resolved.

Top on the lists of sticking points is development assistance, the most favored nation status, levying of exports taxes, investment and also the terms of tradethta the EU is offering.

Most f experts and pundits in East Africa see thre framework agreement as being tilted in favor of Europe.

The EAC Council of Ministers chairman Dr.Diodorus Kamalaof Tanzania said MPS want EAC partner states to delay signing the pacts because of the sticking points.

Kamala cited one clause that prohibits EAC partner states from making new trading friends,

“Such clauses may lock us into a single trade tie without any alternative to diversify our target markets to other economic blocs such as the Common Market for Eastern and Southern African {Comesa} and the Southern African Development Community {SADC},Dr Kamala said.

Ends

leooderaomolo@yahoo,com

Fishermen in Lake Victoria will be required to pay levy as EU pulls out its funding

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Writes Leo Odera Omolo In Kisumu City

From now onward fishermen in Lake Victoria will son be required to pay a small fees towards the Fisheries Management Project should plans by Kenya, Uganda and Tanzania go through.

In a sign document reportedly still in the drawing board, but already signed, all East African Community member countries are to ensure that the landing site use fee is legislated as a funding mechanism for the Beach Management Unit.

The document signed by Ugandan Minister for Agriculture, Animal Industry and Fisheries Hoppe Mwesigye, then Kenya’s Fisheries Minister Dr. Nyongesa Otuoma {now shuffled to Sports Slot}, and Tanzania’s High Commissioner to Uganda Rajabu Gamaha requires the member countries to starts implementation immediately.

The European Union {EU} is a major partner of the Lake Victoria Basin states and has a long histor6y of support to the quality control, research, development of the fisheries resources of Lake Victoria.

Head of the national resources section at the EU delegation in Tanzania Anne-Claire Leon confirmed that the EU has pulled out from funding beach and fisheries management around Lake Victoria beginning August 31, 2010 after seven years of support. out of which USD 6.7 million was used for beach management units formation and support.

The overall objective of the project was the sustainable economic growth and development of the Lake Victoria Basin. The program was managed by the EU delegation in Uganda.

Prior to the fisheries management project, the EU injected USD 12.7 million into phase 1 and phase 11 of the Lake Victoria Fisheries Research Program that ran from 1996 to 2002.

The East African Community is also asking its member countries to increase contributions to the regional fisheries kitty managed by the Lake Victoria Fisheries Organization in Uganda.

Currently every country provides between USD 120,000 and USD 320,000.In addition, the Council of Ministers is looking at the possibility of setting up a fish levy trust to help in the implementation of program.

Among the challenges lake faces are the deteriorating water quality, overfishing and use of illegal harvesting methods.

The Nile perch is of great commercial significance as evidence by inland fisheries contribution of between two to 12 per cent to GDP in Uganda, Kenya and Tanzania.

Ends

leooderaomolo@yahoo.com

KENYA: NEGLECT

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From: charles dimba

n the last Siaya University Students Association (SUSA) general meeting held on 16th June 2010 at Kenya Science Campus,an outcry blast manifested.The moment a list unrolled, a short but clear message unearthed:”Shortchanged in the C.D.F arena were and are the students bred in destitute homes, many of whom were born without ‘ prayer or chance’.”We are watching – watch out Hon.Edwin Yinda ( Alego M.P)

By ,
Ochieng Dimba,
(CHAIRPERSON)

Kenya: KISUMU TO MISS LATTF ALLOCATION DUE TO GRAFT

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BY INVESTIGATIVE REPORTER.

It is now official. The graft riddled Kisumu municipal council will not get a penny from this year’s allocation of the Local Authority Transfer Fund-LATF after the civic body failed to meet the set standards which would have seen it considered by the fund created a few years ago by the Local Government ministry to offer debt relief to Local Authorities countrywide.

This grim revelation means the half a million plus Kisumu residents must now brace up themselves for tough times ahead thanks to a council that has failed the test of service delivery to its overburdened tax payers. It has also clearly come out that Kisumu municipal council has been converted into a cash cow to be milked dry by a clique of corrupt council officials and civic leaders.

According to reliable information which this journalist obtained from the council, Kisumu now joins 21 other civic authorities from Nyanza province that will not benefit from the LATF allocations this year because they failed to account for the monies they received from the kitty in the past financial years.

This fact was also corroborated by Mr. Isaac Kirui the provincial Local Government Officer Nyanza who revealed the region has a total of 37 local authorities.

Kirui pointed out that most of these councils failed to stick to their budgets, or diverted funds meant for projects but failed to observe the laid down rules while others just spent the money but had nothing on the ground to show for it.

Out of the 37, only 16 civic bodies impressed the LATF allocation board from Nyanza and will therefore benefit from the next funding .According to the PLGO, those councils that performed fairly were mainly from the Kisii region of Nyanza.

Councils that could not explain how they utilized their funds from LATF allocations in the recent past included Ahero town council whose controversial hiring of 35 employees was also nullified by the PS Local government sometime this year due to what the ministry described as a sham.

Others were Oyugis town council in Homabay county which has been known to also lead in high turnover of chief officers. Bondo county council alongside several others, mainly from the Luo Nyanza region where most chief officers were reportedly using the funds to do shoddy projects and keep part of it for their own selfish interests at the expense of the tax payers also failed the test.

Kisumu municipal council recently bought posh cars for the city mayor cllr.Sam Okelo and his deputy Ken Odondi but the council could not account for its share of LATF allocations dating back to financial years -2007/08 and 2008/09. In an embarrassing encounter with members of the parliamentary committee on Local Government, it became clear that to date close to KSH .134M can not be traced from the council’s coffers.

