Albeit being welcome by most of the analytics in the Economic sector, there is still a quibble that the head of state still need to do more to the public which will help in shielding Kenya from the adverse impact of COVID – 19 to the economy.

The measures announced by the President on Wednesday which included scrapping income tax on those who earn less than Sh24, 000 monthly, reducing corporate tax to 25%, cutting Value Added Tax from 16% to 14%, reduction of Turnover Tax from 3% to 1%. Voluntary salary cut of 80% for head of state and his deputy, 30% for Cabinet Secretaries and their assistants and 20% for principal secretaries still being major proposals.

Though considered to be positive by most economists, the PAYE relief will only benefit a few who are the low income earners and those who attract the 30% leaving out quite a number of people, mostly the middle income earners, this makes me come into consensus with the FKE chief executive Jacqueline Mugo’s remarks; that the government should have considered a domestic relief to all the employees.
Just to provide an insight on the reduction of PAYE from 30% to 25%, the difference in your tax liability is not going to be 5% as many understood it but it will be 16.6%; thanks to Mr. Kwame Owino’s tweet illustration.
Assume you earn Sh100
PAYE Liability = Ksh30 at 30% and
KSH25 at 25%

The difference in the amount saved under lower tax rate will be (30-25) = Ksh5

The difference in your tax liability will be 5/30×100 which is 16.6% and not 5%.With this reduction, an employee’s disposable income will be increased.

Employers having asked the government to reduce the VAT by a margin of 50% that is from 16% to 8%, the government only agreed to reduce it by a margin of 12.5% and not 2% reduction as had been literally interpreted by many. See the illustration below;

From 16% to 14% it is not a change of 2% but 12.5%
(16-14) = 2% ×100 = 12.5% Change.

Assume one wants to make a purchase of a commodity which costs Sh125
Vat Charged

Former rate = 0.16×125. =Sh20
Current rate = 0.125×125. =Sh15.625

Amount saved. =Sh4.375

The amount saved in the illustration above acts as a policy to increase an individual’s disposable income. Major implication of this VAT reduction is that it will drive down the prices and hence a rising demand of goods. It is important from the outset that there is a little doubt that permanent or temporary lowering of VAT rate on particular goods (or service ) sooner or later will lead to a reduction in the prices of good more or less correspond to the monetary equivalent of the lower VAT rate.
There is also little doubt that as prices slide, consumers demand for this particular good or service will sooner or later expand.

Consumers switch part of their demand towards the good with the lower tax rate because the prices are lower than before. Production and employment in the sector producing the good will correspondingly expand to meet the higher demand. If consumers react only weakly to lower prices, production and employment will not increase significantly, a true replica to the case for basic goods, for example food as consumers prefer to preserve their level of food consumption and use saved expenses to increase other types of less basic but more luxury goods. In contrast which best suits our current state of affairs – that is the COVID -19 crisis, if consumers act strongly to new prices due to a reduction in the VAT i.e. if consumption is price elastic, production and employment may increase significantly.

A study by Copenhagen Economics indicates that if production is very labor intensive, there seems to be a strong production and employment response of lower VAT rates in the industries affected, but since we are the victims affected by this crisis which has led to a curfew an euphemism for lockdown whereby those labor intensive production industries employers are forced to establish shifts and reorganize their operations and some are even laying off staff.

Curfew can be termed as a gross economic miscalculation step taken by the government while lowering VAT at the same time. I couldn’t agree more with the government on reduction of the VAT but we should ensure that policies passed are not counterproductive.

A reduction of the Turnover Tax from 3% to 1% is neither a good move by the head of state. As a result of this curfew nightmare, the SMEs which is the main sector paying this tax are really between a rock and hard place since this is the moment they will even be forced to make sales at a loss but will still be forced to pay this tax . The government should have considered scrapping the Turnover Tax altogether since it is charged on total sales.

Before time is overdue, I hope the government is coming up with some economic measures to save the MSMEs which are at their nadir and shutting down due to lack of cash flows. A notion that these MSMEs are informal, unregistered and unorganized enterprises that do not pay tax is not a valid report at all. According to KNBS MSMEs survey in 2016 there was 1.6Million licensed MSMEs which have employed 6.3Million people that are over and above the formal private sector three times, paying 34billion tax a month, Sh270billion a year which in 2016 was 23% of tax revenue. These MSMEs were paying workers/ owners Sh10billion a month and estimated to have contributed 1,780.0billion compared to Ksh5668.2 billion for the whole economy. See the table below.

