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Post by job on Dec 19, 2011 7:00:22 GMT 3
www.nation.co.ke/News/politics/Uhuru+in+fresh+clash+with+MPs+over+taxes+/-/1064/1291836/-/60shqfz/-/index.htmlFolks will be shocked when they learn the fineprint details of Uhuru Kenyatta's Finance Bill facing challenges in the House. • Kenyatta (with personal interests in select businesses) wants unilateral powers to raise taxes without Parliamentary approval VERSUS MP Elias Mbau’s proposed amendment curtailing this excessive unilateralism.• Kenyatta (owner of a major bank) wants to block regulation of bank interest rates VERSUS MP Midiwo’s proposed amendment capping bank and mortgage interest rates at (CBK’s base rate + 4%) seeking to protect consumers. As the middle class suffers from unrealistic interest rate hikes (brought about by Treasury & CBK's gross ineptitude and incompetence) , it has been harvesting season for Uhuru and his fellow bank owners. Reaping obscene profits from the suffering middle class who were lured into what they thought was a season for 'easy' loans! It is obvious on whose side Uhuru stands on this issue.• Kenyatta-the-banker has written this law with a specific provision mandating the sharing of credit information between Banking and Micro Finance Institutions. Past and present Loan defaulters are in for blacklisting and future exclusion from the financial, banking and capital markets. They will definitely be avoided by ALL Banks and Micro Finance Institutions like plague-infested urchins. • Kenyatta (with interests in the insurance industry) is setting stage for upward adjustment of base insurance premium rates (using pretext of dropping UK’s mortality tables ) VERSUS a proposed amendment curtailing impending increases in insurance premiums.• Kenyatta wants to open up the NSSF fund to payments towards dependent-beneficiaries of “convicted prisoners” (could turn out to be a canworm of ‘ghost pensioners’ and 'ghost-dependents'). Outright red flag! • Kenyatta (a Property Development & Real Estate investor) wants CMA to start hastily recognizing Real Estate Investment Trusts listed at the trouble-riddled Nairobi Stock Exchange – be ready for their premature dumping onto unsuspecting public. Anyone is free to invest in anything, but recent history at the bourse indicates insider activities that aim to cash in on the culture of euphoric waves among gullible Kenyans. • Kenyatta has twice withdrawn the Finance Bill fearing outrage and hostile amendments - even as the 31st December, 2011 deadline approaches. He is cleverly using the Speaker Marende and VP Kalonzo Musyoka to play this cat-and-mouse game within the corridors of Parliament. • Boss Kenyatta has finally resorted to lending an armtwisting-hand from his fellow ICC suspect Francis Muthaura, in the form of this threat below: It is a classic letter illustrating Executive Interference in the Legislature
Letter from the Office of the President,
Permanent Secretary, Secretary to the Cabinet and Head of Public Service.
Ambassador Francis Muthaura, EGH.
It is copied to
- the Attorney-General,
- the Permanent Secretary in the Office of the Prime Minister,
- the Permanent Secretary, Office of the Vice-President and Ministry of Home Affairs,
- the Permanent Secretary, Office of the Deputy Prime Minister and Minister for Finance.
- All Cabinet Ministers
- All Assistant Ministers.
Here is the key paragraph worth paying attention to:
“The Cabinet noted the intentions of some Members of Parliament to interfere
with the Finance Bill, 2011/2012 which would be suicidal for it will raise a public outcry,
lead to hyper inflation and adversely affect the ongoing negotiations with the
International Monetary Fund (IMF). The Cabinet considered these issues and directed the
Office of the Prime Minister and the Office of the Vice-President and Ministry of Home
Affairs as Leader of Government Business to petition the Speaker of the National
Assembly to block - and I want us to underline that word “to block - the introduction of
superfluous issues into the Finance Bill 2011/2012”.
This letter is signed by Ambassador Francis
Muthaura
If for a moment you thought Ambassador Muthaura was taken aback by the impending outcome of ICC Confirmation Hearings at the Hague, you are wrong! These fellas are busy driving the impunity train at fullspeed! Quickly delivering to the cartel of bankers (led by Uhuru); cartel of insurance owners (led by Uhuru); cartel manning tax-collection at KRA (under Uhuru); cartel running the NSE (appointed by Uhuru); cartel of Real Estate Developers & Trust Owners (led by Uhuru); cartel snooping over pension funds; and ultimately - the elite cartel that funds patronage-linked-dirty-elections in Kenya. There you saw it! All Ministers, Assistant Ministers are being flogged by MUTHAURA to BLOCK common-sense amendments by MPs - most set to benefit the public (consumers). Keep your eye THIS WEEK in Parliament. Don't be surprised to see a clear defeat of the consumer (public) interest. That very public may not even realize that their own MP, whom will likely be asking for their vote again in 2012, probably votes against their own interest as a struggling consumer. This phenomenon is called ADVERSE SELECTION - where voters indirectly vote for MPs who actually act against their own interests.
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hk
New Member
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Post by hk on Dec 19, 2011 9:59:17 GMT 3
The bill isn't necessary for raising excise duty on common goods but the minister can use his discretion to lower the excise on duty incase of spiraling out of control inflation. I'd have liked if the government addressed the fundamental problem with the economy. Fuel prices for example, it doesn't make any economic sense for a company to be awarded a monthly contract to be sole importer of oil. Any participant in the oil industry should be able to import oil to encourage competition.
A credit bureau in kenya is paramount. If people don't pay their loans, they affect those of us who do. The credit bureau is ideal so that people with good credit can enjoy better rates than people with bad credit. Hell even insurance should be pushed to share information on bad drivers so that those careful drivers can enjoy better rates.
If you cap rates to 4% of the base rate, what that will mean people with bad credit will not have access to credit since banks will refuse to lend to people with bad credit at 4%.
Surely a reit is a good thing, how is a reit a worse investment than for example an investment in centum shares which holds major real estate holding in the city. A reit is just like any other investment and any investor should do the due diligence before investing but surely there's no problem with a reit.
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Post by job on Dec 19, 2011 17:28:43 GMT 3
The bill isn't necessary for raising excise duty on common goods but the minister can use his discretion to lower the excise on duty incase of spiraling out of control inflation. Under current law, the Minister of Finance already has the discretion to alter ( eg lower) excise duty on basic commodities (eg maize, sugar, etc) during times of inflation. After riding out inflation periods, the same Minister can unilaterally raise back the excise duty. What Kenyatta is now requesting is an expansion of these existing powers to apply to any good - which could be a very dangerous precedent. Such excessive power should essentially remain under scrutiny of Parliament. No one individual should be given powers to whimsically alter taxes. They should always seek approval from the peoples' representatives (Parliament). Good observation that I'm largely in agreement with. The oil cartel in Kenya (comprising many Ministry of Energy & Ministry of Finance bureaucrats) continues to fleece Kenyans on a daily basis. The inflated price of oil affects the price of ALL commodities in Kenya, and increases the cost of production of everything. It directly drags on the economy. Several other fundamentals need to be fixed. The reality is that Kenya's banking is in some form of transition when it comes to making lending decisions. All that some banks & financial institutions require for conventional loans is a collateral (eg Title Deed) in their custody, a sound business proposal, and bam! - you get the loan. For mortgages, many have all required a 20% deposit and a payslip (proof of income that you can make the monthly payments), and they retain the Property Title anyway...Banks have enjoyed this discretion very creatively because trust me, a majority of Kenyans still run largely informal businesses. Some smart Alecks owning the banks have now figured the credit bureau as fertile area to make tonnes of more profits. They have already registered their oligopolies to start rating Kenyan borrowers in terms of risk. As they wink back at the IMF, this paradigm being rushed through is essentially setting the stage for another escalated wave in interest rate increases, and blacklistings of future borrowers. A consumer report in the US previously exposed how the credit bureaus, during their formative stages, inadvertently discriminated and harmed borrowers while profiting banks. It took many years, many laws and many policy regulations to make the existing credit rating system in the US what it is. Some might think that only default rates lowers credit ratings of borrowers...That's so untrue! Mark these words - the oligopoly of credit agencies will create some abracadabra formulae that will make even prompt payers have mediocre ratings - hence be subjected to higher interest rates. To cut the chase, can I just speculatively suggest that Kenyatta himself is part of this budding credit-rating oligopoly in Kenya, which wants to segment Kenyans into categories based on loan-repayment histories...so that when they eventually come to line in front of their (wakina Kenyatta & other bank owners) counters, they can be bamboozled with a maze of confusing numbers & ratings THEN milked accordingly. I'm not particularly fixated with the exact figure for capping eg 4%. It can heck be made 6% so that folks with poor credit get it at the upper end and non-defaulters at the lower end. I don't know why some folks think this idea of paying bank interest rates above 30% is just normal. In many countries in the West, you can't find such obscene interest rates. Believe it or not - even in these super capitalist countries of the West, bank interest rates are REGULATED. In my disclaimer, I said any Kenyan can invest in whatever thing they wish. Thats what they've always done. Remember when thousands lined up at Nyaga Brokers and such to buy stocks that turned out into nightmares? My post is partly meant for those who are doing what you aptly called due-diligence. Now that you talked of Centum...I actually watched stocks of companies like Halliburton which were deeply associated with former US Vice President Dick Cheney plummet as soon as President Obama's regime took over the White House. Does that give some clue about hasty investments made near political transitions? |
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Post by job on Dec 19, 2011 20:41:35 GMT 3
As we wait to see what MPs will do on this Finance Bill 2011 matter tomorrow and Wednesday, it will be important to keep tabs on how MPs vote on this. Keep your eyes in the House this week.