And this reporter later learnt that this shocking revelation has now forced the local government provincial auditor -Nyanza to recommend that a special audit be done on all the council projects which were funded during the same time from the kitty by the Auditor General’s office.

Details of the council’s budget which he obtained indicates that Kisumu municipality, for instance set aside KSH. 9M in the financial year 2007/08 which was to go towards the construction of the now stalled Maendeleo market, a project which was jointly funded by the European Union at a total of KSH. 21M.

According to the documents this writer obtained , the EU was to give out Ksh. 15M while the council was to contribute KSH. 7m towards the project.

Upon completion the EU market project would have seen scores of hawkers who are currently operating along the streets of Kisumu relocated. The market would also boost the council’s earnings in terms of revenue.

But interestingly , although the council was required to only contribute just Ksh.7M towards this project , those who were working on the budget for the financial year 2008/09 curiously decided to give the project another of Ksh.15M . The motive behind this move could not be immediately established but it was clear it was not desirable.

It is even more puzzling that even after a total of Ksh. 22M was pumped into the construction of the market, the council could not just complete it.

The work so far done has been dismissed by engineers from the ministry of public works as shoddy and unconfirmed reports indicates that the three storey building market project has since been condemned.

To make it worse, the EU which was an implementing partner has now pulled out in protest. They pulled out to protest the manner in which the council handled the entire implementation process of the project which it was supporting alongside its other local government’s rural poverty alleviation programmes countrywide.

This writer further reliably learnt that the EU has demanded that the council is made to pay back all the money it received towards the market project plus interest. He also learnt that indeed it was EU that also pushed for the removal of two engineers from the council who supervised the shoddy construction.

The project led to the suspension of the two engineers who included the then town Engineer Adrian Ocheing still under probe.

When they visited Kisumu recently the parliamentary committee which is chaired by Ainamoi constituency MP Benjamin Langat put the council’s chief officers into a very awkward situation. Led by the town clerk Daniel Ole Nkere the city fathers were at pains to explain where funds allocated to several projects disappeared to because there was nothing to show for on the ground.

The team were surprised by what was taking place at the council where budgets were reportedly ’’ prepared solely to get money from the ministry but diverted as soon as allocations are received’’ without following the laid down accounting procedure,in the words of Mp Olago Aluoch.

Earlier the MPs who included the committee members , Nemeses Warugendo [Kieni] , Polyns Ochien’g [Nyakach], and area Mp Olago Aluoch hearred that among other projects, the council had extended town hall at cost of Ksh 1.9m. But it came as a rude shock to the legislators when the officers failed to show them the extended block with the clerk claiming later that they only meant it was proposed that town hall be extended.

The town clerk ,his treasurer Mr. Stephen Osiro and the town engineer were all asked to appear before committee in Nairobi as its chairman dismissed the council’s work as an open case of graft which could not be allowed at whatever cost.

They also demanded to know why the council allocated KSH.10 M for the purchase of a dumpsite during the financial year 2007/08 and 2008/09 but still no land was bought.

Close sources confided in this writer that the council was given land near Kisian in the outskirts of the town by an Asian businessman who is interested in buying the present dumping ground next to the Moi Stadium.

‘’The council has not bought any land anywhere and do not be cheated by claims that the council has bought land at Kisian. The said land was actually donated free of charge by an Asian tycoon who want to buy the prime land at the Moi Stadium near Nakumatt Mega City for private development.’’ Said the source.

Corruption at the Kisumu municipal council appears to be spreading faster than you can imagine and there is need for the anti graft body that last week launched its regional office in the lake side city to now shift its focus at the local authority if only to save the hapless tax payers of this city.

The civic wing is not spared in this game either and councilors are also accused of grabbing land council land which includes parks and council houses which they sell off to the ever greedy private developers.

A section of them are also bending the public officers ethics and economic Act by trading openly with the council with impunity.

This journalist established that one of the nominated councilors with a construction company known as Nyamsera Building Company was this year awarded a contract to renovate the council house where deputy town clerk resides in Kisumu’s up market Milimani estate.

The tendering process was allegedly never adhered to as required by the procurement rules. He is understood to have also renovated several council houses whose cost was inflated to rob the civic authority of tax payers money.

‘’This same councilor is the chairman of the audit committee that should audit activities of the council including the projects but one wonders how that can be possible if he is a major beneficiary of under hand deals.’’ said the source.

ENDS.

Investors and financial experts to brainstorm in Muritius tomorrow on money markets and investment in Africa

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Business and Economic News By Leo Odera Omolo.

ALL eyes will tomorrow {Friday} be trained on the sandy beaches of Mauritius a a new electronic exchange for a wide range of commodity derivatives such as metals and agricultural products gives live in that country.

Beginning this Friday, traders from across the world will have the opportunity to transact on the Global Board of Trade {GBOT} that is based in the island country that sits on the East-Coast of Indian Ocean.

Besides the derivatives of commodity, the launch will also pave the way trades in currency derivatives products.

Brokers in different locations in the world will be able to connect in real time through trading platform to carry out instructions of their clients to buy and sell in gold an silver, as well as currencies such as the Mauritian rupees, US dollars, South African rand, euro and pound sterling.

The exchange is expected to translate into economic benefits for Africa by creating a vibrant financial market system and attracting global investors and corporations, according to the chairman of GBOT Venkat Charry.

“It will provide an ideal platform to access the fast growing economies of the African region and also create new opportunities for Africa to trade with the global markets,” he said.

The firm’s vice chairman Jignesh Shah, says GBOT will present opportunities to the African population and global investors to take part in African growth.”It will create an ideal risk mitigation platform to cater to increasing levels of business activity and revolutionize the financial markets of Africa ,”he added.

