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 have been holding frozen funds related to the Anglo Leasing scandal which have not been released to Kenya.
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.
The US Government has temporarily shelved funding for the proposed Sh. 300 billion Nairobi-Mombasa expressway over cost implications. The construction of the 485-kilometre road to ease perennial traffic snarl-ups was to be done by American engineering firm Bechtel after Kenya and US struck a deal during last year’s meeting between Presidents Donald Trump and Uhuru Kenyatta at the White House.The US ambassador Kyle McCarter, said the US was scrutinising the proposal to establish whether Kenyans would get value for their money. He said the cost was in question at a time when the country is struggling with piling debt.
Responding to queries whether Bechtel had lost the contract to China, McCarter said: “Bechtel did not lose the deal, we are still working on the finance. Kenya has a challenge of debt and we are wary of burdening Kenyans”. “We did not want to sign onto a project whose cost would turn out to be three to four times higher than the actual. We want to ensure there is an honest return on investment for Kenyans before we break ground.”
In 2015, PriceWaterhouseCoopers (PwC) — in a feasibility report — indicated that the costly project was viable.McCarter said US zero tolerance for corruption forced them back to the drawing board and would only embark on the project once they are satisfied it guarantees value for money for Kenyans and will not sink the country deeper into debt.
The envoy affirmed US support for the war against corruption and termed the plunder of public coffers an act of outright thievery. “Calling it corruption makes it mystical, like those behind it share the proceeds with the nation. But the truth is that it is simply taking what is not yours and that is thievery,” he said.
The proposed road will be a dual-carriage motorway with four lanes to ease congestion and cut travel time between the two cities from the current 10 to about four hours.It will run parallel to the current Nairobi-Mombasa highway and will help promote trade and movement in Kenya and the neighbouring countries of Uganda, Rwanda, Burundi, DRC and South Sudan.
Working documents on the project show that it is expected to start any time after the June budget release.Bechtel estimates that construction of the expressway will create 500 jobs and involve local businesses supplying up to 100,000 tonnes of cement and 40,000 tonnes of steel.
Here is a digest of stories on the project from July 2017 to July 2018:
As a starting point, the US construction giant has already expressed its interest in the forthcoming expansion of the 485-kilometre Mombasa-Nairobi highway into a six-lane dual carriageway.
The US Export Import Bank is strongly pushing Bechtel to secure the contract in an arrangement similar to that of the China Export Import Bank where the Asian bank funds projects contracted to Chinese firms.
“With the support of the US government agencies such as Overseas Private Investment Corporation (OPIC) and the Export-Import Bank, we can provide solutions to move this critical project forward quickly with a high standard of quality,” Mr Patterson added.
The entry of Bechtel – along with its financial backing by the US Exim Bank – will complicate matters for Chinese multinationals who have been winning all tenders for projects financed by the China Exim Bank. . . .
US-based engineering firm Bechtel International Inc. has signed a Sh230 billion commercial agreement with the Kenya National Highways Authority (KeNHA) for construction of a 473-kilometre Nairobi-Mombasa high-speed expressway.
KeNHA director general Peter Mundinia said the signing of the deal has paved the way for the next stage of mobilisation of financing from export credit agencies in the United States of America.
. . .
It is expected that agencies such as the US Export-Import Bank and the Overseas Private Investment Corporation (OPIC) will finance the project.
“It is projected under the proposed commercial contract that the 473km highway will be completed in ten sections within the next six years,” Mr Mundinia said.
The first section, from the junction with Namanga Road near Kitengela will have an interchange nearKonza ICT Cityand a spur road to Kyumvi (Machakos Turnoff) on Mombasa Road. This section is anticipated to open to traffic in October 2019. . . .
The US embassy in Kenya has rejected a newspaper’s criticism over a $3bn road contract awarded to Bechtel without competitive bidding.
The embassy said the Nairobi-to-Mombasa expressway had been under discussion for two years, and had been evaluated to ensure Kenyans receive value for their money.
It also rejected press claims that the award was a “thank you” to the US for its political support of the Uhuru Kenyatta government.