If no amendments on this mischevious Kenyatta law are allowed as Muthaura ordered, it would amount to outright betrayal of Kenyan consumers and taxpayers by their MPs.
A list should be published to indicate how each legislator voted!
This really boils down to Ahmednassir’s original newspaper article on this regime’s voodoo Kibakinomics! International Finance analysts have concluded that Kenya’s CBK Governor Njuguna Ndung'u is the worst performing CBK Governor worldwide with a poor grasp on monetary policy. Only recently did the latter preside over the spectacular fall of the Kenya shilling.
Aided by Uhuru Kenyatta’s equally inept (& ‘error’ prone budgets) around Finance and Taxation Policies, all wananchi have seen is rising inflation and poor services – that’s despite collecting more taxes from Kenyans.
Granted, as a banker, land-holder, insurer, motor dealer, timber exporter, milk & food processor, and property developer, Uhuru has indeed used the Treasury (public) platform to serve himself quite well. He has supplied government with hundreds of VW Passats from his dealership; presided the rise in bank interest rates (to maximize his own profits); and offloaded thousands of acres of Kenyatta family land (for billions of taxpayer shillings) under the guise of IDP resettlement! Meanwhile, the rest of the nation has received little attention.
What we’ve ended up with is very high inflation! A 2kg pack of Maize flour which cost Kshs 69 in December 2010, now costs Kshs. 113. Just last December, a 2kg pack of Sugar cost Kshs 195, and today costs Kshs 375.
As global price of oil has considerably gone down, unlucky Kenyans have merely been duped with a tiny dip, and still paying Kshs 119 a litre. After the Christmas season, probably mid January 2012, rest assured the price will be back to Kshs 124 per litre or more. I’m told Pre-paid electricity is up from an average of about Kshs 2,000 to Kshs 2,500 for the rolling blackouts and rationed power. Those using gas have to cough out close to Kshs 5,000 for gas in 13 Kg cylinders which used to cost Kshs 2,500.
Good ‘ol Kenyans have not responded by going to the streets to riot. People have become used to low expectations. Whether the tap water runs dry, rain cuts off the Satellite TV, and nightly black-outs hit the household, it’s just normal.
When CBK and Treasury bungle up the economy and raise interest rates on existing loans – people must just put-up or disgracefully ship-out quietly as life continues. People have become accustomed to a life surrounded by corruption, tribalism, youth un-employment and alcoholism, pot-holes on roads, terrible drivers and terrible traffic, poor services, car-jacks, and a lot of bad attitude and makelele everywhere. Meanwhile, the thieving political class keeps singing about 'Vision 2030'.
The same government that issues Title Deeds at Syokimau to unsuspecting and hard-working middle class Kenyans…then sends bulldozers to flatten their homes built from entire life-savings…and life is just supposed to go on quietly.
Uhuru is now bringing forth a raft of policy changes in his devious Finance Bill 2011, that’s going to see middle class insurance premiums and bank interest rates rise further unregulated. He will further use the same Finance Bill to cash in on the herd mentality of gullible Kenyans by enticing them into yet another wave of under-regulated “investment trusts” in real estate where he reigns supreme. Why? Because he knows many will flock to buy them as an alternative to the waning confidence in stocks. Investor-confidence in stocks is at near all-time low. Most stock prices are down.
In the meantime, as at September 2011, Uhuru’s bank (CBA) had made an annual profit of Kshs 2 billion (mostly from domestic lending to Treasury)…that’s before his Finance Bill 2011 gives it more authority to increase interest rates even further.
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Post by job on Dec 20, 2011 19:37:24 GMT 3
Great sign but we'll keep vigilance on the actual voting in the Housewww.nation.co.ke/News/politics/MPs+unite+in+bank+rates+push/-/1064/1292854/-/item/0/-/hjeo4cz/-/index.htmlMPs unite in bank rates push By ALPHONCE SHIUNDU ashiundu@ke.nationmedia.com Posted Tuesday, December 20 2011 at 16:57 MPs on Tuesday turned the tables on the Executive with a shock unanimity in pushing for control of interest rates to no more than four per cent of the Central Bank of Kenya rate. Though they had responded well to the invitation by President Kibaki and Prime Minister Raila Odinga to show up at Nairobi’s Kenyatta International Conference Centre to discuss the amendments to the Finance Bill and the pending approval of a new team to fight corruption in the country, the MPs rejected the Executive’s call to drop their push to tame the banks. The closed-door meeting lasted for close to two hours, but when the lawmakers emerged, they looked happy at having had their way. The MPs said they jeered Vice President Kalonzo Musyoka who was moderating the discussion, and told the Prime Minister not to speak. The President did not speak. “They refused to speak when they were asked to comment,” Mr Pollyns Ochieng’ (Nyakach) told journalists at Parliament buildings shortly after the meeting. The KICC is just a stone-throw away from Parliament buildings. When he emerged from the meeting, Mr Musyoka told journalists that it was an “informal session” and as a result “there was no formal statement”. “It was an informal consultation,” the Vice President said when pushed to elaborate if any agreement had been reached, or if the government had settled on any way forward regarding the amendments to control interest rates. Dr Boni Khalwale (Ikolomani) said at the KICC after the meeting that all MPs had told the principals that they won’t back down in their push for the taming of the banks and the cartels in the banking industry. “We are solidly behind the amendments by Mr Jakoyo Midiwo. That’s what we told them. If they think those amendments are bad, let them say that on the floor of the House. If they think the amendments are good, let them come and lobby MPs to ensure that the House defeats the amendments,” said Dr Khalwale. It emerged that Dr Khalwale had challenged the principals’ decision to hold the meeting, saying that it amounted to subversion of the Constitution as far as the doctrine of separation of powers was concerned. He said that by discussing issues that were pending in the House in a different forum, the principals had shown contempt for Parliament. Gitobu Imanyara (Imenti Central) who skipped the meeting had also raised similar sentiments at a media briefing in Parliament's media centre. Mr Odinga addressed Parliament later in the afternoon and defended the decision to meet MPs ahead of issues pending in the House saying the meeting was legitimate, as it brought together MPs from ODM and PNU. “To the best of my knowledge I didn’t know that the new Constitution had barred parliamentary group meetings. The Sixth Schedule provides for transition and we’re in that period… Political parties will continue meeting. It’s a normal parliamentary practice even in the House of Commons. It is perfectly within the tenets of the Constitution,” said Mr Odinga. Apart from capping the interest rates at no more than four per cent above the CBK rates, Mr Midiwo has also sought to have banks forced to pay interest on deposits at a rate of at least 70 per cent of the base rate set by the Central Bank. The Vice chairman of the Finance, Planning and Trade Committee of Parliament, Prof Philip Kaloki, said the MPs were “unanimous” that the interest rates were too high, and that unless the banks were forced by law to lower them, then Kenyans will continue suffering. “We want to make sure that banks make normal profits,” said Prof Kaloki. The worry from MPs is that banks charge exorbitantly when it comes to loans; but they pay very little interest on deposits. Mr Ochieng added that the Finance minister Uhuru Kenyatta had a hard time to convince MPs that the government was working overtime to ensure that interest rates are lowered to affordable rates “ The problem with the Finance minister is that he’s trying to hide behind the International Monetary Fund to force us to drop the amendments. If that’s the situation, we’ll not allow people to auction this country when our people are suffering. If the loans are expensive from the IMF, we can go to China,” said Mr Ochieng’. The MPs are also said to have taken issue with reports in the media that they were plotting to raise their pay through an amendment to the Finance Bill. They said the report was false and was a ploy by the Treasury to malign and bludgeon them into submission to take the Treasury’s position. The matter on the nominees to the Ethics and Anti-Corruption Commission was put on ice because it was still "live" in the House.
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hk
New Member
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Post by hk on Dec 22, 2011 13:56:07 GMT 3
If the midiwo bill is passed it would mean that every bank can't charge above 4% CBR rate. What if the inflation rate is 15% and the CBK rate is 8%, it would mean that the banks would be charging maximum 12% interest rate yet the inflation is at 15% . Which bank would do that? Yesterday I was offered for the first time fixed income rate of 25% because insisted on getting a rate above inflation. Which bank would lend money at a rate lower than inflation? My point is the bill in opinion only address one part of the equation and not the other. That's why publicizing how much bank is charging and keeping the rates unregulated is ideal for our economy. Since kenya government owns KCB and national bank why not force those banks to offer low rates and leave the private sector alone?
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Post by wanyee on Dec 23, 2011 1:36:42 GMT 3
Job,
This is very important!
Thank you for bringing it to our attention, and please keep us posted.
Also, can you please "dumb" it down a little more or highlight key arguments, so that those of us (including myself) who are not very familiar with these matters can fully understand what is happening in 'Ilmorog'(?)
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Post by mank on Dec 23, 2011 3:46:07 GMT 3
While I have been very interested in current turbulent political state of the financial sector, I have not been favoured with the time to follow the going's-on closely. However I am enthused by the debate between Job and HK here.
Personally I am typically skeptical of the idea that government can generally increase market fairness by deciding prices. There are situations however in which the government should intervene, but it should not in principle replace the brain of the market. So in many ways I would lean on the side of the arguments presented by HK (while I understand Job's concerns).
