After eleven years I am taking a real hiatus from writing here for early 2021.
First, there is so much going on in Kenyan politics relative to my time to really delve in, uncover and keep current—it is all very much familiar and still “frozen” from 2007-08 in many ways, but I risk being simply wrong if I write without adequate depth this many years since I have actually lived in Kenya.
Second, I am tired of having and expressing opinions after the all the overwrought drama of the Trump years and watching all of the continuing open and notorious corruption in Kenya and East Africa more generally.
Third, I have made a career change. I have left the corporate world and am back in private law/consulting practice and have some potential intersection between development issues I might write about here and things that I am not able to about as a matter of professional obligation.
On Thursday 12th November at 2pm EAT, AfriCOG will be launching its latest report on state capture – Highway Robbery. Budgeting for State Capture: A case study of infrastructure spending under the Jubilee Administration.
Opening Welcome & Intro: Gladwell Otieno, AfriCOG Executive Director (Moderator)
Report Findings: David Ndii, Economist
Guest Speaker: Jerotich Seii, Energy Sector and Social Justice Activist #SwitchOffKPLC
Q&A and Discussion: Open Forum
Closing Remarks: Gladwell Otieno
Former Auditor General Edward Ouko, speaking at the launch of AfriCOG’s first “State Capture” report spoke of a phenomenon he referred to as “budgeted corruption,” through which government budgets are inflated by monies that are earmarked to be stolen. Ouko characterised the budgeting process as a “highway”, and such projects as “exit lanes”.
With the “Highway Robbery” study, we set out to test the hypothesis that the runaway corruption during the Jubilee administration is evidence of “budgeted corruption”, which is in turn a manifestation of state capture. Budgets and expenditure in three key infrastructure sectors, electricity, roads and water are examined to see the extent to which there is systematic deviation of project choice from PFM value for money norms, and whether that divergence can be construed to be “exit lanes” for budgeted corruption as postulated by the former Auditor General.
AfriCOG’s hope is that this latest study will contribute to the continuing exposure and naming of the structures and operations of state capture, which seem to obviate the conventional reform strategies that civil society has been advocating. Our aim is for citizens to understand that while democracy is the only protection against capture by special interests, at the same time, democracy is fragile, tenuous and must be defended, deepened and imbued with real meaning by a vigilant and enlightened public.
We very much look forward to your attendance. For further information, contact email@example.com
Kind regards, Gladwell Otieno Executive Director Africa Centre for Open Governance (AfriCOG)
Following the transfer of the ballot boxes, it was reported that in some areas constituency-level officials from the Electoral Commission of Kenya (ECK) turned off their cells phones, and many suspected these officials of manipulating the results of the presidential poll. In addition, the ECK in Nairobi refused to allow observers into tallying areas throughout the final process, and the government instituted a media blackout until the sudden announcement of President Kibaki as the winner of the poll, which furthered suspicions of malfeasance.
Although IRI’s observation mission consisted of only short-term observers who were unable to be present through all of the vote- tallying at the constituency level, IRI has reason to believe that electoral fraud took place and condemns that fraud. The rigging and falsifying of official documentation constitutes a betrayal of the majority of the Kenyan people who peacefully and patiently waited in long lines to vote on December 27.
The Institute also condemns the tragic loss of life and property that characterized the post-election period. It has been estimated that the violence claimed more than 1,500 lives, displaced close to 600,000 people and caused millions of dollars in property destruction and lost revenue and wages.1 At the time of printing this report the mediation efforts have led to a tentative power- sharing deal, but it remains to be seen if the government will in fact honor the agreement signed by President Mwai Kibaki and Raila Odinga on February 28, 2008 (emphasis added).
