Download End corruption to improve economy

The Standard ­ Thursday
Date: 12.02.2015
Page 14
Article size: 100 cm2
ColumnCM: 22.22
AVE: 53333.33
End corruption to improve economy
The National Treasury Cabinet
Secretary Finance Henry Rotich has
been forced to introduce tax on pe­
troleum products by the IMF in ex­
change for a Sh63 billion 'precau­
tionary loan' to protect the falling
shilling.
This move, expected to be ef­
fected in June, will increase infla­
tion and raise cost of goods and ser­
vices by up to 16 per cent in many
instances.
The dollar loan became neces­
sary after the economy deteriorat­
ed due to factors like fall in tourism
and tea earnings and other factors
like low exports.
You would be excused for think­
ing that the global low oil prices
would help our economy but a re­
port by the audit firm Deloitte says
that Kenya has failed to invest in ad­
equate storage facilities and there­
fore this once­in­a­lifetime phe­
nomenon will bypass us unnoticed.
This jaw­dropping reality has
shocked many considering that the
Government has not bothered to put
in place mitigating factors.
Tea prices have fallen due to a
glut whose major contributor is Ken­
ya itself. Nobody bothered to talk to
farmers through KTDA over this.
As the shilling faces a free fall,
reports from Swissleaks reveal bil­
lions stashed abroad by Kenyans,
many who cannot explain how they
got the money.
The Government should ask the
taxman to open dollar denominated
accounts in all 54 tax havens, then
dust the report by Kroll and Associ­
ates in an effort to recover the esti­
mated US 400 billion dollars cited in
the report.
Our economy stands to gain a lot
if corruption is tackle. And to do this,
the rule of law must be enforced 100
per cent.
If you look at the cause of all our
problems, it is corruption whereby
civil servants divert funds to sec­
tors where they can force bribes to
be given.
In other words, our budgetary
process is geared towards bribes.
Kariuki Muiri, via email}
Ipsos Kenya ­ Acorn House,97 James Gichuru Road ­ Lavington ­ Nairobi ­ Kenya