On the issue of interests rates in particular, high interest rates are a reality and character of developing economies. As economies mature, the niche for capital gets squeezed, hence reducing returns to capital (interest rates). We cannot legislate away underdevelopment in the absence of factors for development. To constrain factors of underdevelopment (developing economies) in the narrow band in which we see factors of development (developed economies) is arrogance in the face of factors greater than anyone. By seeking laws that contain Kenya's interest rates within range comparable to US interest rates for example, is to ignore the fact that US too was characterized by high rates of interest when it was at Kenya's state of development (whenever that was) - capital can move anywhere, and if interest rates between Kenya and US are about equal, capital would rather spend its time in the US.
Capital will stay in an underdeveloped economy only because the high rate it fetches compensates it for the relative risk in that country vis-a-viz in a developed economy. Recent global turbulence notwithstanding, the government is jocking, and it will end up scaring away capital!
Let's think about this: while Kenya's mortgage rates may be in the 20% and 30% range, while US rates are in the lower 10%, many low income earners of Kenya's formal sector are able to borrow multiple mortgages in the span of 5 to 10 years, paying each batch on its terms - in the US only few, very few, even relatively higher income earners (formal sector basis), can dare borrow a single 15 year mortgage. The majority go for 30 year mortgage and do not pay it off till the very end of the term (at least not in the first decade). So, why is this? It is a characteristic of the economies - The person who earns only a few tens of thousands of dollars annually in the 8 - 5 pm job in Kenya and borrows a mortgage is the same person who earns a whole lot more from renting out the house, farming in the rural home-side, etc etc. Along with all this spread of activity is the risk of failure, which then means the lender has to charge more per borrower so those who pay can cover for those who fail. In the developed economies on the other hand, real estate and farming have their experts. So the 8 - 5 "jobber" is an expert in just 8 - 5 thing - surer base for paying the mortgage, but without the excitement that comes with the variation of incomes coming from different directions where capital is not saturated. In short, long-term interest levels are a proxy of development state, and underdevelopment cannot be legislated away - my humble opinion, which in no way is meant to argue that there may not be a hidden agenda among polytricians.
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Post by job on Dec 23, 2011 10:53:18 GMT 3
Job, This is very important! Thank you for bringing it to our attention, and please keep us posted. Also, can you please "dumb" it down a little more or highlight key arguments, so that those of us (including myself) who are not very familiar with these matters can fully understand what is happening in 'Ilmorog'(?) Wow - this might be long. The Finance Bill is the legal instrument which allows the Minister for Finance to generate money (either via taxes or borrowing) to fund his Budget. As Uhuru dithered with bringing the Finance Bill to the House earlier on, Parliament passed a provisional collection order to enable the government collect taxes up to December 31st, 2011. On January 1st, 2012 without the Bill’s passage, the government will be technically playing with fire. Its power to collect taxes could be challenged in court. It may resort to borrowing when faced with mounting deficits (on top of the deficit Uhuru already created in the Budget). That act of borrowing will again increase interest rates. Uhuru has in a nutshell refused to table the Finance Bill 2011 in the House fearing that amendments by MPs will deny his banking cartel the profits they want. Uhuru is cunningly using the excuse that banking sector amendments might jeopardize negotiations with the IMF on a Kshs 50 billion loan. The truth is – that’s just a red herring. Uhuru is protecting the banking cartel that is bleeding citizens dry. As a bank owner, he belongs in that club. At the other side are some furious MPs who are mad at the banking cartel, not just for raising interest rates (affecting the MPs themselves), but for creating many other artificial distortions in Kenya’s financial sector. They are accusing the cartel operating between Treasury and the CBK of grossly mismanaging the economy via bungling tax and monetary policy while serving their own personal (profiteering) interests. This cartel started their games early in the Kibaki administration, when they changed (relaxed) the rules for entry into the Banking sector; then registered their own banks which have become the blue-eyed preferred banks under this regime; then later toughened the bank-entry laws again to block other new players. Mr. Mbadi: Mr. Deputy Speaker, Sir, this is the time to crack the whip! We must show the
banking sector before we proceed on recess that they do not own this country; this
country belongs to us; we will remain here; we will regulate them; we will make them
behave and if they cannot behave, we will close shop and other Kenyans will open banks!
We will even lower the capital base, so that other Kenyans can open banks. This
tendency to lower the capital base, which was done for Equity Bank and others, and then
afterwards, you raise it; we will bring it down, so that other Kenyans can open banks.
(source: The Hansard. Wednesday, 21st December, 2011(PM)) It is open secret that upon entering the sector, Uhuru Kenyatta’s bank (Commercial Bank of Africa - CBA) and the Kibaki-clique-controlled Equity Bank have enjoyed exclusive government protection and patronage. They are the first choice options for domestic borrowing each time Uhuru Kenyatta writes a budget with huge deficits. They have milked Treasury at will. Then they made a killing pilfering from competitor banks. Now they have turned into directly milking the middle class. These sacred banks were recently engaged in using CBK cash for what is called arbitrage to profit from struggling competitor banks. This arbitrage practice is what started the great devaluation of the Kenya shilling into the world’s worst performing currency. Arbitrage is when a bank borrows money from CBK (at the discount window) at say 6.25 per cent interest, then lend it to another bank overnight for 10 per cent rate, making an easy overnight profit of 3.75 per cent. The CBK Discount Window was meant exclusively for troubled banks to prevent a liquidity crunch. But here, we had big thriving banks like Equity, Family Bank, KCB and CBA raiding our CBK’s discount window then lending to other distressed banks. They were illegally taking over the role of the CBK for some big returns. Using the profits, they bought dollars and euros and sent them abroad (FOREX deals) or hoarded them within their vaults. This practice shouldn’t have been allowed in the first place. But guess who was supposed to regulate against such practice? The same godarn CBK which was colluding and actively participating in the vice! It’s no wonder CBK Governor Njuguna preferred to work without a Deputy for so long. It’s no wonder Njuguna stays put despite being called out for being the worst CBK Governor globally. These banks owned by “our leaders” dramatically rose (in terms of assets and profits) to become some of Kenya’s top banks earning quick billions; meanwhile, the Kenya shilling was tanking and inflation rising. Uhuru has so far refused to declare in Parliament, his direct interest in the banking sector: Mr. Mbadi: Pole, Mr. Minister.
Mr. Deputy Speaker, Sir, my point of order may cause some displeasure, but I am
still entitled to raising it. It is very clear that when an hon. Member contributes to a point
in which they have interest, there is need to declare the interest. I have listened to the
Minister and he is talking about commitment by the Government, that is him and the
Ministry, to regulate interest rates. Could the Minister declare his interest in the financial
sector by telling this country categorically what your interest in the financial sector is, as
a Minister?
The Deputy Prime Minister and Minister for Finance (Mr. Kenyatta): Thank
you very much Mr. Deputy Speaker, Sir. I also thank the hon. Member for his personal
ratification. That is why I keep saying it is politics here and not actually an issue of
interest rates.
Mr. Deputy Speaker, Sir, I have an interest in the financial sector. But I stand here
as the Minister of Finance of the Republic of Kenya and advocating the position of the
Government of Kenya. That vague response should have you judge for yourself whose interest Uhuru is protecting here. Uhuru can’t serve both his self-interests and that of the Kenyan middle class or masses at the same time. That’s a big point to note! In his quest to serve his self-interest in banking, colluding with CBK’s Njuguna, he has engaged in shellacking the Kenyan middle class through obscene raises in interest rates. He awaits to beat the Kenyan consumers further through hidden taxes in his Finance Bill 2011. Grapevine has it that the Finance Bill 2011 was in fact written through a round-table session in an exclusive hotel attended by Uhuru, Treasury and CBK bureaucrats, and the fat cat lawyers of the Kenya Bankers Association. You can bet whether such mandarins would burn the midnight oil at Windsor hotel brainstorming about egalitarian interests to do with Wanjiku. The painful effects of that brainstorm has started showing on ordinary folks. Uhuru himself was terrified to bring the Bill to the House floor – not too sure of intentions of MPs. But the Bill if passed, will essentially kill the middle class as it literally sits on the heads of the poor (increased hidden taxes; increased insurance premiums; increased interest rates on loans; blacklisting loan defaulters etc). You can bet there will be lots of loan defaulters (including MPs); people losing their homes at mortgage defaults; and a lot of pain in the coming couple of years – a season where Uhuru and his fellow bank owners will be reaping big. Because of Uhuru’s fears and dilemma, for the first time in history, Parliament will go on recess without passing the Finance Bill. Some MPs like Jakoyo (Gem), Karua (Gichugu), Imanyara(Imenti Central), Khalwale (Ikolomani), Mbadi(Gwassi), Olweny(Muhoroni), and Ogindo (Rangwe) etc have seen the Finance Bill 2011 as a cunning gift to bank owners while a poisoned chalice to the masses. They have seen that CBK can’t regulate banks through policy, thus they want to regulate them through legislation – amendments to the Bill. Jakoyo’s amendment attempts to cap bank interest rates on loans before the impending decimation of Kenya’s middle class. Uhuru and his banking cartel is seething mad at that move. They have tried to armtwist the MPs out; using threats issued in a letter by Muthaura, and more recently using informal Kamkunjis convened by the two principals. Both have not worked! Kenya was in this same scenario back in the early 90s. Former Gem MP Joe Donde, ironically supported by the then leader of Official Opposition and current President Mwai Kibaki, tried to cap the interest rate on loans. The latter is today on the opposite side of the debate. Uhuru is caught between a rock and a hard place, like a Hyena reaching its crossroad. He wants votes from the masses and middle class, yet he also wants to profit from their financial pain. One hidden but huge player in this is entire saga is Transport Minister Amos Kimunya. I was particularly intrigued by snippets of his mindset that he let loose in the House floor yesterday: Mr. Kimunya: I am aware that perhaps, there may be some feelings that the Finance Bills
expires. I do not know who has given the impression that the Finance Bills expire on 31st
December. We moved away, when we changed our Standing Orders from a time when
Bills used to expire at the end of a session. All Bills that are still on the Order Paper will
continue until we pass them. The only thing that happens with the Finance Bill is that the
House passed the Provisional Collection Order (PCO) that gave the Deputy Prime
Minister and Minister for Finance power to collect taxes up to 31st December or up to
when the Finance Bill is passed. So, what happens, obviously, is that between 31st
December, 2011and the time we come back to pass the Finance Bill, we will need to look
for another instrument which is also provided for within the law because the Deputy
Prime Minister and Minister for Finance has power to levy any taxes up to 30 per cent
and then seek the concurrence of the House. So, there are instruments; the House, in its
wisdom, in the past, has provided for these things and we need not to worry.