Observers and analysts say those transacting business would be assured of better prices due to the lrge number of buyers and sellers at any given time.

The Chief Executive Officer of GBOT,Joseph Bosco, said that since the pricing on the platform is determined by the forces of demand and supply both parties will be assured of fair prices.

“Through GBOT, we will enable Africa decide the true value of its commodities in its own time rather than chasing other markets and their times.”

Though there are no East African brokers taking part, in the initial trading Mr Bosco said that there are several firms at different stages of application for the status of brokers. They are among 30 applications being processed.

“Once they become fully fledged members of the platform, we will introduce trading in Kenya and Uganda shillings, “he said.

Currently,there are about 15 brokers already signed up.They had to satisfy a raft of requirements that include a nmet worth of USD 100,000,knowledge of the market,as well as possession of an operational office with proper IT set up and clients. In addition to this, the brokers have to satisfy the regulator’s conditions for licensing a USD 25,000 admission fee and USD 4000 annual levy.

Mr Bosco says that establishing the GBOT involved setting up of f the state of the art system, drafting the rules to guide it, recruiting the brokers and bringing a group of experts from across the world to Mauritius to run it.

Ends

leooderaomolo@yahoo.com

KENYA: KAA TOLD NOT TO USE DIVIDE AND RULE TACTICS ON KISUMU AIRPORT LAND COMPENSATION

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Story By Dickens Wasonga In Kisumu Kenya.

Members of a clan on whose land the Ksh. 3b Kisumu Airport expansion project is underway now wants the management of Kenya Airports Authority to fully compensate all who owned land there or forget smooth completion of the noble project.

Led by Cllr. George Weda who is also a member of the Kogony clan, the group vowed to frustrate the completion of the project due to what they described as mischief and shifting of goal posts by some top KAA managers .

The team who addressed the press in Kisumu last week after a meeting with the new KAA boss Mr.Stephen Gichuki and the area PC Mr. Francis Mutie also talked of a scheme by a section of the managers from KAA to use divide and rule tactic to ensure those who are yet to be compensated do not speak with one voice.

They claimed those who were behind the plot were reportedly using money to woe some of the clan elders onto its side.

The meeting which saw the MD fly to Kisumu to help bring peace between the two groups did not achieve its objective forcing those who attended to plan for another one in two weeks time.

Initially the clan had insisted that PSs from both the ministry of Lands and that of the Transport be invited in the next meeting claiming that a facilitation committee chaired by the PC has done very little to help address the issue of compensation in the past and that they no longer have faith on it.

The controversy comes barely a week after another two-week ultimatum was issued by the clan to the management of Kenya Airports Authority to organize for a consultative meeting in order to help solve the impasse involving the compensation of their parcels of land failure to which they would not allow further works at the site.

The same group stormed the construction site about two weeks ago demanding to be compensated dues which they estimated to be 1 billion.

The clan representatives urged the management of KAA to deal with the entire clan and stop using a few individuals who have failed to champion the course of the community for their own selfish interest.

They at the same time hit out at a civic leader from Kisumu Municipal council whom they accused of working closely with the Authority so as to derail the compensation process.

Another thorny issue is a recent ground breaking ceremony by officials form KAA to build Usoma Primary school which was re-located to pave way for the expansion works.

A section of the clan claim the Authority changed the original Bill of Quantity which put the cost of building the school at Ksh. 50m and not 19 m as insisted by the officials from KAA.

They demanded to be told who made the decision to cut down the original cost to 19m .

The Managing Director however said after the meeting that KAA management was very much candid in dealing with everyone as far as the issue of compensation is concerned.

He said full details on the issue of re-locating the school will be given out soon and there will be openness.

The MD promised to hold another meeting with the clan members representatives in two weeks time to help solve the matter.

The project whose completion was to take 22 months has been faced with a lot of controversy since it began and at some point infighting amongst implementing teams saw some engineers who started the project ejected.

When complete the project is targeting to open up the entire East African region and beyond for economic activities that will see so many job opportunities created and several industries established.

ENDS

Kenya: Kisumu Council

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KISUMU COUNCIL CLERK AND TREASURER WEEPS BEFORE PARLIAMENTARY COMMITEE AS THE COUNCIL MISSES LATIF FUNDING DUE TO CORRUPTION.

By Agwanda Jowi

Drama was witnessed at the Kisumu Municipality town hall when the Council’s Clerk David Ole Nkere and his Trasurer Stephen Osiro literally wept before the Parliamentarey Commitee on Local Authorities which is led by Ainamoi MP Benjamimn Lang’at after they failed to account for millions of shillings allocated to the council via Local Authorities Transfer Funds prompting the Parliamentary watchdog to order the Inspector General Corporations to investigate the activities of the council.

The Clerk,the Treasurer and the Mayor Sam Okello had earlier been in a jovial mood as they bounced along the council’s corridors saying how prep[ared they were only to be surprised by the turn of the events as Mayor Okello was ordered by Lang’at to keerp his mpouth shut as he is not an accounting officert of the council anytimer he waqnted to defent the many financial malpractrices which were detected by the watchdog.

“I am surprised that asa tresurer of a council of Kisumu’ magnitude ,ytou can not read and articulate abudeget, what for sure are your qualifications?”Sigor MP Wilson Litole and a member of the cxommittee reprimanded Mr Osiro and told him to his face that the council risl loosing the 2010/201 LATIF Fund .

The situation was however saved by a senior Accountant within the Council Caren Adwenya who ntook the committee step y step tooth combing every detail they hasd demanded to now from both the treasurer and trhe clerk who appeared totally ignorant with the goings on within the council with Lang’at teling them that this is the foiurth time they were failing to give answers to the committee

The Parliamentary Committee at the same time reprimanded the council for not accounting for projects that it tabled before at the town hall in Kisumu.