On 13 September, the day after the article appeared, the embassytweeted: “US private firms (bound by US anti-corruption laws) investing in Kenya’s future bring jobs, tech transfer and development. This expressway has been under development for two years to bring best value. The US embassy does not and will not give political favours for commercial deals. On Kenyan election 2017, we’ve been and will continue to be strictly neutral.”
Kenyan government officials also defended the Bechtel deal. Peter Mundinia, director general of the Kenya National Highways Authority (KeNHA),saidon 18 September that Bechtel was selected because of its experience of handling large infrastructure projects “over 119 years”.
He added that the Kenyan government had entered into an agreement with the US government in July 2015 whereby US companies would develop key infrastructure projects with US funding.
The US and Kenyan authorities wererespondingto an article in Kenya’sFinancial Standardnewspaper that questioned the way the project was announced and quoted from a Ministry of Transport briefing, carried out before the contract award, which argued the project should be put out to tender as a public–private partnership (PPP).
The Standard highlighted the fact that contract for the 473km A8 expressway between Mombasa and Nairobi wasannouncedthree days before the 8 August general election, and broke with established practice by being made without a Ministry of Transport press conference or an announcement from the president’s office.
Instead, the announcement was made on a Saturday afternoon when government departments are usually closed, and made no mention of the project’s estimated price.
The newspaper drew a comparison with the way the government had awarded the country’s standard gauge railway (SGR) scheme to Chinese contractors before the 2013 general election. In both cases the winner was appointed without putting the work out to competitive tender.
In the SGR case, the choice was determined by the fact that China was making the funding available for the line; in the case of the motorway, the motive was to thank America for an “unspecified service” that the US had done for Kenya, according to unnamed “government insiders” quoted by the Standard.
According to theStandardthere are now concerns within the Kenyan government over the amount of debt the country is taking on. The combined cost of the rail and road link between the country’s main port and the capital is likely to be at least $6.7bn, or almost 10% of the country’s GDP.
The controversy comes at a sensitive time in Kenya after the results of the 8 August election, which recorded a victory for the country’s incumbent president Uhuru Kenyatta, were annulled by Kenya’s Supreme Court on 1 September.
The court cited irregularities and illegalities in the transmission of results and ordered the election to be held again within 60 days. It is due to take place on 26 October. Kenya has a history of serious post-election violence.
Almost a year after Kenya signed a deal with US engineering firm Bechtel for construction of a Sh300 billion high-speed expressway between Nairobi and Mombasa, the two parties are yet to agree on how to finance the project despite a series of extremely high-level talks.
On the one hand, the Kenyan government wants the 473-kilometre Nairobi-Mombasa expressway to be completed through the Public Private Partnership (PPP) model where private investors will build and operate the facility for up to 25 years – charging toll fees – to recoup their investments and margins.
The company has therefore urged Kenya to undertake the project under an engineering, procurement, construction and commissioning (EPCC) contract.
Under the EPCC model, a contractor is obliged to deliver a complete facility to a developer who needs only to turn a key to start operating the facility; hence such deals are sometimes referred to as turnkey construction contracts.
But the government, which is concerned about the fast rising public debt, has made its stand clear. . . .
“We will commence detailed discussion on how the financing approach will be undertaken under that project. We will be discussing modalities, financing structuring and the details for us to be clear on how to undertake this project,” Treasury secretary Henry Rotich said on Tuesday.
I touched a few bases while briefly in Washington recently. I was left with the impression of general “benign neglect” on Kenya, which would be expected given the overwhelming number of more immediate crisis situations around East Africa, such as the South Sudan “civil war/state failure” situation, escalating tensions between the Kagame and Museveni regimes, the uncontained Ebola crisis, etc. And always the war in Somalia.
Nonetheless, there are those who work or engage with Kenya more specifically on a less seasonal basis who will unavoidably have noticed how badly the Government of Kenya has been underperforming just as a factual matter regardless of the diplomatic angles of the day.
All this is to lay the groundwork for my great interest in a couple of news items today:
As a private American “friend of Kenya” and taxpayer I am quite gratified by this willingness to change policy to address current “facts on the ground” and to actually “walk the talk” on “anti-corruption” even if it involves possibly giving up a big subsidized project for a very big well-connected private business owned by a group of Americans.
