It pisses me off when the government throws away good money after bad money in these money pits.
Link: https://www.businessdailyafrica.com/corporate/companies/Mumias-pegs-its-operations-on-Sh2bn-State-funding/4003102-4692174-14vhetj/index.html
Mumias wants another 2 billion from treasury for revival. These three companies have costed the taxpayers billions of shillings in the last 20 years and we have nothing to show for it. Basically, the government is in a big net loss position in these companies. There might be some reason of not letting KQ die for strategic reasons and other invisible benefits, but Uchumi and Mumias should definitely be done away with and sold to private investors. These two have been used to enrich managers at the expense of taxpayers. In fact, the government should consider privatizing all businesses that do not have a strategic importance and are loss making. Uhuru has nothing to lose by closing down these two companies because they cost us money, and he isn’t going to be on the ballot in 2022. If he is serious about fighting corruption, selling these two companies to private investors is the best move. Selling the companies instead of halting the businesses ensures that nobody or very few people will lose their jobs in the process. After all, the new investors will still buy cane from locals, but G.O.K will stop losing money from corruption and mismanagement. My view:
Sell Mumias (and other sugar millers) to private companies to stop losing money through corruption and mismanagement.
Sell Uchumi to private investors. Same reason for selling Mumias et al.
KQ cannot be sold for its strategic importance. It is already undergoing restructuring and the agreement with KLM was re-negotiated. Therefore, it should explore new and better ways to turn it around, probably borrow a leaf from Ethiopian Airlines.
I didn’t read the story from the standard, just the one in today’s Business Daily. Hizi companies ni cash cows za watu. If it was possible to document how many times and the total amount that G.O.K has wasted on Mumias and Uchumi, it would emerge just how obvious the scam is. Kila mwaka ama miaka mbili one of them must be bailed out juu executives wamekula pesa.
The government should not be in business! Stick to regulation.
There are over 15 companies that were to be privatized:
KWAL ( I didn’t know it was also a parastatal ),
KQ ( East Africa does not need to have their own airline: this was a marketing ploy to sell planes by Airbus & Boeing to increase the sale of non military planes ),
Sugar companies: Madagascar / Mauritius ( I can’t remember which country) can provide all East Africa sugar.
Safaricon & Telkom : This was theft (we forgot about it)
Development Bank, Consolidated Bank, UWEZO, Youth Fund, KCB: All this Vs Central Bank to regulate fiscal and monetary policy.
Kenya Re: A very BAD MONOPOLY this is where some people became billionaire.
Uhuru is not going to save us. You’ve seen his reluctance to fire public officials who cause loss of lives and money. Do you think he has the balls to call for closing of Uchumi ?
Parliament is where these kind of big picture Long term ideas would be getting the push but that body is as good as dead.
Until we have a parliament that is responsive to the needs of the nation and not subservient to the executive we’ll continue to loose.
External supermarkets have come into the country and are making profits. Uchumi and Mumia’s like all failing government parastatals are mismanaged and raided from out and within.
Does the government have appropriate supporting strategic staff training scheme for parastatal staff? Reskill staff and prepare them to adapt to competition and organisational changes.
I guess we need an oversight body monitoring developmental requirements and training of all government institutions, including usage of training funds and corrective funds – an investment body, with the objective of adding value to the intuitions for positive profitable returns.
Uchumi and Mumia should really be put under “supervisory measures” until they turn a corner, they cannot be let to self-manage. Provide secondment within strategic senior management positions and an overhaul in treasury.