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MPs in Parliament during the Budget 2024 reading.

Juja Member of Parliament George Koimburi's allegations on MPs being offered Ksh2 million to vote in favour of the Finance Bill 2024 has sparked debate.

The MP on Sunday revealed that each MP who voted yes in favour of the bill offered millions. However, he emphasised that he did not accept the offer and voted against the bill. 

"I refused to sell the people who elected me. That's why I voted No to reject that bill which I believe will harm Kenyans," he added.

He alleged that the money set to be given to the MPs was being carried in sacks and if an MP voted yes last Tuesday, they would be offered the money. The MP however did not give the specifics on who was distributing the funds.

The lawmaker asked the President not to sign into law the controversial bill if it is approved by Parliament. He added that the consequences of enacting it would be dire especially due to Kenyans' frustration with the government.

Koimburi is among the 115 MPs who voted against the MPs against the 204 others who voted to progress the bill. 

After his allegations went viral, Kenyans have come further to accuse their respective MPs of betraying them and placing their greed ahead of the needs of Kenyans.

Additionally, a section of Kenyans emphasised that it was possible that the MPs who voted yes had yet to read the bill and did not know its effect on Kenyans.

"The government spent Ksh408 million to bribe members of parliament to vote yes. This is budgeted corruption, treacherous traitors. We lost Ksh408 million in one day," one activist lamented.

Kenyans have called out the MPs who are in favour of the bill accusing them of failing to honour their Constitutional mandate.   

Ekuru Aukot, the Thirdway Alliance Party leader while reacting to the claims added that Koimburi's revelation had vindicated him. Aukot had also opined that some politicians had been bribed to pass the controversial bill.

"So MPs betrayed their voters for the Ksh2 million and the state spent Ksh408 million to bribe MPs to do its dirty work. It's just sad," he stated.

Notably, demonstrations are ongoing to ensure the lawmakers do not pass the Finance Bill 2024 set to increase taxes leading to a high cost of living. By Maureen Njeri, Kenyans.co.ke

 

The legislator now avers that the words he made on the floor of the house were just a spur of the moment, which he deeply regrets.

Prime Cabinet Secretary Musalia Mudavadi (left) and his Communications Director, Salim Swaleh during a past meeting on January 26, 2023.

The Office of the Prime Cabinet Secretary and Ministry of Foreign and Diaspora Affairs (PCS-MFDA) confirmed the arrest of several high-ranking officials within the ministry following a crackdown.

According to a press statement released by the ministry on Sunday, Salim Swaleh, who serves as the Director of the Press service at the Office of the Prime Cabinet Secretary (OPCS) was arrested for alleged involvement in corruption activities. 

"Those arrested include Salim Swaleh, Director of OPCS Press Service, in whose office the swindlers were found nested with fake door switch-nametags," read the statement in part.

Further, the ministry revealed that the arrested officials and their accomplices rented their offices as spaces for unscrupulous business people to conduct illegal dealings. 

According to Mudavadi's office, the officials had become adept to the illegal trade which included having the officials switch-out nametags on doors to further deceive unsuspecting victims. 

The ministry further detailed that the arrests followed a tipoff that alerted OPCS-MFDA security, who then mounted intense surveillance at the OPCS-MFDA Railways Office to disrupt the reported acts of impersonation and misuse of the facility by the fraudsters. 

To arrest the individuals, the security team tracked a group masquerading as visitors to gain entrance into the Railways Building where Mudavadi's office is located.

The  group would then falsifying their identities (as VIP guests or government officers), and the officers they purported to be visiting on different dates and times. 

Victims of the scam have been identified as mainly foreigners who would be shepherded into the Railways Building ostensibly to meet high-ranking Government officers for favours in exchange for bribes.

More to Follow... By Hellen Njoroge, Kenyans.co.ke

High Schengen visa rejection rates persist due to difficulties in proving genuine intentions, economic instability, and demonstrating the intent for temporary visits.

Strengthening economic ties and connections to the home country could help reduce rejection rates.

