Kenya-USA Bilateral Trade Talks: Ambassador McCarter confirms “cat is out of the bag” on Bloomberg scoop on negotiations for Free Trade Agreement

U.S., Kenya to start trade talks seen as template for Africa

Key takeaway is that Bloomberg reports that trade talks have been underway between the United States and Kenya, with the Kenyan officials confirming progress and the US expecting to publicize status in conjunction with Uhuru Kenyatta visit to Washington next week.

The East African nation’s cabinet will probably approve discussions with the U.S. this week, Kamau [Permanent Secretary] said.

Kenya is America’s 11th largest trading partner on the continent and the sixth biggest in sub-Saharan Africa, with total trade between the two countries at $1.17 billion in 2018.

The U.S. currently has one free-trade agreement on the African continent — with Morocco. U.S. Assistant Secretary of State for African Affairs Tibor Nagy said in August that the nation was pursuing a trade deal with an unidentified country in sub-Saharan Africa, adding that it would be used as a model for others when AGOA expires.

The Trump Administration wants to use an agreement with Kenya as a template for other bilateral agreements in region, as opposed to the African Union’s expressed preference for a multilateral pact in the context of the new African Continental Free Trade Area. It is also somewhat unclear as to how this would integrate with the longstanding US support for the federation process among the members of the East African Community.

Update:

Kenya: How will the Trump Administration’s support for the Uhuru-Raila handshake play out in 2020?

Since I asked this same question in January 2019 we have seen finally publication of the initial Building Bridges Initiative report delivered to President Kenyatta and released to the public, as I have discussed in a few posts, but the overall question on how things play out in 2020 remain essentially the same. Ambassador McCarter has made clear that the United States remains committed to the Building Bridges Initiative even if he did not personally agree with a few things in the report.

Here it is:

Kenya: How will the Trump Administration’s support for the Uhuru-Raila handshake play out in 2019? – AFRICOMMONS:

What will 2019 hold for the relations between the United States and Kenya, particularly the Trump-Pence and Kenyatta-Ruto Administrations?

Kyle McCarter, just confirmed by the U.S. Senate as Trump’s man in Kenya, after a delay since last spring, will shortly replace Robert Godec who shepherded U.S. interests as defined by the Obama and Trump Administrations, respectively, during the UhuRuto election in 2013 and re-election in 2017. The 2020 American presidential race is kicking off now a year ahead of the party primaries so it does not seem likely that McCarter’s efforts in Kenya will command a high place in the U.S. President’s personal attention soon. (If Trump is re-elected it would seem a fairly safe bet that McCarter would stay on for Kenya’s 2022 election, but as a political appointee he would likely be replaced in 2021 if the White House changes hands.)

It has been interesting to see a higher public profile recently from the U.S. administration on efforts to combat narcotics trafficking networks operating in and through Kenya, along with anti-addiction programs. McCarter has a voluntary service background in this challenge at home in Illinois in addition to his family missionary work in Kenya, so this might be a place where his talents would especially dovetail with diplomatic priorities. Here is a summary of the work of the State Departments’s Bureau of Narcotics and International Law Enforcement in Kenya.

We have also seen an encouraging new development with the recent and current prosecutions by the U.S. of cases involving bribery of high government officials in Uganda and Mozambique (going along with the U.S. extradition and prosecution of members of the Kenya-based Akasha narcotics trafficking syndicate). See the Amabhungane story on the Mozambique cases here.

The U.S. has been quietly supporting capacity building for Kenyan prosecutors; some people, including some Kenyans, think that the Director of Public Prosecution is now closer to “the real deal” than his predecessors and that President Kenyatta is actually now waging a form of a genuine if limited “war on corruption”. (We shall see.)

On the Kenyan side, with the end of 2018 we reached the end of the first year of the Second UhuRuto Administration and the first year of “Uhuru’s Big Four Agenda”.

In late 2017 we witnessed the opposition-boycotted “fresh” presidential election conducted by the highly controversial (and at least to some extent corrupt we now know) IEBC, followed by an international diplomatic circling of the wagons to close out Kenya’s political season on that basis.

Uhuru’s Jamhuri Day speech in December 2017, a month after his second inauguration, announced the UNDP (United Nations Development Program)-supported “Big Four Agenda”.

“On reflection, I came up with four responses to your concerns. I call them the Big Four: food security, affordable housing, manufacturing and affordable healthcare for all. During the next 5 years, I will dedicate the energy, time and resources of my Administration to the Big Four.”