Some of the projects in question included the proposed extension of the town hall which was listed to have cost 6 million but which the Nkere and the treasurer Osiro could not account for together with projects within the council totalling to over kshs 11 million which they could not account for.

Also not accounted for was a an ultra Modern market which has so far consumed 39 million shillings and which was later condemned by the European Union, the main funding agency.

Lagat demanded to know why the civic body spent 22 million shillings on the stalled project yet its budget reflected 7 million shillings.

The first to query the project was William Litole (Sigor) who pointed out that some 15 million shillings had been allocated for the project together with an addition 7 million shillings.

It emerged that some 15 million shillings had also been earmarked for the project via LATIF.

Among the committee members who were also present at yesterday deliberations included Polyns Ochieng’ (Nyakach) John Olago Aluoch (Kisumu Town West) and Nemesses Warugendo (Kieni).

Osiro and Nkere together with the mayor Sam Okello were at pains to explain the financial anomalies presented before the committee members

The council could not account for the 165 million shillings money for the years 2007 and 2008.

Lagat demanded to know why the market tenders were faulted on December 2007 and works commenced in February 2008 yet the political atmosphere in the country was tense.

He wanted to know action had been taken against those who embezzled funds meant for the market.

The committee also learnt that a slum upgrading project in Kisumu had stalled alongside a community development project which was said to have consumed some 20 million shillings.

Lagat said the market should also be probed by the auditor general corporations.

He said the council had in the past been turned away after appearing before it while unprepared.

He faulted the council for not seeking for approval from the government when making project variations.

Following the incident various stakeholders have voiced their concern demanding accountabilty and transparencing within the council’s accouncting officers.

Councilor Robert Otuge laments that it really pains taht the Council’s Treasurer.Clerk and the finance Committee Chairman could not proceed to follow up the issues which had led to the suspension of LATIF funding despiter them(councilors)having approved the budget.

He also accuses the Mayor together with the duop of Osiuro and Nkere of i8ncurring expenses out of the budget to suit the interests.

“Why should tewn Councillors be sent for a meeting meant for only twi which is fully funded by the host yet they still take money from the council to go to such with full approval and knowledge of the said accaounting officers?” he posed

He says that its only in Kisumu Municiplaity where trips involving financial expenditures are not tabled and done to suit the interest of the mayor and the Chief Officers.

He laments that with luck of the LATIF funding residents of Kisumu will suffer, astatement echoed by Railways Ward Councillor Isaya Onyango who was ally turned foe of the Mayor who says that Prime Minister Raila Odinga really goofed by bringing the said Mayor to Kisumu.

“Jakom”-(Raila) should have found for this man something else to doi and not make him the Mayor of this City,hetalks too much yet he’s doing absolutely nothing since he was brought with lies he peddles about non-existent investments and investors” Onyango added.

Kisumu Town West MP John Olago Aluoch is advising the Councilors and the Chief Officers to be responsive and visionary of voters if they still want to serve after 2010.

ENDS

How Kenya can balance the shilling to stimulate economic growth

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Hi all,

The currency wars going on between China and USA is quite interesting but also helping us learn a few tricks here and there thus providing us with an opportunity to rethink about our currency.-Ksh

While USA was busy fighting in Iraq and Afghanistan China was busy buying US treasury bills,bonds etc ,as of July2010 report China has over US dollar 2.1 Trillions in these fixed markets .which is equivalent to 2.1 by 80=Ksh 168 Trillions.in Kenyans

What we can more provocation to China may result in China opting to easily dump those US bills and bonds creating the largest economic disaster in the world.But it wont take that path because its economy is export based hence a lot of care will be taken.

Changes in the exchange rate can have a powerful effect on the economy – but these effects take time to show through. There are time lags between a rise or a fall in the exchange rate, and changes in variables such as inflation, GDP and exports & imports.

A high shilling value leads to lower import prices – this boosts the real living standards of consumers at least in the short run – for example an increase in the real purchasing power of Kenyans when traveling overseas for business trips,leisure,buying foreign goods and services

When shilling is strong, it is cheaper to import raw materials, components and capital inputs – good news for businesses that rely on imported components or who are wishing to increase their investment of new technology from overseas countries.

Will benefit KPLC,Bidco,Kengen,Airlines fuel etc

Also a strong exchange rate helps to control inflation – domestic producers face stiff international competition from cheaper imports and will look to cut their costs accordingly. Cheaper prices of imported foodstuffs etc. will also have a negative effect on the rate of consumer price inflation.

However cheaper imports leads to rising import penetration and larger trade deficit e.g. the 20bn trade deficit in goods in late 80s ,this is why firms like KICOMI,Rivatex, others went belly up

Exporters lose price competitiveness and market share – this damages profits and employment in some sectors – notably manufacturing industry in the last three years

If exports fall, this has a negative impact on economic growth.

However it should be noted that business can adapt to a high exchange rate. There are ways in which industries can adjust to the competitive pressures that a strong shilling will impose. Some of the options include:

* Cutting export prices (lower profit margins) to maintain competitiveness and market share
* Seeking productivity / efficiency gains to keep unit labour costs under control but this will raise another squabbles with labour union like COTU under Mr Atwoli
* Investing resources in new product lines where both domestic and overseas demand is more price inelastic and less sensitive to exchange rate fluctuations. This involves producing products with a higher income elasticity of demand, where non-price factors are more important in securing orders.
* Moving production in areas that are assumed to have low labour costs. like moving it to North Easthern,Kisumu,Juja etc

—
Thanks
Gibson Amenya
Enigma Consultants Kenya Limited
Email: gib.amenya@enigma.or.ke
Email:info@enigma.or.ke
Audit,Taxation and Business Advisory Services

USA: FEDERAL GRANT ALERT: HUD Offers $15 Million to Help Low-Income Families

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from Federal and Foundation Assistance Monitor offers@cdpublications.com

QUICK SUMMARY: HUD is offering $15 million for 1,800 grants to keep low-income families together. New this year, vouchers are available for families/youths displaced by domestic violence or those in imminent danger of losing their housing because it is considered inadequate.