8. I think it is important to look at the exit poll situation in the context of IRI’s Election Observation Mission Final Report which has now been published as a printed booklet (they FedEx’d me a copy with a cover letter from Lorne in mid-July). The report, which I had the opportunity to provide input on, working with my staff in Nairobi on early drafting and through later editorial input on into April when I was doing follow-up work such as the internal exit poll memo of 4-20 that I sent you, is very explicit that IRI found that “after the polls closed and individual polling stations turned over their results to constituency-level returning centers, the electoral process ceased to be credible”. Likewise, the report states that “To date, there has been no explanation from the ECK as to exactly how or when it determined the final election totals, or how and when that determination was conveyed to President Kibaki to prepare for the inauguration.” The report also notes “. . . the obvious fraud that took place during the tallying of the presidential race . . . ” The Executive Summary states: ” . . . IRI has reason to believe that electoral fraud took place and condemns that fraud. The rigging and falsifying of official documentation constitutes a betrayal of the majority of the Kenyan people who peacefully and patiently waited in long lines to vote on December 27.”
I spent part of Independence Day during my year in Kenya at the party at the American Embassy residence. I had a nice time and appreciated the Ambassador’s courtesy in inviting me, but I was a bit surprised at the choice of featured speaker from the Kenyan government, the then-Minister of Internal Security John Michuki. Also on the dais were Vice President Moody Awori and the “Leader of the Opposition” Uhuru Kenyatta. Michuki talked about his recent “security cooperation” visit to the U.S.
Michuki struck me as a particularly ironic choice of headliner for such an event celebrating American democracy because of his notoriety in regard to a high profile and highly symbolic act reflecting a deteriorating state of respect for political freedoms in Kenya not much more than a year earlier. Here is how Canada’s diplomatic magazineEmbassydescribed the Kenyan government’s raid on the Standard Media Group in March 2006:
The malignant designs against the media took centre-stage in Kenyan politics two weeks ago when a dozen hooded policemen raided the newsroom and printing press of Kenya’s oldest daily newspaper, The East African Standard, and its television station, Kenya Television Network (KTN).
It was a commando-style midnight raid. Printed copies of the newspaper ready for morning dispatch were burnt and the printing press dismantled. The police squad, code named Quick Response Unit (QRU), then switched off KTN and took away computers and accessories. Upon their arrival at the media group’s premises, they ordered staff to lie down and robbed them of money and cellular phones. All those items have not been returned.
The Kenyan Minister for Internal Security, John Michuki, justified the raid on the following day with a proverb: “When you rattle a snake, the snake will bite you.”
Indeed “the snake” may have been rattled lately in that the raid came as Kenyan media exposed a high-level multi-million dollar scam in which senior government ministers were accused of successive embezzlements of public funds. The scam, which stunned the nation for the huge amounts looted, involved a fictitious company named as Anglo-Leasing Company that was awarded several government contracts and paid upfront. It is still a running story.
However, the exposures prompted public pressure against the government leading to the sacking of four government ministers. The heat is still on against Vice President Moody Awori to step aside for facilitation of investigations against him.
I don’t know the real reason for the Standard raid, although I have read arguments that it was triggered by reporting regarding allegations that Kalonzo Musyoka, then a contender for the ODM presidential nomination and now the Vice President, had met secretly with President Kibaki. Regardless, the raid was vigorously condemned by the diplomatic community at that time, including by U.S. Ambassador Mark Bellamy. Just before the December election Bellamy was removed as a delegate from the IRI International Election Observation team after Ranneberger made threats that he would, inter alia, pull funding for the mission at the last minute if Bellamy was included, because he was seen by the Kenyan government as critical.
Happy 4th of July. To celebrate, do something to uphold democratic values.
This means the duo will now have to defend themselves over the charges levelled against them. Thirty-six witnesses testified in the case.
The court however acquitted two others who had been charged alongside Oswago. The magistrate said no case has been made against Edward Kenga Karisa and Willy Gachanja Kamanga.
In 2013, Oswago and Shollei were arraigned in court charged with failing to comply with the law relating to procurement.