Fulfilling these development targets would be the prospective reward to ordinary Kenyan citizens for their role, such as it was, in the re-election drama, and serve as Uhuru Kenyatta’s “legacy”, to cement his place within Kenya’s First Family and presumably secure the status of yet another generation of Kenya’s post-colonial pre-democratic elite.

I was struck by the fact that the Jubilee/UhuRuto election campaign did not offer the “Big Four” as its electoral platform. Needless to say, it is a bit incongruous to see the Jubilee Government and its international supporters (the same ones funding Kenya’s serially corrupt electoral management bodies) not offer a serious nod toward seeking a direct democratic mandate for such an ambitious and aggressive program to define a Kenyan president’s term in office.

I am fully in support of the concepts of “the Big Four” in having the Government of Kenya actually prioritize the common welfare of Kenya’s citizens. It is just that this type of service provision is frankly head-spinningly counterintuitive coming from Kenya’s existing political class. Anyone who has been blessed to live in Kenya and follows its politics must have asked at the inception a year ago if this “Big Four” was not just the another expression of foreign ambitions projected on Kenya and indulged by Kenya’s elite for their paramount purpose: looking out for themselves.

Now that a year has gone by, the attention of Kenya’s governmental leaders draws more and more tightly around their next election in three-and-a-half years while the reality of the debt load from the most recent pre-election period bears down. It would seem that skepticism was well warranted.

The United States reportedly took a key “leading from behind” role in late 2017 and early 2018 in bringing Raila into some form of post-election accommodation with the Kenyatta’s while taking both a publicly and privately assertive position against the “People’s Presidency” inauguration gambit last January. Since that time we have a new Secretary of State, a permanent Assistant Secretary for the Africa Bureau, and now a new Ambassador, but no open discontinuities in Trump Administration policy on Kenya. Dr. Jendayi Frazer who was the Assistant Secretary in 2007-08 is still around in the same various private capacities as she was in during 2013 and 17 (as far as I know). She was most recently in the Kenyan media visiting with Mombasa County Governor Joho, reportedly discussing “violent extremism” before a Mastercard Foundation event. Most of the other people who were involved in Kenya diplomacy and policy at a senior level in the Obama years are in quasi-official related positions and/or the Albright Stonebridge Group, awaiting a change in administration if not retired.

With the “handshake” between Uhuru and Raila it seems that Kenya’s opposition has been left with less power in parliament than at any time within the past twenty years.

Certainly Daniel arap Moi must rest easy knowing that the rumors of his political demise were greatly exaggerated. His succession project from 2002 has more-or-less succeeded. Kenyans are freer as a matter of civil liberties now than they were during the days of his rule as recorded in history and as described to me by politicians who were in opposition back in 2007 but have circled back in the years since. At the same time, extra-judicial killing remains a constant threat to the poor and to anyone whose exercise of those liberties might seem to present a real challenge to the political status quo. The killings by State security forces in support of the 2017 elections were significantly escalated from 2013 and after ten years it is now safe and necessary to say that the post-election violence of 2007-08 has been effectively ratified by the State as the violence of 1992 and 1997 under Moi was. And Kenya may be even more pervasively corrupt than ever. Elections arguably peaked in the 2002 landslide.

The “international community” as it identifies itself has accepted and moved on from its abject defeat by Kenya’s political elite (and by its own vanity and lack of substantive commitment) on the issue of “justice” for the politically instrumental murder and mayhem of 2007-08.

Trump’s “New Africa Policy” as per National Security Advisor John Bolton suggests that we should not expect any separate new “flagship” initiatives for development or assistance from the U.S., nor other major changes emanating from the White House. The “New Africa Policy” could be seen as raising questions of how far the U.S. will be willing to financially underwrite the “Big Four” approach on development assistance. Bolton himself was both the intellectual and political leader of the campaign to keep the ICC as far from any interaction with U.S. policy as possible and is a career U.N. skeptic. There are elements of the approach talked about for “the Big Four” that fit up with what we hear from USAID in the Trump era, in particular a heavier focus on creating opportunities for private foreign investment coupled with reduced direct assistance spending. At the same time, the sexiest sector for investment under the Big Four, under Universal Health Coverage, is predicated on the rejection of the Republican approaches to healthcare in the United States, so the rationale for U.S. Government support under a Trump Administration is fuzzy at best.

