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).
With the arrest of Nairobi Governor Gideon Mbuvi (“Sonko”) in Voi on charges of corruption and of fleeing charges and a jail sentence in Mombasa dating back to 1998, it is important to remember how Sonko came into national politics in Nairobi in the first place.
Sonko entered politics and was elected as Member of Parliament from Nairobi’s Makadara Constituency in the by-election of September 20, 2010, as the nominee of the NARC-Kenya party led by Martha Karua, then MP for Gichuga.
Karua was appointed by President Kibaki as Minister of Justice in 2005 following the defeat of the “Wako Draft” constitution at referendum by the nascent Orange Democratic Movement, and reappointed by Kibaki in his original “half-Cabinet” of January 8, 2008 during the Post Election Violence period. Karua resigned as Justice Minister in April 2009 (being replaced by Mitula Kilonzo, father of current ODM Senator and Sonko defense attorney Mitula Kilonzo, Jr.) but one would think she and NARC-Kenya would have had resources to vet Sonko’s background if they were not familiar.
The by-election for Makadara was one of several occasioned by the courts upholding election fraud challenges against the Samuel Kivuitu led and internationally supported Election Commission of Kenya that also failed so obviously in the Presidential race.
In Makadara, the roles were reversed in 2007 as ODM’s Reuben Ndolo was ousted by Mr Dick Wathika of PNU. Mr Ndolo also successfully challenged the results in court.
. . . .
The two main parties are seeking to boost their numbers in Parliament ahead of 2012.
The fight is about numbers, especially given that ODM will be seeking to turn the tables on PNU after losing a number of by-elections in the recent past,” Nairobi lawyer and political analyst John Mureithi Waiganjo said.
The party lost in Matuga at the Coast and South Mugirango in Kisii, seats it was expected to win.
Mr Waiganjo says the by-elections also come at a time when ODM, whose party leader Raila Odinga, is at the forefront in pushing for reforms ahead of 2012 elections, requires numbers in Parliament to effect the changes.
The lawyer named Mr Ndolo and Mr Wathika who were on the same side of the referendum campaigns, as the front runners for the seat. But Narc Kenya’s Gedion Mbuvi, popularly known as Mike Sonko, could spring a surprise.
Mr Mbuvi, who intially sought the ODM ticket, has run a well-oiled, high-profile campaign that has excited many, especially youthful voters.
However, it is his alliance with Nairobi deputy mayor George Aladwa, the Kaloleni ODM councillor, that has been causing Mr Ndolo and the party sleepless nights. Although even PNU’s Wathika received a direct ticket, it is in ODM that the consequences of the nomination fallout are likely to be most felt.
Mr Aladwa, who was said to have supported the deep-pocketed Mbuvi for the ODM ticket, has been leading a rebel faction which may seriously dent the party’s chances of victory.
Last week, party leader Odinga was forced to intervene in the matter.
At a meeting called by the Prime Minister, Mr Ndolo and Mr Aladwa pledged to bury the hatchet and work together to win the seat for the party. But there has been little evidence on the ground to show the two are back together. Even the joint rally they agreed to hold is yet to happen.
Mr Aladwa is popular among the Luhya, a significant section of voters in the constituency, and the tension between him and Mr Ndolo can only hurt the ODM candidate.
But Mr Ndolo believes that he has an upper hand after reconciling with Mr Dan Shikanda, a former soccer star, who contested the seat in 2007 on a Narc ticket and who could also influence the Luhya vote. Pundits believe that had Mr Shikanda not broken ranks with Mr Ndolo in 2007, ODM would easily have clinched the seat.
After winning the by-election by defeating both Ndolo of ODM and the PNU Party nominee Wathika on the ticket of PNU Coalition member NARC-Kenya, Sonko later left NARC-Kenya and joined PNU successor party Jubilee to successfully run for Senate in 2013 and then Governor in 2017. Karua ran separately for president as the NARC-Kenya nominee in 2013 and for Governor of Kirinyaga in 2017.
Hon. Karua has been a member of the International Advisory Council of the International Republican Institute (the organization I worked for in Kenya during the 2007 election) since 2015. The Council is a “select group of recognized leaders from around the world who share in our vision of democracy and freedom, and are willing to lend their names and counsel to this cause.”