The two allegedly failed to ensure the changes made to the contract awarded to Face Technologies Limited by the IEBC for the supply of Electronic Voter Identification in Tender No. IEBC14/2011-2012 were approved by the IEBC tender committee.
On a different count, they were accused of using their offices to improperly confer a benefit on Face Technologies Limited by approving payment of Sh1.39 billion for the supply of EVIDs without ascertaining that devices supplied were inspected, accepted and met the technical specifications in the contract.
The articles quoted below indicate that the Ethics and Anti-Corruption Commission was already “on the case” having received information before the election about potential procurement fraud and started investigating even before the Supreme Court ordered such an investigation in its ruling upholding the IEBC’s award of the winner’s certificate to Kenyatta and Ruto.
Electoral commission officials and vendors of electronic systems used in the March 4 General Election may face criminal prosecution after the Supreme Court recommended they be investigated over the failure of the gadgets.
In its full judgment of presidential election petitions released Tuesday the six judges said there were squabbles among Independent Electoral and Boundaries Commission (IEBC) officials over the procurement leading to the failure of the electronic voter identification devices (EVID) and Result Transmission System (RTS).
“We recommend that this matter be entrusted to the relevant State agency for further investigation and possible prosecution of suspects,” the six judges led by Chief Justice Willy Mutunga, the Supreme Court President, said.
Failure of the devices was at the heart of the petitions challenging the election of Uhuru Kenyatta as Kenya’s fourth president filed by Raila Odinga, who emerged second in the election, and Africa Centre for Open Governance (Africog).
. . . .
The judges said the electronic system procurement was marked by competing interests some involving impropriety or even criminality.
“Different reasons explain this failure but, by the depositions of Dismus Ong’ondi, the failure mainly arose from the misunderstandings and squabbles among IEBC members during the procurement process,” said the judges.
The court said enough evidence was produced to show that EVID and RTS stalled and crashed.
. . . .
With the recommendation of investigation and prosecution which was bolded on page 113 page of the judgment, the Supreme Court has set the stage for the Director of Public Prosecution and the police department to swing into action.
Mr Ongo’ndi, Head of IT at the electoral agency, had cautioned the electoral commission against buying the EVIDs, saying they required more time and a parallel technology to function optimally.
In an internal memo to Deputy Commission Secretary for support services Wilson Shollei and copied to IEBC CEO James Oswago, Mr Ong’ondi said the kits tender should not be awarded because of the risk that the gadgets.
The contract was awarded to Face Technologies at a cost of Sh1.3 billion, according to Mr Oswago, who said the devices failed because of an operational challenge.
“We have nothing to hide, we are ready for any investigations and the procurement being subjected to public scrutiny,” Mr Oswago said Tuesday.
The poll books were meant to identify a voter before one could cast a ballot. They were also to verify that one was a registered voter and account for all those who voted, eliminating the risk of multiple voting, ghost voters and ballot stuffing.
Mr Oswago said the commission abandoned the transmission software developed by Next Technologies during the referendum and by elections to develop its own for the General Election at a cost of Sh40 million. That would put the blame on the transmission system failure at the door of IEBC’s IT department which is headed by Mr Ong’ondi.
The failed software was developed in partnership with International Foundation for electoral System (IFES), which also bought the servers. The mobile phones were supplied bySafaricom.
The procurement of electronic systems was marked by controversy from the word go leading to the cancellation of the tenders for the Biometric Voter Register (BVR).
Former President Mwai Kibaki and former Prime Minister intervened and the kits were eventually delivered through a Canadian government loan of Sh6 billion.
. . . .
The Elections Act sets out offences that can be committed by commission officials including “without reasonable cause does or omits to do anything in breach of his official duty”.
Such an offence attracts a fine not exceeding one million shillings or to imprisonment for a term not exceeding three years or both upon conviction.
A day later, Mr Tobiko [Public Prosecution Keriako Tobiko] sent a letter to EACC instructing it to start investigations, stating the directive arose from Justice Willy Mutunga court’s suggestion.
