Why you should not make new year's resolutions

I was the biggest New Year Planner. Always planning to eat better, work harder, exercise more. For some reason, I never fall through. The truth is that you don’t need New Year, a new month and not even a new week to make a decision and work towards it from day one.

How many times have you made your New Year’s resolution, pumped up at the beginning of January but as you were approaching another month, those big dreams and goals seem to disappear? Why so many people but their biggest hopes for the next year when they can start and thrive right away?

Since most of the world put so much importance on the New Year’s resolutions it isn’t funny; I have for you 3 reasons why you should forget about those plans for a  next year and start hustling now.

1. Time is the only limit

Your potential, resources or possibilities have no limits. The only limit we all have is time and once wasted, we can never take it back. Why would you throw away the entire December when you can already start taking action and move forward? Procrastination killed many dreams because people were always waiting for the right time, right person or opportunity. There is never “right” time, person, etc. The time is now, and that is the only thing you need to remember.

2. You will get overwhelmed

How do you think your mind is going to react when you let it totally rest for some time and then you put enormous pressure on it with every little thing you want to change or improve? More than likely, you will get totally overwhelmed, frustrated and quit before you even started since the number of tasks to handle will seem impossible.

3. If you are waiting too long, you may miss your chance

I am not trying to scare you or destroy your hopes, but sometimes, if we wait too long, we’ll wait forever. Chances are all around you; they aren’t some special events which show up when the midnight hit 2017 and ball of "good luck" dropped at your doorstep.

Instead of focusing on the awesome year 2017 we all believe is going to better than this one, start planning and taking simple steps now. Enter the New Year with motivation, already in progress and a clear vision of how this year going to unfold for you.

Conclusion

The reality about New Year resolutions is that people don’t want to change and that’s why they tied their goals to some future event. Before you hate me for what I just said because you already have a full list of your New Year’s resolutions since January 2016, let’s think about it.  If you want to make a decision and change your life, you just do it. It is simple. You don’t need to wait for some special occasion because you are confident about yourself and what you want. This state of mind will only excite you, and you start acting right away. If you are unconsciously refusing to change, there are one and million reasons to procrastinate and the New Year seems for many people as a great opportunity.

I am not here to judge you since I have made this mistake a thousand times. I am here to tell you that New Year’s resolutions suck and why you should quit with making any. Time is priceless, stop wasting it and start hustle. There is too much of a value and potential within you to wait around for some New Year to give yourself permission to act. Do it now!

Business Fatigue?

Take time off to unwind! Heal the fatigue

WHAT IS FATIGUE?
Fatigue is a mental state of being tired and weak.

Starting a business is very exciting work. However, the business can sometimes die in the hands of the very person or people that started it. The reasons are explained before, so as you read, ensure that you avoid making the mistakes mentioned below.
Most small and medium enterprise owners tend to do every business task by themselves for long hours. This is partly because the cost of employing more and extra workers to reduce work load and ease work is very high and not sustainable for most small and medium enterprises in Uganda.

This makes entrepreneurs quickly tire, makes them stressed and as a result they end up lashing out at valued clients, missing out critical datelines, causing customers to lose valuable time and the business owner to incur unnecessary costs as a result of fixing fatigue errors.

WHAT IS FATIGUE?
Fatigue is a mental state of being tired and weak.
How can a business person tell that he or she is fatigued? It is important to ascertain the way that the business owner is executing his or her duties and find out the following:
Is that person,
1. Not paying attention to client needs?
2. Directing anger unreasonably at colleagues?
3. Resisting change?
4. Overlooking small and important business details?
5. Doing completely nothing?
6. Dodging decisions?
7. Being forgetful and cranky?
That person may be fatigued.
A person who is operating under fatigue may be more harmful to the business than beneficial. Therefore it is more important to identify the problem and come up with a solution, whether you are the business owner or an employee who notices your boss is fatigued.

HOW TO OVERCOME BUSINESS FATIGUE
1. Look for business aspects that do not require expertise such as mailing and get assistant.
2. Take good care of your self
3. Take some time off, maybe a day. You can also take a periodical break, for example once every month take a 3 day weekend to refresh yourself (if you are the business owner)..
4. Always have enough sleep
5. Distribute work strategically outside your skill set (if you are the business owner) and trust employees with more responsibility.

A country killing itself: the tale of Agriculture in Uganda.

The author is a start-up agripreneur in Uganda!

It is possible for Uganda to get out of poverty, just like many other countries have done. 

The gist of his thesis is that if we built infrastructure, provided information, technology, schools, health and credit to the people, poverty would be a thing of the past.

However, you may wonder why the poverty situation in Uganda remains the same even when the government has -in most part- provided the parameters i have mentioned!

On the whole, however, Uganda has no excuse to remain poor.  In fact Uganda can even do better than the Chinese, who moved 300 million people out of poverty within ten years.

The Ugandan Government considers agriculture as the cornerstone for socio-economic prosperity. Agriculture is placed at the helm of all national development blue prints; vision 2040 and the NRM government manifesto among others. There is established a “wealth Creation Department” within the government headed by Gen. Salim Saleh – just to give weight to this sector!

