The government must stop endless bailouts of State-owned firms without addressing the root cause of their malaise.
The Treasury has indicated that it will once more provide funds to aid loss-making Kenya Airways and Kenya Power in the next fiscal year.
The scale of the new bailout has not been disclosed but is expected to amount to billions of shillings.
The government must stop endless bailouts of State-owned firms without addressing the root cause of their malaise.
The Treasury has indicated that it will once more provide funds to aid loss-making Kenya Airways and Kenya Power in the next fiscal year.
The scale of the new bailout has not been disclosed but is expected to amount to billions of shillings.
The government has already spent more than Sh20 billion in financial aid to the national carrier alone over the past few years.
Recurrent bailouts with no decisive action to wean the companies off State coffersare irresponsible and create a moral hazard.
It is well documented that corruption, patronage and incompetent management play a major role in the financial woes of parastatals.
Kenya Power is the poster child for these problems. A monopoly making losses despite selling electricity to captive customers at rates that includes a profit margin.
Most of the company's former chief executives, hired to reward political allies, were ousted due to corruption and charged in court.
Unless these ills are dealt with, taxpayers should expect more of the same.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
