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Tuesday, April 14, 2009

Subsidised Fertiliser Scams - I told you

As predicted by yours truly...

Fertiliser Scams Coming Soon

Subsidies do NOT work in Kenya... they are just a way for the politically-connected to scam taxpayers....


9 comments:

Maiko said...

If this can happen in the Mt Kenya region, well you know the rest...

ke said...

Coldtusker:

How are you going to make money in that system?

I mean seriously, what does one do?

coldtusker said...

KE: Similar to the maize scam.

Scam #1
The GoK buys it at 1,600/- per bag. Sells it at 1,200/- per bag. So a politically-connected 'buyer' buys 10,000 bags @ 1,200... the turns around & sells it back to the GoK @ 1,600/-. And the cycle continues till all the funds allocated are exhausted.

Kibor did this with 100,000 bags of maize. He 'earned' Kes 80 million without collecting a single bag from the depot.

Scam #2
Supply low quality fertiliser. Charge the gov't 1,600 for a product the private sector would pay 1,200.

ke said...

My question was, how does one make money in kenya if they are not politically connected?

Basically, Ruto is continuing to steal.

coldtusker said...

ke: Not in Kenya. Very few have managed to amass 'clean' wealth but they either set up their own industries which were immune to political influence.

Part of me is sorry that I was vindicated... And these are the tip of the iceberg.

MainaT said...

The tea fertiliser is quite different from the maize ones you had blogged about. The tea fertiliser issue is long-running.
But I do agree they are all scams.
We'll get there as it becomes more obvious that less is more when it comes to business and govt.

coldtusker said...

MainaT: Tea fertiliser issues may be long-running but the subsidy issue remains relevant. If u read my earlier blog, look at 'predictions' B & E...

The farmers say (as I did) that the fertilisers are getting to them 'late' after or (late) during the rains... when it is needed early in the season.

coldtusker said...

http://coldtusker.blogspot.com/2009/02/coming-soon-to-kenya-grand-fertilizer.html

Oops... I meant "C"...

C - In many cases the fertilizer will reach the farmers AFTER the planting season is over. Or reach them when it is not as effective/ideal.

MainaT said...

Agreed my pt was for tea, the planting season is different (aug, sept, oct). Infact the genesis of problems with tea fertilisers have usually been that farmers would prefer to be able to make a choice as to whether to go via KTDA supply route or private suppliers but they are never given the choice.