Tuesday, January 25, 2011

The peril of the Middle income earner

Mr. Philip Kisia, the Town Clerk of Nairobi used funds from the City Council of Nairobi explaining among other things that only about 40% of the Nairobi population is an income earner.
Then he went on to say that apparently, since we are all equal, the ones who earn an income must sustain the ones who dont, if i read correctly.
So in that case, he has proceeded, after bargain to charge Ksh. 250 as a parking fee. He then asked us to visit his blog to let us know how the money will be spent. I can't seem to find that the part that the contracts will be awarded to his brothers/cousins/mistresses companies blog.ideasfornairobi.org
So all of you who took mkopo wa salo to buy your cars should not only be prepared to repay the loan at astronomous amounts of (16%-20%) p.a., pay fuel at Ksh. 96 per litre and a parking fee of Ksh. 250 per day. Let's call it the economics of owning a car.
How else are you robbed of your income?
The Government takes your 30%
The Government takes your 16 % on every item you spend
The City Council of Nairobi takes another Ksh. 250 per day
So what does that mean about 60% of the income you will slave for cannot go to savings and/or investments. You will spend it, upende usipende.
Let's go further into this
House rent -15%
Food -10%
So eventually, 46%+25%=71%
The rest 29% go to the City Council of Nairobi, magazines, Wedding committees, unannounced guests entertainment, beer, Safaricom Airtime, Church offering, Fuel, relatives who stop by from the village and say they have no fare to go back home, that dent you caused on the road, unprecedented contributions and everything else an entrepreneur is trying to sell, including the pencils sold on the streets, socks, key holders, passport holders, knives,car air freshner.......
I am not even talking about those who pay school fees.
Someone tell me how people survive in Nairobi.



  1. Lol! But so true! And my life was better off before the government started controlling fuel prices. There's this peti that would be at 94 while the rest of the country was at 100. Now they tow the government's line.

  2. Is good that you realize those things and write about it. Those are the important things people should know and talk about.