When Wikileaks first published the mass of stolen State Department cables in late 2010 while Michael Ranneberger was Ambassador to Kenya The Star to my recollection did not write any stories from them–including about this 2009 cable, classified SECRET, on the Amos Wako issues. Of course it was more timely then and Wako was still serving as Attorney General.
The Star and The Standard both stayed away from direct coverage of material from the leaked cables, while The Nation did a small number of Kenya stories–not including this Wako subject matter–before quickly backing off.
The most topical of those for me back in 2011 was a Nation story revealing that in early 2008 the US had issued undisclosed (and unknown to me) visa bans against three members of the Electoral Commission of Kenya based on substantial evidence of bribery. The State Department has never to this day acknowledged knowing about the bribery at the ECK in the 2007 election and the publication of such stories in the Nation quickly dried up. (I was told of ECK bribery by another diplomatic source in January 2008.)
Back in the States in my job in the defense industry (with my security clearance) I was told by a friend in the Kenyan media that I had been “sweetly vindicated” on my public contradictions with the Ambassador in the New York Times and otherwise about the 2007 election but the “Wikileaked” cables were not available to me due to the obligations of my security clearance. Readers of this blog will know that I started the process of requesting related information through the Freedom of Information Act in 2009, more than a year before Wikileaks hit, and that I have received released versions of some of the same Cables that Wikileaks published unredacted.
I learned in real time that Ranneberger expressed active displeasure with The Star for publishing a story in February 2008 on the leaked USAID/International Republican Institute exit poll showing an opposition (Odinga) win in the December 2007 election, so I always assumed that it was likely that the Kenyan newspapers received diplomatic encouragement not to publish independently from the stolen cables.
Clearly the Trump Administration has had quite a very different approach with Wikileaks than the Obama Administration did back in 2010 and Ranneberger is now retired from Government himself and working as a consultant and lobbyist looking, among other things, to influence the Trump Administration. So lots of things have changed aside from Wako moving to the Senate from the Attorney General’s office and having a leading role in the current Building Bridges Initiative.
[I will add links to my previous posts, but wanted to go ahead and get this up.]
The quest for accountability to Kenyan voters has remained unanswered sadly. A news story in theDaily Nation in 2011, in the final item on my chronology of links to coverage of the Kenyan election, reports from an alleged leaked cable that ten days before this February 18, 2008 meeting at the Ambassador’s residence, the State Department issued “visa bans” against ECK members based on evidence regarding bribery–but did not disclose this circumstance, or the evidence, at this [Feb 18] meeting (I checked with a participant). We, the United States, made clear that we were willing to step up financial and rhetorical support for reforms in Kenya–such as the new constitution–under a deal in which the new Kibaki administration shared power with the opposition under an Kofi Annan-brokered bargain–but we brushed aside the issue of the fraud in the election.
Recent news finds the successful Goldenburg scam architect Kamlish Pattni obtaining a court judgement for additional funds from the Government relating to incompetent prosecution endeavors against him. Also we read this week that more than Switzerland has been holding frozen funds related to the Anglo Leasing scandal which have not
In early 2008, according to a Daily Nation report said to be from Wikileaks, the US banned three Kenyan member of the Electoral Commission of Kenya based on evidence of bribery, but the US has never made any type of disclosure of that action or the underlying Election Commission bribery issue although I was told separately of ECK bribery by non-US diplomatic sources in the course of my work for the International Republican Institute during the Post Election Violence.
October 11, 2019 (Washington D.C.) — Today, the United States placed sanctions on Ashraf Seed Ahmed Hussein Ali, widely known as Al-Cardinal, a tycoon with ties to the U.S., UK, and UAE.
Today’s action by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) target Al-Cardinal and his network of businesses, and come in the wake of two recent investigative reports by The Sentry “The Taking of South Sudan” and “Al-Cardinal: South Sudan’s Original Oligarch,” that detailed the business activities of Al-Cardinal, among others, and urged governments to sanction him and his networks.
. . . .
Joshua White, Director of Policy and Analysis at The Sentry, said: “The Sentry applauds today’s action by the Department of the Treasury, which should serve as a warning to the financial facilitators and commercial enablers of corrupt South Sudanese elites that they will lose access to the dollar unless they cease doing business that funds violence in the country. The United Kingdom and other European countries, as well as those in the region, should follow suit . . .
. . . .