Evidence supplied by the electoral commission showed that the failure of the Electronic Voter Identification and the Results Transmission Systems mainly arose from misunderstandings and squabbles within the commission during the procurement.
An internal memo by the commission’s head of IT warned of the risks posed by the kits.
The Treasury was forced to divert cash from other government operations to advance payment for the BVR kits and then obtain cash from the loan to replenish the IEBC account ahead of the General Election.
Failure to each pact
“The Treasury has fully done its part and it is now up to IEBC to do their work,” the brief said.
The search for cash came after failure to reach an agreement by October 15 as stipulated in the contract with the supplier of the BVR kits, Morpho Canada. According to the Treasury, the government does not have a contract with French firm Safran Morpho as such but with the Canadian government that sought and obtained the BVR supplier, Morpho Canada.
Safran Morpho of France happens to be the subsidiary of Morpho Canada, which was contracted by the Canadian government.
Safran Morpho only made and supplied the equipment from France as a subsidiary of Morpho Canada, which is the actual contracting party in the deal with the governments of Kenya and Canada.
The Ethics and Anti-Corruption Commission has said preliminary investigations into the procurement process undertaken by the IEBC began before the March 4 general elections.
EACC Chief Executive Officer Halakhe Waqo has said the investigations were prompted by information gathered by the commission to the effect that the procurement carried out by the IEBC was not transparent and may have been flawed.
Excerpts from the unredacted portions of the Quarterly Reports submitted by CEPPS, the Coalition for Political Party and Process Strengthening, to USAID, released to me last month per my 2015 FOIA request:
The overall goal of this program [USAID Kenya Election and Political Process Strengthening or “KEPPS”] is to improve Kenya’s ability to hold free, fair and peaceful elections through support of the new electoral commission, political parties, civil society and media.
The reports show that key Objectives included to “Strengthen Election Management Body Capacity,” “Enhance Functionality of the Electronic Results Transmission System,” “Further the Transparency and Effectiveness of the Voter Registration Process,” and “Support Credible and Sustainable Monitoring and Observation Efforts”. Vast amounts of the material is redacted on the assertion of alleged FOIA exemption for confidential commercial information submitted by a private person. Redaction is so aggressive as to include in some instances blocking the entire list of Objectives, although the specific items listed above show up elsewhere.
The USAID program was originally funded for $18.5M from the Second Quarter of 2011 through the Second Quarter of 2014 (with another year and roughly $5M added through amendments). The original funding was split among the Consortium for Election and Political Process Strengthening parties: IFES $6M; IRI $1.5M; NDI $11M.
*Assisting the IEBC in procurement of the Electronic Poll Books, specifically technical evaluation of the offers (This was planned for the current quarter but was delayed by IEBC).
*Guiding IEBC in development of procedures and training programs for voter registration workers (Also delayed by IEBC due to delays in procurement of BVR equipment).
*Providing a consultant to serve as assistant to the Chairman of IEBC during the absence of his Personal Assistant who has accepted a fellowship to continue his studies.
The tension among the Objectives involving imbedded support to the IEBC and support for credible monitoring and observation was apparent very early on in the Quarterly Reports.
Planning for the results transmission was derailed to a great extent by the repeated cycles of crisis with regard to the BVR procurement. Meetings scheduled with the IEBC to plan for a system were repeatedly cancelled as a fresh new crisis seemed to occur weekly and even daily.
The risk of failure of the electronic poll books procurement jeopardized the planned use of the poll books to enter results from each polling station, and may necessitate a return to mobile phones. In spite of the increased complexity of conducting elections with six [REDACTED Section].
Objective 5 [of USAID program]: Enhance the functionality of the electronic Results Transmission System.
* Specifications have been developed for using mobile phone handsets as a contingency in case the procurement for electronic poll books fails.