Mr. Deputy Speaker, Sir, if hon. Midiwo was listening, I have
explained exactly what happens in terms of the Finance Bill and in terms of the
Provisional Collection Order that we passed here whose power expires on 31st December.
But, there are other instruments that you can use beyond that time. The Income Tax Act
and the Customs Act have all provisions that the Deputy Prime Minister and Minister for
Finance can use to levy additional tax of up to 30 per cent, subject to ratification by the
House at the earliest opportunity after it reconvenes. Just right there – in typical impunity-thriving-fashion Kimunya is revealing to Kenyans that they have a short-cut to circumvent existing rules of the game. He is also arrogantly forewarning taxpayers that there are alternative instruments Uhuru can use to levy taxes up to 30% and MPs can do nothing about it. He is also bragging that the time lapse of December 31st means nothing. Mr. Kimunya: Mr. Deputy Speaker, Sir, I have not said that the Members will
pass it. I am talking about the instruments that are available for purposes of moving
forward because there were some concerns from some Members, including myself, about
what happens if we go home without passing the Finance Bill. I was just explaining that
we do not stand to lose anything. There may be some implications in terms of collections
between January and the time that this House comes back to do that, but there are some
instruments that this House has provided for in such eventualities.
I think it is important that once we have that within ourselves, we give ourselves
adequate time for consultations because the issue of interest rates affects all of us. I am glad that Martha Karua was alarmed by Kimunya’s alacrity towards the wrong direction. Karua: Mr. Deputy Speaker, Sir, the Mover of the Motion has just said that we do not
need to pass the Finance Bill because they can use other instruments to collect taxes. I
have been looking at Article 210 of the Constitution. It says:- “No tax or licensing fee
maybe imposed, waived or varied except as provided by legislation.” We pass the
Finance Act every year to provide the legislative backing of taxation. The Provisional
Order is set to lapse. If we believe in the rule of law, we should not go home without
passing the necessary legislation, so that we can continue collecting taxes as has been
proposed.
Mr. Deputy Speaker, Sir, it is quite sad that the Government is afraid of tabling
the Finance Bill merely because a Member has voiced the intention, and which is
supported by many, of bringing in an amendment to put a ceiling on interest rates. I want
to recall that when the shilling was losing very badly against the dollar, the Deputy Prime
Minister and Minister for Finance said he could not intervene. He was letting the market
force to determine what happened. After the shilling took a beating and people made a lot
of money, he finally intervened. When the shilling had
lost against international currency, fuel prices, food prices went high. However, when the
shilling has regained, Kenyans have not had any reprieve from the high cost of living.
We are now being told that it is very bad to interfere with interest rates. In the
developed countries, interest rates are always regulated, not by legislation, but certain
gentlemen’s agreement. But the regulators put their foot down. In Kenya, the regulator
has gone to sleep, and the Minister has gone to sleep. The banks are left to fleece
Kenyans. It is actually licensed theft.
Mr. Deputy Speaker, Sir, what is happening in Kenya is deplorable. Kenyans are
left at the mercy of bankers. Some of these international banks are making the highest
profits in the world in their branches in Kenya. The Deputy Prime Minister and Minister
for Finance will, again, tell us about market forces, after the pockets of the money cartels
are full, he would then intervene, or maybe they will use the regulator, behind the scenes,
and things will stabilize the way they stabilized.
It is irresponsible of this Parliament to go home, leave Kenyans with the threats of
losing their hard earned homes and shelters because of interest rates. It is irresponsible
for us to go home, even though we are tired, and leave Kenyans at the mercy of cartels.
There must be some interventions. If it works in other countries, through gentlemen’s
agreement, let the Deputy Prime Minister and the regulator wake up. If they do not, then
Parliament must do the work for them. That is what we are here to do. |
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Post by job on Dec 23, 2011 10:56:53 GMT 3
Mr. Midiwo: Mr. Deputy Speaker, Sir, we must put our foot down as a Parliament, and put
Kenyans first. The reason why this Government has refused to bring the Finance Bill
before this House is for the reasons espoused by hon. Karua, simply because we are
seeking to regulate the banks and stop them from fleecing our people. As we sit here
today, some of our borrowers are paying, three or four times. The interest rates have gone
up from 12 per cent to as much as 33 per cent in the market.
I want to say that we all need a break. But I think we need a break, only after
doing our job. One of the cardinal roles of the Government is to protect its people. That
the Government can behave as if it is a private commercial bank beats logic. We must
force the Government to talk to Parliament for the good of Kenyans. All we are saying is
that the power to bring or withdraw the Finance Bill is entrusted on the Executive by
Kenyans. It cannot be a tool that the Minister can use to hurt Kenyans. It is a tool that we
have, which forces the legislature and Executive to negotiate. It cannot be and has never
been a reason for the Executive to help the rich to fleece the poor.
Mr. Deputy Speaker, Sir, one reason which is being peddled around is that even if
the power to collect taxes lapses, the Government shall borrow. This Government can
only borrow on behalf of the citizens because it is the citizens that will pay. It is not the
people sitting in the high offices that will pay if they borrow. Therefore, we want to tell
the Minister that even if he thinks that he has authority to borrow, we gave him that
authority as the representatives of the people and we shall be looking for ways of taking it
away. We shall take away from him the power to overload our people with unnecessary
debt without consulting this Parliament, because that is the wrong way to do it. The
Minister must come to Parliament and negotiate. That is the way the Legislature works.
We have our people who are suffering now and are looking up to us to offer solutions.
Therefore, it cannot be that this Government calls Members of Parliament to the Kenyatta
International Conference Centre (KICC) to tell them to drop the amendments without an
option. We cannot drop our claim on the arrogance of the banks because the Executive
has said so. That will not happen in this House. That was the Government and Parliament
of yesterday. Today we have changed.
Mr. Deputy Speaker, Sir, I must admit that I
summoned MPs to KICC and I asked for the agenda why I was summoning them, but nobody
gave me the agenda. When I found out, I went to the Office of the President and told the
President and the Prime Minister that I did not want to be called to betray Kenyans. I
went and said my views in the KICC. I am clear on what I am trying to do for Kenyans
and I will do it. I think this House must rise to the occasion.
Mr. Deputy Speaker, Sir, the so called Kenya Bankers Association (KBA) is a
misplaced organization and cartel. It is a monopolistic organization in a free market
economy. There is no Kenya Bankers Association in the free world. Somebody or even
the Minister must control such tendencies. The Minister has powers to do so. Today if
you get your bank statement, even at our level, I can never read and understand my bank
statement. Even the charges which the law says that banks must seek the authority of the
Central Bank to institute, banks are doing it day and night; everyday. That cannot be. We
cannot be in a scenario where the Government helps crooks to create an artificial
economy.
Mr. Imanyara: Mr. Deputy Speaker, Sir, I wish to muster as much passion as I
can to oppose this Motion.
To go back to the point, the Finance Bill is so critical for this country and the
management of the finances of this country that we cannot accept to go on recess without
persuasive reasons. My good friend, the Deputy Prime Minister and Minister for Finance,
should have called us in a Kamukunji and we would have listened to him. But to seek the
assistance of the Executive when he can talk to his own colleagues in the House--- The
Minister should come to the House and seek to reason together so that we can hear him
and see whether he is making any case. That was a betrayal to the House and I think the
Deputy Prime Minister and Minister for Finance lost the confidence and credibility of
those of us who would have otherwise had sympathy for him in seeking to delay the
Finance Bill to such other time.