 With our state of economy, agriculture will for many years to come remain key to ensuring food and nutritional security for Ugandans, mostly small-scale farmers who draw a living from it. It is also a main propeller to our industrialization (as we await oil exploration and explitation) by virtue of being the principal wellspring of raw materials, thanks to the adoption of modern farming technologies. All these success stories about agriculture become more real only with favorable policy framework.

 Uganda, like many other countries, is faced with the challenge of increasing population and rising competition for agribusiness both in the regional and international arena. Meeting this would mean breeding a crop of young farmers who will in days to come fill the gaps left by aging farmers considering that the average age of a Ugandan farmer is 65 years. Basically, agriculture is practiced by pensioners! A retrospective follow up of these “young farmers” depicts the policy injustice that the Government is doing to this golden sector.

 Causal notification uncovers that the formal platforms, more so in the primary and secondary institutions, for the dissemination of farming techniques to the “hope of tomorrow” are either breaking down, inadequate or lacking trainees as a result of the emerging socio-economic challenges.

By nature, human beings will only pick what is perceived to be important. It may be a shock that agriculture education may no longer be a single entity subject in secondary schools, as it happened in primary school. This is imminent. There is a decline in the number of students taking agriculture in secondary schools, where it’s also an optional subject. Now is it really logical for a system to function without a spine?

 The negative discernment that agriculture does not compete equally in the job market could be one of the major reasons. The subject itself is downplayed by both parents and students, who by their gender and social upbringing opt for the ‘marketable subjects’. Agricultural programs in schools are stereotyped to be primarily for the males. How practical is it that a kid raised up in the city will pick up agriculture after school, which throughout their education has been an option? Their parents, who by default are the role models, do not practice agriculture.

 An ‘enterprising parent’ would rather use theirs plots available to establish a real estate rather than use it for agriculture. Those with interest lack the adequate exposure to the practical aspects of the subject, with teaching increasingly becoming superficial and exam oriented. Consequently, for a long time, there hasn’t been an effective way to integrate secondary agricultural education with most of the lucrative courses that are offered in the universities, which almost all the students are nowadays struggling to pursue.
As such, it would be more appropriate for guardians, educators, contrivers and policy makers to encourage agriculture education right from primary school.

 To develop self-dependence, problem-solving abilities and resourcefulness, learning agriculture will occupy students with activities that direct them to various agricultural ventures which may not exigently require high capital to head start, but significantly boost the economy. Agriculture can never flourish in isolation; increasing budgetary allocation for research may make it regain the lost glory.

I don’t think people in Europe got handouts in order for them to innovate and eliminate poverty. We would therefore greatly enhance this conversation by suggesting how we can create value in our people without paying them to be helped.

I have noted with gratitude that some of my readers make very constructive comments.  This form of crowd-sourced solution is what will lead to a sustainable solution, and I urge them to please let us continue thinking together.

Share this article to the corridors of power. All stake holders and law-makers need to support agriculture - it is the only way out of poverty for the multitudes.

Kenya: Food security still threatened

Large-scale controlled agriculture is a sure way to achieving food security

Thrilled by Zimbabwe government ( Zimbabwe: Metal Silos to Cut Post-Harvest Losses Unveiled) I had to reflect on what is happening here in Kenya. There are some very interesting plans though.....Example being the "Gala-Kulalu Food Project at the kenyan coast in which the government has set aside in the fiscal year 2014/15 USD 42 Millions to put 80,000 acres of land under irrigation....this is just but one part of the larger government plan to reach food security.

The government has indicated that Irrigation/technology is and will be the only bridge to the ever-increasing gap in food insecurity. According to the Office of the Deputy President and the Ministry of Agriculture, In the next 4 years, irrigation will ensure part of land that has over decades not be cultivable 500,000 acres will be put under maize, 200,000 under sugarcane, 150,000 acres under beef and game, horticulture, dairy farming and fruits will each take a share of 50,000 acres.

The plan is so noble that every Kenyan may now rest assured that there will never get a time we have such initiatives to help drought ravaged Kenyans in the North of the country like we had in 2011 dubbed "Kenyans 4 Kenyans". This, with conservative figures indicating that we would have lost about 3.75 Million Kenyans that year, thanks to the Kenyan spirit embraced then, driven by Safaricom and other corporate entities.

Back to the story of noble Kenyan government plans to see over 1,000,000 acres of land under irrigation, Post-harvest losses still dares the noble idea. One will be forgiven not to flash back to 2005. Then, under National Alliance for Rainbow Coalition (NARC) government, food security became number 1 priority. Here, even the driest of dry areas in Kenya (e.g.Makueni district in lower Eastern) soils bowed to heavy production but after the bumper harvest, most of the maize was declared unfit for human consumption due to high levels of aflatoxins. This was replicated in other areas like the Bura Irrigation scheme etc. from this past experience, Kenyan government should have put up succinctness measures like ensuring the Strategic Grain Reserve (SGR) moves with times putting in mind the projected annul grain requirement by 2020 to hit 5.2 Million tonnes.