The Sentry’s investigation found that Al-Cardinal has exploited opaque procurement processes, weak oversight institutions, and cozy relationships with South Sudan’s most powerful politicians to line his own pockets.
“A major enabler of corruption and violence for President Salva Kiir’s government,” according to the The Sentry’s reporting, Al-Cardinal has been embroiled in major procurement scandals, set up private businesses with ruthless military generals, imported military equipment during a bloody civil war and landed lucrative contracts linked to the implementation of the peace deal in South Sudan.
The United States on Friday imposed sanctions on two South Sudanese businessmen, Ashraf Seed Ahmed Al-Cardinal and Kur Ajing Ater, for their involvement in bribery, kickbacks and procurement fraud with senior government officials, the Treasury Department said on Friday.
After the U.S. Treasury Department imposed sanctions on Benjamin Bol Mel, a key adviser to the South Sudanese president, in 2017, Mel used an account in the name of the companies of Al-Cardinal to evade sanctions and store personal funds, the Treasury Department said in a statement.
In early 2019, the South Sudanese government paid millions of dollars to a company owned by Al-Cardinal ostensibly for food, but that in fact was routed to senior South Sudanese government officials, the Treasury Department said. . . .
On October 2, Assistant Secretary Tibor Nagy, the top U.S. diplomat assigned to Africa, conducted a post-UN General Assembly telephonic press briefing and availability for journalists in various Embassies on the continent. Read the full transcript here.
There were a striking number of questions about Sudan and South Sudan, but I thought this was most pertinent:
QUESTION:Okay, I can talk? All right, my name is Emmanuel from Eye Radio in Juba. I believe Mr. Tibor, you have come across the recent report that was released recently by The Sentry about implicating some South Sudanese top government officials and actually come out with recommendations to the U.S. government, so what is your current recommendations?
ASST. SEC. TIBOR NAGY:Thanks very much for raising that. Because I know the people involved in The Sentry very well. As a matter of fact, one of the key people John Prendergast, I have known and respected for a very long time. Our Department of State, U.S. government, we welcome the Sentry’s efforts to bring light to corrupt practices in South Sudan. We know for a long time that there’s been quite a relationship between corruption and conflict, unfortunately. Innocent people have suffered. The United States will very carefully review the material presented and the recommendations in The Sentry report and as you all know, the United States of America maintains the right to use all of the tools available whether diplomatic or whether financial or anything else to respond.
Right now there are allegations, they’re very serious allegations but they do require some careful analysis, evaluation and investigation. Thank you very much, over and out.
So before the “over and out” Asst. Sec. Nagy does commit the US to “very carefully review the material presented and the recommendations” but it is a bit ambiguous as to whether he is committing the US to the next step of “investigation” that he says is “required” since he characterizes the report’s findings as “allegations”.
My gut reaction is to think of Asst. Sec. Nagy as someone who would like us to conduct ourselves well when it comes to underwriting the type of conduct outlined in The Sentry report (although I don’t know him at all nor was I familiar before he was tapped for this job from retirement). At the same time, you don’t make a life as a diplomat without learning to carefully say very little and make it sound like it is more for those who want something enough to hear it. So, how quickly will we do our review/analysis/evaluation? What will we do next? How quickly will we investigate? Will we send the FBI? Career Justice Department prosectors? Alternatively, the Attorney General?
(The end of this post has been revised to reflect skepticism about an allegation by Kenya’s Minister of Natural Resources in 1998 that land for Windsor was irregularly allocated to Michuki from Karura Forest based on the geographic separation between Windsor and the Forest. Not a central issue, but I want to be as fair as possible.)
This very interesting piece of diplomatic and development history is noted in a recent oral history interview by a former USAID official, Kiertisak Toh, which I have introduced and excerpted below. I have not found reference in the Kenyan or U.S. media to the USAID role in this high profile development started in 1988.
But as the country’s internal security minister, his hands were covered in blood. He was implicated inmass extrajudicial killingsin 2007, in which hundreds of young Kenyan men were shot in the back of the head or bludgeoned to death for their alleged involvement in the Mungiki organised crime gang. And in 2006 Mr Michuki made a fool of himself by bringing to Kenyaa pair of Armenian gangstersto shut down newspapers and television critical of the government. Since then, the country’s media have operated more or less freely.