Mr. Deputy Speaker, Sir, we cannot go on recess on the basis that we are in a
position to borrow because we know what borrowing is doing to this country. We know
that we are borrowing under circumstances where one private bank seems to have taken
over the role of the Central Bank of Kenya. It is functioning as if it is the Central Bank of
Kenya, contrary to the principles set out in the Banking Act; contrary to the principles of
good governance and contrary to principles of fair management of this country’s
economy. It is time for this House to tell the Executive that the days of summoning
Members of Parliament to rubberstamp legislations made elsewhere are long gone. Today
we are determined to confirm and show you that. |
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hk
New Member
Posts: 5
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Post by hk on Dec 23, 2011 11:37:47 GMT 3
Mank, I agree with your sentiments. The problem with Kenya economy is its fundamentals and if that isn't addressed regulating interest rates will come to naught. There's a big difference between monetary regulatory policy and controlling interest rates rate by setting a figure that should be charged en.wikipedia.org/wiki/Monetary_policy . In america even payday loans aren't regulated in some states leave a lone interest rates control of which midiwo and martha are advocating. The problem with this populist policy like the interest rates control, price controls or the Mbandi proposal for government to provide retirement fund for the elderly, they end up hurting the economy. Instead of encouraging people to save for retirement using something like 401k plan, this mps want us to pay for retirement for people who didn't save and more importantly people who aren't saving for their saving when they should. |
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Post by mank on Dec 24, 2011 5:45:51 GMT 3
• Kenyatta (owner of a major bank) ..........It is a serious conflict of interest for a finance minister to double as an owner of a private financial institution. If Kenyatta is an owner of a bank, that points to a system (government) failure, and to Kenyatta taking advantage of it. What's parliament to say about such a conflict of interest? Complaisant? |
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Post by jakaswanga on Dec 24, 2011 11:30:55 GMT 3
Mank, I agree with your sentiments. The problem with Kenya economy is its fundamentals and if that isn't addressed regulating interest rates will come to naught. There's a big difference between monetary regulatory policy and controlling interest rates rate by setting a figure that should be charged en.wikipedia.org/wiki/Monetary_policy . In america even payday loans aren't regulated in some states leave a lone interest rates control of which midiwo and martha are advocating. The problem with this populist policy like the interest rates control, price controls or the Mbandi proposal for government to provide retirement fund for the elderly, they end up hurting the economy. Instead of encouraging people to save for retirement using something like 401k plan, this mps want us to pay for retirement for people who didn't save and more importantly people who aren't saving for their saving when they should. , some comments as the debate contineus. I agree with your sentiments. The problem with Kenya economy is its fundamentals and if that isn't addressed regulating interest rates will come to naught. This is true enough. These 'fundamentals' need a structural overhaul which, in my opinion, would be the ECONOMIC reform mirroring the constitutional one we are yet to implement.There's a big difference between monetary regulatory policy and controlling interest rates rate by setting a figure that should be charged en.wikipedia.org/wiki/Monetary_policy . lf monetary policy is about supply and availability, therefore setting the PRICE OF MONEY as it were, this does not look like a free market any longer to me: Because the price of money, the key factor determining investment and consumptive behaviour, has already been set, or manipulated by an authority of politics: the government through the central bank.I am therefore ready to argue, HK, that in seeing and stating a big difference between MONETARY REGULATORY POLICY and CONTROLLING IRs by setting a figure, you are making a mountain out of a hill. In america even payday loans aren't regulated in some states leave a lone interest rates control of which midiwo and martha are advocating. The control of the primary interest rate, that is the rate at which the Central Bank lends to the the banks [etc] is a centralised affair, which cannot be compared to the other secondary variables determined by actors in the economy as they set their profit margins. Not even [comparable] to the secondary [always exorbitant] rate at which the commercial banks now lend money to the general population and real investors.
NB: I assume Mbadi and co are only talking about the secondary interest rate.The problem with this populist policy like the interest rates control, price controls or the Mbandi proposal for government to provide retirement fund for the elderly, they end up hurting the economy. HK, this is not true. There is a level of interest rates which kills off investment completely, and is only beneficial to SPECULATIVE CAPITAL, like the so called LOCUSTS [hedge funds].
High interest rates ---leading to zero borrowing by long-term investors; geometrically increasing public debts when for instance infrastructure is funded by borrowing; and destitution of the middleclass under spiraled mortgages---, is already a total disincentive that stalls the economy. It is to seek a way out of this fix that Mbadi and Midiwo come up with this CONTROL PANACEA. Putting ceilings to the price of staples avoids food riots too!MY problem with them, why I think it wont work, is that there is no ADDRESSING THE FUNDAMENTALS AS YOU YOURSELF, HK, RIGHTLY NOTED! a ship half-sunk cannot be saved by pumping the water out.b.Retirement fund for the elderly proposed by...: This, HK, I think is a revisit of the Keynessian theory of creating demand [by for instance upping the minimum wage]. Merely increasing the purchasing power of a sector, the money staying and coming back into the economy one way or another. It is a way of pumping money around. Widening the cycle of money-flow. But it needs a wide-scale structural reform, as you have already said.
[ii]. A progressive political party can also impose controls [minimum wage, price limits, mortgage interest caps] in the name of civilisation and popular mandate. Though they would have to reform the fundamentals within which they operate, otherwise they will run the treasury bust up!Instead of encouraging people to save for retirement using something like 401k plan, this mps want us to pay for retirement for people who didn't save and more importantly people who aren't saving for their saving when they should. They should be saving yes: But you HK and I know people who survive on less than half a dollar a day, have nothing to save, but still have hungry mouths to feed in old age. Any political class that ignores these basics, and explains povety by laziness, forgets the violent lessons of history and political economy. They will be swept off the stage by other forces who promise solutions, even if later turning out to be fictional!UK is playing with fire: he may just get burned. A hungry mouth is an angry man. But neither are Midiwo and Karua an alternative. But I use the two as defect compasses, which still do have a point! ------ Job,I like the concentration you bring to this salient issue. Salute! |
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Post by merlin on Dec 24, 2011 11:56:44 GMT 3
Mank, I agree with your sentiments. The problem with Kenya economy is its fundamentals and if that isn't addressed regulating interest rates will come to naught. There's a big difference between monetary regulatory policy and controlling interest rates rate by setting a figure that should be charged en.wikipedia.org/wiki/Monetary_policy . In america even payday loans aren't regulated in some states leave a lone interest rates control of which midiwo and martha are advocating. The problem with this populist policy like the interest rates control, price controls or the Mbandi proposal for government to provide retirement fund for the elderly, they end up hurting the economy. Instead of encouraging people to save for retirement using something like 401k plan, this mps want us to pay for retirement for people who didn't save and more importantly people who aren't saving for their saving when they should. In other parts of the world banks are competing for customers and the most effective banks have the smallest wedge between credit and debit interest. They offer the lowest interest rate for loans. Competition seems not to work in Kenya and banks are only interested in their large customers. Only a short time ago Barclays Bank was closing down its low profit establishments. I think it was Safaricom followed by Equity Bank who realised that low budget customers are a valuable customer source due to their tremendous volume. However banks are not interested in small borrowers as the administrative system to check creditworthiness and asset valuation is too costly. Also a nationwide defaulter’s registration is missing making it costly and risky to lend money to low-budget customers. These are not issues of immense size. With the low cost of IT applications it would be easy to set-up defaulter’s registration. It is the banks who should work together and figure out where they should co-operate sharing information and where they should compete. And yes, corruption, the volume of black money and the high financial crime rate makes banking more a casino/gamble than a financial service delivery business. The government should set an effective framework for financial services to support fair competition and not become a player involved in setting banking interest rates. |
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Post by job on Dec 24, 2011 19:31:40 GMT 3
We need to cast more light into this banking sector since lots of developments are taking place quite fast. Amidst the super-profits being cashed by banks, customers are really losing out big. After the hanky-panky rendezvous between sacred banks and CBK triggered monetary policy changes that raised interest rates, mortgages at Equity Bank jumped on average from 14% to 25% with many banks offering new loans above 30%. The consequence is - banks have started a preventive process to stave off defaults. The banking cartel hiding behind the banner – Kenya Banking Association – has recommended to banks to hold the interest rates on existing loans and mortgages steady BUT extend their loan maturity period. Borrowers have been receiving bank letters informing them of these dire changes (extended maturity periods/dates or drastic hikes in interest rates & monthly repayments). It all boils down to the same thing – banks taking advantage of a situation they themselves triggered, to hemorrhage customers. Here is what they stated in their recent press release:KENYA BANKERS ASSOCIATION (KBA) PRESS RELEASE RESTRUCTURING LOANS IN A REGIME OF HIGH INTEREST RATESCommercial banks have in the recent past revised their lending rates upwards in
reaction to the current economic environment where high inflation has occasioned
tightening of monetary policy and thus affected short term interest rates. Whereas it
is imperative that the rise in inflation be addressed by tight monetary policy, it is also
critical that loans already contracted continue to be serviced and also remain
affordable to sustain investments and reduce the risk of default.
A high interest rates regime presents three main problems: risk of default, increase in
non-performing loans and slowdown in investments. The Monetary Policy
Committee(MPC) following its’ meeting of 1st December 2011 noted that several
banks had commenced discussions with borrowers with a view to restructuring loans
and refinancing arrangements to avoid any threat of default. The Committee agreed
that this was an appropriate process to be formally encouraged to work out
modalities that would enhance these short-run measures to protect borrowers and
banks alike.
Taking the cue from the MPC, the Kenya Bankers Association (KBA) has taken steps
with a view to protecting customers as well as commercial banks during this
temporal period of macroeconomic challenges being experienced.
The KBA has looked at measures that can be availed to existing borrowers to help
them ride over this period of tight monetary policy aimed at fighting inflation which
has mainly been driven by spiraling food and energy costs. The KBA having
consulted with the Central Bank of Kenya (CBK) and the Government will take the
following measures:
1. Loan Repayment Period: To ensure that borrowers are able to continue
servicing their loans during periods of upward revisions of interest rates, banks
will negotiate with their customers to extend the loan repayment periods. This
may entail extending the period to ensure that the repayments are retained at the
existing installment amounts. Extending loan repayment periods will ease the
sudden increase in loan repayment burden on the part of the borrowers. It may
also serve as an impetus to borrowers to enhance their efforts to fully repay the
loan.
2. Capping the maximum increase in the loan repayment amount: Banks
will cap the increase in the installment repayment to a maximum of 20% of the
current level of installment. The installments will then be spread out leading to
extension of the repayment period. This is essentially a combination of spreading
the repayment amounts and an extension of the repayment period to fit into the
required installment repayment.