I have been concerned about this project for the reasons identified by the Ambassador but have not wanted to say much without being close enough to have details and not wanting to be seen as an inveterate naysayer or unduly skeptical about things where I am not that well informed.
Maybe Ambassador McCarter can end up being a “breath of fresh air” and is actually serious in his talk of zero tolerance for corruption in a way that would be different from the ordinary diplomacy where we run hot-and-cold at best. If no one explained to him as a political appointee from outside Washington that “zero” among diplomats ends up as shorthand for a wide range of dollar values in varying circumstances explained in the addendums and codicils, as opposed to just “zero” as it might mean to a businessman in downstate Illinois, then maybe Kenyan cartel leaders need to be worried a bit after all?
And if people in Washington have their hands full or are not focused on the immediate situation in Kenya, and with what we read about how national security policy management is working in Washington these days, it may well be that McCarter has that much greater practical latitude “on the ground”? Likewise, usually an Ambassador in Kenya will have the potential distraction of career considerations not dissimilar to people working in the government in Washington; this would not seem to be a challenge for McCarter. (And maybe he isn’t looking to be a lobbyist for a neighboring warlord in a black hat, and an oil and gas consultant and an investor-broker in USAID-funded health business, for instance.)
There are obvious sociocultural and political barriers to how McCarter will be perceived in Washington and among Americans who typically engage with foreign policy on Kenya or are “Kenyanists” or “Africanists” with focus on Kenya, but open minds are warranted. And maybe that works both directions.
Part of what is so striking here is how much Uhuru Kenyatta has in the past seemed to be arguably “Donald Trump’s signature African leader”–not so much that they are seen to really know each other or have some personal rapport, but rather that in the face of general lack of signs of personal interest in Africa from Trump we still have Uhuru at least included in meetings and doing photo ops with Trump in Europe, Canada and Washington, if not yet Mar-a-Lago, during the first two years of the Administration. Even though he was such a favorite of some in the Bush-Obama years.
So surely putting the Bechtel deal on hold suggests that there is finally heightened willingness to openly acknowledge that governance is simply not now what it was cracked up to be from our previous public diplomacy in recent years.
The politicians who contrive to insert his name [Deputy President Ruto’s] into every issue do the DP no favours at all. It does not help his image or his 2022 presidential election prospects when his name is used to fly cover for disreputable leaders caught on the wrong side of the law.
. . . .
As an elected member in his own right, a Majority Leader [Sen. Kipchumba Murkomen] does owe a duty to his constituents. Where conflicted, however, he could consult internally within the government and party organs.If his concerns are not adequately addressed, then the honourable thing would be to relinquish the Majority Leader role so that he can, in good conscience, speak out for his people both inside and outside Parliament.
As it is, what we are seeing from Mr Murkomen’s now frequent outbursts are the hallmark of rebellion. This is rebellion not from one disaffected individual, but a powerful Ruto faction in Jubilee that is unhappy with the path pursued by President Kenyatta.
Jubilee cannot govern effectively when it has such a powerful opposition within; hence the rudderless, dysfunctional government seemingly sabotaging its own efforts.
This is not a healthy situation. Maybe, it would be best for Mr Ruto and his cohorts to resign and go officially into opposition or for President Kenyatta to throw up his hands in surrender and leave the burden of leadership to those more able.
Now I don’t know and haven’t asked, but there have been recent times when Gaitho has seemed to be carrying a message, such as the time when he explained that Raila’s fellowship at Yale was intended to be a perk to ease into a honorable retirement, not a springboard to run yet again in 2017. Different Kenyan columnists are in this role at different times it has seemed over the years. See “Six years an Ambassador: Godec’s Kenya valedictory with Macharia Gaitho”.
This background made me figuratively “perk up my ears” when I read the Gaitho blast after the news on the Bechtel expressway deal.
