Dear Mr. President,
There are things that your administration is doing that even it’s ardent supporters are beginning to think twice… It’s unbelievable!
1. You have increase the cost of fuel through VAT. That has a direct effect on Wanjiku. Everything that depends on fuel goes high. From basics like transport to food, from manufacturing to electricity bills.. On this you have touched a raw nerve. It will definitely backfire on you and your legacy. It will not take long.
2. You have put measures to abolish the interest rates cap… Reason being that the millionaires bank owners have insisted so, the IMF has dictated so, the world bank has begged so… This is despite the fact that banks continue to record abnormal profits in Kenya …
If your government wanted the interest rates cap to succeed you could have stayed out of domestic borrowing as promised. . Its that simple. You cannot borrow the Euro bond then come locally and borrow from Equity and expect that Wanjiku will get a hearing from the banks. That’s absolute absurdity. When the government wanted to justify it’s reasons for getting the EURO BOND you told us that you wanted an avenue where Wanjiku would benefit from low interest rates … You said that in the past, governments have crowded the domestic borrowing markets to the disadvantage of Wanjiku. .. You promised us single digit interest rates before 2017… and double digits economic growth. Today six years down the line even the 7% economic growth Kibaki achieved in his first term is proving difficult to you.. yet his lending to the youth through the youth fund was 8%.
3. Plans to increase tax on mobile money transfers and bank transfers. This will definitely hit the business community real hard. It’s absurd that a government that prides itself in creating an atmosphere of ease in doing business is doing everything to make doing business in Kenya difficult. Is this government going broke? Or is it doing everything to make itself very unpopoular? Or Is it that since you crossed the bridge you now don’t care and don’t listen anymore?
I have always said that for any country to achieve real middle income status three things must be checked
1.low Cost of energy.
2. Good infrastructure
3. Low Cost of credit (single digit).
Mr President, your administration has only gotten one thing right- Infrastructure. That’s 30% a D-.
Mr. President, once you have the three in place let the private sector drive the economy for you. Dont compete with the private sector… and please if you care about your legacy and the low and middle business community, Forget about overtaxation…and going back to obscene lending rates.. that will only hurt the economy.
William Samoei Ruto
Yours ardent supporter.
Geoffrey Wainaina son of ‘Wanjiku’