It is understandable that there is a limit to what the government can do but these measures are not yet enough. The government should be ready to do more as situation unfolds because all these are to the benefit of the citizens, economy and to the government itself.

Written by
John Andele
I’m primarily a Finance Scholar just getting started in Finance academia but also interested in reading and engaging in all sorts of social commentary.


While Churches, like Caesar’s wife, must be above suspicion, pure and honest, my sources reveal that the conduct of a single church could lead to a huge blow to the entire religious society and erode public trust in the institution.

Imposing taxes on these mushrooming ‘churches’ will be justice enough to them since many self-proclaimed pastors have turned each and every square room around your rented house into a business center in the name of ‘where two or more meet the holy spirit is amongst them’ but when you take a keen look into that square room in the ground floor of your house is that what you see even close to worshipping?

Many critics and naysayers are not going to agree with my school of thought about the tax to be imposed onto these churches. See, that church started this morning is just a branch of that which was started last year, but due to wrangles between the pastor and the woke individual who is not comfortable with how the church affairs are carried out, he ought to rather ship out secure a room and start his own ‘church’ rather than stay in a place where the minority voices are always futile.

With the spiritual knowledge and interpretation those woke individuals have gained from the Holy Scripture overtime, they’ll be recruiting their ardent minorities as the founding members of their churches who at this point will also act as their lap dogs. Most of my readers know that this has been the main source of chaos around their dwelling estates, the recent one was seen in Mombasa, Kenya where the pastor stabbed his wife during a church service on the pulpit and then slit his throat main reason being dispute over the ownership of the church.

A panacea to this never ending problem would be imposing tax to these mushrooming churches. Just as the Turnover Tax to the SMEs, the taxman should come up with a name of tax which will be more apt for these churches. The tax will be charged on any donations and contributions these churches receive at a certain percentage and is to be filed after a specified period of time which will be stipulated by the Taxman. Taxation will not only serve a purpose of bottleneck, but will also be for productivity purposes of a countries economy. This will be able to reduce conflict and make the churches to act as one by serving their main sole purpose of preparing the individuals in readiness for Christ’s second coming. In addition, this will bring back the worshipping modesty, decorum and discipline which befit the churches and by having few main or mother churches which serve their main function as stated by the Holy Scripture which I won’t mention today, we will once be in the forefront of serving the sole purpose of religion.

“You know these days the church even organize fundraising with main agenda of purchasing pastor’s car” a source said. Under Chapter 470 of Income Tax Act of Kenya, donations made to charitable organizations which exist with the purpose of eliminating distress and poverty are always Allowable Expenses but is that the main purpose of this donation made to pastor? Should it be classified under Non Allowable expenses? The Taxman has a best answer.

I know religious and rights groups will say this idea will be an infringement on the right to worship but what matters is that this imposition will be timely in this period when the country is at its nadir and spending 763 billion for debt repayment and pensions. Statistics shows that the number of these mushrooming churches is beyond imagination. Are these boreholes that give people water? I don’t think we have as many boreholes. Do we even have as many factories? The taxation will help tighten rules on registration and functioning of the churches as my idea puts it through any church which is found not to have an active license or up to date tax records must be charged accordingly and these licenses must be renewed annually if not monthly.

Just as mentioned earlier, you will find such a mess of churches in society which has nothing to offer as ours. In Kenya and Africa, there are those who want to see us in such chaos and when authorities intervene and stop them, they lament that it is a human rights abuse. People should have a right to worship in whatever church but not in a mess or fraud.

Our country has not yet reached level where it needs all these churches, such a big number of churches is not even suitable in bigger and developed economies that have means and systems to sustain them, this is one of scenarios on how development can be explained. Kenya still doesn’t have the luxury and means to sustain such churches. It is not rocket science to interpret the graph below.