DEADLINE: Dec. 1.

FUNDING FOCUS: Vouchers are used to promote unification of families for whom the lack of adequate housing is a primary factor in the separation of children from their families. Vouchers may be used for youths 18 to 21 years old who left foster care at age 16 or older and lack adequate housing, too.

ELIGIBILITY: Public Housing Authorities.

CLICK BELOW FOR ACCESS TO MORE INFORMATION

For all of the details on this grant, including contact information as well as details on a number of other new private and federal funding opportunities for community program providers, just click on or paste this link into your Web browser, and get free access to Federal & Foundation Assistance Monitor or any of our other publications:

http://www.cdpublications.com/d092

When you reach our site, just scroll down the page and check off Federal & Foundation Assistance Monitor. The date of this story is 10-06-10. However, it is only accessible for a limited time so, you must register for free access by Friday, Oct. 15. You are also welcome to register for free access to any of our other grants services.

You are encouraged to forward this message to a friend, or to repost this information and related links on your website, blog, or other news sources

Kenya: airport & unfair tax advantage

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from Wesley Delarus

IT IS NOT ONLY NAKUMATT – ELDORET AIRPORT STILL ABETTING TAX EVASION

Fellow Kenyans,

If you always wonder why KRA never hits its tax collection target then you better visit Eldoret airport and see for yourself.

A big percentage of the merchandise from China is finding its way into the country through this airport where tax evasion is the order of the day.
The latest entry on the list of major tax evaders is one Milcah G. Mugo, apparently a very close associate of a cabinet minister.

I am saying this without fear or favour since if you still believe the new constitution will change this country you are mistaken.
Yours faithfully.

– – – – – – – – – – –

From: gridlockuss-textum@ . . .

Whatta a shoddy handling of tax-payers funds? !

From: Elijah Kombo

Boycott Nakumatt/Government should take over Nakumatt to recover 18bliions

When the Minister for Finance Uhuru Kenyatta was put to task on the closure of Charterbank House, he twisted his mouth, threw his hand on the air and stammered to respond “I dont know. Ask the Governor. Its not my responsibility”.

I appeal to all Kenyans to boycott buying goods from Nakumatt Stores countrywide. Nakumatt is involved in money laundering and tax evasion total to approximately Kshs 18billion which is an economic crime against the people of Kenya. When Billow Kerrow brought the motion to Parliament in 2006, the Government did not take it a moral responsibility to investigate and compel Nakumatt to pay taxes. Instead Governor Mullei was ejected out of office. Amos Kimunya was furnished with details to take action against Nakumatt but he slept on the job. Mukhisa Kituyi-who was the Minister for Trade also revealed how the directors of Nakumatt threatened him against reviving Uchumi. Now Uchumi Supermarkets pay more taxes to the government than the multi-million chain Nakumatt that consistently reports losses on its published accounts.

Did Amos Wako and Martha Karua shield Nakumatt from prosecution when the AG took over the court cases against Nakumatt? Why he did not revive the cases when prompted by Kituyi?

Why did Minister Amos Kimunya (CPA-K) and David Mwiraria did not take action against Nakumatt? Even the closure of Charterbank was reluctantly closed as some of the people having accounts through which the government was loosing funds had state links and protection. Consider why the government did not take action against companies associated with CharterHouse Bank – John Harun Group, Kingsway Tyres, Creative Innovations and Kariuki Muiga Advocates. Others include D.Shah, Paulo Sattanino, WE Tiley and Sailesh Prajapati, Its also reported that the KRA auditors sent to investigate Charterhouse bank were chased away from the bank by a prominent member of a protected senior government official. It took the intervention of Due Diligence Team and the office of the Public Governance and Ethics to have the audit done by PCW.

I am kindly asking Kenyans to burn all SMART CARDs, and STOP shopping at Nakumatt. Nakumatt imports approximately 70% of their products while Uchumi buys their 80% of the products locally! Buy local promote Kenya.

Can government invoke the laws to have Nakumatt under receivership until it recovers the billions of shillings that chain supermarket has stolen?

Kombo Elijah

Kenya: Trouble is brewing at the Luo Thrift and Trading Corporation based in Kisumu City

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Business and Economic News By Leo Odera Omolo In Kisumu City.

The Luo Thrift and Trading Company Limited, a private enterprise which has been the community’s trading flagship for close to six decades is on the verge of collapse.

Also known as Ramogi Trading Corporation, the company which owns several prime business building in Kisumu Central Business District {CBD} is said to be in land rent arrears running into million shillings.

Established as a trading company with limited liability in the early 1940s by the defunct Luo Union East Africa under the leadership of the Ker Jaramogi Oginga Odinga with the shareholders money contributed by members of the Luo community all over East Africa, the Luo Thrift and Trading Company was for many years the pride of the community.

At its inception, shareholders were told that only their grand children would benefit from its dividends and other fringe benefits, but generation after generations have come and gone without reaping from its profits, something which is causing alot of anxiety within the Luo community

The firm put up one magnificent building at the junction of Makasembo / Acra Street which is known as Africa House, and which for years served as the nerve center of both business and political operations of the late Jaramogi Oginga Odinga. The company was also the first one to put up another important business premises at Maseno, which was for years known as Maseno Stores. It later extended its operations into Rural Luo Nyanza by building several posho mills and conducting other business activities.