IFC have in the last year convened seminars and workshops like the last one funded by Global Agriculture and Food Security Program (GAFSP) to discuss matters on how to revitalize the SGR. Thanks to such initiatives the government in the Fiscal year 2013/14 waived all taxes related to import of equipment and technologies for use in Post-Harvest losses reduction. This is done in a bid to encourage private participation in investing in this area.
 Although the treasury is yet to release guidelines on the same, it points out to the right direction already. Such initiatives should be encouraged and the government too should continue with the plan to build/increase/expand the current Food Holding Reserves all over the country. Wrangles and corruption almost crippled one of the National Cereals and Produce Board in the country and this in turn has led to most farmers quitting or reducing their production units.
time to re-focus!

Sorry babe, I need space!

What’s going on in a man’s mind when he says he needs “space”?

What necessitates the need for "space"?

So he needs space, is that code for “it’s over?”

Perhaps it’s simply a hot-and-cold act: when you give him space he comes back, and when you get too close, he goes and finds his space. 

This behavior can be very frustrating. What’s going on in his head? What should I do? Should you even put up with this kind of behaviour?

Sounds familliar? Ahem! Here is how to navigate the "I need-space-man syndrome":

YOU WERE NOT CLEAR
What went wrong here is that you failed to make clear what was acceptable behavior early on. In fact, by allowing your guy to stick around for as long as you did, you showed him just how much he could get away with.

Don’t blame anyone else but yourself.

SET PARAMETERS 
Men will adhere to the parameters that you set.

When men first get involved with a woman, they are constantly testing and finding out how much they can get away with. That means it’s entirely up to you to show them where the boundaries are.

It’s the same thing with men and their mothers. If a guy’s mother showers him with love and affection, and doesn’t ask anything in return, this is the dynamic the mother will set up for the rest of their relationship. Then the mother wonders why her useless son never helps out around the house or surprises her with gifts. It is because he knows that he can get away with that. He always has anyways!

You’ve allowed him to completely call the shots in your relationship; you let him choose whether it was on or off, and always allowed him to come back in when he wanted you back.

So very early on he learned that your boundaries could easily be compromised, without him having to actually go to the trouble of changing his indecisive ways when it came to commitment.

He’s learned that he can get away with it.

FIX IT DARLING

You have to make him feel that if he wants all the fun of being with you, he’ll have to commit fully.

You don’t have to get all angry and pissed-off with this. Gradually back off from him and make sure that you are very sparing with how much time you give him. 

However, for effect, ensure that the short times you spend together are incredible, and have as much fun as possible. That way he sees that if he wants to have that amazing time with you and be a significant part of your life he will have to commit more.

By not giving him much time, you show that you’re not willing to emotionally invest in someone who is only messing around with you.

 How you react to his behavior will guide how he defines his relationship with you. So start early.... but its never late to turn arround an otherwise sour relationship!

How it works: Accidents!

It is unfortunate that we have let society dictate that corruption has the final say on who is at fault when you are involved in an accident! That is not right and should not be the case.
This is how is works;

Dont rush to get out of your car

First, your car needs to be immobilised before you leave the controls. Otherwise, you may worsen the situation and increase your repair bill, something you auto insurance provider will not like. Secondly, you should be wary of gangsters who cause minor accidents in order to rob other motorists. The only exception to this rule is if there is another immediate danger such as an open fire or smoke coming from any of the cars involved in the accident.

Check if you are alright

Check for signs of blood, and for any pain that may indicate a fracture or soft tiytssue damage. If you have knocked your head, beware of a concussion. Any signs of dizziness mean that you need to get quick medical attention.

Put your hazard lights on

Before stepping out of your car, shut the engine, apply the handbrake and put on your hazard lights.

Make contact with the other driver

Realise that the other driver is also tense, and how you make contact will determine whether you end up with a shouting contest or an amicable solution. Whether you feel you are not to blame, do not spook the other driver. First, show concern for the driver and the safety of his passengers before talking about the car. If he needs urgent help, you are best placed to facilitate it. If you are the culprit, your third party cover from your motor insurance provider is meant for the benefit of other road users.

Place the Lifesaver on the Road

If the accident is serious and it is clear that the cars will be on the scene for a while, then place lifesavers on the road to warn oncoming drivers of the accident. Failure to warn oncoming drivers can lead to a compound accident. This will complicate how your motor insurance company handles the situation.

Assess the damage

Carry out a quick assessment of the damage to your car. Do not assume that because the impact took place at a low speed the damage on your car is minimal. Check for cracks on lights, dents and any leaks coming from your car. If the damage is minor, and you think there’s no need to involve your motor insurance provider, negotiate with the other person and if you agree, let it rest.

Call the Police

If the situation is beyond what you can handle, call the nearest police officer. The police officer will assess the damage and will determine who is at fault. Do not move your car before the police officer arrives, and get in touch with your insurance agent for further advice on what to do. It may be helpful to take photos of the accident scene before the cars move. Scan the general area to confirm that it is safe for you to wait there.

Report the incident to Your Motor Insurance provider

Once you have all the information you need from the scene, report the incident formally to your motor insurance provider. Based on their assessment, a decision will be taken on whether you can drive to the nearest authorized garage, or whether you will need a tow truck to move the car. The insurance company will also send an assessor to determine the value of damage to your car.

