This year Financially: Usidanganywe na GDP, E-con-on-me (Economy) will be worse

2018 was a very bad year for business. Only Banks made profits (by changing accounting standards to suit them). This year, 2019, will even be worse financially. The IMF, GoK and other acronyms will give Kenya a good +5% increase in GDP growth. However, this is the worst way of forecasting the economy and population. KRA knows this, ODM’s financier knows this, Tia Dalma was not prepared by this.
Where I come from (uko in the mountains) all the children who finished KCSE are preparing to migrate for jobs, “good bars”, and the lights in the trap Nairobi. I am sure this is similar in all regions. I once met an 18 year old Tanzanian lady in Nakuru; she works all jobs. More and more people are willing to do what you are doing at a MUCH LESS FRACTION of what you are doing.

The only way to survive: Do what no one else can do.

NOTE: Gross domestic product is a monetary measure of the market value of all the final goods and services produced in a period of time, often annually or quarterly.
GDP is only the rich who benefit. Consumer price, Minimum wage rate, Inflation & Interest rates are what the common mwananchi should be looking at.

P.S. All Economists are pessimists on the economy.


https://www.youtube.com/watch?v=hlMAKpxN8N0

They say the economy is growing, but the average Kenyan is not feeling the impact of this growth. You can’t eat GDP, right?

I’m hoping the construction of Mombasa Nairobi hwy by Bechtel will kick start this year.
One thing for sure is that, Americans will source for labour locally, and I’m also hoping they will do the same with law materials.
Tuwache hizi project za Uhuru, running in billions na bado tumeshorta.

Hii ni maneno gani 2019…:eek:

GDP the measure of goods and services sold (the owners of this business are the ones who profit and therefore benefit). Therefore, when the GDP grows, it is the Rich who become richer.

For instance, the amount of cement being purchased increases. The owners of the cement factory are the ones whose GDP is recorded. If it grows, they become richer; and vice versa.

ODM financier ni nani?

Very true,hard times coming,the government is opting to import everything from fish to police uniforms,this is dangerous to our economy,corrupt capitalist controlling the economy

USA is playing Chess with China; this project has nothing to do with the benefit to Kenya. @spear I am sure will think differently.

We have a loan with China over the SGR. By introducing competition, the loan repayments will not be done efficient, effectively and economically.
Kenya, unfortunately does not have the Raw resources to do the highway (only labour). We were also banned from getting cheap raw material from Iran. Even after some of us buinesspeople were willing to sell Tea to Iran in exchange for Asphalt.
The USA is just playing with our dumb brains.

Asphalt, also known as bitumen is a sticky, black, and highly viscous liquid or semi-solid form of petroleum. The primary use (70%) of asphalt is in road construction, where it is used as the glue or binder.

Jimi Wanjigi

I’d like to know which are these standards that banks changed to suit them.

Exactly the rich are getting richer. My anecdotal experience showed me that kenyans on average have slipped down the economic ladder. Without looking at the fancy economic charts, one gets the sense, emotionally, that things are not so good. The poor kenyans are extremely poor but the rich are just okay.

Bottom line, the middle class has shrunk, while the poor have sunk into destitution. Another reason why financial prudence must be exercised going forward into 2019.

Oh, sorre, forgot Jigiman exists

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At the same time, if the cement factory is doing well, it means employees are earning, and also those buying are doing well.
Lakini hii kenya ! ! ! Lots of guys in the informal sector have shut down.

How do banks decide if the year they were profitable in the last financial year?
Is it the same as a Kenchic / Tuskys?

Kwani they won’t need to employ more workers to produce more cement, or hire more msedes Benz to deliver the product or …

Human Capital earns a stagnant salary (they might be a raise), but the salary normally does not change.
Inflation, Consumer price and other factors change; even during the year. This factors reduce the disposable income of the employee.

In a capitalistic driven ecomomy, you do not raise the Human Capital. The employees are not increased.

For instance, when the line at the bank increases, does the bank call more employees (tellers and back office) at that time? No (They might try). What is even worse, in a capitalistic economy they digitise and tell the tellers they are being retrenched.
I fyou have one donkey and you know in December you will have more water to transport, you make the Donkey work faster, harder during the December season. You do not buy another Donkey.

I thought it was to be constructed without cement ? On the other hand, it’s better to have a few hundred people employed for a few years, than importing labor like the Chinese.

You haven’t answered my question yet. But FYI the increase in bank’s profits is because of two things:
(i) More investment in government securities. Banks prefer these because they are risk free, high rates, minimal operations cost and attract a final tax of 15% instead of the corporate tax of 30%.
(ii) Mobile money loans. The KCB, Equity, CBA, etc have mobile money loans that have interests of upto 10% per month. This translates to 120% per annum. Banks are minting money here.

FYI, Banks have no control when to change accounting standards or decide which ones to apply and which ones to ignore. And same standards apply across all companies even Tuskys and Kenchic.