Who doesn’t pay taxes?

In spite of popular perception, the largest non-compliant group are the informal businesses incl Matatus, Jua Kali, Mama Mbogas, transporters, etc.

I feel sorry for ‘legitimate’ businesses like Nakumatt who have to compete with the ‘untaxed masses’.

Nakumatt has to pay & pay for compliance:
- PAYE
- Business licenses
- VAT
- Real Estate Taxes

At least Nakumatt has buying power. What about smaller retail stores within the CBD who pay all their taxes? How will they survive?

You keep saying kenyan MP’s need to start reading on how the Asian countries made it. Good Point!, however I think these politicians do not have kenya’s interest at heart.

Those Asian leaders genuinly wanted their countris to succeed, that is not the case in kenya.

Raila, Kibaki & Co. are a bunch of selfish idiots, their main concern is retaining power. I do not see our current crop of leaders striving to improve the situation thru reading about other countrie’s successful economic models

I see your point about the KRA raising all sorts of taxes here and there (& who knows? maybe the KRA commissioner is under pressure from the government to bring in more revenue) — However, if these tax increases are then being used to fund the lavish lifestyles of these politicians, it’s not going to make a difference how effective the KRA commissioner is. He is essentially working hard to ensure that the lives of a few politicians remain very comfortable. Does he realize this?

Then (as Demigod) pointed out, these perpetual tax increases end up choking business investment. So, if businesses are having a hard time investing because of all these taxes, their productivity is going to go down. If productivity goes down, then the governments tax base will also go down and then what happens? That’s when Ndungu is going to be forced to print because these MP’s are not going to suffer (or if he refuses to print, he’s going to have to borrow, but from where?)

Kenyan politicians need to start reading books on how the Asian countries built their economies. It’s really quite simple. They were massive investments in infrastructure and public education and even with those investments, it took those countries 30 years before they finally began to see the fruits of their labor.

This is why what is happening in Kenya today is so sad because without these investments, Kibaki’s 10 years in office will turn out to be a complete waste. Had he laid the ground work for these investments to occur, Kenya would then have needed another 20 years for it to be significantly transformed.

Now, whoever comes in after Kibaki, will have to start from scratch.

This is why African presidents can’t afford to screw up if they hope to make a difference. It’s because screwup’s will push your development dreams back by decades.

Look at the current fuel crisis. I, a mere blogger, warned of fuel shortages due to problems at KPC. And I warned you.

Most Kenyans blame Oil Marketers because they are brainwashed into believing whatever the government tells them. And the corrupt in the government will always blame someone else. In December, the government crooks blamed everyone in sight. Even the media followed the government’s lead. I was among the very few who told it as is.

- Minister for the Energy the Right Idiot kiraitu murungi claims a problem at KPRL since Dec 2008. So why didn’t he take action?
- KPC claims ‘it is not us’. The same firm that gave us FAKE information on how much product they have! Oil Marketers have trucks lining up at fuel depots for 3 days without any success!
- murungi claims only 3 ships are waiting to discharge fuel at Mombasa. KenolKobil says there are eight. I believe KK.

I fully agree with your views on this. This government is really going to the dogs when running this country. How on earth are they actually generating revenue? If they think that by increasing tax collections is the way, then they are mistaken, as they don’t understand the real economics of doing business.

For example, they keep on saying tax revenues have gone up, but every where you see there is doom and gloom, and businesses are facing a tough time as the costs of doing business goes up and the economy grinds to a halt. Without growing commerce you can’t earn taxes. So, what is the government doing to make Kenya a conducive investment destination, with all the corruption, security issues, high taxes etc, who wants to invest?

I was laughing my ass of when Raila started telling investors Kenya is safe and conducive – I say for who? If they want “thugs” and “drug” barrons investing then this is a perfect country, but for real business man, I think its a tough environment to make money.

Unfortunately, this government just does not get it, that to survive in these difficult times, we need to cut debt and expenses, and look at avenues to grow this economy by strengthening our core business activities i.e. Agriculture, Tourism etc…

My prediction, if this continues, Kenya will move towards going bankrupt just like Argentina did a few years back, and the kenya shilling will go to the dogs. I wonder if anyone has really done a detailed analysis of banks in Kenya, are they really all solvent if with low gearing ratios?

Kenya is on the brink of a major disaster – and I can guarantee this, most of these government scholars running the CBK etc are shitting in their pants with the way expenses are going up.

I was once told by some guys – Kenya is insulated by the world economic crisis, and I has to laugh at this idiot. What on earth makes us insulated when this economy produces nothing, and if we do produce we export most of it out, so what is our capacity as an internal economy – ziltch!

We are living in dangerous times, my advice better buckle up as things will get much worse before it gets better!!!

Another avenue in which the government is making money is through the arbitrary enforcement of tax laws, where the KRA keeps making up new rules every other month that increases taxes on business. Ask importers in Mombasa why there is so much confusion about tax: nobody seems to know what KRA will decide next. Another source of money is traffic fines: Thousands of people are being arrested every working day, taken to court and fined Shs300. I have been a victim and once in court, the prosecutor made a short speech telling us not to bother pleading ‘not guilty,’ that it is easier to pay the 300 and go home. Beleive me, this is what is happening across the country.

Now you know where the money is coming from

What this coalition government is doing is slowly destroying any chance that the country had at REAL economic recovery because taxpayer money is being shifted to pay for non-income generating expenditures.

The government is going to run out of money to pay for things like infrastructure improvements, public education, electricity, etc, etc….and all these things are what would have propelled the economy forward 10 or even 20 years from today.

I’m so sick of seeing all these ministers at press conferences appearing whenever a disaster occurs — promising this, that or the other. They don’t seem to recognize what this bloated government is doing to the country’s bottom line.

I think Lucy Kibaki understands that something is going wrong, it’s too bad her zombie-like husband doesn’t get it. I’d like to be a fly on the wall in their bedroom. I wonder if these two even live in the same house anymore? That is some strange shit.

hhhmm, I also wondered where / how the gvt was going to get 700 million for the sole purpose of a prime minister’s office ? despite people dying of hunger.

Maybe it will be included in this year
‘s budget, who knows ? But one thing is for sure, kenya is definitely ANIMAL FARM,
Some people are more equal than others.

I have lost all optism about kenya except the cable landing this year. apart from that, it seems that kenya is just going to the dogs, with this useless government, useless president, useless prime minister, useless MP’s!! basically useless Leader
ship