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Friday, January 25, 2008

How to jump-start the economy...

Simpler than it seems... at first.

  1. PROTECTION of lives & property. Shoot to kill any thieves/muggers/looters. Of course, my assumption is that the police are part of the crooks' networks. Kenyan police are known to be behind many robberies.
  2. Allow peaceful demonstrations. This will allow for the venting of anger while directing police efforts to (1) above. Savings from police overtime, tear gas purchases, etc... Of course, kibz' hardliners would rather the police kill innocents than preserve Kenyans' properties.
  3. TAX breaks/reduction. Sure the government will "lose" income but the economic boost will be enormous. This is a time to suspend or eliminate many punitive taxes on agricultural products & inputs. Unfortunately, the corruption networks are getting stronger. Mumias has PUBLICLY complained about the non-action by police on smuggled sugar.
  4. PR campaigns. Yes, these are needed to boost tourism. The campaign has to include new markets like China & Russia. Tourism remains a key driver of our economy. The ancillary industries/sectors e.g. agriculture, transport, etc that need tourism will start growing. This is an expensive process & might take 6-12 months before the benefits kick in.
  5. Expand private/public partnerships. Fire political appointees like george muhoho at the KAA. We need PRIVATE SECTOR initiatives that have a positive ROE. KQ has been begging for a larger airport but the idiots at KAA proposed an expansion (2008-2011) to cater for 4mn passengers. KQ expects 4mn passengers on its own by 2011. We need a larger pipeline from Mombasa -Kampala. We can't control the Ugandans but let's extend it to Kisumu. There will be a steep learning curve but there is little choice. I expect the ROE requirements for private investors might raise prices BUT the efficiencies will negate these cost increases over the mid-term.
  6. Reduce barriers to business. The License Raj needs to be eliminated. Hong Kong & Singapore have a one-stop shop. The idiocy of standing in line to pay taxes is STUPID. The same with (insert city/town/county) license fees. Spending hours in line to pay for services. I am glad KPLC has finally expanded their pay points to include Posta. Now we need to pay these ONLINE.
  7. Reduce government expenditure. kibz has planned for 34 ministers. That means 34 Mercedes cars or Range Rovers or BMWs. Then there are asst ministers who do little. Add ex-officio members. And their staff. And chase cars. And perks. Sigh... I should have stood for office...
  8. Rebuild/build infrastructure. PPP are the way to go. A new highway to Uganda would immediately boost our exports. A decent road to Namanga would allow Kenyan manufacturers dominate the region. A new highway to S.Sudan would allow Kenyans a foothold NOW before others get in. I believe the future of Kenyan exports lies in Africa not Europe.
These are simple prescriptions but they can help cement Kenya's future in an increasingly tough world.

9 comments:

bankelele said...

- PROTECTION: (DONE) Shoot to kill is in force and mob justice has always been in place
- TAX breaks/reduction: no chance, KRA and GoK have such optimistic targets, they are not going to cut back
- Tourism PR campaigns: – sad but they may have to wait for a year of quiet before this can start
- private/public partnerships: this is now where power sharing will come into play – all private companies that benefit have political godfathers
- Reduce barriers to business: will happens lowly on a company by company basis
- Reduce government expenditure: No chance, sorry!
- Rebuild/build infrastructure; should be a priority. ½ the country has been cut off and that was the case BEFORE the election (roads from Gilgil westwards had been rotting for 2 years)

Anonymous said...

dream on coldtusker...

Concept said...

To jumpstart the economy, establish a truth and reconciliation commission. When we vent out our issues stretching from the 60’s to the current a load will be lifted and individuals will start to concentrate on their business and investors’ uncertainty will have been cured.

That’s for the long term.

For short term, the most effective is having joint rallies all over Kenya and ‘buying CNN’. The world out there needs to be told that we are now ok. That the madness is over.

Slots Strategy said...

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