3. Absorption of costs by banks: Since interest rate adjustments may
precipitate loan defaults, banks will absorb some of the additional costs from
changes in the macroeconomic environment to the maximum extent possible
without threatening their viability. This entails sacrificing a portion of their
budgeted profit margin. This measure and the one immediately below are hinged
on the premise that while short term interest rates will increase, lending rates are
also driven by other factors. These factors include opportunities for investment
and overpricing loans may kill avenues for investment. These factors will prevail
and will be more important once the inflation war has been won.
4. Banks will not raise interest rates despite the recent further increase
in CBR by 1.5%: On Thursday, 1st December 2011, the Monetary Policy
Committee met and adjusted the CBR upwards by 150 basis points to 18%. Banks
will absorb this increase and mitigate the additional burden on existing
borrowers. This will apply only to existing borrowers. The interest rates for new
loans will however not be accommodated within this measure.
5. Penalty on Early Repayment of loans: Where banks decide to increase the
interest rates from the contracted rate, borrowers will have the discretion to repay
the outstanding loan balance in full or in part without being subjected to early
repayment penalties. Waiver of early repayment penalties will ensure that
borrowers are not subjected to additional financial burden when interest rates are
rising. This will also enable banks to minimize chances of default.
Borrowers should therefore approach their banks for discussions on how they can
meet their increased loan repayment obligations while taking advantage of the
measures we are announcing today. KBA is confident that these measures will
protect the interests of both borrowers and banks. We will continue to take a
proactive approach in consultation with CBK and the Government to ensure that
investments in Kenya’s growth continue being supported through affordable credit.
Our efforts will also support the stability of the banking sector by reducing the risk of
default.
RICHARD ETEMESI
CHAIRMAN
KENYA BANKERS ASSOCIATION
13th December, 2011 |
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Post by job on Dec 24, 2011 21:20:49 GMT 3
In my view, since President Kibaki's coming to power in 2003, a silent revolution has been taking place in the banking and financial sector; whereby dominance by traditional foreign banks is being replaced by a local oligarchy of influential members of Kibaki's inner circle and some wealthy Indian-Kenyans. This oligarchy has blurred the line between government and the banks. The oligarchs virtually control both: Treasury - Ministry of Finance (their taxman); and the CBK (supposed bank regulator). Treasury and CBK are both working FOR (& not 'with') these newcomer bank owners. The current Minister of Finance (who generates Tax, Finance & Micro-Finance policies) is a bank owner himself. The CBK Governor (who generates monetary policy) is himself a shareholder in at least three banks (2 being indigenous). This Kibaki-era spurt in growth of indigenous banks (such as Equity) has largely been driven by government business, and expansion of access to government-guaranteed micro-finance loans. Being well-connected through ownership, these neo-indigenous banks have been the banks-of-choice for domestic government borrowing - enjoying preferrential treatment and favours. That's why they've grown very fast. Uhuru Kenyatta's Commercial Bank of Africa (CBA) for instance, draws most of its profits from interests on large corporate and government loans - the latter necessitated by the HUGE budget deficits he deliberately creates (partly to keep his business afloat). Each time Uhuru writes the budget with a deficit of Kshs 100 billion, it's payday for his bank! He writes budgets with big expenditures that he knows tax revenues and donor funds can't completely fund; then forces the government to borrow the deficit from domestic banks such as his. With hefty interest rates, these folks are raking in billions of shillings. His bank is now ranked Kenya's 8th largest in terms of both assets and annual profits (check list below). This open favouritism has altered the playing field in competition. Competitors in turn target customers (directly or indirectly) for alternative pilferage. Competitor banks are cutting costs drastically, starting by firing employees. Banks nowadays boast several empty teller windows even as customers queues get very long. Front desk staff don’t serve customers but actually do back office assignments. Many of them don't bother answering your querries; they'll be busy gossiping in vernacular. In a nutshell, borrowing (unlike a while back) is turning into a nightmare, both in terms of cost and service. Its too costly and unpleasant compared to say Rwanda, Tanzania or Uganda. Banks with 'zero or little connections' have equally zero or little room for competition in this skewed field. The preferrential treatment of sacred-cow banks has eventually started causing too much concern to old-time foreign banks, necessitating dramatic moves such as this one below (which in essence are tell-tale signs of impending exodus): TRANSFER OF BARCLAYS BANK
OFFICE OPERATIONS TO INDIA
Mr. Jamleck Kamau: On a point of order, Mr. Speaker, Sir.
Mr. Speaker, Sir, I had requested for a Ministerial Statement from the Deputy
Prime Minister and Minister for Finance on the intention of the Barclays Bank of Kenya
to transfer its banking office operations to India. This statement was supposed to have
been delivered today.
Mr. Speaker: Deputy Prime Minister and Minister for Finance, when will that
statement be available? Leader of Government business?
The Vice-President and Minister for Home Affairs (Mr. Musyoka): Mr.
Speaker, Sir, could we again put it to next week, because the Deputy Prime Minister and
Minister for Finance is not in the House. I am hearing it for the first time; we will let him
deal with it.
Mr. Speaker: Leader of Government business, I will put that off to Tuesday, next
week. Hon. Members are aware that this is a very important matter for the country.
Barclays Bank is a major investment here and we need to know the direction clearly.
source : The Hansard - Parliament of the Republic of Kenya; 15th December, 2011)
QUICK UPDATE - As you probably guessed, that answer never came back from the Deputy PM & Minister of Finance, Uhuru Kenyatta. It probably won't even after Parliament's recess & comeback in February 2012. Uhuru Kenyatta and Githu Muigai have a penchant - illustrated by a well-documented pattern at the Hansard - for not answering MP concerns and questions on the House floor )
As former supremos of banking are slowly driven out of the market, we must ask the critical question whether the new banking regime (controlled by Kibaki-connected elites) portends well for business consumers and the overall economy. Anyone who has read the history of the Jomo-Kenyatta-regime policy of "Africanization", or "Indigenization" of various sectors of the country, espoused by the Ndegwa Commission of 1970/1, will get an immediate heartburn. I can already sense that a banking insider like Uhuru Kenyatta is more concerned about protecting interests of the growing banks, than concerns of the public. In his Finance Bill 2011 for instance, Uhuru looks more concerned at containing financial risks created by expanding access of capital to Jua Kali owners, boda boda operators, mama mbogas, small-scale farmers, recent graduates, and others who recently streamed to Equity Bank for micro-finance loans. That's where this idea of fast-pushing the credit-bureau to cover Kenya's large informal sector is coming from. They want to blacklist potential loan defaulters (for future exclusion) even in villages and within the jua kali sector. They want these borrower registers before they bring their bank outlets into estates and villages. Kenyatta's bank and many others want to tap into Equity's market pool of micro-finance borrowers - through Agency Banking - where they bring banking to neighbourhoods (without employing real banking staff). Even kiosks end up becoming affiliates of their bank. This concept was started by Equity Bank, followed by KCB (Mtaani) and then Co-Op Bank (Jirani). The Finance Bill 2011 that Kenyatta and his banking oligarchy authored is more interested in organizing banking along these cost-cutting corporate designs. Instead of having their banks opening new branches that employ people, and having reasonable interest rates (both on loans and on deposits), they would rather have a banking regime with: no branches (just kiosk affiliates); no employees (just underpaid agents); high interest rates on loans; low returns on deposits; and bulging profits. Isn't this where this is heading to? Instead of CBK working diligently on monetary policy, they are busy designing fresh criteria for potential kiosk banking-agents who will work for the banking oligarchs. Treasury and CBK are both busy working for these well-connected bank owners. These greedy schemers are using our Treasury and CBK to design future systems where their branchless-and-emlpoyee-free banks will get a 'cut' in virtually all transactions that Kenyans make including: making cash deposits; cash withdrawals; school fees payments; utility payments; balance enquiry; and even issuance of mini-statements. They are scheming how they will milk wananchi using the next-door kiosk. Whenever Wanjiku wants to pay a bill or send school fees, they will be expected to transact it at the nearest village kiosk (connected to the favoured banks) for a 'cut' that benefits the oligarchs. Even if Wanjiku wants to make a loan application, it will be done through the neighbour's kiosk, before being run through the same fat-cat credit bureau registers. It is the same kiosk 'agent' who will inform Wanjiku whether the loan request has been turned down and such. Am not allergic to banking innovation. I just dislike unscrupulous and gang-ho banking practices! Why shouldn't Equity Bank for instance, with more than 4 million deposit customers, or Co-op bank with over 1 million, or KCB, Barclays, and Family Bank with accounts approaching 1 million rely on Treasury and CBK to design for them structures that further exploit the middle-class and the masses? Isn't it kind of distressing? A look at the performance of the banking oligarchy - through asset and profit returns from their banks tells you they are generally having a ball under this current Treasury and CBK; even as customers feel the pinch. The preferred banks are climbing the ladder of wealth accretion. RANKINGS IN PERFORMANCE as at September 2011 - the era of arbitrage, dollar-exporting-and-hoarding, and currency devaluation.
1. KCB (last year's ranking; 1) September asset of Kshs 273.9 billion and profits of Kshs. 8.6 billion.
2. Barclays (2) September asset of Kshs. 180.9 billion and profits of Kshs 8.9 billion. Growth almost stalled, at the expense of Equity.