Just as most of Kenya’s major politicians have history as cooperators in some fashion with Kenya’s single party KANU regimes, some of those around Trump worked for Moi directly (Paul Manafort and Roger Stone most conspicuously) and Americans of longevity in the Foreign Service have background with the USG-GOK alliance under Moi. It will be interesting to see where Ambassador McCarter fits into this history.

On one hand, McCarter is a Trump political appointee from Republican politics; on the other his background with Kenya as a missionary makes him a somewhat anomalous figure in the world of Black, Manafort and Stone, Cambridge Analytica and other Trump-connected international operatives and lobbyists, and with Donald Trump and his Organization, the global hotel/gambling developer and brand broker.

McCarter has been around Kenya independently and will have is own pre-existing relationships and his own impressions on Kenya’s politics not tied to the Trump family.

McCarter’s religious background as an Oral Roberts University graduate and missionary in itself, and political background as an elected official from a less urbanized portion of the American Midwest may give the new Ambassador some head start in relating to ordinary Kenyans over someone from a more typical background for a professional diplomat.

Will McCarter tuck comfortably into the pre-existing Bush/Obama/Trump policy for Kenya of accentuating the positives about those in power and how we can keep things quietly spinning without risk of disruption? Or might he be more plainspoken? How will he see his role in the “handshake” and “Building Bridges” endeavor as Kenya’s pols move more quickly on to jockeying for advantage for the next dispensation from 2022? Can McCarter find a way to contribute something lasting on corruption and law enforcement even if the “Big Four” is “overcome by events” as politics moves on?

Kenya visit by IFES President Bill Sweeney March 2017 An earlier Handshake: IFES president Bill Sweeney calls on Jubilee Speaker of National Assembly Justin Muturi on visit coinciding with IEBC’s announcement of sole source deal with Safran Morpho to acquire Kenya Integrated Election Management System (KIEMS) in March 2017. Sweeney also brought the new IFES country director for its USAID election support program who was hired to replace the director who had been purged following criticism from the Jubilee Party and the Kenyatta Administration.

On #AntiCorruptionDay do not forget how then-fugitive Gideon Mbuvi (“Sonko”) came to Parliament in 2010

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.

My only personal encounter with Sonko was when he showed up as MP and potential Senator-elect at the Milimani Law Courts in March 2013 when civil society leaders I was working with sought an injunction to stop the IEBC under Isaack Hassan from announcing Presidential election results after shutting down the Results Transmission System, which had allegedly unexpectedly failed (it has turned out the procurement was botched in the first place so the Results Transmission was not ever going to work).

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.

As the Daily Nation explained in an article headlined “Makadara rivals bet on the slums” at the time Sonko originally had support of a faction within the ODM party before intervention of party leader Raila Odinga, then Prime Minister in Kibaki’s second administration (sometimes referred to as the “Government of National Unity”):

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.”

Important Kenya BBI reads, and my comments

Patrick Gathara, Al Jazeera English: “Kenya’s BBI is the political elites’s attempt to rewrite history

Waihiga Mwaura, BBC: “Letter from Africa: Is Kenya building bridges to nowhere?

Gov. Anyang’ Nyong’o, Star: “We need honest and patriotic debate on the handshake report

US Embassy: Ambassador Godec’s Remarks for National Dialogue Conference, September 11, 2018

Star news report, Nov. 28: US Ambassador McCarter hails BBI report as key to unity

My comment: I have read much of the report in some detail, but still working through some sections. When Ambassador McCarter hails the report and suggests that Kenyans should not comment until they have read it, he does let us know that it is intended to be an elite consensus to be handed down into Kenya’s democratic politics such as it is.

Figures on internet penetration in Kenya are, inevitably, as inconsistent as figures on Kenya’s population. Some assert that more than 85% of Kenyans have internet access, but so much of that is strictly mobile and expensive for data that reading the full report while suspending comment is quite a big ask. The Ambassador obviously is a very quick reader based on the timing of the release and his comments to The Star.

On substance, I find Kenya’s elites to be smart, well educated and well spoken, so it is no surprise that within the details of the report I find a lot of exposition that is appealing to me. How seriously is it to be taken? One has to compare the track record of these elites to past performance, which while giving no guaranty of the future, is the most tangible thing to go on in trying to guess whether they are serious. That part does not weigh in favor of getting too excited about the document one way or the other.