Luo Thrift also bought a large scale sugar cane farm to wit approximately 430 acres at Miwani sugar cane farming zone..

Although it traded and operated exclusively as shareholders company, it is believed that the late Jaramogi had slashed some of its profits and used the money accrued from its earning in paying school fees for hundreds of destitute children and those from poor families, and at times as well as even sponsoring those who were studying at the various universities both locally and abroad. This he did so only after persuading the shareholders into sacrificing their annual dividends. The good gesture made the company became most popular within the community, which loosely referred to it as the Luos “Milking Cow”.

A report reaching us says that shareholders have been demanding for a meeting of the directors in vain. The current Managing Director Mzee Edward Adera Osawa is said to be virtually inaccessible to the shareholders. The company is minting close to Kshs 300,00 earning from its rented premises, and ye it owed the Kisumu Municipal Council the colossal amount of money to the tune of KSHS 912,878 in unpaid land rent areas plus penalties, according to the Council demand note dated 30th September 2010.

The company has four registered directors. They are Mr Akongo Arara, Okumu Wandei and Ater Odundo with Mzee Adera Osawa as its managing director. And despite of collecting monthly rents of close to Kshs 300,000 its employees, it is being alleged have gone for months without salary. It has about five employees, mainly those maintaining the buildings. It used to operate a full fledged printing press at the backyard of the Afrika House, but the printing machines have since been dismantled and kept in stores waiting to be sold as second hand after being idle for years.

Our source says that when the former Managing Director the late Dr.Okeyo died some years back, he left the company in a sounding feet financially with a fat bank account reading at about Kshs 600,000, but the company is now almost insolvent.

The share holders are up in arm accusing Mzee Adera OIewe of using the company as his personal enterprise and that the shareholders are in total darkness as far as the title deed and registration certificates of the two buildings in Kisumu. Nobody knew where the monthly rents goes, and are demanding auditing report within one month.

Mzee Adera Osawa who of late has featured prominently in the news as the deputy chairman of the Luo Council of Elders who is supporting the ousted group of the former Ker Meshak Riaga Ogalo could not be reached immediately. He was said to have travelled to his rural home in Central Sakwa Location, Awendo Division I Awendo district.

Other complaints against the MD it is being alleged that he spent his most valuable times in the affairs of the Luo Council of Elders at the expense of Luo Thrift and Trading Company Ltd. It is further being alleged that the managers only make cosmetic appearance at the end of the month, but immediately vanished after collecting rents from the company’s tenants.

A disgusted shareholder from Yala in Gem stated thatr he had acquired thre share certificate which was left in custody by his late father who died in February 1994, Mr Fredrick M Oriwo Odunga attached a photo copy of his late father’s share certificate sating back to January 1952. He said he wished to know if the company issuing any dividend, because his father had received nothing ever since 1952 to the date oif death in 1994.

Mr Oriwo Odunga wanted to know the stats of his father shares in the com any and if there has been any dividends declared since he died without receiving any. His late father was Mr John Odunga. Similar complaints have been heard from all over Luo-Nyanza.

Ends

leooderaomolo@yahoo.com’

Kenya: Lobby group tells public to watch on use of CDF

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From: Judy Miriga

Folks,

Politicians are not sincere and truthful about the CDF funds. Local community must begin to get involved and engaged in matters of CDF allocation and disbursement. These are funds meant for Community Development and planning for its utilization prioritizing projects ….. whether boosting schools and collages improving technologies, water or agriculture management and utilities, the CDF funds must be distributed under an organized Local Community Management Team which includes the Chief of the area, heads of various local facilities, professionals, women groups and Youths including Civil Societies of the Local Community in order plan the effective utilization of the fund successfully. It is not a matter for a Politician to disburse the money secretly. There is need to investigate the misappropriation of CDF funds from every location, and keep constituents informed.

Thanks,

Judy Miriga
Diaspora Spokesperson
Executive Director
Confederation Council Foundation for Africa Inc.,
USA
http://socioeconomicforum50.blogspot.com

– – – – – – – – – – –

Ethuro, CDF Committee Row Over Funds

standardgroupkenya | September 10, 2010

Controversy has erupted over the use of new poverty figures to determine how much money constituencies get from the national budget. A group of parliamentarians have accused the national bureau of statistics and the constituency development fund board of manipulating the data. The MPS accused CDF committee chairman Ekwe Ethuro of awarding Turkana constituencies 50 million shillings more than they should have received. But in a quick rejoinder, Ethuro said the allocations were done transparently.

Oparanya defends CDF allocations

NTVKenya | September 14, 2010

http://www.ntv.co.ke
Planning minister Wycliffe Oparanya has defended the rationale behind the disbursement of the CDF funds. The system of distributing funds has generated an outcry from some MPs who disapprove the method terming it discriminatory.

CDF Allocations

standardgroupkenya | September 13, 2010

Turkana North constituency will this year receive the highest constituency development fund allocation in the country, following the introduction of a new system of distribution of C-D-F that takes into consideration poverty levels in each constituency. The constituency which according to the 2009 census had the highest poverty levels in the country at 88 percent will receive 103 million shillings. Under the same system, Lamu east, which was found to have the lowest concentration of poor people at just under a quarter of its population, will get the lowest allocation countrywide at 51 million shillings.