Let me finish with a personal anecdote. I was born and raised in this country and I’ve been able to see these churches sprout each and every day with thrust, but the most mind boggling thing is that these churches aren’t serving their main purpose. A lot of people fail to do background assessment when they want to join these churches and hence end up regretting their gross miscalculation in spiritual decision making. Just like Dr. David Ndii would put it, No individual owes society more contribution to change than any other. Moreover no one has a right to make demands of others. It’s not an entitlement. You do your bit as you see fit. I do mine as I see fit, but until you take part in yours, we will continue to repeat our horrible socioeconomic mistakes.

Written by
John Andele
I’m primarily a Finance Scholar just getting started in Finance academia but also interested in reading and engaging in all sorts of social commentary.


We all know that runway modeling creates unnecessary standards of perfection for girls and maybe boys to meet. However, a frequently unstated problem is the effects of this industry on its own participants; the models. The pressure put on runway models to maintain the proper image is a whole other issue in and out of itself. Remember that little girl who told you she wanted to be a model? I would tell her to think again. The ‘glamorous’ life is riddled with deceit and misery. The Crayon modeling club has been on keen look in maintaining their diet of a liquid diets 9 days before important show and they work twice a day ; 12 hrs. Before show, they stop drinking entirely. The diet has a positive impact and that’s why many of these models have always been meeting the standards for the shows they contest.

Not being able to do the above will make matters worse for the new comers in the modeling industry hence very few of them will reach an extreme amount of success in the industry. The pressure albeit shouldn’t be so much high for those who don’t feel like being in the industry. The job of modeling shouldn’t require such physical and mentally detrimental upkeep as the Crayons have always put it but Mr. Phil will ask you, is it worth it? If yes what follows for the Crayon’s is a big win. “You cannot expect 1000 dollars if you put 1 dollar effort in an activity,” Phil said during the interview.

Even after putting so much physical and mental training towards the highly contested Mr. And Miss MMUST in the recently concluded MMUST Tamasha festivals, The Crayon’s modeling club have been baffled if not dismayed by the alleged cancellation of last week Tamasha results. The post for which one of them, the renowned Sam Mdoe was contesting for. Clear guidelines were put in place for the Mr. and Miss MMUST – competition selection of judges who were to preside over the contest. The Entertainment Director Bahati Mongare was to assist in coming up with a list of competent judges, but due to the perennial incurable disease with the name corruption which thrives well in such areas, the current Mr. MMUST – Philip Abuto had mistrust issues with Bahati being the only person to come up with the whole team of judges and raised a concern over this, he proceeded and reported this to Dr. Opunde – The Tamasha committee Chair. Dr. Opunde being a noble person never questioned this much because he wanted to provide a fair competition ground for the contestants. Each person was given an opportunity of coming up with one judge, that’s Bahati, Phil and the School. Main aim of this being maintenance of high standard of transparency and fairness in competition as was wanted by Mr. Phillip Abuto.

Just after Sam Doe being crowned Mr. MMUST to be, Director Bahati Mongare’s speech was out with contemptuous innuendos about the looming corruption in Crayon’s modeling club and whining about Phil bringing a ‘goon’ as a judge who seemed to have predetermined event’s winners and terming the whole event to be a fait accompli. As put by Bahati in his speech, something which was never so according to the people interviewed. The judge whom Phil selected to preside over the contest is said to be more than competent judge who has been in the runway modeling industry for quite a period of time and knows the minimum standards required to be met by one to win such awards. Being referred to as a ‘goon’ is the most profane and defaming vocabulary which was least expected from Bahati who is a public figure not only to MMUST but to the entire Kakamega County.

A Relationship stirred with misunderstanding?

Mr. Mongare has always proved not to be even with the outgoing Mr. MMUST. Though they are in the same field – Bahati being the Entertainment Director and Phil being Mr. MMUST, they ought to be working together to achieve their main big agendas for the school being men of impeccable leadership skills. A suggestion raised by Mr. Phil for Mr. and Miss MMUST to at least be given some token for representing the institution in some official occasions was met by a big rejection by the one Bahati Mongare who was expected to be the person who could push for that agenda to be passed. Just to mention but a few the relationship between the duo has always been marred with constant difference in opinion and is said to be at the end of the totem pole – a cruel marriage whose divorce is being talked over. This industry is supposed to represent the society. A change engineered by Phil will greatly have impact in MMUST as a whole that’s why the outgoing Mr. and Miss MMUST had been representing the institution in different official occasions.