3. Equity (5) September assets of Kshs. 172.6 billion and profits of Kshs. 8.25 billion. Unprecedented growth towards the top for this blue-eyed, favoured-bank, now several years in a row. Treasury and CBK have humongously helped it establish agency banking; which has now been copied by KCB and Co-Op Bank. The government is giving Equity yet another BIG BUSINESS - a deal to collect park fees for the Narok Council in the Masai Mara. I can't wait for the creation of a people-centred devolved government in Narok County to review these decisions. After opening their doors to millions of members, Equity has now dramatically increased their lending rates from 15% to 25% and plus. It is the season for open harvest and milking of the micro-pool!
4. Cooperative Bank (3) September assets of Kshs. 167 billion and profits of Kshs. 5.45 billion. Another Kibaki-era favoured bank, privatized and 'indigenized' under Kibaki's regime. I will give a profile of this bank in my next post to illustrate how government colludes with bank oligarchs to exploit the rest.
5. Standard Chartered (4) September assets of Kshs. 165.7 billion and profits of Kshs. 5.49 billion. Profits dropped from last year's (from Kshs 6.1 billion). Like Barclays, it is another victim of the new oligarchy that enjoys preferential treatment from the Kibaki government.
6 CFC Stanbic (6) September assets of Kshs. 145.2 billion and profits of Kshs. 2.38 billion. Another bank being targeted for ownership transfer into the hands of the Kibaki elites (led by insider Jimnah Mbaru). It has recently announced a rights issue. Has a new Chairman.
7. Investment & Mortgages I&M (last year 11) September assets of Kshs. 79.5 billion and profits of 3.2 billion. Another blue-eyed player of the day under the Kibaki oligarchy. Dominating the mortgage field. Will reap big from increased rates and extended term periods.
8. Commercial Bank of Africa (8) with September asset of Kshs. 75.7 billion and profits of 2.04 billion. Uhuru Kenyatta's jewel dominating corporate and government accounts. Tends to be elitist with new branches in new malls in Nairobi like Junction, Galleria. Planning a rights issue to raise capital...what else might happen to ownership? I don't know whether this is related to Ocampo's ICC matters.
9 Diamond Trust (10) September assets of Kshs. 74.6 billion and profits of 2.4 billion. Indian-owned and well connected to the current regime.
10. Citibank Kenya (9. last year) September assets of Kshs. 71.6 billion and profits of 3.25 billion.
11. NIC and National Bank (No. 7 last year) Kshs. 70.2 billion ($790 million) in assets and profits of about Kshs. 2 billion. |
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Post by job on Dec 24, 2011 21:41:22 GMT 3
Kenya’s 4th largest bank, the Cooperative Bank of Kenya (CBK) or Co-Op BankERA AS PUBLIC BANK• By the time President Moi is relinquishing power, Co-op Bank of Kenya is a Public Company (Co-operative Society) with many subsidiary Sacco’s owning sizeable shares – a scenario that has existed since its inception in 1965. • Upon Kibaki’s ascent to power in 2003, specifically on on 28th February, 2003, the bank undertakes a key transition as President Kibaki appoints Mr Stancley C. Muchiri as Chairman of the Board of Directors to replace Mr Hosea Kiplagat. Eventually, a former Director at the Central Bank of Kenya (CBK), Mr. Gideon Muriuki, was appointed the Co-op Bank CEO. (Former banking regulator, now the bank's CEO)  • With donor taps now opened, the Kibaki administration quickly supports renovations of the Co-operative Bank House (damaged by 1998 bomb blast) with President Kibaki himself officially opening the refurbished building in October 2003. • The stage is being set for privatization of the bank – a lot of internal reorganization and changes on board of directors is taking place. A special general meeting called by the board on 27th July 2008 proposes to convert the bank from a co-operative society into a limited liability company. PRIVATE BANK• On 22nd December 2008, then acting Finance Minister John Michuki oversees Co-op Bank’s listing on the Nairobi Stock Exchange. The listing follows a public offer of 701.3 million shares at Kshs 9.50. • There’s an 81% subscription raising Kshs 5.4 billion on top of reportedly existing Kshs 7.4 billion. Lots of millions of shares are reserved for the board of directors and several Kibaki administration notables. • All previous shares held by the Co-operatives are ring-fenced under the Co-op holdings Co-operative Society Limited which becomes the strategic investor in the bank. OWNERSHIP OF SHARESAmong CBK'S seventeen Directors (who own a total of 138,995,700 shares), the average shares owned by each director is a staggering 8,176,217 shares – almost 1,000 times the number owned by the average Kenyan investor. I'm not even going to delve into the tens of millions of shares per individual owned by key Kibaki-era mandarins.. 1. The Managing Director & CEO Mr. G. Muriuki, owned, as at Dec. 08, 68,121,000 shares.
2. The Chairman of the Board Mr. S. C. Muchiri, EBS owned 8,000,000 shares
3.The Vice Chairman owned Mr. J. Riungu owned 7,700,000 shares
4. The Company Secretary Mrs. Rosemary M. Githaiga owned 5,090,000 shares
5. The Commissioner of Cooperatives owned 2,750,000 shares
6. Five other Directors also owned just over 5 million shares each
7. Three other Directors owned exactly 5,000,000 shares each
8. One Director owned 2,750,000 shares
9. One Director owned 2,310,000 shares, and another owned 2,300,000 shares
10. The Director with the least shares is the Permanent Secretary at the Ministry of Finance, owning a "token" of 1,000,000 shares! [Earlier this year, 2011, each share sold at around KES 6.50, or US$0.083]Thus the Co-Op bank CEO alone has a stake valued at Kshs 443,000,000 in the bank. He has a direct stake in profiting from increased interest rates on loans, and low returns on customer deposits. Alongside other multi-million share owners, these are the types of friends of Uhuru Kenyatta contributing greatly into the Finance Bill 2011, set to squeeze the middle-class and the masses.
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Post by job on Dec 26, 2011 10:26:23 GMT 3
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Post by job on Dec 28, 2011 21:48:37 GMT 3
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Post by kamalet on Dec 29, 2011 8:39:42 GMT 3
Kenya’s 4th largest bank, the Cooperative Bank of Kenya (CBK) or Co-Op BankERA AS PUBLIC BANK• By the time President Moi is relinquishing power, Co-op Bank of Kenya is a Public Company (Co-operative Society) with many subsidiary Sacco’s owning sizeable shares – a scenario that has existed since its inception in 1965. It would have been helpful to your readers to actually explain the structure that the COOP bank had and the rationale for changing it. For a long time all co-operative societies were obligated to maintain their bank accounts with the co-op bank and over time this became inefficient and also the holdings that these societies had in the bank in the form of shares were not helping the bank grow. When co-operatives were allowed to bank elsewhere, it was imperative that the bank re-invent itself and that drove the process of turning it round before it went public. • Upon Kibaki’s ascent to power in 2003, specifically on on 28th February, 2003, the bank undertakes a key transition as President Kibaki appoints Mr Stancley C. Muchiri as Chairman of the Board of Directors to replace Mr Hosea Kiplagat. Eventually, a former Director at the Central Bank of Kenya (CBK), Mr. Gideon Muriuki, was appointed the Co-op Bank CEO. (Former banking regulator, now the bank's CEO) The changes in the bank in 2003 were the beginning of the turnaround I have alluded above. One thing that is not true is that Gideon Muriuki was appointed CEO from a position of a director of CBK. That is very far from the truth and the CEO actually had joined Cooperative Bank in 1996 as a senior manager. I would imagine you would not have had a problem with the removal of Hosea Kiplagat...! • With donor taps now opened, the Kibaki administration quickly supports renovations of the Co-operative Bank House (damaged by 1998 bomb blast) with President Kibaki himself officially opening the refurbished building in October 2003. This is a twisting of the facts. The re-construction of the Co-op House was funded by the US government and it took quite a number of years for the work to be completed having started in 1999. At that time, donor funds were not trickling in so it was never a case of "Kibaki administration quickly" supporting the renovation! • The stage is being set for privatization of the bank – a lot of internal reorganization and changes on board of directors is taking place. A special general meeting called by the board on 27th July 2008 proposes to convert the bank from a co-operative society into a limited liability company. PRIVATE BANK• On 22nd December 2008, then acting Finance Minister John Michuki oversees Co-op Bank’s listing on the Nairobi Stock Exchange. The listing follows a public offer of 701.3 million shares at Kshs 9.50. • There’s an 81% subscription raising Kshs 5.4 billion on top of reportedly existing Kshs 7.4 billion. Lots of millions of shares are reserved for the board of directors and several Kibaki administration notables. you know what you are saying about reservation of shares is UNTRUE and all the disclosures on reserved shares for employees/directors were made in the prospectus. Reserving shares for Kibaki administration notables is not surprising coming from you as you weave your tale... • All previous shares held by the Co-operatives are ring-fenced under the Co-op holdings Co-operative Society Limited which becomes the strategic investor in the bank. OWNERSHIP OF SHARESAmong CBK'S seventeen Directors (who own a total of 138,995,700 shares), the average shares owned by each director is a staggering 8,176,217 shares – almost 1,000 times the number owned by the average Kenyan investor. I'm not even going to delve into the tens of millions of shares per individual owned by key Kibaki-era mandarins.. The 138,9995,700 shares first and foremost represent 3.98% of the total issued share capital of the bank. With the exception of the CEO who has a 1.93% holding, the other directors on average own 5 million shares each. The disclosures about the holdings of the director are a statutory requirement and it is perhaps a positive that the directors would feel confident enough to invest in the company. All I can say is that there is no way you will tell us who the individuals key-Kibaki era mandarins are since the again the top 10 holders of stock in the bank have been disclosed and 5 of these are nominee accounts through several banks whilst the others are named.. You aim at suggesting impropriety is certainly not provided in the details you give! 1. The Managing Director & CEO Mr. G. Muriuki, owned, as at Dec. 08, 68,121,000 shares.
