Jambaz Wants To Take Vumbistan " High Quality" Products Global

Govt to Set up Shopping Centers and Warehouses in US & 20 Other Countries

The government has proposed plans to establish about 50 commercial centres in different global countries to promote Kenyan goods and services.

As outlined in the Fourth Medium Term Plan (MTP IV) 2023-2027 launched on Wednesday this project will support the opening of new markets for trade which will boost the country’s economy.

“It also supports opening of new markets for trade in goods and services and accelerating export promotion across priority value chains: tea, dairy products, leather and leather products, edible oils, cotton, textiles and apparels, and construction/building materials,” read part of the report.

Some countries earmarked for commercial centre construction include Nigeria, Senegal, the US (Los Angeles, Dallas, New York, Chicago, Atlanta), Morocco, Algeria, South Africa, Ghana, Germany, South Korea and China.

The Jomo Kenyatta International Airport (JKIA)

Others include the Democratic Republic of Congo, Ethiopia, Angola, Egypt, the United Arab Emirates, and the United Kingdom.

Additionally, the government will set up warehouses and distribution centres in different areas across the globe.

The construction of the warehouses and distribution aims to enhance the presence, distribution and access of Kenya’s exports in international markets.

Kenya has selected the United Arab Emirates (Dubai), Saudi Arabia (Jeddah, Riyadh), Lagos in Nigeria, China (Guangzhou), South Africa (Cape Town, Johannesburg), Seol in South Korea and DRC (Lubumbashi, Goma).

The government will fund these two projects and expect to bring in billions between 2024 and 2027.

Per the report, the government set the indicative budget at Ksh3.73 billion to maintain the 50 commercial centres across the globe.

On the other hand, the government will set aside about Ksh3.392 billion for the 10 warehouses to be established. In the final year of the project, the government will spend about Ksh1.47 billion.

The Kenya Export Promotion and Branding Agency (KEPROBA) and the State Department of Trade will lead the two projects.

Meanwhile, another measure to be put in place to boost exports is increasing the total value of Kenyan exports globally. It will involve coordinating negotiations of regional, bilateral and multilateral trade agreements.

“It also involves the development of technology-driven market access platforms, organisation of informal sector into cooperatives, digitisation of MSMEs mobile technology infrastructure and linking MSMEs through sub-contracting and franchising,” read part of the report.

Meanwhile President William Ruto has directed all commercial state corporations to remit 80 per cent of their profits after tax to the National Treasury.

The president threatened to close all loss-making government institutions in three years as he pushes full steam ahead toward a balanced budget.

“We will give you instructions on what to do with the other 20 per cent,” he stated.

Speaking during a meeting with parastatal heads and CEOs of state corporations at State House Nairobi on Tuesday, March 26, President Ruto also ordered regulatory institutions to remit 90% of their surplus funds to the Treasury.

President Ruto stated, “Our budgets and expenditures must be subjected to rigorous audit to eliminate abuse of public resources. We will leverage on technology to maximise on the value for money and boost service delivery.”

In a renewed effort to increase government revenues, President Ruto stated, “The time is up for loss-making parastatals.”

The president affirmed that state corporations must stop wasteful expenditure, including financing largesse in their parent ministries and unnecessary procurement.

Established under the State Corporations Act, state corporations include; the Central Bank of Kenya, Kenya Revenue Authority, Insurance Regulatory Authority, the Competition Authority of Kenya, and the Retirement Benefits Authority among others.

These institutions have for long been a bone of contention on whether or not Kenyans are getting value for money.

President William Ruto

In the Consolidated Government Report 2020/2021, internally generated funds by state corporations stood at Ksh677,932 million, while the total transfers and subsidies to state corporations in the same year stood at Ksh377,990 million.

During the same year, profits declared by state corporations increased by a big margin to Ksh37,328 million from a loss of Ksh9,542 million.

Ruto directed that, from now on, government budgets and expenditures be subjected to rigorous scrutiny to reduce expenditure and stop unnecessary borrowing.

The total loans to state corporations stood at Ksh1,236,337 million as of June 30, 2021, of which total government loans amounted to Kshs.944,511 million.

Last year, the Prime Cabinet Secretary Musalia Mudavadi urged members of Boards of State Corporations to work and turn their corporations to profitability or face privatization.

“Currently, we have 79 State Corporations that are commercial in nature. Although these agencies have some strategic objectives, their main reason for existence is “for-profit”. They are meant to be a source of revenue for the Government through dividends to the National Treasury,” stated Mudavadi.

He added, “Unfortunately, only about 5% of the 79 Agencies pay any such dividends. In fact, over 40% of the commercial state corporations turn to the exchequer for financial subsidy.”

Also present at the meeting on budget cuts and planned privatization of some institutions were Deputy President Rigathi Gachagua and PCS Musalia Mudavadi.

Nimefika hapa (KEPROBA) nikashindwa kuendelea kusoma.

We got parastatals that wipe ass as well? Damn!! Bloated government this one.

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