To many Mr Michuki was a bridge to an older Africa. The space between tribal traditions and the palatial Windsor Golf Club, which Mr Michuki built at the north end of Nairobi, can be measured in his life span. He was born in 1932 into a large polygamous Kikuyu family. Orphaned as a child, Mr Michuki left his rural home for Nairobi. He found work in a uniform shop sewing on buttons before battling his way through primary and secondary school. He was loyal to the crown in its bloody hammering of the Mau Mau insurgency. Choosing the British over his countrymen set him at odds with the founding myth of Kenya, but Mr Michuki was too intelligent and “no nonsense” to let it hinder his career. He won a scholarship to Oxford, and became a district commissioner. He was put in charge of newly independent Kenya’s treasury. He ran the Kenya Commercial Bank and got involved in politics. Like the then attorney-general, Charles Njonjo, Mr Michuki had an Anglophile sense of things “being done properly.”
To Mr Michuku, that meant keeping his buttons polished and being on time, but it did not mean transparency. He was part of the cabal of Kikuyu and Meru politicians, intelligence officers and businessmen who ran a state within a state and turned a blind eye to dodgy land and business dealings. President Mwai Kibaki yesterday called Mr Michuki a “true family friend and a dependable ally.” The shame was that his acuity and vigour were not more often put at the service of the common man. . . .
The Windsor Golf Hotel and Country Club is explicitly neocolonial. No one’s heart is going to bleed for the British Royal Family over the cultural appropriation but as an American taxpayer, I feel a bit wretched on learning my “assistance dollars” were used directly instead of just indirectly to subsidize Kenya’s oligarchs in this way. (Disclosure: I have been a member of a private golf club myself, years ago, although I gave it up when I had children. But I am also aware of a variety of laws and regulations in the United States designed to keep governmental development and tax subsidies away from underwriting golf courses, even those that are far less exclusively targeted to the rich than Michuki’s Windsor.) [And, yes, I understand we are spending millions on President Trump’s golf resorts, and I object to that accordingly; that is straightforward self-dealing by our chief executive himself, rather than a misallocation of meagre development resources from poor to rich.]
I highly recommend reading the full Toh oral history interview for anyone interested in understanding the course of relations between Kenya and the United States from the mid-1980s through 2005, as well as one insider’s perspective on the tension between democratization and economic development assistance goals (Toh is an economist by background and initially worked in that capacity for USAID before rising into administration):
USAID/Washington – Program Economist, Africa Bureau/East Africa 1991-1992
USAID/Kenya – Mission Director 2001-2005
. . . .
Q: Well, why don’t you talk- So, this was- you’re in Kenya in 1986 to 1989, so at that point was it a pretty good size program in Kenya, was it one of our premiere programs?
TOH: Yes, it was a high profile and one of the largest programs in Africa with big ESF [Economic Support Funds] money and CIP, Commodity Import Program. We were in the Cold War era. Kenya was considered our geopolitical and strategic partner in the region.
Q: Oh, there was a Commodity Input Program there. Oh, I didn’t realize that.
TOH: And a large- I guess we tried to make the CIP as part of the private sector development program. Kenya at the time had foreign exchange controls which were a barrier to private business to import.
Q: Ah. So, it was a large ESF program. Was that because the U.S. military was using the Port of Mombasa?
TOH: I think so. Q: Yes, okay, so there was a military link to that. So, a large ESF and that was mostly Commodity Import Program?
TOH: Yes, mostly tied to Commodity Import Program. The foreign exchange part of the CIP program provided the balance-of-payments support and the counterpart local currency served as budget support mostly tied to USAID project.
Q: Private sector development. Was the- would imports tied to any sector or anything or were they just broad- do you recall?
TOH: It was broad until 1989 when we turned part (or most, not sure) of the ESF into targeted support for fertilizer imports.
Q: Well, the importers would have been providing the local currency, right? They would have been buying the- in essence buying the dollars?
TOH: In general, we provided the dollars to the Central Bank. The idea was for the government to make it easier for importers to get import licenses and through Central Bank the foreign exchange to pay for imports. The private sector bought the foreign exchange with the local currency, Kenyan shillings, which was deposited in the special accounts at the Central Bank. The local currency legally belonged to the government. But we agreed to program these funds jointly. A big portion of the local currency went to support USAID projects and other private sector development activities..