Busting CDF crooks

NTVKenya | April 06, 2010

http://www.ntv.co.ke
There is a new means to swindle billions of shillings from taxpayers each year through the constituency development fund CDF, and local authorities transfer funds. The damning report by the Nation Taxpayers Association NTA, shows at least a third of the money allocated to 23 sample constituencies in the last financial year could not be accounted for. Many constituencies also have ghost projects that exist in records but were never implemented, with other constituencies starting non-feasible projects that were dropped midstream, after consuming colossal amounts of money.

CDF loopholes

NTVKenya | April 06, 2010

http://www.ntv.co.ke
The damning audit on CDF has revealed gaping loopholes in one of Kenyas most celebrated initiatives. In its seven-year existence the implementation of the fund has been dogged by controversy and influence peddling by members of parliament. NTVs Jane Kiyo examines what ails the noble idea of the constituency development fund.

CDF Funds Disbursed

kenyacitizentv | October 12, 2009

The government today released the constituency development fund projects allocations but cautioned that out of the total 6.2 billion shillings in the kitty in this financial year, less than half of the amount had so far been released by the treasury. From the allocations, Bahari constituency got the biggest share at 74.2 million shillings, while Mvita constituency got the least with 44.7m shillings.

Uhuru says CDF funds were released

NTVKenya | October 23, 2009

http://www.ntv.co.ke
The question of whether the constituency development funds popularly known as CDF been released or not? Finance minister Uhuru Kenyatta maintains that the cash was released a few weeks back. This sharply contrasts the position held by the ministry of Planning, when allocations per constituency were published in sections of the media.

CDF controversy:Treasury has done it’s bit

NTVKenya | October 23, 2009

http://www.ntv.co.ke
A week since Members of Parliament accused the Treasury of failing to disburse half of the Constituency Development Funds due to their respective constituencies, Finance Minister Uhuru Kenyatta is categorical that the Treasury has complete its assignment. Uhuru has instead passed the buck to the Ministry of Planning, which has the oversight of the expenditure of that.

Minister rejects new poverty index

standardgroupkenya | September 17, 2008

The government beat a hasty retreat over a national poverty index it released recently that drew protests from members of parliament. Planning minister Wycliffe Oparanya says constituency development fund CDF allocations for the next two financial years will not be based on the disputed poverty index.

C.D.F: Oparanya releases 10 billion from kitty
September 16, 2008

Lobby group tells public to watch on use of CDF

By DANIEL NZIA

The public has been urged to be vigilant to ensure devolved funds sent to their areas are put into proper use.

A non-governmental organisation said wananchi should be fully involved in the management of the devolved funds such as Constituency Development Funds and LATF among others.

National Taxpayers Association (NTA) National Co-ordinator Kizito Wangalwa said Kenyans have a right to know the amount of money allocated to their respective regions.

“You should be vigilant and ensure the money is put into proper use to achieve the desired goals,” said the NTA boss.

Wangalwa, who was accompanied by the NTA Eastern Region Co-ordinator Ms Annah Katuki, observed that involvement of locals in the management of devolved funds would minimise misuse and promote transparency.

He was speaking at Tala township primary school during the launch of Citizens’ Report card for Kangundo constituency CDF projects implementation.

He commended area MP Johnson Muthama for being a top tax-payer, exuding confidence he would safeguard the CDF funds. He assured MPs that NTA was not on a witchhunt but wanted to enhance CDF management.

Wangalwa, however, told those who “abandoned” development projects risked rejection by the electorate.

Ms Katuki said investigations had revealed three ghost projects in the constituency and recommended investigations to fast-track the funds.

Besides Kangundo, the group also toured Mwala and Yatta constituencies

Uganda: Parliament okayed UG Shs.8 trillion budget for 2010/11

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Reports Leo Odera Omolo

PARLIAMENT has passed the 2010/11 budget despite a call by opposition MPs to withhold the budgets of some ministries.

Of the sh7.8 trillion budget, the education ministry will receive sh390b, health sh116b, while sh89b has been set aside to facilitate activities for the agriculture ministry.

A total of sh1.4 trillion will be given to local governments and sh137b to the local government ministry.

The internal affairs ministry will get sh104b, lands sh25b, trade and tourism sh24b, works and transport sh124b and energy sh421b.

The defence ministry will get sh632b, while the President’s Office will receive sh72b.

A total of sh64b will go to fund State House activities, while the Office of the Prime minister will receive sh155b.the Uganda AIDS Commission will get sh16b, and the External Security Organisation will get sh10.2b.

Makerere University will receive sh134b, Mbarara University sh17b, Makerere Business School sh39b, Kyambogo University sh64b and Gulu University sh16b. Mulago Hospital will get sh34b, while Butabika will receive sh32b.

The Uganda Police will get sh241b, Prisons sh71b and the Uganda National Roads Authority will get sh614b.

Fred Omach, the finance state minister, tabled a motion for the consideration and adoption of the revenue and expenditure estimates for this financial year.

The budget, which was supposed to have been passed by August 31, was delayed after the Speaker of Parliament, Edward Sekandi, gave a three-week recess to allow MPs participate in their party primaries.

“I know you are busy with political activities, but our mandate here will not end until May 2011. Find sometime in your busy schedules to carry out parliamentary work,” Sekandi told the MPs.

But shadow environment minister Beatrice Anywar (FDC) protested the passing of the budget for the Ministry of Water, arguing that the ministry had not clarified the ban on polythene bags (kaveera).

Hussein Kyanjo (JEEMA) pleaded with Parliament to let the internal affairs ministry explain the procurement of biometric gadgets used for capturing citizen information for elections and the national identity cards.

“The internal affairs minister, Kirunda Kivejinja, has not explained the matter to the House even though we found anomalies in the procurement process,” Kyanjo stated.

“The ministry made serious flaws. We should not pass this budget if we are to defend the dignity of this House,” he added.