Voter registration timelines announced by the IEBC lapsed repeatedly as a result of delays in the acquisition of BVR kits. Unable to settle on a vendor and a system at the end of August, the IEBC announced that it would instead revert to the manual register for the elections. However, the Cabinet exerted great pressure on the IEBC to retain the use of a BVR system and subsequently took over the tender process, negotiating directly with the Canadian Government for delivery of a BVR system …
The decision of the government to pressure IEBC to proceed with BVR, without regard for delays caused by this decision, and IEBC’s inability to resist that pressure has created a high-risk schedule with no room for slippage in planning for March 4, 2013 elections.
At the same time, IFES was working on “Restoring the eroding levels of public confidence in the integrity and competence of the IEBC” and “Ensuring an efficient and transparent vote count and results transmission system”.
But was not the public ultimately correct to have declining confidence in the integrity and competence of the IEBC, both in the lead up to the vote, and in light of the ultimate failures with both the questionably acquired Poll Books and the Results Transmission System?
Fourth Quarter of 2012:
The Results Transmission System (RTS) solution procurement process was commenced during this Quarter and an in-house RTS was developed and presented to the IEBC as a backup system [REDACTED Section].
Results Transmission: IFES has continued to collaborate closely with the IEBC in the creation of a fully working prototype of the overall Results Transmission System. IFES has also, with approval of the IEBC, agreed to procure a Results Transmission System (RTS) solution and procurement is underway.
For an idea of what was being discussed publicly in the fall of 2012 (when election was originally scheduled) see, i.e.:
Ultimately, the Results Transmission System failed in practice. While it was allegedly acquired and deployed with an expectation of reliable performance, it initially displayed unverified and uncertain information that shaped global media reporting of the expected outcome of the eventual vote totals, but was then shut down completely by IEBC Chairman Hassan on the alleged basis of failure due to system overload.
The IEBC went on to announce a final first-round win for the Uhuru Kenyatta and William Ruto ticket with 50.07 percent of the vote in spite of the lack of the electronic system specified in the Constitution and the lack of a demonstrable manual contingent system and the expelling of party agents and election observers from the national tally process, among other irregularities.
This leverage carried over into the Supreme Court as Kenyatta and Ruto and the IEBC defended the alleged 50.07% margin. IFES, according to correspondence and reporting provided at least some support services to the IEBC in litigating alongside Kenyatta and Ruto against Odinga and Musyoka as the opposition candidates and a separate election challenge from civil society. So far as I know the role of IFES in acquiring the RTS with US funds did not come up in the litigation, or in the reports of Election Observers, either those supported by CEPPS under this USAID KEPPS program or otherwise.
On September 7, 2016, when the Jubilee Party was formed at State House as a “roll up” of parties forming the Jubilee coalition from the 2013 election, officials of the Chinese Communist Party were in honored attendance.
This followed the announcement the previous month, a year ahead of the 2017 vote, of a new Party-to-Party “working relationship”.
Jubilee Party Steering Committee co-chairman Kiraitu Murungi announced that the two political outfits will work together for the benefit of its members and citizens of both countries.
. . . We are happy that we are going to sign a new chapter of political co-operation,” said the Meru Senator [Kiraitu Murungi] on Friday.
Kiraitu was accompanied by his co-chair Noah Wekesa and other members of the steering committee. He said the two parties share almost similar ideologies, pointing out that they are concerned with uniting people of their respective countries.
He [Wang Xiaohui, CPC Deputy Director of Policy and Research] stated that CPC would offer the scholarships annually for Jubilee Party to take its members to China to learn skills on grassroots mobilization, democracy, and party management.
Mr Wang added that the two political parties agreed to establish collaboration mechanisms.
“We are ready to deepen collaboration mechanisms with the Jubilee party just as we have done with the African National Congress of South Africa and the Chama cha Mapinduzi of Tanzania,” he affirmed.
