Wednesday, 5 October 2011

Cheating On Kenya


The most basic of human needs are food and shelter (clothes are debatable). From the time we were born, food became crucial for our survival and it shall remain so until our last breath. On average, a venture into food production or supply will gain one an income able to support their lifestyle. Shelter is a whole other story. Some of us are IDPs in our own homes and yearn the freedom associated with owning a house or a piece of land.
Sad to say, setting aside part of your salary to purchase land in Kenya might be in vain. A quick look at the current market value of land in, lets say, Kiambu reveals that land value has shot up four-fold in the last 3 years....and is still rising. In 2008, a sum of Kshs.5M would have acquired you 1 acre NEXT TO THE ROAD!! Right now, a minimum of Kshs.21M is required just to get the seller interested. As we move closer to CBD, the land prices get exponentially higher (translated: really f***ed up). But who says we should limit ourselves to Kenya??


SOUTH AMERICA:

I'm talking about Brazil, Uruguay, Paraguay, Argentina, Chile, Ecuador, Peru, etc. Land here is quite cheap compared to Kenya, and ranges from $4000 to $54000, the former being for 2+ acres of farmland in Argentina and the latter for a beach front in Ecuador. That's Kshs.400,000 for 2 acres of arable land on which you can grow sugarcane, soya, sorghum or whatever the climate sees fit...mostly grapes in Argentina. On top of earning foreign currency as a side job, you can build a house for vacation purposes. A few things are as relieving as going on holiday, say beach front house in Ecuador or vineyard in Argentina, with accommodation expenses fully covered. Many a country in South America has been hit by over 500% inflation and the currency value fluctuation might raise a few eyebrows. Couple that with trust issues people have, and you have yourself every reason not to go there. Like every other exchange, know the right people and you'd be surprised the size of land you can get.

OCEANIA:
New Zealand, Philippines, Fiji. Hawaii, Singapore, Papua New Guinea, etc. Oceania has some of the most beautiful islands on planet earth. In Makati City, Philippines, there's an ongoing construction that could see you own a condo for $60000 i.e. Kshs.6M. The best part: 0% down payment. You pay 40% during the construction and the remainder 60% upon delivery of the condo.....NOWHERE in Kenya can you find such an offer. And if you do find one, it's more and more of a suspicious transaction.And why should you trust this construction in Philippines?? Coz they're the ones who built the Niagara Tower and Sutherland Tower...to name a few.

Niagara Tower

 Sutherland Tower (New Zealand)


 Land ownership is in most instances much cheaper outside Kenya. Google a few places and place that call. You'd be surprised at how relatively easier it is to own one.


Monday, 19 September 2011

All that power

"No one man should have all that power" - Kanye West

I was reminded of this song earlier today when I woke up to the news of yet another increase in the cost of electricity in Kenya. It has gone up to Kshs 8 per unit and reasons given are basically the weakening of the shilling which has driven petroleum costs up and the drought that saw shortage in electricity supply. I've b****ed about a lot of stuff, but this move by the power regulators will certainly take the cake. Why?

Electricity forms part of the basic basket for not only households but manufacturers. Unlike sugar and flour, this kind of increase affects ALL commodities. A rise in input costs certainly translates to an equal if not higher increase in that of the output...in Kenya anyway. All costs will be passed onto the consumers, as explicitly announced by the Kenya Association of Manufacturers last week. Which means that your current household budget -after weeks of adjusting- is STILL inadequate.

Due to over-reliance on hydroelectricity and diesel run generators, the energy sector is now looking into investing in wind, thermal and nuclear energy to meet consumer demand. What I don't understand is why they're not considering solar power...and why the hell nuclear energy is even on the list. Kenya lies along the equator hence receives sunlight for the most of the year. Solar panels are therefore our best fit. Greece manufactures them in the thousands of products. Given their current crisis, I'd say we have more bargaining power and could buy from them at a cheaper price. The EU is currently being wooed into investing in Greece's energy sector since it faces over 300 days of sunlight in a year...yet they ain't even along the equator like us!!

Fellow Kenyans, let us invest in solar panels now and take some weight off Kenya Power's shoulder.God knows we can't stand inefficiency coupled with increased charges.

Monday, 12 September 2011

Patriotism I

I love my country, love iiiit, love iiiiiiiiiit! There's many things I believe can be done better to improve our status and decrease our annual losses. I'd do anything to save my country provided it's within reason.
Sugar has been the cream of most conversations in Kenya for the past month, and for good reason. 1kg of sugar goes for between Kshs. 200 - 220 ($2.00 - $2.40) up from Kshs.75 in January. Reasons given by millers range from shortage in sugar cane supply to increased pay to farmers. As part of the consumer basket, it has obviously decreased disposable income for most households. Whereas a 2kg pack had a budget of Kshs. 150, we now have to spend between Kshs. 400 - 450 (roughly a 3-fold increase). All this I attribute to lack of accountability. Lemmi explain;
The Kenyan government owns 5 sugar mills of which 4 are producing below half their capacity. These very mills have a debt of Kshs. 50 billion which is yet to be cleared since 2007 when protection for the local industry was given via a COMESA agreement. Of all the mills in Kenya -8 in total if I'm not mistaken- Mumias Sugar Company is the most efficient but still produces way below its capacity. Kenya in total requires about 12 factories with a total labor force of about 40000+ to meet its current sugar demand. We've had close to 5 years to improve our milling technology such that more sugar can be produced from one tonne of sugar cane. This change is yet to be seen, and I'm surprised there's been no media coverage or follow-up on whether the millers have been keeping to the COMESA agreement. 5 years down the line and little to no change has occurred. Our sugar millers also rely heavily on farmers to supply their raw materials. I really don't understand why they can't PRODUCE THEIR OWN sugar cane. It's like how parents will call for you when you're busy just to change the channel or give them the remote...fcuking ridiculous!!!
I won't delve into suitable technologies coz that's just another headache. I'm glad the protection COMESA offered to the sugar industry is coming to an end in March 2012. Our new neighbors, South Sudan, produce sugar in excess and I'm told can currently retail it in Kenya at Kshs.40 - 50 ($0.50 - $0.60) per kg. As usual, a few politicians are already looking to extend the protection offered to Kenya in order to protect the sugar milling industries. Wouldn't it be better though, to import and retail sugar at Kshs. 50/kg and increase our disposable income? God knows I can use that extra Kshs. 300 to improve my lifestyle. South Sudan is also not proficient in milk production. I've seen a couple of STUPID FARMERS pour their milk in protest of purchase prices. Hows about we export milk to South Sudan in exchange for sugar?? I am a Kenyan student and damn patriotic to my country. I WILL to stab the sugar industry if it means the potential for growing my country is higher.