Fill a Motor Claim Form

This form is your formal application to the insurance company to settle your claims based on your policy. The insurance company considers your application and set in motion the process of compensating you. After you have filled the motor claim form, you send it back with required attachments such as a copy of the motor claim form, a police abstract, and a copy of your driver’s license. If in the assessment of the insurance company your car is damaged beyond repair, then the insurance company will write it off, and pay the claim. Otherwise, it will issue the authority to repair the car if the value of the damage is less than 50% of the insured sum.

What insurance company will need

Drivers License Details

Always remember to collect the driver’s license details of the other driver when you are involved in a car accident. One of the things every auto insurance company wants to be certain about is that every claim they handle result from legal usage of motor vehicles. In this regard, they like to be sure that the drivers were both legally on the road. Apart from that, it is important to have personally identifiable data from the other driver to facilitate the claims process.

Insurance Policy Details

Write down the policy details on the other car’s insurance cover. If the other driver is on the wrong, his insurance company should compensate you for the accident. In this regard, your auto insurance company will need the policy details to process the claim from the other insurance company. Getting this policy number and the insurance company that issued it also adds another layer of information that can help to identify the car in case of any eventualities.

Service Number of Police Officer

Also get the service number of the police officer that comes assess the accident. Each policeman has a service number usually pinned on the lapel of the jacket or on the shirt pocket. This serves to prove that the matter was reported to the authorities and blame was assigned based on this. This number, alongside an incident report should be linked to the base station where the traffic police officers operates. Getting the details right makes the claims process easier for you.

Vehicle Registration Number

Don’t forget to note the registration number of the vehicles involved in the accident. This number can be used to trace a hit and run car. In many cases, it is the only information you can get from a car that refuses to stop after getting an accident.

Social networking: How to do it effectively!

“If it wasn’t for effective networking, I probably wouldn’t have started my business venture; neither would I have prospered,” I hold this statement true and important to me and mine.

In essence, networking is interacting with people to exchange information and develop contacts, especially to further one’s career and business referrals.

The world is not an island, you cannot have a thriving career or business without the help of others, which is where networking comes into place.

Do you know the impact that effective networking has on your career development? here is how to do it effectively;

1. Always be ready to network

Networking sessions shouldn’t be confined to arranged business meetings only, it can even be by the roadside as you wait for a cab, or as you catch a bus home.

Being mentally ready of the unseen opportunities surrounding all of us, one can meet their next big help. “Never assume the cab driver or the watchman, he could know someone who needs the type of service or the kind of qualifications that you have.”

2. Invest in your looks

Whoever you are and whatever you do, ensure you look the part. Ensure that whenever you go into a business meeting or a place you expect to meet people you make a good impression by dressing the part. Therefore, wear a good suit if the meeting is formal.

3. Always have your business cards

A business card says who you are, what you do and how you can be contacted. You may make a very good impression on people you meet during networking sessions, but if you’ve got no business cards, then you might become easily forgettable.

“A business card is especially essential when it comes to making the first communication after the initial meeting. This is because it mostly contains an email address which is the right way of contacting someone for the first time. On that note, do not call or WhatsApp a person you intend to pursue a professional relationship with at first, preferably, email them, unless they request you to call them,”

4. Don’t wait too long to contact them

How long should you take to contact a person you met through a networking session?
 “During the first 48 hours, after that, it communicates the message that, that person was not all that important. On the other hand, the person might have even forgotten you. To ensure you create a lasting impression, make the initial contact as soon as possible.”

5. Polish up your social media accounts

The easiest way of networking these days is through social media. Social media has made people who are in real life inaccessible, accessible. Therefore, if you are eyeing to establish a professional relationship with someone online, ensure your various profiles speak for you.

“The best way of doing this is ensuring you separate you accounts. For instance, if you choose Twitter and LinkedIn as platforms where you promote your brand – as an accountant, a journalist or a techie- ensure someone can see your passion in your field by scrolling through your profile. You can use other platforms, preferably using a different name, to show a different side of you.”

Kenya is not autocratic!

For you to be a celeb, do something weird and make sure the media is invited!

I have witnessed what we as a nation can do during adversity and as recently depicted by our politicians while serving as guest of the state. Then all the TV stations were talking about the Fish/Osuga that reunited them all! They are now celebs called "The Pangani Six"!

Now I turn the television to CNN and get trump with his usual bantering and abusing of everybody he does not like, a more forceful character reminding me of our own Moses Kuria.

Meanwhile Hillary of the Clinton's is making history and charming the big and mighty of the Land of opportunities! I think the gods and history are on her side, America is ready for a woman president.....but anything is no surprise in the kand of Obama!

I reflect back at the post election violence, the ICC cases, the massive corruption and all the government excesses, tribalism, nepotism,not to mention IEBC crinkum-crankum,then look at this politicians continuously politicking and as law abiding tax paying citizen start to wonder.Did we all migrate to some parallel dimension or have we won a lottery thus in cloud nine?