Bahati and Doe

The two had built a good rapport but not until they got themselves in the same competition where both were contesting for Mr. Medic and Doe emerged victorious something which was never expected by Bahati since the judge was a close ally to him. Since then, the two models have tended to be odd with each other and this may have hugely influenced the cancellation of the highly contested Mr. and Miss MMUST. Mr. MMUST to be Sam Doe has been in the modeling industry for quite a long period of time and has largely gained experience and maintained a proper image for his talent. It can be said that that Doe is facing the harsh or the uncomfortable realities of being a runway model. Personal vendetta has always taken the batter part of the talent and modeling industry. It is not amazing to see this happening in MMUST but it is quite sickening. It is also alleged that Bahati had someone whom he wanted to be crowned Mr. MMUST over the same occasion and to his dismay this never happened making him have huge egg on the face.

Doe, the model recently crowned Mr. Signature knows all the minimum standards to be met by one to win these no mean feat contests. It is quite evident that the cancellation of winners for Mr. and Miss MMUST is a witch hunt against Mdoe and Phil. Meanwhile as we are waiting the senate and commeetees’s proceedings redults the main final outcome maybe the current Mr. and Miss MMUST reigning for another one year or the Tamasha winners being crowned Mr. and Miss MMUST. Which one do you think will carry the day?
Compiled by John Aseto.
The writer is an independent blogger from MMUST

The Deepest Craving for Self Relevance in all Aspects. Economics Related.

It has always been clear and so evident that in all our life, our living and everything we undertake in our daily lives we do with a clear intention, albeit any opposing view from the life
participants who may not have seen this. There is a paramount purpose my readers can attest to
my hypothesis.

The deepest craving of human spirit is to find a sense of significance and relevance. The search
for relevance in life is the ultimate pursuit of any man, woman, youth even a child of a tender age. This internal passion is what motivates and drives every human being, either directly or indirectly. It directs his decisions, controls his behavior and dictates his responses to his

A classical study of this kind, The Pursuit of Purpose published in 1992, was carried out by
American Evangelist and advisor Myles Munroe. It postulates that the need for significance is the cause of great tragedies. Many suicides and attempted suicides owe their manifestation to the
compelling need for satisfaction. Many mass murders and social killers confess the relationship of their antisocial behaviors to their need to feel important or to experience a sense of
self-worth.(M. Munroe 1992, pg 4-5)

However, unlike a century ago where morals were upheld and societal values regarded as the key
principles of life, this passion has perpetually lead to an indication or shown indication of laxity
and complacency in keeping up to the societal values in some way, something that may come to haunt this generation a few decades to come if not managed now.

Myles went much further saying that this passion for relevance and sense for significance makes one race or ethnicity elevate itself above another. It also gives prejudice and causes the fabrication of erroneous perception and that result in grave injustices and the conception of abominable dreams and inhuman behavior. This desperate desire to feel important and relevant
to one’s existence also cause the sacrifice of common sense, good judgment, moral standards and
basic human values, In addition it makes one to live his life falling on his soul to protect or do whatever everyone else like and in the long run it suffocates one and makes him miserable because of the constant sacrifices.

It is seen as the fuel for most capitalists and progressive economies. This is argued out by David Ricardo an early thinker in Paul Ormedi’s book The Death of Economics: Ricardo explains this by the theory of Comparative advantage, which is still the basis of the international trade theory in economics today. Some could not imagine that a country, such as Britain in the early nineteenth century with a lead in technological development could still m produce any given product rather than leave at least some for the economic benefit of other countries.

The theory says that even in those circumstances everyone could benefit from trade. The most efficient country should concentrate its resources on producing those goods where the gap between its efficiency and those competing nations was the greatest. The less efficient countries should produce those products where the gap was smallest. In this way, more resources could be concentrated on those goods, which could be produced the most efficiently of all. Still in this you get the most efficient country – Britain still producing at both aspects in areas of its efficiency and the areas where it is less efficient at leading to more and more rapid growth in its economy than the other countries. This goes deep to the purpose of relevancy and corporate fulfillment.