And yes that event at State House celebrating the deeping partnership of Jubilee and the Communist Party of China yesterday has turned heads. I think a lot of Americans had not been aware of this relationship. Obviously it makes sense in carrying forward the spirit of KANU of Kenyatta and Moi and their understudies. Kenya always labeled itself a “democracy” whether one party rule was formal or informal. China, of course, is also “democratic” with numerous parties other than the Communist Party.
At a micro level I would take umbrage at the blatant use of State resources for Jubilee Party business, but since the Party was launched at State House in the first place and the donors supporting “Western-style” democracy and the “rule of law” and such were not willing to say “boo”–nor the IEBC nor the Office of the Registrar of Political Parties–there is never a reason to be surprised at this point. We reap as we sow.
On January 25, 2018, Professor Peter Kagwanja, by reputation a fierce ideologue of the ruling party, gave and then published interesting speech through the think tank he heads. (Kagwanja is married to Dr. Monica Juma, Permanent Secretary for Foreign Affairs at that time, and promoted to Cabinet Secretary just afterwards [and now C.S. for Defense].) Kagwanja is known for things like providing arguments justifying the 2017 pre-election deployment of the Kenya Defense Forces within Kenya itself without Parliamentary clearance as stipulated in the 2010 Constitution):
The Africa dream captured by the Africa Union (AU) agenda 2063 meets the Chinese dream in the Belt and Road Initiative, the main foreign policy of President Xi Jinping.Here in Kenya, the impact of Belt and Road Initiative is seen in the Standard Gauge Railway (SGR) project, developed to link the Indian Ocean and the Atlantic Ocean, from the port of Mombasa to Africa Atlantic sea board.It also resonates with the four pillars President Kenyatta has identified as part of his legacy which is food security, affordable housing, manufacturing and inexpensive healthcare.
The key lesson learnt in the 19th [CPC] congress, is the role of political stability in underpinning sustainable and long term development. Governments, come and go, but political parties should remain. The tragedy in Africa is that its political parties have a high mortality rate, making the Continent extremely unstable. Parties like the Communist PartyofChina(97Years),AfricaNationalCongress (ANC) of South A frica (106 years), Republican Party and Democratic Party (United States) respectively (164 years and 190 years) are the exception rather than the norm.
Africa needs strong parties, it needs to borrow a leaf from the Communist Party of China whose “democratic centralism”, has underpinned the world fastest economic growth in centuries.
Ironically, perhaps, “capacity building” and procurement systems, along with the subsequently abandoned electronic results transmission system, were touted by U.S. Ambassador Ranneberger as features of the U.S. pre-election support in Kenya in 2007:
* “Developing the capacity of the Electoral Commission of Kenya (ECK) lies at the heart of our strategy. The USG funded International Foundation for Election Systems (IFES) has been providing support to the ECK since late 2001. Activities focus on providing appropriate technology for more efficient and transparent elections administration while improving the skills of the ECK technical staff. This support additionally includes capacity building and technical assistance to support election administration. Technical assistance includes computerization of the Procurement and Supplies Department, which is responsible for printing and distributing election materials. Assistance will also support implementation of the ECK’s restructuring plan, strengthening logistics capacity, and accelerating the transmission and display of results.”
For the 2013 election, I have a copy of one last minute USAID procurement through IFES for the Kenyan IEBC related to the failed electronic results transmission system; I would assume there were other USAID procurements involved for the IEBC. Notably, the Supreme Court of Kenya found that the main cause of the failure of the electronic results transmission system and the electronic voter identification system appeared to be procurement “squabbles” among IEBC members. “It is, indeed, likely, that the acquisition process was marked by competing interests involving impropriety, or even criminality: and we recommend that this matter be entrusted to the relevant State agency, for further investigation and possible prosecution.” “Thoughts on Kenya’s Supreme Court opinion” April 13, 2013. See also, “Why would we trust the IEBC vote tally when they engaged on fraudulent procurement processes for key technology?”, March 24, 2013.