Ends

Uganda: Museveni warns oil companies to pay their taxes or else they will not be tolerated

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Business News By Leo Odera Omolo

THE Government will not tolerate foreign oil companies evading taxes, President Yoweri Museveni has warned,the government official mouthpiece the NEWVSION reported this morning.

In his first public criticism of the multinational oil companies operating in the Albertine Graben, Museveni emphasised that the companies had no option but to pay all taxes due to the Government.

“We have made it clear to the oil companies operating in Uganda that all the taxes due to the Government of Uganda must be paid. Also the other development programmes in the petroleum sector must be fulfilled,” he said, according to a statement from State House.

To make his point clear, the President also mocked pessimists who argue that oil could turn out to be a curse rather than a blessing, as it has been in many other African countries.

He asserted that oil has been a curse where weak African leaders have failed to check the “greed” of western companies.

This will not be allowed to happen in Uganda, the President told NRM delegates at the opening of the party’s second national conference at Namboole stadium on Saturday.

He cited the Canadian-owned, Heritage Oil Company, that is yet to pay $405m (about sh810b) to the Uganda Revenue Authority.

The company is contesting the tax on the sale of its stake in oil wells in western Uganda to Tullow Oil Company at $1.45b.

“Recently, we had a problem with some of the oil companies that were trying to refuse to pay our taxes,” he narrated.

“A company called Heritage spent $130m in exploration. When oil was found, they decided to sell their shares for which they received $1.45b – more than ten times what they spent. We required them to pay us 30% of this as tax. It translates into $430 million. They, however, refused to pay.”

The President reiterated that revenue from oil will be spent on developing infrastructure like roads, the energy sector, and build an excellent railway network.

The rest will be used to fund science, technology and research initiatives as well as innovation, he explained.

“The oil money will never be used for consumption,” said Museveni.

The Government has largely kept its contracts with the oil companies a secret but the tax row has exposed some of the transactions.

Last month, the Government repossessed the Kingfisher (Kajubirizi) discovery area, an oil field in Hoima, from Tullow Oil after the company failed to meet some of the set terms.

The blocks, 3A and 1, were jointly operated by Heritage and Tullow. However, when Heritage sold its interest to Tullow, the Government declined to recognise the transaction over non-payment of taxes.

In a letter, energy and mineral development minister Hillary Onek also said Tullow’s licence had expired.

“The period within which you are supposed to have applied for a petroleum production licence for the Kingfisher field expired in February 2010,” he told the Tullow managers.

The repossession meant that the Government can license another company. This puts Tullow at a risk of losing $1.45b, which it paid Heritage for the asset.

Meanwhile, speaking at the opening of the same delegates’ conference, the outgoing NRM secretary general, Amama Mbabazi, revealed that the party had elected 2.5 million people from the grassroots since it began the process in July.

Mbabazi promised that the party would provide mobile phones to its leaders to ease internal communication.

He regretted the malpractices in the primaries, but said the party had embarked on cadre identification, training and placement to ensure that only people with good political orientation form its future leadership.

Ends

Kenya: Health Care : Atwolo Atwoli Should Shut Up

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From: Yona Oduor

How about the Charity Ngilu’s (When she was Health Minister) proposal of universal coverage that was shelved. Simple economics: Pay as you earn+ fiscal discipline= Universal health care+free education+other state guaranteed benefits. There is enough money Kenya to fund these programs, the problem comes from misplaced spending priorities and pilferage of public funds.

Does anyone has an actuarial and or economic analysis report of Mrs Ngilu healthcare proposal? Please attach it here to inform those who are keen to know. We seem to be spending so much valuable time and money(online costs) arguing with our mouths in total disregard of our minds.

Have a hard time!

Yona Yengo

—
Follow Me on Twitter: http://twitter.com/robertalai

Kenya: Mars Group Kenya Update:Kenya’s President Mwai Kibaki has the opportunity to advance the realization of Millennium Development Goal 5 by Kenya Shillings 1.5 Billion to improve maternal health during this financial year.

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From: MOSES OPADO

Kenya’s President Mwai Kibaki has the opportunity to advance the realization of Millennium Development Goal 5 by Kenya Shillings 1.5 Billion to improve maternal health during this financial year.

President Mwai Kibaki speaking in Rwanda said that Kenya has committed considerable resources and put in place the necessary institutional and policy frameworks in an endeavor to ensure the realization of the Millennium Development Goals.

With regard to poverty, President Kibaki noted that despite the registered decline in absolute poverty levels there were fears that many African and South-Asian countries may be unable to accomplish the MDGs.

“Despite these achievements there is a realization that a large number of African and South-Asian countries may be unable to attain the MDG’s targets set by 2015, especially in relation to elimination of extreme poverty. In addition, the reduction of child mortality rates and improvement of maternal health are still matters of great concern,” said President Kibaki. The President told the meeting that Kenya was committed to meeting the Millennium Development Goals.

We want to see if indeed Mwai Kibaki is a man of his word. He has a fantastic real time opportunity to demonstrate to Kenyans and especially the women of Kenya that he cares for Maternal Health.

There is money in the budget of the Ministry of Public Health and Sanitation that appears to have no explicable allocation. The Ministry received Ksh 1.5 billion more than it requested from Treasury and the women of Kenya think this is money which should be spent on improving maternal health care this year.

The Hansard of Parliament records that the Chairman of the Parliamentary Health Committee revealed the existence of the Ksh 1.5 Billion in the ministry of public health and Sanitation that can be allocated towards Maternal health and MDG 5. Will Mwai Kibaki direct his Minister to use this extra money to support women and honour his commitments and those of the Government of Kenya to the women of Kenya?

Read full post here: http://blog.marsgroupkenya.org/?p=2392

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