Taxing corruption
So Parliamentdealt another blow to the war on corruption by denying the Kenya Anti-Corruption Commission with the authority to investigate crimes that happened before it was formed (2003).
KACC as a body has aimed high (going after high profile figures – CEO’s, Ministers) but mostly caught small fry leaving many Kenyans dissatisfied and who now consider the Commission to be a waste of money
But there’s another public institution – the Kenya Revenue Authority (KRA) that has achieved milestones in the war of corruption that KACC can only dream of. They have gone after untouchables, and some lawyers and MP’s have had their accounts and salaries frozen and asset seized. Now if only they could publicize this.
Why not legislate a tax on corruption, so if you’re named, you could lose 90% of property, leaving the accused with 10%? This is humane, but is as good as taking back everything – and bypassing court processes. Hitting Pattni with a tax bill would end 10 years of court injunction and delays and realize some significant gains in cash recovered.
Kenye Re slipping away
My strategy to bypass the IPO of Kenya Re not working as well as I thought. I placed orders at 13 shillings, only for the share to zoom. It’s tempting to buy the shares at 17 or 18 and then the balance when they drop (if ever).
Unit Trust get more accessible
Market leader, Old Mutual, has lowered their minimum entry amount for unit trusts from Kshs.500,000 to Kshs. 200,000 (about $3,000). The offer runs till December 2007.
Banks, I bypassed the Kenya Re IPO too, and for obvious reasons..allocation and tying up capital.
In regard to OldMutual bringing down the entry amount, this is good but I guess the question should be which Mutual fund as the best returns over various tenors?
Where smaller outfits such as Zimele become strong.
Kenyan government consistently takes 3 steps back for every half-step forward. Every time they avoid and actively stonewall anti-corruption agendas, they hurt not only the national psyche but also smear their international reputation.
I’ve been following a major corporation’s interest in setting up in Kenya. They backed out of establishment in 2005, coincidentally(?) after anti-corruption efforts were being ignored (blocked). Now after today’s news, they will probably look elsewhere – again.
I truly wonder: what hope is there, what can be done?
Was ringera ever interested in catching the big fish?
Wako… less said the better!!!
If not for John Githongo we would have known almost zero!
Sad, sad, sad… the MPs were bought off…
Banks.
Can you give a run down of how the unit trusts providers stack up? Strengths, weaknesses? Some time back you did the same kind of analysis with investment banks that painted a lovely picture.
Why would Old Mutual reduce the entry amount for a period? Could the high end clientele market be stagnating? Or are they testing the “smaller fish” for profitability?
Should I go to Old Mutual simply because they are the oldest/biggest or are their tangible reasons?
I don’t believe in doing something just because that is “how it was always done”. In your opinion do the new providers offer a difference to Old mutual?
In my research there is a difference between unit trusts and mutual funds which everybody keeps glossing over in terms of how the vehicles issues shares. Are the two trully interchangable in this market?
This sector of the market is not covered well and I come looking for information
Riba Capital: Will aim for 16
E-Nyce: Sorry about your investor pals, urge them to reconsider (we’re not as bad as Russia;->)
coldtusker: I doubt if he was ever interested. That job is an expensive albatross
don: will try and do a write up on unit trusts in a few weeks. The Thursdasy Nation did one a few months ago, I recall
KACC has no teeth. As you say. it shot high but go nowhere. Its a disappointment a real disappointment. I cant see this issue being seriously tackled without significant changes in the leadership of the Kenyan government.
i am interested in those unit trusts i eagerly await that write up!