I find it weird that Kenyans are very forgetful almost like Lot's wife in the bible and are living in Sodom and Gomorrah nicknamed the garden of aden or better still Paradiso!!

Then it probes my mind into looking at the word democracy-*a system of government by the whole population or all the eligible members of a state, typically through elected representatives*, its fascinating and does not reflect  our African nature.

As I continue my scan through news channels I and I, whatever that means, land on BBC and the British are doing their thing; call it Brexit or Bremin, sometimes its shocking the level of freedom these people have to chat their destiny, but deep down, yours truly know they have had their own struggles.

Then it pushes my mind into looking at the word autocracy-*a system of government by one person with absolute power*, and kaboom! I finally found home! We Africans cherish this system of government, so I ask my self why can't we have the same in Kenya? But then again am reminded of our progress and hope of reaching the middle class economy and I chillax!

I see what the Arabian gulf and Asian tigers are doing and am left with egg on my face. To imagine that 40 years ago these countries' GDP could not come close to Kenya's, is traumatizing to say the least. The transformation that they have had can best be described as a miracle. Or could we be dreaming? If so please wake me up, I want to taste if not see the reality.

A friend of mine in the middle of a story as we discussed politics which we tend to do very often indicated that we could be practicing as Kenya a system of plutocracy*government by the wealthy* and to some extent it looks more like it.

Imagine a Kenya where we do elections once in ten years, I long for such a Kenya. I see the way people get exhausted every five years after an election with the pettiness , tribalism , nepotism, corruption, electoral incompetence and malpractice. I honestly think as a nation we have way more important things than to politic every given chance. Its like everyday is a political rally day!

Judiciary in turmoil, everyone suing everyone, affidavits pon affidavits changing hands in the corridors of the judiciary! It will soon be difficult to present your case in court, but that's what make us unique, we are Kenyan like that. The land of Victor Wanyama and rugby sevens! We are the people who lent our son to the Americas! Human trafficking is real!

We demand respect from our leaders, we elected them to preserve and protect our sanctity, not demonstrate our barbarism in public.

A ten year one term presidential system of government will enable the holder of the office have humble time to implement his/her manifesto without constant guilt of time constraints and free of political interference or sideshows.
#Myfrustratedthoughts

Budgeting on debt?

Borrowing to pay debt is stupid!

Treasury Cabinet Secretary Henry Rotich’s 2016/17 Budget was, without doubt, a difficult balancing act between production and consumption. It can be summed up as a mix-and-match one – best defined as confusing, at least from the consumer perspective.

With less clarity on the well-intentioned objectives and targets, especially as weighed against an unconvincing ministry and agency allocations, it is no secret that the budget has a weak centre and linkage threads.

Ultimately, this implies that the budgetary allocations and spending priorities are not in consonance with budget objectives. Why? As a statement of government receipts and expenditures, Treasury has remained long on politically-correct expenditures while paying little or no attention on receipts and or cutting non-priority expenditures.

Indeed it is not obvious for a keen observer to see potential rapid and balanced economic growth, social justice and equality objectives within Mr Rotich’s budget. What is clear, however, is that it remains a ‘budget on debt’. That debt is not just about ordinary domestic and external borrowing. It is about the low impact, if any, of what previous ‘production-based’ budgets were able to offer in terms of tax relief.

As a country engulfed in huge debt (more than Sh3 trillion), declining foreign direct investments, surging unemployment rates and a pervading sense of hopelessness amongst the youth– failing to align the appropriations with public priority needs is a recipe for a financial meltdown.

Treasury has previously argued that today’s higher consumer taxes will enhance tomorrow’s productivity. It then followed that nearly all consumer foodstuffs, commodities and other key services became heavily taxed. Three years later, the government’s talk on austerity measures has remained just but that. Huge wastage remains the norm rather than the exception.

That Rotich has been the lucky and an un-interrupted occupant of the 14th floor Treasury Building corner office; it is time for Kenyans to ask salient questions. Has his economic growth vision fallen on its’ head or could he be a victim of bad politics? Whichever the answer, the ordinary Kenyan is feeling severe pinch from the high consumer prices whose net effect will be a shrinking spending power. Such an eventuality is a bad omen.

To claim, for instance, that higher taxes on the pro-poor and mass market product like kerosene would lower fuel adulteration is openly deceptive if not plain misleading. Truth is that government regulators, in this case the Energy Regulatory Commission, have the mandate and budget to address such challenges. To punish the consumer for sins of omission and or commission of a regulatory agency is not persuasive.

This question begs the rationale in which regulatory agencies like the Commission on Higher Education, National Environment Management Authority and National Construction have a leeway in imposing and adjusting regulatory fees. On this, it is fair to commend Treasury for singling out a few agencies. But it ought to be a policy across board that regulatory agencies’ fees ought to be subject to Parliamentary approval.

All said and done, Treasury’s move to hinge its budget on debt is akin to living outside its means. Living off public debt is the thrust of the budgetary quagmire the country finds itself. Again, adjusting taxes for excisable goods and services triggers a general rise in pricing. Subsequent inflation pushes up the cost of credit even higher.