The most serious allegations relate to 7 contracts with the IIEC in Kenya between 2009-2010, worth £1.37 million, where S&O made unusually high commission payments of between 27% and 37% of the contract price. Part of prosecution’s case was that the commission of £380,859 over 18 months paid to the agent, Trevy James Oyombra, was exorbitant, and clearly designed to include payments for officials.
The contracts in Kenya included ballot papers and voter ID cards for By-Elections, 18 million voter registration cards, Referendum ballot papers, and other products relating to elections, such as card pouches, OMR forms, ultraviolet lights. It was a feature of several of these contracts that the S&O subcontracted out the printing work to other companies, in one case to a Chinese company that delivered the goods for less than half the cost of the contract price.
This raises questions about whether S&O were compliant with procurement rules and whether it compromised the security and integrity of the electoral process by subcontracting.
Additionally, on several contracts, S&O delivered significantly less papers than they were contracted to do raising the question of whether the integrity of the electoral process was compromised. It was also a feature of some of these contracts that prices were inflated significantly after award of contract. In all the contracts, the alleged bribes were paid for by the Kenyan tax payers, as the cost of commission was reflected in the contract price.
The specific contracts were as follows:
June 2009 – Shinyalu and Bomachoge By-Election. S&O were to provide voter ID cards, and ballot papers – although in the end they provided only 142,000 papers against the 200,000 ordered.
January 2010 – 18 million voter registration cards. Once S&O had been awarded the contract they subcontracted the production of half the forms to another company.
March 2010 – contract for electors’ card pouches which S&O subcontracted to a Chinese company who delivered them for less than half of the contract price.
May-July 2010 – three different By-Election ballot paper contracts (South Mugirango, Matuga and Civil By-Elections) – where the contract price in each case was increased substantially (sometimes by 50%) after award of contract to permit bribes to be paid. The agent advised S&O against providing “chicken” to visitors to their factory in 2010 as there were other officials not from the IIEC who he said they shouldn’t give “the wrong picture” – undermining the defence’s argument that the company was just doing things the “African way”. Significantly the company again delivered less quantities of ballot papers than were required in each of these three contracts – in the case of the Civic By-Elections some 40,000 less than ordered.
July 2010 – a contract to provide 14.6 million Referendum Ballot Papers in which S&O worked out an uplift per ballot paper to factor in the bribery.
July 2010 – 1.5 million OMR correction forms and 1000 nomination forms in May.
July-December 2010 – ultra violet lights and other Parliamentary and Civil Ballot Papers.
Electoral officials at the IIEC were on several occasions described by the agent, Trevy, as trying to make money before they left the IIEC and went back into government. The agent described the officials at on stage as anxious and “broke”, and “they are desperate for the chicken”. The agent also said that officials told him that S&O needed to “be discrete since all peoples eyes and the government intelligence are watching their every move even on the phone to ensure transparency”.
The Kenyan officials named in court as recipients of payments were as follows: IIEC: Kenneth Karani (chief procurement officer); David Chirchir (IIEC Commissioner); James Oswago (IIEC Chief Electoral Officer); Dena; Kennedy Nyaundi (Commissioner); Gladys Boss Shollei (Deputy CEO); Issack Hassan; Hamida, Tororey and Sang.
Several of these officials are still in government: David Chirchir is current Energy Minister in government, and Issack Hassan is the current Chairman of the Independent Electoral and Boundaries Commission (IEBC) which took over from the IIEC.
The scope of the successfully prosecuted bribes to Kenyan officials, in particular the Kenyan Interim Independent Electoral Commission, now Independent Electoral and Boundaries Commission, was such as to suggest the corruption was not unique by time or geography.