Q: Right, okay. So, it really was to liberalize then the whole foreign exchange regime?
Q: With the local currency used for private enterprise development, did some of that go into credit programs to the banks, or do you recall? Or some of it budget support to ministries. How would it have been used, do you recall?
TOH: Part of these shillings might have been used to support microenterprise credit and loans to businesses. I remember one of the loans went to an influential Kenyan government official to help finance the Windsor Golf Club. When I went back to Kenya the third time (2001) we tried to clean up the outstanding default loan. I am not sure whether we were able to recover the loan. Our private sector development program, except for the microcredit and the CIP programs, was not well targeted. We kind of followed the “thousand points of light” approach.
Q: Women-owned micro-enterprises, because Kenya had one of the big success stories of microenterprise for women, right? KREP?
TOH: Right, yes. We had a project, I think, that helped KREP, Kenya Rural Enterprise Project. And I still have an account with KREP.
. . . .
Fundamentally, diplomacy and development, though can be complementary, are inherently different in their missions, targets, how success is measured. Diplomacy is about maintaining favorable economic and political relationships abroad; it tends to be short-term orientated and transactional. The mission of development is about saving lives and support for long-term equitable growth and poverty reduction; it tends to be concerned with long-term transformative and sustainable changes. The targets for diplomacy are political leaders and citizens where geostrategic and foreign policy interests are most significant. The targets for development are populations where potential impact on poverty, human suffering, and human development is greatest. The success of diplomacy is measured by the strength of the relationship with the U.S. and support for U.S. political priorities. The success of development is measured by the progress in terms of saving lives, reducing poverty, and enhancing equitable, broad-based economic growth.
There are a lot of interesting items to follow up on here: 1) has the Windsor loan balance been collected or not?; 2) why was this project selected and approved, how much money was involved, etc.? 3) in 1998 Minster of Natural Resources claimed in Parliament that Michuki’s Windsor Golf Hotel and the Belgian Embassy had been irregularly allocated land from Karura Forest, but the Windsor club is not adjacent to the Forest so the allegation does not seem to make sense in that way, but it would be interesting to understand the acquisition of the land. [Note: I have revised this to express skepticism about Lotado’s allegation based on the geography as raised by readers.]
The Gainful Solutions-Sanitas deal was announced appropriately enough through Politicowith a professional spin on Gainful Solutions “amending” the original contract with Salva Kiir under which they received the initial $1.2M non refundable cash payment from the Kiir government.
Those that are interested enough to follow the links and read the documents will notice that the “subcontract” goes well beyond the actual contract, raising the question of whether Sanitas could be paid to say things in Washington by Gainful Solutions that Kiir did not commit to in his contract (the April 2 contract initially paid , or the May 7 substitute).
This is the Prime Contract scope of work:
The Consultant services will include, but not necessarily be limited to, thefollowing:
1 Open a channel of communication between President Kiir and President Trump with the objective of persuading President Trump and his administration to expand economic and political relations with South Sudan, and supporting American private sector investment in South Sudan in oil, natural resources, energy, gas, mining, and other areas.
2 Improve bilateral relations between the United States and South Sudan.
3 Address sanction issues.
4 Seek the support of the Trump administration to unite the various ethnic groups of the country in order to build a stable and prosperous country.
5 Mobilize American companies to invest in the oil. natural resources, and other sectors
6 Persuade the Trump administration to open a military relationship with South Sudan in order to enhance the fight against terrorism and promote regional stability.
The Consultant will act as the agents of the GOSS, Office of the President, to facilitate and negotiate with American and Western companies for investment in South Sudan. The Consultant shall be entitled to certain residuals, compensation, commissions, or shareholding resulting from its facilitation and negotiation with American and Western businesses.
The Services will also include any other consulting tasks which the Parties may agree on.
In an exclusive interview with Eye Radio yesterday, Ambassador Ranneberger admitted that the first draft of the contract that was brought to the attention of the public had the provision to stop or block the formation of the hybrid court.
“There was a bit of a mix up with the first draft of the contract and it got published, but you can look at our contract on the website –which the President [Kiir] has approved, and it says nothing about the hybrid court,” Ranneberger said Thursday.
He, however, confirmed that part of the campaign will include convincing US to ease sanctions on South Sudanese leaders.