Due to stricter visa policies and checks by the European Union, the number of Nigerians rejected for Schengen visa applications increased by 9.97% to 42,940 in 2023 from 39,189 in 2022.

This made Nigeria the African country with the fourth-highest number of rejections. The cost of rejected visas from Nigeria rose to €3.44 million last year from €3.14 million in 2022, BusinessDay reported.

Read also: Nigeria loses €3.4 million from Schengen visa rejections 

According to The Africa Wealth Report, African visa applicants face stricter restrictions, leading to a 30% rejection rate in 2022, despite having the lowest applications per capita.

This rate is 12.5% higher than the global average. African Schengen visa rejection rates are 10% higher than the global average, three times higher than the highest rejection rate, and ten times higher than for US-Americans.

The report highlighted that African countries account for seven of the top ten countries in the world with the highest Schengen visa rejection rates, Also access to Schengen visas correlates with the economic and passport strength of the applicant’s country.

Read also: Top 10 countries with the highest Schengen visa rejection rates

Poorer African countries with low gross national income and low Henley Passport Index rankings face higher rejection rates. Visa requirements within Africa and limited global visa access further hinder African applicants’ chances of obtaining Schengen visas. 

According to Henley and Partners, here are the top 5 countries in Africa with the highest Schengen visa rejection rates

Algeria

Algeria tops the list with the highest Schengen visa rejection rate. Out of approximately 392,000 applications, around 179,000 were rejected, resulting in a rejection rate of 45.8%.

Nearly half of the Algerian applicants face rejection, reflecting a complex interplay of factors. The large volume of applications from Algeria may contribute to the high rejection rate, as consular offices might be overwhelmed, leading to stricter scrutiny of each application.

Guinea-Bissau

Guinea-Bissau, despite its relatively small number of applicants, has a rejection rate just slightly lower than Algeria’s. With nearly 8,000 applications, over 3,600 were denied, resulting in a rejection rate of 45.2%.

The high rejection rate could be attributed to the country’s political instability, economic challenges, and poor diplomatic ties with Schengen countries. The lack of proper documentation, inadequate financial proof, and concerns about the intentions of the applicants also play a critical role in the high denial rate. 

Read also: Japa: 10 common reasons for Schengen visa rejection in 2024

Nigeria

Nigeria, Africa’s most populous country, has a substantial number of visa applications, reflecting the high demand for travel to the Schengen Area. With nearly 87,000 applications, more than 39,000 were rejected, leading to a rejection rate of 45.1%.

Several factors contribute to this, including concerns about fraudulent documentation, financial instability, and a significant number of Nigerians overstaying their visas or working illegally in Europe. These issues prompt visa officers to be particularly cautious, leading to a high rejection rate.

Ghana

Ghana’s rejection rate of 43.6% indicates significant challenges for its citizens in securing Schengen visas. Out of approximately 42,000 applications, more than 18,000 were rejected.

While Ghana is known for its relative political stability and economic progress compared to some of its neighbors, applicants often face rejections due to inadequate financial documentation, insufficient ties to the home country, and doubts about the purpose of travel. 

Senegal

Senegal rounds out the top five with a rejection rate of 41.6%. Out of nearly 57,000 applications, over 23,000 were denied.

Similar to other countries on this list, Senegalese applicants often struggle with providing convincing proof of their intentions to return home after their visit. The economic conditions and the prevalence of illegal immigration cases from Senegal also influence the high rejection rate. By , Business Day 

EOI requests are appeals by a country’s tax authority to another for disclosure of data on the financial accounts, assets held or income earned by their citizens in foreign countries. PHOTO | SHUTTERSTOCK/Photo Courtesy 

Amid increasing fiscal pressures and debt sustainability in African countries, governments are now making use of exchange of information agreements available to them more than ever.

Last year, the amount of tax revenue raised by countries on the continent from exchange on information (EOI) requests increased steeply from $71.5 million in 2022 to hit $2.3 billion, the highest level in over 10 years, according to the Tax Transparency in Africa Report 2024 published by the Africa Initiative last week.

