The word “Bailout” is an exciting one. A Bailout is a phrase we’ve probably heard in passing, mostly concerning developed countries and large companies that are having financial trouble. There’s been talk of Telkom requiring a bailout so as to stay afloat.

Ordinarily, a bailout is a grant of funds given to an institution by the government, at the citizens’ expense. So let’s not get too excited about the word “Bailout” it comes out of your pocket! The money they are asking for is unconfirmed but the media has reported it as 10 billion shillings. That’s a mind boggling figure! The Kenya Revenue Authority collected 534.4 billion shillings in 2009/10, the 10 billion they would give out to Telkom would be about 1.8%. This doesn’t seem too much.

Look at it my way instead, 10 billion translates to about 250 bob per Kenyan, assuming we’re 40 million Kenyans. Is every Kenyan alive (including children, the old, the sick) willing to give Telkom Kenya 250 bob to save itself? Considering that Kenya is classified as a middle income country, most of the 40 million people ideally make less than a dollar a day, less than 82 bob a day. I highly doubt that they would.

You may say that the majority who make this 250 are not in the tax bracket and true they aren’t, that is if you don’t consider VAT. VAT (Value Added Tax) is the mischievous way that the government ensures that every single Kenyan pays taxes. We all pay it, you, me and even the majority.

I guess it’s prudent for me then say how then the 10 billion shillings should be used. A 2kg packet of maize flour costs about 120 shillings at the highest end supermarkets. This means that with the 10 billion, about 83 million packets of maize flour can be bought. Each Kenyan would then receive 2 packets, translating to about 7 ugali meals. That would be a better way of spending that money.

So they should give me the money and most definitely I’ll buy the packets of maize flour.... or would I?