2. The Chairman of the Board Mr. S. C. Muchiri, EBS owned 8,000,000 shares
3.The Vice Chairman owned Mr. J. Riungu owned 7,700,000 shares
4. The Company Secretary Mrs. Rosemary M. Githaiga owned 5,090,000 shares
5. The Commissioner of Cooperatives owned 2,750,000 shares
6. Five other Directors also owned just over 5 million shares each
7. Three other Directors owned exactly 5,000,000 shares each
8. One Director owned 2,750,000 shares
9. One Director owned 2,310,000 shares, and another owned 2,300,000 shares
10. The Director with the least shares is the Permanent Secretary at the Ministry of Finance, owning a "token" of 1,000,000 shares! This is all public information available from www.co-opbank.co.ke/public_site/webroot/cache/article/file/2010_COOP_Annual_Report.pdf on page 38 of the annual report for 2010. [Earlier this year, 2011, each share sold at around KES 6.50, or US$0.083]Thus the Co-Op bank CEO alone has a stake valued at Kshs 443,000,000 in the bank. He has a direct stake in profiting from increased interest rates on loans, and low returns on customer deposits. Alongside other multi-million share owners, these are the types of friends of Uhuru Kenyatta contributing greatly into the Finance Bill 2011, set to squeeze the middle-class and the masses. FYI the share is this morning trading for Kshs. 12.25 so the fortunes of the investors have been very good! In fact these are really good times...a property I purchased for 4.5 million 5 years ago has an offer on the table for 14 million shillings and am not even tempted to sell......Muriuki's investment has grown from 443 million to just under 900m which is a good thing for the man!!! |
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hk
New Member
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Post by hk on Jan 4, 2012 9:39:08 GMT 3
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Post by job on Jan 4, 2012 18:50:17 GMT 3
In case you haven't noticed, Jaindi Kisero's write-ups (since 2009) are mostly in favour of policy positions taken by Uhuru Kenyatta (tax, budget, etc)...but in this particular analysis above, he fell short of stating exactly how regulation of bank interest rates hurts the economy. What is obvious is that high interest rates in fact hurt the economy! Jaindi was not too long ago praising Uhuru Kenyatta's populist budget allocations that left a deficit of more than Kshs 100 billion. I never read him questioning that huge deficit...which Treasury was going to borrow from domestic banks such as Uhuru's...I also never read Kisero's analysis of the long term impact of the massive debts created by Uhuru's appetite for borrowing. In fact what Kisero needs to analyze is the impact of this growing debt. The truth is, Kenya's debts (exceeding trillion shillings), most of which sadly ended up in corruption, won't just disappear (especially if we are still ruled by regimes with zero respect globally). Debt write-offs (by Bretton Woods - IMF/WB) usually benefit ONLY carefully selected regimes/leadership favoured by the powers that be (sad reality). When your country is held hostage by mega corruption; and your Finance Minister is actually a high profile suspect arraigned before the ICC court for the most grave crimes against humanity, it's highly unlikely such discussion (debt-write-off) can even be contemplated. Unless some dramatic things happen, these huge debts are still with us. When we seriously think about the cost of implementing devolution, Kenya's debts will only sky-rocket further. Building 47 counties is no walk in the park. It is the potential direct impact of this expected debt that ultimately worries some. You saw how quick Uhuru was in asking IMF for Kshs 50 billion debt when tens of billions are dissapearing from the same Treasury under his watch. In a seperate thread, donor funds are being looted then replaced with taxpayer funds, before more is borrowed from IMF. Where is this looting circus going to leave Kenyans? Debt levels are reaching a scary level as we walk towards devolution. We need to pause for a moment and think about Iceland and Greece (recently), and Yugoslavia of the 1990s - where the middle class was decimated, leaving nothing but street riots and anarchy. When national debts crush the ceilings created by folks like IMF/WB, so long as the country remains part of the global economy (with direct links to the global financial system), the nation virtually cedes control to the global powers. That's when outrageous orders such as wage cuts for teachers, civil servants, massive retrenchments, etc etc end up being dictated upon the country. Subsidies are removed, ALL services privatized, and people face even more serious hardships. Food prices skyrocket, commodity rationings start, and then you can't rule out riots. As of now, the Kenyan middle class that engaged banks in borrowing are soon going to be (if not already) under assault by interest rate hikes - loan defaults, prolongation of loan expiry terms etc. Those that sank their cash into stocks are under another devaluation assault - except those still temporarily protected by virtue of possessing portfolios in politically-connected corporations. Those who sank their cash buying land then built at Syokimau have been decimated. Those who did the same elsewhere are trying to assertain validity of their titles. Meanwhile, inflation is biting (from cost of food, petrol, fares, school fees, electricity, healthcare, etc). Many others are sensing a government that won't hesitate to tax them further - even hidden taxes in petrol, cigarettes, beer etc. Uhuru calls them in this Finance Bill, excise taxes... Future increases in taxes may not just be at the national level. Those living in certain devolution counties will certainly not escape extra taxation - in the form of service fees and levies. Mark-up that with the extra cost of local corruption. Granted, someone living in Thika certainly wont pay the same tax as a counterpart in Nyandarua. Even if all levels of government were to super-tax Kenyans, it would still be a herculean task trying to erase trillions of shillings of debt. Coupled with the hanky-panky insider deals in CBK which devalue the shilling, there will be serious future impact. It is these serious analyses that we need from the likes of Jaindi. What is his take on the real estate bubble in Kenya. Will it burst when the real value of the shilling can't be hidden anymore? The world's attention was drawn towards the shilling when it hit the bottom rank in performance of global currencies. That means increased global scrutiny of all of Kenya's capital (& other) markets. That means any artifical hoodwinks on the currency, stocks, property values, etc will all be unearthed. Many banks are already reporting capital flight. The NSE has experienced similar pullout. With things like diminsihed foreign investor interest, Syokimau demolitions, potential for more demolitions, preponderance of questionable title deeds - many in fact held by banks - who will be surprised if property values face unprecedented fall. When the real value of the shilling is exposed, some experts have predicted that it would cost a lot more to import oil. That means, petrol would be exorbitantly expensive. The price of most commodities and inflation will rise. Fares will increase even more. Interest rates will continue rising as stock prices fall - some as a result of obvious politically-connected manipulation. These are no doomsday cynical remarks - they are already happening right before our eyes. The current Finance Minister and the CBK leadership all have deeply vested interests (for instance in banks)...many short-termist. They are likely to engage in mere hoodwinking exercises. It is such gimmicks that writers like Jaindi, as supposed media watchdogs, should be revealing...and not fallutin' the Bankers-Association lie that regulating bank interest rates (as in most Western nations), can't work. It can, and actually does. CBK has failed to do it. Pragmatic laws should now do it. Whether introduced through a private motion, or embedded in the Finance Bill, Kisero's focus shouldn't be the legislative path taken, but a truthful analysis of the economic effect of such action. |
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hk
New Member
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Post by hk on Jan 4, 2012 20:52:54 GMT 3
The point is regulating interest rates without addressing the cause of high interest rates doesn't work and only distorts the market . the reason why the interest are high is because inflation is about 18%, whether the CBK had set the base rates at 8%, the banks would still be lending money at a rate higher than inflation. Ofcourse high interest rates hurt the economy but even worse its inflation. bank owners like kenyatta would actually prefer low rates cause that when they make more money. Ask any banker whether there's anyone borrowing money at the current rates.
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Post by job on Jan 4, 2012 21:23:38 GMT 3
The point is regulating interest rates without addressing the cause of high interest rates doesn't work and only distorts the market. Incompetence, complicity, or both, at the monetary policy committee of the CBK, which greatly contributed to the shilling devaluation and inflation, are part of why interest rates went sky-rocketing. Therefore you are right, in as much as regulating interest rates is important, addressing the cause of high interest rates is paramount. That involves fixing this (above) and other fundamentals. That's exactly what I stated up in this thread. Of course high interest rates hurt the economy but even worse its inflation. Bank owners like kenyatta would actually prefer low rates cause that when they make more money. Ask any banker whether there's anyone borrowing money at the current rates. Your assumption here is that banks like Kenyatta's only lend to market-driven (individual) borrowers. That's certainly not the case. The biggest customers providing billions of profits to Kenyatta's bank(s) are (a) government (in which Kenyatta himself writes budgets that leave huge deficits for domestic borrowing) (b) government-affiliated corporations and parastatals (c) private corporations with political connections to the current regime...etc As you can see from the pattern, Kenyatta's bank may thus have few customers (few corporate accounts) whose borrowing (profit-making) is not market-driven (by forces of demand and supply), but driven by budget policy decisions (Treasury), government-appointed parastatal boards, and few corporate boardrooms. In otherwords, Kenyatta can decide he wants to lend Treasury say Kshs 50 billion, then loan it out from his own bank, and charge the interest rates that he has helped escalate. The higher the interest, the more billions he rakes...his customer (government) is already guaranteed....his customers are not the Tom, Dick and Harry's running small businesses in Kenya. |
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Post by job on Jan 6, 2012 23:04:19 GMT 3
Parliamentary Budget Office
Discussion Paper on Interest Rate Increases DISCLAIMER
The Parliamentary Budget Office (PBO) is a non-partisan professional office of the Kenya
National Assembly whose primary function is to provide timely and objective information and
analysis concerning the national budget and economy. www.scribd.com/fullscreen/77376789?access_key=key-sq96am3y8z6icwgbmxz |
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