22.4 billion of that 56 billion will be shipped directly to the UK. In total, 25.2 billion goes to foreigners i.e 45% of Safcom is owned by foreigners. What do you guys think?
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Why not give these foreigners incentives, so as to invest these monies in .ke ?
We think that risk takers should be rewarded. Would you be here asking the government to bail them out if they made losses?
Not Yet Uhuru.
As I said here before, the Brits never really left
I think so too. The government should figure a way of forcing/enticing those investors to invest in Kenya instead of shipping that kind of money abroad. 25 billion every year is not a joke. That is enough money to fund five average counties in a year (just to demonstrate how large the sum is).
Local individuals stake is reducing
I am not against risk takers being rewarded. My point is that the government should figure a way of enticing those investors to spend or invest locally instead of shipping that kind of money out.
Genius, Geniuuuuuusss, Safaricom is publicly traded company. if you wish to purchase shares in the company, you can wake up today, open an acount with your local bank and buy a stake in the company
You missed the point.
They made an investment and it paid off. That is how commerce works. Orange has been trying to pull off the same magic with Telkomm for years and it is still pumping money into the project. Once they succeed, it will be their money that they spent, which is now giving them dividend.
Nobody is against foreign investment. Those same investors should be given incentives to invest those billions here instead of shipping them abroad. Win-win.
They were given incentives to invest in Safaricom
Tanzania has strict laws the force companies to invest their earnings inside the country. So far, it has only helped to keep investors away.
If gava owned safcom ingeenda kq and mumias way
The government makes the most money from Safaricom, just in case you didn’t know. It owns 35% of the company. Then charges corporate tax at 30% of the gross profit. Let me break it down for you. My point has nothing to do with ownership of Safaricom, but where the money goes.
This is how the government benefited from Safaricom in the latest financial year:
Corporate tax @30% = 31.7 billion
Dividends by having 35% ownership = 19.6 billion
10% dividend tax on foreigners = 2.52 billion
5% dividend tax on residents = 1.54 billion
Income tax from Safaricom employees = more than 25% of their gross income assuming most earn above 35k (can’t estimate figures)
[COLOR=rgb(97, 189, 109)]Total = over 55 billion shillings a year. The government funds 11 counties from Safaricom proceeds.
As you can see, the government benefits the most from Safaricom, not Vodafone.
My argument has nothing to do with who pockets the profits, but how they use that profit. Vodafone took that risk and deserve to be rewarded. My question is, can’t the government figure a way of encouraging them to spend their profits here instead of shipping them abroad? Injecting 20+ billion into the local economy every year would make a big difference.
Why, before the collapse of the global economy, the telecomm industry was growing quite fast outside Kenya. in fact, in Africa it is quite strong as well as in south america, and s.e asia. Why would they not direct their efforts elsewhere when they have already cornered the Kenyan market. Any company that control more than 60% of any market is a superpower. Even Amazon, which is an ecommerce superpower in the US only controls 30% of the market. Safaricom has been immensely successful in Kenya and they do not need to do anything more.
Hao local individuals nikama nani
The public through shares purchased in the stock market.
As told above, you have to give them something that is more profitable than their ventures outside Kenya. Remember that it’s all rosy now for Safaricom. But it will not last forever. When Safaricom starts to slip, those foreign majority owners will bear the brunt.
no imagine this but ×1000. In developed nations, Safaricom would beary register on the radar. What we need is to come up with more companies that deliver huge dividends to investors and the government gets its tax. The obsession with having government directly provide employment to the people is not realistic or sustainable. there’s a lot of room for mega companies to thrive in Kenya,only we tone down on the nonsense and focus on delivering professionalism when it is needed