The Central theme of individual and corporate self-relevance and fulfillment is precisely to show there are propensities in human nature which incline us towards society, such as fellow feeling and the desire both to obtain the approval of others and to be worthy of that approval. For Adam Smith in his best-selling book The Wealth of Nations, the sentiments of an individual to another exercise a crucial influence on the self-control and restraint of individuals in their behavior towards others.

It is believed that many behavioral problems of fulfillment would be eliminated if only people could see themselves more clearly ’’in the light in which others see us.’’ Importantly, the tendency for individuals to control their behavior because of the options of others is not seen as a pragmatic act, but one which arouse quite naturally. In other words, self- restraint could arise in a system in which people followed purely their own self-interest, simply because of the practical value of such restraint. Life could be intolerable if everyone pursued a career of fraud, murder or any other civil wrong. For me, self –control is not dependent upon self-seeking evaluations, but is a natural integral part of human nature.

The enlightened pursuit of self-interest is seen as the driving force for a successful economy, It has been found that the craving of one to become more relevant in the society will lead him to work or do an exemplary work in in owning or making of more wealth. When this is seen by many in the same set up to be working, there will be an interest from them too hence making them to venture much over the same thing and this becomes a going concern from one generation to another and becoming perpetual, the definite result of this can be more inventions leading to employment opportunities and thus a growth in the economy.

In conclusion, it has been a setback for the government to fix the current problems related to this big craving therefore state has a very important role to tackle this problem through going back to the drawing board and using the virgin ideas which have not been tried, by providing a level of education sufficient to render every individual capable of exercising an appropriate level of intellectual and social “virtue.” The concerned bodies in the state should even extend its range of activities into the cultural sphere, in order to raise the overall intellectual level of the population to benefit of all and for everyone to remain sophisticated on this. In addition, in my humble submission, this deep desire remains relevant and to be worthy of approval runs deep individuals and is seen as the main motivator of mankind. It is the source of enthusiasm and perseverance and can absolutely not be disputed. It defines you and thus moves you to another standard of achievement if you have a purpose!

Cited works

Paul, Ormerod. The Death of Economics. New York; 1997. Print.

Myles, Munroe. The Pursuit of Purpose. Bahamas: Nassau; 1992. Print.

Adam, Smith. The Wealth of Nations. New York: 1776; Print.

Band – Aids and Bullet holes.

…wake-up call for people who go through life thinking that the words they say don’t do any harm.

This is a slightly revised version of an article with this tittle that appeared in the odyssey ( 2nd February 2016)

“If you’re reading this, you’re probably not living under a rock, and if you’re not living under a rock, you’ve probably heard Taylor Swift’s song, “Bad Blood.” The song is allegedly about a feud between Taylor Swift and Katy Perry, but I don’t want to talk about that. What I do want to talk about is the importance of this song and more specifically, understanding the lesson in the lyric, “Band-Aids don’t fix bullet holes.”

What does “Band-Aids don’t fix bullet holes” really mean? Some might interpret it literally, some might just sing along and not interpret it at all, and then there’s those of us who look for meaning in the metaphor.
To me, “Band-Aids don’t fix bullet holes” isn’t about an actual band-aid or an actual bullet hole. To me, it isn’t about the injury or the means of fixing the injury at all. To me, it’s about the mindset of the person causing the injury.

Here’s the thing. When someone uses a real weapon to hurt someone else, they know exactly what they’re doing. They know that it only takes a few seconds to cause damage. They understand how long the recovery is going to take. They are fully aware of the pain that they are inflicting on the other person.

I don’t know about you, but I was raised to believe that words are weapons. Yet for some reason when people use their words to hurt someone else they act like they don’t know what they just did. They think it takes more than one shot to cause any kind of damage. They assume that the recovery will be quick and easy. They simply don’t think it’s a big deal. And it isn’t a big deal to them, because they’re not the one bleeding out.

They’re not the one in shock from the unexpected shot. They’re not the one with the aching pain that won’t go away. They’re not the one holding back tears that burn their eyes, tears that will soon spill over uncontrollably and lead to damp pillowcases and chapped cheeks.

They’re not the one with the bullet hole.They’re the one trying to stick a Band-Aid on it and walk away.
Now think about that in a literal sense. Think about how silly that sounds. At a very young age we all learn that sticking a literal band-aid on a literal bullet hole won’t do anything, yet somehow we’ve convinced ourselves that word-wise it’ll do the job and everything will be just fine. It’s time to stop believing that lie.