This reality is made worse by the obvious domestic borrowing which is poised to address the various financing gaps. Banks will, as usual, make terms difficult for “Wanjiku” borrowers as they lay in wait to lend the risk-free government at higher rates. What is worrying is that many government ‘funds’ running into hundreds of billions are kept in the same banks, which would have been restricted to government-owned ones in the hope that they would reciprocate, by lending at a cheaper rate.

Putting higher tax premium on like motorcycles, food supplements, fuel, tobacco products and alcoholic beverages and cosmetics used by majority of the population, is a clear move to push up the cost of living.

The Jubilee administration pledge to lower the cost of living is far from being realised. With clear projections of higher cost of food, energy, transport and lower employment opportunities, Kenyans must brace for tough times ahead.

Considering that 2017 will be an election year, many investors are expected to hold back their investments. That way, market forces of supply and demand will not work in favour of the consumer. What is more, previous attempts to stem high level corruption in government are yet to bear fruits. Huge allocations to government agencies continue run into waste.

Why am mad at both Raila and Kenyatta!

Its self-defeating to keep fighting each other!

Just what on earth is happening in our country? It is nearly a year before the next elections and the ominous drumbeats are sounding loud.

Listening to all the hullaballoo about the Independent Electoral and Boundaries Commission (IEBC), one gets the feeling that it is all that matters to us.

That you fix IEBC and our entire problem will be gone. But is that the real problem? What lingers in my mind is whether 70 per cent of us got it all wrong in 2010.

Did we pass (by majority) a faulty document? Constitutions the world over are negotiated documents. It is a formal expression of the common good, the protector of our common interests.

Yet what I see now is that lingering threat of the elite taking over and imprinting their elitist interests over those of the entire citizenry. By that I mean both Jubilee and CORD.

Let me ask you, who do you think will run away with the common good? Come to think of it, the Committee of Experts, the team that drafted the 2010 Constitution, did very well.

It refused to be persuaded that the political class, the Church, civil society or even some of the most vocal commentators should have the last word on the nature and content of our Constitution.

Indeed, there was an agreement that our individual interests must yield to the greater collective interests of the 40 million Kenyans.

And that is why I must express my outrage at the attempt by politicians and their cohorts driving the debate about reforming the IEBC towards the highway of ethnic bigotry characterised by obstinacy.

Forget about the so-called Jubilee or CORD positions. I’ll tell you what; a mishandled electoral process can be too costly, as seen in 2007/08.
In fact, one of the lessons learnt after the 2007 elections is that despite regular elections, wretched injustices are routinely perpetuated by a corrupt and cruel elite who have constantly obstructed the search for a new political dispensation by disenfranchising the citizenry.

In their unbridled quest to retain (or capture) power at whatever cost, the ruling elite are aware that a pliant electoral body offers the best option.

Why steal the election when the results can be fixed for you (of course at a little cost? The answer to that was the incorporation of the electoral body in the Constitution.

The wisdom then was that this would act as a bulwark against interference from (obviously) the politicians.

And so we were happy. In fact, even their terms would, we thought, run concurrently with the electoral cycle. How clever? Matters got complicated with the July 2012 ruling that elections would be held in March and not August as had been assumed when constituting the IEBC.

So really, we know how we got it all wrong and instead of addressing that, we are busy chasing shadows.

I am not a prisoner of conspiracy theories, but I seem to think that at the centre of the tussle over the IEBC is the need to decide the outcome of next year’s election.

I cannot begrudge those feeling that the playing field is not level.
I learnt recently that racial domination is probably more tolerable than tribal domination.
Wars have been fought across Africa whenever it was felt that one tribal group was lording it over the other.

The 1994 Rwandan genocide pitting the Hutus against the Tutsi is a classical example. It is disheartening to witness the legal bumps erected so as not to create a consensus around the fate of the IEBC.

Or is this one of those convenient arguments put forward simply to fight off unpopular views?

Or the incessant push to have the legally-constituted body given the boot? Put another way, is it really that bad?

None of us could possibly answer that. And for that I suggest that we all look President Uhuru Kenyatta and Raila Odinga in the eye and ask them to come clean and lead from the front.

Mr Kenyatta avers he swore to protect the Constitution and cannot therefore be the one to rip it apart. Mr Odinga swears he will bring people on the streets to secure his side’s interests. Who will blink first? Evidently, we (including them) are in a political quagmire.

They must take responsibility. The central objective of accountability is to remain faithful to the common good. Of what good is Mr Kenyatta’s insistence on fidelity to the Constitution or Mr Odinga’s intransigence?

Both must step forward with real effort and commitment to end the political turmoil that is staring at us. Those two must act quickly and courageously.

Every part of this nation is reeling from pain and hurt inflicted by ethnic chauvinists who stoke the embers of ethnic bigotry.

So Mr Kenyatta and Mr Odinga must take greater responsibility for our democracy. They have to sweep aside the old, divisive ideologies and stand up for Kenya.

This is their moment. They have the opportunity, the urgency, and the responsibility.

It is theirs to lose; if they prevaricate; if they equivocate, this opportunity may slip through their fingers. And our collective outrage will forever be with them.

Tax evasion could be legal!

The end game is....you pot the black ball!