As a practical matter, there are certain ironies any time it is suggested that “regular order” of some type is suddenly warranted in Kenyan politics. Uhuru Kenyatta himself as KANU leader and Leader of the Opposition in 2007, crossed the aisle to support “Kibaki Tena” without resigning, when party godfather, retired President Moi who picked Uhuru from relative obscurity to nominate as his successor in 2002, realigned his fortunes, so to speak, to be with Kibaki while being appointed as Kibaki’s diplomatic representative for Southern Sudan. So I think Ruto might scoff at Gaithos’s advice now, and I doubt Uhuru’s mother would be good with him resigning at this point with all the family has going on at stake. Too much water under the bridge for too many years to expect anyone “in government” to go formally into “opposition” voluntarily–reform can happen but not nearly so easily or cheaply.
Kenya’s political landscape in 2019 will be dominated by two-way competition between Deputy PresidentWilliam Rutoof the ruling Jubilee Party and former Prime MinisterRaila Odingaof the Orange Democratic Movement (ODM), as each man positions himself for the presidential election of 2022. Each will be trying to cobble together a winning coalition by buttressing his ethnic stronghold and winning over the ‘swing’ votes in regions such as Maasailand, Kisii, Luhyaland and the Coast.
PresidentUhuru Kenyatta‘s mantra is that the time for party politics is over and that all leaders should concentrate on economic development, based on his signature ‘Big Four Agenda’ (food security, affordable housing, manufacturing, and affordable healthcare), and reconciliation, based on the ‘Building Bridges Initiative’ agreed between him and Odinga last March. He will continue to state this line, arguing that he wants a legacy of an ethnically united Kenya, and will continue to reach out to former opposition leader Odinga and his Luo people.
Both Odinga and Ruto will on the surface claim they support the Big Four and Building Bridges even as they continue their individual campaigns and trade acerbic barbs. Many Kenyan pundits say the only person who has not grasped the new reality is Kenyatta, as he continues to insist on a politics-free country until 2022. . . .
Relatedly a friend got me a copy from Kenya of John Onyando’s recently published “Kenya: The Failed Quest for Electoral Justice” which I am reading with great interest. (Hoping this will be published internationally soon.) Most significantly so far I finally have an insider’s account of one of the key mysteries from the current, post-2002 era in Kenyan politics: what happened to cause the dropping of the Prime Ministry in the final maneuvering for the 2010 Constitutional referendum? Preserving an exceptionally powerful unitary executive Presidency was the key issue in Kibaki’s dumping of his MOU with Raila, et al, and the defeat of the “Wako Draft” constitution at the 2005 Referendum by what became the “Orange Democratic Movement”. Thus it was a bit of a shock to see Raila and ODM leading the “Yes” campaign along with Kibaki in 2010 for a new draft constitution where even the weak Prime Minister position that Odinga then held was completely excised.
Any explanation of why the Prime Ministry “went away,” as it was put, was one of the more conspicuous gaps in Raila’s autobiography “The Flame of Freedom“.
On paper the 2010 Constitution as passed at the referendum in July of that year does have a variety of intricate mechanisms of reductions of individual power for His Excellency the President at the national government level, but since they are not self-executing and there is no Prime Minister or other potentially independent power center, once the 2013 election was decided for the Uhuruto ticket, Kenyatta has as one would expect largely worked around them, if not explicitly eviserated them legislatively using his control of Parliament.
According to Onyando, by the time of the final politicians’ cut on the 2010 draft constitution arising from the February 2008 National Accord to settle the Post Election Violence, the Opposition/ODM/Raila side had already lost Ruto to Kibaki/Kenyatta to the point that the President’s side gained three votes aligned with Ruto among those allocated to the Opposition among the group. Thus the Kibaki/Kenyatta side was able to write out any direct sharing of executive power under the new dispensation to follow the Government of National Unity. Raila went along on the basis that there was enough reform with partial devolution to 47 new counties and other provisions to warrant a “yes” versus a “no”.
It is noteworthy that even Africa Confidential is offering their current 2019 assessment without reference to specific terms of the Uhuru-Raila “handshake” of March 2018. I am not comfortable doing any real handicapping of the 2022 race myself or saying too much about current Kenya politics without being privy to the actual details of the deal.
