Wednesday, 1 August 2012

Cost of Air Travel from Kenya ......a Luxury and thus you got to pay for Aids programs!


I am loyal to my country but am also very extremely loyal to my wallet!

I recently been watching the whole discussion by NACC that we should tax air time more and air travel to support HIV aids projects.

Here is my beef with this approach, Communication and Air travel (Read Tourists) make up a good deal of total tax revenue in the country as well as a good number of employment opportunities for all alike. Targeting to make these two more expensive by taxing them more, in my view is going to lead to fewer jobs and maybe fewer tourists.

After all communication is one of the indicators used to determine the attractiveness of a foreign investment. Am sure coupled by the numerous lapse in security, Kenya will become even more undesirable for foreign business if the expats cannot travel or communicate cheaply.

We now live in a global community, whilst it is cheap to produce goods and services here than in most western countries, there are more countries attracting foreign investments other than Kenya. For instance, ten years ago who would have thought Rwanda would be a hive of foreigners. But with Kagame, that is all changed. Burundi used to be in the same shoes as Rwanda but they aren’t even closely related when it comes to foreign investment. 

Anyway, my opinion (my opinion) is that KACC people just want the money for their projects without considering what the knock off effect is on the entire economy. They seem to have forgotten that in February a prospective foreign investor said he couldn’t start a 24 hour call centre in Kenya due to security issue.




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