#SouthSudan – let me be clear that concern with the July “subcontract” is that Gainful Solutions is paying Sanitas for int’l media spin + DC lobbying asserting Kiir’s “efforts” to fully implement R-ARCSS when that is not what Kiir has paid and will pay Gainful Solutions for. 1/
So money changed hands on a deal that explicitly was for work to squelch hybrid court. After international media reporting and backlash it was “cancelled” with no repayment and a substitute signed that dropped explicit mention of squelching court but is not contradictory to it.
The #SwitchOffKPLC march in Nairobi against alleged abusive and corrupt practices toward consumers by KPLC, Kenya Power and Light Company, a partly privatized monopoly, was hit by tear gas from police.
Who has the teargas tender for the Kenya Police Service? In times of violence and times of peace, the Kenyan police are always there to teargas someone on behalf of some interest or another with access to the Kenyan State House.
Tear gas is not just for use against peaceful and lawful protests, like the #SwitchOffKPLC march today, but also celebrations that run afoul of State House sensibilities for some reason or another, as I so indelibly remember from February 28, 2008 when Kibaki and Raila signed the “peace deal” to end the challenges to Kibaki’s second term (in return for various commitments that were partially implemented over the years) and citizens celebrating the end of the Post Election Violence were gassed in what seems now like the a profoundly symbolic act. But today was more typical: citizens organize to call attention to public corruption issues, announce a march and notice the authorities as required, asking for security, Instead of being provided security by the Kenya Police Service, they get tear gassed.
I wrote about a parliamentary discussion touching on the question of whether the private shareholders of the partially privatized monopoly KPLC were helping themselves to free services from the taxpayers back in 2010. The latest scandals seem to go most especially to more direct forms of consumer ripoffs, but you can see the environment from the discussion:
Eng. M.M. Mahamud: Mr. Speaker, Sir, the largest seven shareholders of KPLC are the Kenya Government, which is represented by the Treasury; Barclays Bank of Kenya through various nominees accounts, the NSSF Board of Trustees, Stanbic nominees, the Kenya Commercial Bank, Jubilee Insurance and the NIC Services. As regards Transcentury, according to the books of accounts this year, the annual report of the financial statement for the year ended 30th June, 2009; it is listed as number 16 shareholder with 4.69 per cent. The highest share percentage is Kenya Government by 40.421 followed by Barclays Bank by 12.81 per cent and 23 per cent for other shareholders not listed in the accounts. But according to the report that I have here, Transcentury only owns 4.69 per cent. I do not know about the other questions that Dr. Khalwale is talking about.
I will endeavor to learn more about the current KPLC shareholding structure, but last year it was reported that “Mama Ngina” Kenyatta had come into a few million shares (just over 1/1000 of the total).
According to the KPLC website, the Government of Kenya now owns 50.1, up from the 40.421 as of June 2009 testified to in Parliament in 2010.
The population of Kenya has grown roughly 25% since my year “promoting democracy” in 2007-08, from around 40 million to around 50 million. These are loose numbers because they do not reflect anything that is of the highest priority for Kenya’s leaders (and thus those outsiders who promote and underwrite Kenya’s leaders).
Kenya is to conduct a census this year, but the process is politically contentious and corruption makes it hard to carry off undertakings of this nature (another area where the United States seems to be moving toward convergence with Kenya recently). And there is always a new gambit, like “Huduma Namba” that comes along, with the help of Kenya’s politically-connected corporates and foreign corporate foundations, to get in the way of the core functions of the Government of Kenya, like conducting the census.
Unfortunately, although the size of the economy has continued to grow hunger has increased and Kenya remains a “middle income” country where the majority of citizens are inadequately fed. Agricultural performance has actually declined rather than merely grown at an insufficient pace as experienced in many other sectors.
But despite the decline in the undernourishment rate, which is, however, higher than Africa’s 20 percent, the prevalence of severely food-insecure Kenyans jumped four percentage-points from 32 percent in 2014 to 36 percent in 2017, resulting in Kenya’s ranking as the eighth-worst on the indicator globally.
Yes, Kenya continues to have a problem with employment as a whole and the failure of the various power generation schemes over the years has been one factor for Kenya’s reliance on imports rather than it’s own manufacturing. But the decline of agriculture is the more immediate and inexcusable problem–and would be much easier to address if it were prioritized–as opposed to yet another questionable power generation scheme.