If you choose to walk around using your words as weapons, please stop expecting something as small as a band-aid to patch up the damage that you’re causing. Please understand that it doesn’t take long to hurt someone. Stop living under the illusion that it takes years of harsh words and petty comments. Yes, sometimes it can take longer because some people are stronger than others, but we’ll never fully know one another’s strengths and weaknesses, so why take that chance? Is it really worth it? No. I promise you it never is.

It always has and maybe always will blow my mind just how fast “mad love” can turn into “bad blood,” but I truly believe that if we try to understand the weight of our words before we say them, that if we choose to think before we speak, that if we start to take emotional injuries as seriously as we take physical injuries, then maybe we’ll be able to wash our hands clean.”

It must be you.

Understand : as an individual you cannot stop the tide of fantasy and escapism sweeping a culture. But you can stand as an individual bulwark to this trend and create power for yourself. You were born with the greatest weapon in all of nature – the rational conscious mind. It has the power to expand your vision far and wide, giving you the unique capacity to distinguish patterns in events, learn from the past, glimpse into the future, see through appearances.

Circumstances are conspiring to dull that weapon and render it useless by turning you inward and making you afraid of reality. Consider it war. You must fight this tendency as best you can and move in the opposite direction. You must turn outward and become keen observer of all that is around you. You are doing battle against all the fantasies that are thrown at you. You are tightening your connection to the environment. You want clarity, not escape and confusion. Moving this direction will instantly bring you power among so many dreamers. ( An excerpt from The 50th Law by Robert Greene).


Whenever we as human beings talk, walk, associate and even give out our thoughts, we may think we are living our lives responsibly, and the noble way we should, there is always someone out there who looks you with disbelief and series of lyrics of your song with different versions of yourself, a lot of perception and prejudices. I just came to realize this the other day when I told a friend the I want suffering from some back pains and do you know the first thing she asked? Have you been suffering from some chronic illness before? Look it was only the first time I was talking to this friend about my health related issue just for her to know. Maybe I wanted someone to console me, someone who may assist me at such times, a friend and I mean a FRIEND who can be “part of me ” and realize that I needed some emotional, spiritual, and even physical support at that moment.

So why all these, why perception or rather irrational judgement towards someone whom you don’t even know better? Who have not even exposed most of his or herself much to you? In advanced Business Studies, Perception has been defined by Robin and Judge as the process by which individuals organize and interpret the environment through their various senses. (Essentials of Organization Behavior, 10/e. Stephen P. Robbins & Timothy A. Judge. Chapter 3) Human beings always rely on the senses of sight, touch, smell, taste and hearing to get stimuli and make meaning out of it. (Human Physiology /Senses)

There are factors which influence perception and they are always three which include; factors in the perceiver, factors in the target and lastly factors in the situation. I’ll just dwell on one, that is Factors in the target. Under the factors in the target there is one known as Appearance. Someone who is neatly dressed may be welcome in an office while the other one who is shabbily dressed may not yet he is the one bringing business to the company.

Maybe the friend had identified or noticed my physical appearance in the previous paragraph as a tall slender guy and not only slender buy also somehow weak in nature and that’s why she had perceived or concluded that I may have been suffering from some chronic illness as opposed to someone who is huge, masculine and even with some six PACs who she may say is more than healthy, that’s her perception according to someone’s outlook.

Now how can we stop or rather adjust ourselves to this circle of perception or of prejudice in out daily lives or in our neighborhoods because it is something which at times may even create enemity between our friends and us or even the family, it may break our raport with those whom we have close ties with. We may perceive that someone’s character is the way we have make it to be through our own perception. Actually this at times may absolutely be null. After staying with the person we had perceived is related to some characters in his life we may realize that we were actually wrong at the first place after close interaction with the target [person or object]. At times you may have seen someone with dreadlocks and relate him to be a drug addict and even to be smoking but after close interaction with him or after delving much into his personality we will realize that we were wrong.

Close relationship or interaction with the target will precisely be our alternative version which will make us end perception on people and any other thing. This may actually be done with us in person or by another party somewhere who may have been in close relationship with the object. This is the only way which may eliminate or do away with perception in our lives.