Looking back on my personal experience it is notable to me that Ambassador Ranneberger and I contradicted each other on at least three separate points of fact in our respective interviews with The Times on the 2007 Kenyan election controversy (mine with Mike McIntire in the U.S. and his with Jeffrey Gettleman in Kenya) but I did not lose my security clearance, and had it renewed the next year when it came up so I was able to continue my career as an attorney working on U.S. Navy shipbuilding programs. I suspect I might have had some difficulty if it were not recognized that I had in fact been honest. Had I been a Kenyan (or Chinese for example) citizen it would have been unthinkable to hope to “get away” with being truthful in contradiction to a senior public official in this way without expecting to loose my job and likely go to jail or be killed.
Flashback to six years ago, during the “lame duck” Congressional sessions following President Obama’s re-election:
NOMINATIONS OF ROBERT F. GODEC AND DEBORAH ANN McCARTHY WEDNESDAY, NOVEMBER 28, 2012 U.S. SENATE, COMMITTEE ON FOREIGN RELATIONS, Washington, DC Hon. Robert F. Godec, of Virginia, to be Ambassador to the Republic of Kenya Deborah Ann McCarthy, of Florida, to be Ambassador to the Republic of Lithuania
The committee met, pursuant to notice, at 2:25 p.m., in room SD–419, Dirksen Senate Office Building, Hon. Christopher A. Coons, presiding. Present: Senators Coons, Lugar, and Isakson.
OPENING STATEMENT OF HON. CHRISTOPHER A. COONS, U.S. SENATOR FROM DELAWARE Senator COONS. I call this hearing to order. I am honored to chair this hearing for the ambassadorial nominees to serve this Nation in Kenya and Lithuania, Ambassador Robert Godec and Ms. Deborah Ann McCarthy. Both nominees have impressive and long records of service and accomplishment in the Foreign Service of the United States, and I look forward to hearing about their priorities for advancing U.S. policies and interests in the countries to which they may soon go as our Ambassadors. I am also very pleased to be joined by my good friend and ranking member, Senator Isakson, of Georgia, and particularly honored that Senator Lugar, the ranking member of the full committee, has joined us today; and I understand Senator Durbin, of Illinois, may as well join us shortly. I apologize for the delay in getting started. We had a vote on the floor of the Senate.
As some know, Kenya has particularly important meaning for me. The first time I ever set foot in Africa was as a undergraduate spending a semester at the University of Nairobi, and I later volunteered at an orphanage in Ngong. My experience there was transformative, and changed my perspective on the world, and gave me a new sense of purpose and focus. And I returned to Kenya, for the first time in 25 years, just a few months ago.
In Nairobi, I had the opportunity to speak at the Kenyan National Prayer Breakfast, as Senator Isakson has, as well, this year, with President Kibaki and others, where I affirmed the centrality for the United States of the upcoming elections and our sincere hope that the violence and chaos of the 2007 elections can be averted. The United States, in my view, is, and should be, closely watching the process surrounding this election, and we’ll work closely with Kenyan officials to ensure the elections are peaceful, credible, and transparent. And I emphasized then, as I will again today, that we do not favor any particular outcome or candidate, but, instead, a free and fair process. Kenya has made remarkable progress in recent years in reforming its constitution, building democratic institutions, expanding press freedoms, and improving its economy. I was particularly impressed, during that visit with the younger generation of Kenyans, in the great potential that exists amongst entrepreneurs. There are many other things to be concerned about in the process toward the election, and I look forward to hearing about them in more detail from Ambassador Godec. Several factors may well influence the outcome of the election— ethnic tensions, the balloting registration process, the behavior of the police and security services, messaging of the candidates—all of which I hope we will get into in some more detail.
The other main area of concern for me regarding Kenya is its military involvement in Somalia, the ongoing security challenges, both within and without Kenya and its borders. Kenya is home to the largest diplomatic mission in Africa, from which a host of government agencies oversee bilateral and regional programs, and serves as a base for humanitarian relief, food security, and global health initiatives, and I’m eager to talk about that, as well as the potential for trade and investment in the region.