As an example, look at the recent US attack on Senator Amos Wako for his alleged corruption as Kenya’s attorney general during the Moi and first and second Kibaki Administrations at the same time he was a key member of the BBI effort. So what does my government really think about the BBI process?

Beyond that, what I would need to know myself, and what I would think Kenyans would need to know is how the specific decisions reflected in the report were made. The report is very ambitions, and arguably internally contradictory, in making profound recommendations for the shape of Kenya for generations to come. How did the BBI team decide to stress on one hand the idea of going back to try a “nation building” exercise of coming up with some type of “national ethos” for Kenya,while also committing to doubling down on and even expediting the notion of regionally confederating and then federating in an East African state? Are either of these goals realistic and if both are, are they compatible?

What was the process for deciding that industrial manufacturing for a regional market was the best way to address the employment crisis? And so on.

[Update: I have completed my “close reading” of the full document. What I will add is that there are a lot of worthwhile specific items included in the recommendations toward making Kenya’s government more effective/efficient/ fair. These represent collectively a substantial amount of thought and effort and I do not take that lightly; collectively they could if fully implemented quickly accomplish very significant incremental improvements, but do not seem to me to suggest something profoundly transformational. Aside from the issues I mentioned above, the gaping hole is the failure to address at all the unfulfilled parts of Kenya’s National Accord from the 2008 “peace deal” following the stolen 2007 election, especially the truncated and “shelved” Truth, Justice and Reconciliation Commission report.]

Kenya’s long awaited “Building Bridges Initiative” report published on-line

Following the post-election negotiations between Uhuru Kenyatta and Raila Odinga during December 2017 – March 2018, culminating in the famous March 9, 2018 “handshake” between the two, Kenyans have witnessed a prolonged period of political stasis in which Kenyatta has run the Government as he sees fit without opposition and former Prime Minister Odinga and Deputy President Ruto and their factions have carried on their 2022 campaigns.

We now have a 150+ page published report from the Government of Kenya representing the work product of a dual team of insiders for the two “sides” (Raila/ODM and Uhuru) making various recommendations for political governance issues as are always “on the table” in “post-Colonial” Kenya.

Formally, this has been called the “Building Bridges Initiative” implemented by the “Building Bridges to Unity Advisory Taskforce” and has incorporated the usual process of donor supported public “input” sessions around the country to “popularize” the process, the teams of insiders and what they will agree on and eventually announce.

The adjustments proposed from the public comments and news so far appear to be relatively nondramatic and reflect what one would expect for an elite consensus process where the primary issue is the adjustment of interests among those at the table.

Here is the official website for the Building Bridges Initiative.

For background, here is my post from December 7, 2017, “Trump Administration’s top diplomat for Africa visits Nairobi, public statements adjusted to call for ‘national conversation’ as substitute for ‘national dialogue’“:

I was pleasantly surprised by the previous statements from the State Department both from Washington and in Nairobi, calling for “national dialogue” in the wake of Kenya’s fraught and objectionably violent environment in the wake of the boycotted October 26 presidential re-run.

In the latest release from Washington on December 4 the State Department said “the Acting Assistant Secretary will travel to Nairobi, Kenya from December 4-6, where he will meet with representatives of the Kenyan government, as well as with Kenyan civil society. The visit will encourage all sides in Kenya to participate in a national dialogue following the presidential election.” (emphasis added)

Today, however, following the talks, a new statement was issued–by the Ambassador–backing off from the language “national dialogue”. Instead, along with a call for Odinga drop a “people’s swearing in”, and a generic call for protesters to avoid violence and the Government’s security forces to avoid unnecessary killing and to investigate themselves on the outstanding accusations that they had been doing so, the State Department now recommends a “national conversation”.

Why is this different? Well, you would have to ask the Embassy or Main State Department and/or the White House why they changed the language, but “national dialogue” is a clear reference to the formal process resulting from the February 2008 settlement agreement between Kibaki and Raila leading to the Truth, Justice and Reconciliation Commission Report (censored and held in abeyance by the Uhuruto Administration–an issue in the August election), the Kriegler Commission on the 2007 Election (leading to the buyout of the Kivuitu led ECK), the Waki Commission on the Post Election Violence (leading to the aborted ICC prosecutions) and constitutional reform process that led to the 2010 Referendum adopting the new Constitution which mandates the 2/3 gender rule (declined so far), diaspora voting (mostly declined so far), devolution (in process), and such. A “national conversation” is a nice notion and probably a good thing to do here in the United States as well as anywhere else culturally divisive politics.