Tax avoidance is the practice of exploiting loopholes in tax legislation in a tax jurisdiction to reduce the tax liability. Tax evasion on the other hand aims at reducing tax liability illegally. Tax evasion can also be distinguished from tax sheltering which is a blatant abuse of lacunas in tax laws to literally evade tax in such a way that little or no tax becomes due.

In the Bata Shoe Company case (2014), the court opined that since payment of tax is an involuntary obligation imposed by law, a taxpayer is not obliged to pay a single coin more than is due to the taxman and the taxman, on the other hand, is entitled to collect up to the last coin that is due from a taxpayer.
The enactment of the Tax Procedures Act (TPA) in Kenya in 2015, and the politics surrounding the infamous Panama Papers has ignited debate on the distinction between permissible and impermissible tax avoidance. This arises from the need to maintain an intricate balance between tax collection and the rights of a taxpayer to legitimately, and now, morally, minimise their tax liability which, as the court held in the Bata case, is an involuntary obligation. - source legal tax assistants online

Tax avoidance has all along been considered legal, and against long established legal tax tradition which emphasises the sanctity of the canon of certainty, and frowns against any attempts to impose a tax on the taxpayer without absolute clarity in the enabling legislation.

The position cemented is thus straight-forward: the taxman must be very clear on what they are taxing, how much, when it is due, who pays and at what time. This remains good law because of the commercial need for certainty in transactions. And this is where blanket criminalisation of tax avoidance schemes becomes problematic.

At 30 per cent, tax is the single largest expense on the accounts of most taxpayers. As such, it calls for strict certainty. Further, it makes commercial sense for companies to take measures to ensure that the taxman gets only the fair share due to him.

Rather than a blanket approach to criminalise all tax-avoidance measures, the State should deploy its executive and legislative power to comb the market and seal loopholes in the law.

This will ensure that all taxpayers contribute to the national kitty in proportion to the level of economic activity, and realise a desired end of distinguishing between permissible and impermissible tax-avoidance schemes.

After all, why generate income on Kenyan soil, Kenyan security and Kenyan people, yet not pay proportionately income tax on such income? By criminalising tax avoidance, KRA should expect a pushback challenging the legality of this application, because it gags companies from employing prudent tax-planning measures, or at least unreasonably limiting tax-efficient operating models.

For tax advisors, it is the proverbial Sword of Damocles because they are forever exposed to criminal liability should an honest and professional opinion be deemed to be a tax-avoidance scheme.

Whereas there are impressive ethical arguments in support of paying tax, these must not be confused with charity. Indeed, New Zealand courts have opined that moral precepts are not applicable to the interpretation of revenue statutes; there is no room for intendment, and there is no presumption so as to tax.The government is in business, so are the taxpayers.

This man Henry Rotich: The profile of the Cabinet Secretary Treasury!

The man has more lives than the proverbial cat!

Henry Rotich is perhaps the craftiest of President Uhuru Kenyatta’s Cabinet secretaries, having weathered several

storms unscathed.

His name has featured in several financial controversies that have rocked the boat for the Jubilee administration.

From his inability to point key projects funded by the Eurobond billions, to the 2015 cash flow crisis and the National Youth Service (NYS) scam, the head of government purse has always picked his battles carefully.

The soft-spoken career economist, described in court papers as a high-flyer of the deputy president, also knows when to remain economical with the truth or to come out and face his accusers head-on

At the height of the Eurobond controversy, Mr Rotich took the unprecedented decision to invite Opposition leader Raila Odinga to his office to explain to him in person how the net proceeds of the Sh250 billion Eurobond loan was spent after repaying a syndicated loan.

Despite being the custodian of all Government assets and the man who without his signature no funds can be wired out of government accounts, he is yet to present to the public a list of the actual projects that the billions were sunk into more than half-a-year later.

Adan Harakhe, a former senior deputy director general at the NYS, sensationally entangled him in the scandal at the youth organisation after he claimed that an agent named as Ben, who was at the centre of the scam, was alleged to be Rotich’s point man.

But Rotich had denied knowing any of the companies involved and dismissed claims that Ben was his agent.

When things become too tough, the Harvard University scholar chooses to keep off.

For instance, at the height of the controversial payments of the Anglo Leasing billions, Rotich kept journalists waiting at the Treasury Buildings for more than three hours only to call off the meeting.

He may have escaped scrutiny on this front, but he may not distance himself from the gaps in managing the economy and the gaps in the budget.

Rotich stands accused of presenting impossible targets to the taxman on revenue collections to fund the ballooning budget.

His projections on the economy have also always fallen off the mark due to what Parliament terms as “a systematic overestimation of revenue”.

Parliament’s budget experts have also accused Rotich of presenting spending plans that lack evidence of sufficient public participation. They also say that his revenue projections are racing too far ahead for the economy to support.

Over the last four years, real revenue collections grew at a modest 14 per cent while technocrats at the Treasury Buildings believed that revenues would grow at 23 per cent, invariably contributing to rising fiscal deficits and borrowing.

Latest revenue statement from the Treasury shows the taxman had raised a total of Sh888 billion in tax revenue by end of April against a target of Sh1.2 trillion.