To serve as our next Ambassador in this critical post, in my view, President Obama has chosen wisely in nominating Ambassador Godec, who has served as Charge´ in Nairobi since August and has been received positively by government, civil society, and NGOs. Having built a strong career as the former Ambassador to Tunisia, he recently served as Principal Deputy Counterterrorism Coordinator in the State Counterterrorism Bureau. Prior to his service in Tunisia, he served as Deputy Assistant Secretary for Near Eastern Affairs. This is Ambassador Godec’s second time in Nairobi, following a posting from 1996 to 1999 as Economic Counselor.
PREPARED STATEMENT OF RICHARD G. LUGAR, U.S. SENATOR FROM INDIANA It is a pleasure to welcome Ambassador Godec once again before the committee, in this case as the President’s nominee to be Ambassador to Kenya. His stewardship as Charge´ over the last several months comes at a very challenging time for our large and important East Africa Embassy. He has brought deft and experienced management to Nairobi and effectively sustained our varied interests and priorities with Kenyans and the Kenyan Government at a critical time. Among the most important interests is United States support for a free and fair electoral process leading up to national elections in 2013, the first since the abhorrent violence that followed the 2007 elections. United States interests extend broadly in East Africa and recognize the commitment Kenya has made in Somalia under the AMISOM umbrella, as well as its long support for regional peace initiatives. Kenya also has been a key counterterrorism partner in a variety of areas that are of mutual concern with broad global potential for impact. These include Kenyan efforts fighting al-Shabab and building its own counterterror capabilities in maritime and border security. Our extensive cooperation extends to providing a regional platform for the Defense Threat Reduction Agency and the Center for Disease Control in securing biological materials that pose a threat to millions if neglected. I would like to thank Ambassador Godec for his expeditious review of a longstanding request incorporating DTRA into a large Embassy country team.
President Trump nominated Illinois State Senator Kyle McCarter to replace Godec back on March 28, 2018, and a confirmation hearing was finally held on July 31, 2018, but no public word has come about an actual vote by the Senate Foreign Relations Committee. McCarter was to make follow-up submissions about controversial tweets to the Senators. In the meantime, McCarter had announced prior to his nomination that he was not running for re-election to the State Senate and a Republican has been elected to succeed him in January. Trump’s Republicans gained three seats overall in the U.S. Senate.
While emphasizing he personally and the United States favored no candidate or party among Kenyans’ choices, Godec stated:
Corruption is undermining the future of Kenya. It is creating huge problems and it is underming democracy., security and having a very bad effect and this needs to change.
We seem to be seeing a policy shift from the U.S. We were strongly opposed to government corruption off and on under Moi after the Cold War and we were also opposed to corruption in 2005-06 with the Anglo Leasing and other scandals.
After years now of being back on our heels for whatever reason, we have rediscovered the dignity required to speak up and now to take a “small dollar” but conspicuous and significant action in suspending a little over $20M in support for the looted Ministry of Health, and now open acknowledgement of that the magnitude of the problem has reached a point that it is a critical threat.
Friday event in Boston: “Kony and the Lord’s Resistance Army: a State Department Perspective” at the BU Center for African Studies, 3pm
Jason Lewis-Berry, the Lead Foreign Affairs Officer in the State Department’s Bureau of Conflict and Stabilization Operations who has also served as Field Representative for Lord’s Resistance Army issues in Central Africa, will deliver this lecture @ BU. A Q&A session will follow.
27 August 2012 marked the second anniversary of the promulgation of Kenya’s new constitution. Hailed by some as one of the most progressive constitutions in Africa because of its comprehensive and liberal bill of rights, the new charter has been facing implementation challenges with suggestions that sections of the legislature and executive are bent on influencing the process for political expedience. . . .
The U.S. Senate Malaria Working Group, headed by Sen. Chris Coon of Delaware (Senate Foreign Affairs Africa Subcommittee chairman) and my Sen. Roger Wicker of Mississippi announced this week expansion into the Senate Caucus on Malaria and Neglected Tropical Diseases. Hopefully, the Senate will soon be taking up confirmation of the Administration’s nomination of the Chargé d’affaires Robert Godec as the new Ambassador.