This was a result of increased use of EOI and automatic exchange of information (AEOI) between countries to net tax cheats stashing money and other assets in offshore accounts to evade taxes in their home countries.

In 2023, the number of exchange of information requests sent to other jurisdictions around the globe by African countries increased by 67 percent to 888, up from only 531 in 2022.

Read: Kenya tax plan to hurt business, economic recovery

Exchange of information requests are appeals by a country’s tax authority to another country for disclosure of data on the financial accounts, assets held or income earned by their citizens in foreign countries.

 

Traditionally, African countries have utilised the avenues available for such EOI arrangements much less that others. The requests Africa has received over the years has been significantly larger than those they sent, highlighting their slow adoption of the agreements.

For instance, in 2022, countries on the continent made only 531 requests, but received about 683 requests from other jurisdictions requesting information on their nationals. Ten years ago, Africa made only 38 requests, but received 279 requests on average.

This is no longer the case.

“In aggregate, African countries also became net senders of EOI requests in 2023 making a total of 888 EOI requests, the highest number since the Africa Initiative was established,” the report says.

Africa Initiative is a project started by the Global Forum on Transparency and Exchange of Information for Tax Purposes in 2014 to boost Africa’s ability to utilise EOI avenues for them to curb tax evasion and boost revenues.

At least 19 countries utilised EOI avenues last year, up from 15 in 2022, an indication that countries on the continent are increasingly appreciating the need for the tax transparency platforms available to them.

While the data on how much each country raised in additional revenue from EOI is not disclosed, the Global Forum has previously disclosed that four countries — Kenya, Tunisia, Algeria, and Nigeria, dominate the requests made, accounting for over 90 percent of all the requests.

The increased use of these EOI frameworks comes at a time when most African countries are suffering a cash squeeze, as debt servicing costs soar and grants from rich nations dwindle.

According to the Global Forum, utilising these EOI avenues is a crucial way of boosting tax revenues in Africa, and also combating illicit financial flows (IFFs) across the globe to end financial crimes and tax evasion.

“The remarkable additional revenues identified by African countries in 2023 emphasises the relevance of EOI to fighting IFFs from Africa and its potential to generate substantial resources domestically and support other DRM (domestic resource mobilisation) efforts,” the organisation noted in the report.

Read: East Africa is set for higher growth rate due to its diversified economies

Latest data from the International Monetary Fund (IMF) reveals that most African countries are expected to narrow their fiscal deficits this year, which will only be made possible if tax revenues increase as their headroom for more borrowing has also grown small.

On average, the budget deficit for the continent is expected to slim to 3.7 percent of gross domestic product (GDP) this year, from about 4.1 percent last year and 4.4 percent in 2022.

At the same time, the IMF expects the continent’s average debt-to-GDP ration to drop from 60.1 percent in 2023 to 58.5 percent in 2024, an indication that most countries will be taming their appetite or debt financing this year compared to previous years.

But these projections by the multilateral lender appears to have put more and more countries on the continent to raise tax revenues as other sources of financing, including aid from richer countries, have also been on a downward trajectory in most countries.

In the region, countries appear to be overstretching their limits to raise more money from domestic revenue mobilisation efforts. Kenya, for instance, last year introduced a raft of new taxes that were expected to lift its ordinary revenues from Ksh2 trillion ($15.4 billion) in the 2022/23 financial year to Ksh2.6 trillion ($20 billion) in the current financial year.

In the coming financial year, Nairobi expects additional tax measures to generate at least Ksh324 billion ($2.5 billion), raising its total tax revenues to Ksh2.9 trillion ($22.3 billion).

In Uganda, the government has introduced several new tax measures for the coming 2024/25 financial year, intended to raise tax revenue by Ush1.9 trillion ($488 million) to fund the Ush58.3 trillion budget for the coming year.

Other countries in the region are also exploring new ways to raise tax revenues to finance their coming year’s budgets, and the EOI approach seems to be gaining momentum amongst them. By VINCENT OWINO, The East African 

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