Although USAID, as referenced in the State Department cable quoted above, has provided millions for the operations of the Electoral Commission of Kenya and its successors on a regularized basis since embedding IFES in the Electoral Commission of Kenya, ECK, in 2001, I do not know whether there was any direct U.S. funding, or U.S. funding through a “basket” administered through UNDP or otherwise, implicated in the specific acquisitions involved in the prosecution. At the least, given the level of U.S. funding for the Kenyan elections through this time period, the U.S. indirectly underwrote the ability of the Kenyan election officials to corruptly overpay for those things the U.S. was not helping to pay for.
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A vital “must read” from the Daily Nation confirms that in spite of Kenyan president Uhuru Kenyatta’s promise to release the contracts for the truncated Standard Gauge Railroad project, the Government of Kenya has been withholding the documents concerned about meeting public records obligations. It is said that Kenya signed the undertakings with Chinese state-owned corporations rather than the Chinese State as such, and that the documents include secrecy provisions that the lawyers are interpreting to conflict with Kenyan law as to the Governments obligations to its own citizens for public contracting.
The story details item after item of hugely inflated prices for components such as generators, supplies, machinery and equipment:
This explains how Kenya ended up paying two times more for a diesel train than what Tanzania negotiated for an electric train. A comparison of the costs shows that Tanzania is building an electric rail at half the price of Kenya’s diesel SGR line.
At $1.92 billion, which translates to about Sh192 billion at current exchange rates, for the 422 kilometres, Tanzania’s line is not just cheaper; being electric, it’s designed to support a maximum speed of 160km/hour for passenger trains and 120km/hour for freight.
This pales in comparison to Kenya’s line, whose passenger trains have a maximum speed of 120km/hour with freight hauliers doing 80km/hour at best.
Kenya opted for diesel-powered engine that can be upgraded into electric in future.
It is the results of this greed and negligence that taxpayers are now paying for.
Currently, the revenues generated from the passenger and cargo services on the track cannot meet the operation costs, estimated at Sh1.5 billion a month against average sales of only Sh841 million.
Readers may remember previous reporting of a leaked Auditor General documents indicating that Chinese firms may have been given a security interest in Kenya Port Authority assets and property to secure the loans for these inflated costs. From Maritime Executive in December 2018:
Kenya runs the risk of losing control of the Port of Mombasa if it should default on loans from state financial institution China Exim Bank, according to a new report from Kenya’s auditor general. The terms of a $2.3 billion loan for Kenya Railways Corporation (KRC) specify that the port’s assets are collateral, and they are not protected by Kenya’s sovereign immunity due to a waiver in the contract.
KRC accepted the multi-billion-dollar loan in order to build the Mombasa-Nairobi standard gauge railway (SGR), with construction services provided by China Roads and Bridges Corporation (CRBC), a division of state-owned conglomerate China Communications Construction Company (CCCC).
“The payment arrangement agreement substantively means that the Authority’s revenue would be used to pay the Government of Kenya’s debt to China Exim bank if the minimum volumes required for [rail] consignment are not met,” auditor F.T. Kimani wrote. “The China Exim bank would become a principle over KPA if KRC defaults in its obligations.”
In addition, any dispute with China Exim Bank would be handled through an arbitration process in China, not in Kenyan courts. The auditor general expressed concern that the port authority had not disclosed these arrangements in its financial statements.
The Auditor General’s term expired before publication of a final report and has been left vacant, conveniently for freedom of action and ability to avoid disclosure by Kenya’s political officials.
The more information that comes to light the more it would appear that the uneconomical nature of the “white elephant” megaproject was baked in from early stages and does not look to be readily resolvable without exterior finance, renegotiation, write down or other intervention.
Kenya’s financial sector is the among most secretive globally, according to a new report by Tax Justice Network.
The sector has been ranked the second most rigid in Africa after Algeria and among the top 30 in the world in the latest Financial Secrecy Index of 2020.
The annual index by Tax Justice Network (TJN) has scored Kenya’s secrecy rate at 76 per cent, meaning the country is a fertile market to stash ill-gottenprivate financial wealthand other illicit financial flows (IFFs).