4 ms·

I suspect that every-time something like this is done, it is the triumph of the combination of stupidity and greed in the government (or those influencing it an

I suspect that every-time something like this is done, it is the triumph of the combination of stupidity and greed in the government (or those influencing it and expecting to profit from it). I very much doubt the economics here ever benefit the average citizen (actually it will likely weaken the economy) - if anyone has references of similar experiments that point to the contrary, I would be very interested to know.

finid 10y ago
This is really another form of what the Chinese practice - transfer of technology. Want to do business here (in China)? Agree to transfer some of that fancy technology of yours. So far, it's worked so well for the Chinese. This should be no different. Helps to keep more of the money in the local economy.
- michaelchisari 10y ago
  Yes. This is nowhere near as catastrophic, especially for an emerging economy, as people here seem to think it will be.
- kevindong 10y ago
  The difference is that the Chinese market is utterly massive regardless of which scale you use. Kenya, comparatively, is tiny. While Kenya has a substantial population (~44 million), it's no where near enough for foreign firms to actually obey that law as it's intended. In addition, China is far more wealthy than Kenya (as measured by: China's GDP per capita ($6,807 USD) is over 5 times higher than Kenya's ($1,245 USD)). China and Kenya's situations are not at all similar in this case. > The new law will not be applied retrospectively – meaning the Act does not apply to existing foreign companies already registered in Kenya, said Mr Ouma. Regardless though, this won't have any real effect immediately.
- internaut 10y ago
  I don't think it is comparable. One is trade with caveats. This sounds closer to a shakedown and a possible prelude to future ownership demands and that is how it will be perceived by investors. Big difference between a 30% tax hike and 30% ownership.

finid 10y ago

This is really another form of what the Chinese practice - transfer of technology. Want to do business here (in China)? Agree to transfer some of that fancy technology of yours. So far, it's worked so well for the Chinese. This should be no different. Helps to keep more of the money in the local economy.

michaelchisari 10y ago
Yes. This is nowhere near as catastrophic, especially for an emerging economy, as people here seem to think it will be.
kevindong 10y ago
The difference is that the Chinese market is utterly massive regardless of which scale you use. Kenya, comparatively, is tiny. While Kenya has a substantial population (~44 million), it's no where near enough for foreign firms to actually obey that law as it's intended. In addition, China is far more wealthy than Kenya (as measured by: China's GDP per capita ($6,807 USD) is over 5 times higher than Kenya's ($1,245 USD)). China and Kenya's situations are not at all similar in this case. > The new law will not be applied retrospectively – meaning the Act does not apply to existing foreign companies already registered in Kenya, said Mr Ouma. Regardless though, this won't have any real effect immediately.
internaut 10y ago
I don't think it is comparable. One is trade with caveats. This sounds closer to a shakedown and a possible prelude to future ownership demands and that is how it will be perceived by investors. Big difference between a 30% tax hike and 30% ownership.