To meet the target, the taxman will be required to collect more than Sh327 billion by end of June. This is a long call under the current tax collection record.

His ministry is also expected to ensure that the youth have access a third of Government tenders, but several departments are yet to implement this directive in full.

He is also unable to come up with a bankable debt reduction strategy for the country in what has seen legislators accuse him of treating debt as a moving target.

The latest report by the Parliamentary Budget Office (PBO) has termed the Government’s strategy to reduce public debt under Rotich “worrisome”.

The Government plans to borrow Sh689 billion in the new financial year to plug the deficit in the Sh2.27 trillion budget. This is more than half the amount of money KRA has been able to collect this year.

Uhuru’s government has already borrowed more in three years than what Kibaki did in his last five years in office.

This could become worse by the fact that Rotich was unable to keep the Government within the approved expenditure ceilings.

In the new budget, the national government overshot the budget ceiling by Sh139 billion, exposing the country to more debt.

Contractors under the Jubilee administration have also accused the Government of significant delays in payments after going for over six months at one point last year without pay.

The Central Bank of Kenya has come to Rotich’s aid in dealing with inflation after the new governor was left to employ only monetary policy tools to rein in inflation.

Companies at the Nairobi Securities Exchange are yet to recover from the 2015 bleeding that saw them lose over Sh250 billion in their value last year, taking a direct hit from the turbulence in the economy.

But it is the servicing of the growing public debt that is the biggest headache for the soft-spoken cabinet secretary given that he has to balance between prompt repayments of the huge debt and meeting other pressing needs at home.

Budget 2016/17: Hard times ahead!

Kuna kujwa! 

Kenyans should expect fresh taxation pain as the Government plans to borrow heavily and raise taxes in the new financial year to finance the Sh2.27 trillion budget.
Details of the actual taxation plan will be revealed today when National Treasury Cabinet Secretary Henry Rotich will read his fourth budget statement that will guide the Kenya Revenue Authority (KRA) in collecting Sh1.5 trillion in the new financial year.

In the proposed budget, the Government plans to borrow Sh775 billion from both the domestic and international markets. A poll by Ipsos released yesterday, however, showed that majority of Kenyans are agains new taxation and instead want the Government to raise cash from elswhere— borrow from foreign or domestic markets.

Beer, cigarettes, motor vehicles and luxury items, alongside emerging sectors such as gambling, are the easy targets for the Government to raid taxpayers to raise its revenue. Property sales, banking and money transfer services are also possible targets.

To finance this year’s budget, the Government increased prices of basic commodities after it introduced Value Added Tax (TAX), a consumption tax that is levied on products at every point of sale.

Other possible targets include landlords and traders in the informal sector who have resisted previous attempts to bring them to the tax bracket.

About 1,000 landlords had taken up the amnesty by KRA and volunteered to pay taxes in the first nine months of this year, a far cry from the 20,000 landlords the taxman was targetting in the nationwide campaign.

This means that the Treasury will have to devise new measures to go after landlords in today’s budget.

The Balancing act:

Mr Rotich will be walking a tightrope as he finds creative ways of raising the additional revenue needed to pay for the goodies the Government will dish out in the new financial year without falling out with the voting taxpayer.

The Jubilee administration has just about 14 months left in its last term of office, making the new budget its last kick in fulfilling its election promises.

The Treasury has already signalled an increase in taxation after it increased the taxman’s target by Sh300 billion in the new year that starts next month. KRA will now be expected to collect Sh1.5trillion, a 25 per cent increase from the Sh1.2 trillion this year.

Already the taxman is struggling to meet the current targets. KRA needed to collect Sh327 billion between April and end of June, a near impossible fete given its previous record.

The profit warnings and freezes in employment have made it harder for the taxman to raise new taxes.

The funding of the budget which will see the bulk of the billions spent on security, education and infrastructure for the third year running.

Kenyans should also expect their debt burden to rise one more time after the State indicated that it would continue with its borrowing spree to fund the growing budget deficit.

The Sh770 billion budget deficit will be financed by borrowing and grants.

Although the borrowing has been supported by the fact that most of the debts are being sunk into infrastructure, budget experts advising Parliament have accused the Government of lacking a proper policy on reducing debt.

The Parliamentary Budget Office, in its report that analysed today’s budget proposals, cautioned that even though borrowing is being used for development expenditure, the investment must be able to yield returns that far outweigh the cost of the loans.

“Is Kenya’s public investment producing assets? Over the period 2002/03-2014/15, the allocation towards development grew by 29 times in nominal terms. However, the rate of completion of projects has been very low,” the report notes.

It is estimated that as of June 2015, there were more than 1,000 projects which were classified as ongoing.

The estimated cost to complete these projects is estimated at Sh3 trillion.

It notes that in a country where cost overruns in project implementation is inevitable, it means the overall completion costs for these projects will be eventually be more than Sh3 trillion.

“The level of deficit shows direction of the country’s fiscal policy. If the set targets are continuously flouted, then predictability of the budget is compromised and effectiveness of the country’s deficit policies is diluted,” the Parliamentary Budget Office said in its analysis of today’s budget.