See “Reformers vs. The Status Quo: Is it possible to have free and fair polls” by Eliud Kibii in The Elephant to put the current election disputes and contest in the complete post-Cold War context.

Update: Ambassador Godec’s tweet of Dec 11:

NASA’s decision yesterday is a positive step. We again call for a sustained, open, and transparent national conversation involving all Kenyans to build national unity and address long-standing issues.

Bechtel Mombasa-Nairobi Expressway project background

Ambassador McCarter has been engaging with Kenyans on Twitter following an Embassy media release on US support for the proposed Mombassa-Nairobi expressway.

For background:

U.S. withholds funding for Sh. 300 billion Mombasa-Nairobi expressway. This was the news on May 27, 2019, as reported from A1Autoservice,Ltd.com:

Nairobi-Mombasa expressway funds stalled 

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:

The battle for road tenders hots up as U.S. giant opens Nairobi office, Construction Kenya, July 11, 2017:

. . .

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. . . .

U.S. firm wins deal to build Kenya’s first high speed highway, Construction Kenya, Aug 17, 2017:

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 near Konza ICT City and a spur road to Kyumvi (Machakos Turnoff) on Mombasa Road. This section is anticipated to open to traffic in October 2019. . . .

U.S. rejects Kenyan press criticism of $3B Bechtel roads deal, Global Construction Review, Sept. 25, 2017:

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 embassy tweeted: “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), said on 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 were responding to an article in Kenya’s Financial Standard newspaper 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 was announced three 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 the Standard there 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.

Nairobi-Mombasa expressway project dogged by serious concerns, Construction Kenya, July 4, 2018

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.

On the other hand, Bechtel International is opposed to the PPP model which it says will cost the Kenyan taxpayer Sh540 billion over next 25 years.

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.

As Kenya Turns: Kalenjin radio features return of former ICC-indictee Sang at Kenyatta and Ruto-owned station

Ruto Hires Former ICC Co-Suspect Sang For His Kalenjin Radio Station, Kenyan Report, June 5, 2019

“Former Kass FM presenter Joshua Sang is set to make a comeback to the airwaves after landing a job at Emoo FM, a station owned by Mediamax Network Ltd.

Even though both the Kenyatta family and Ruto hold substantial stakes in the DMS Place-headquartered Mediamax Network – sources claim Ruto is the hitherto biggest shareholder even as he aims to consolidate media support around his 2022 ambitions.”

If Kenya’s remaining IEBC Commissioners have committed to stick with the 2017 OT-Morpho (n/k/a IDEMIA) “Election Management System” they should explain why they sole sourced that firm in March 2017 and disclose the contracts

At a briefing hosted this week by Kenya’s permanent internal election observation organization, ELOG, a Commissioner representing the IEBC indicated that the intention for the 2022 election was to reuse the KIEMS (“Kenya Integrated Election Management System”) system that was at the heart of the problems leading to the Supreme Court’s annulment of Kenya’s last presidential election.

Without scratching the surface into the deeper intrigues involving the re-election Of President Kenyatta and the technology involved, such as the pre-election abduction, torture and murder of acting ICT Director Chris Msando, or deported campaign consultants and police raids on data centres– not stuff for civil society seminars in Kenya–it would surely be the least Chairman Chebukati could do to explain why he and the Commission chose OT-Morpho/IDEMIA for the job in March 2013 in the first place.

Especially given that Kenya’s Parliament voted to debar IDEMIA and that Oberthur Technologies (OT) is subject to a world Bank debarment for bribery. Not to mention the firm’s strange role as a sole sourced substitute provider of problematic technology in 2013, when the Government of Canada stepped in to loan funds to the Government of Kenya to buy Biometric Voter Registration Kits after the supposedly independent IEBC had decided to go with a manual system instead. (According to what I’ve learned so far from a 2015 Freedom of Information Act request, IFES which was funded by USAID to assist the IEBC, reported back to USAID that the inability or unwillingness of the IEBC to resist this pressure from the Government to reverse its decision on the BVR system was a major setback in preparations for that election that reverberated through the failures with poll books and the Results Transmission in months ahead).

If the reasons for selecting OT-Morpho are to remain shrouded, the contracts themselves are public records and should be published. For some reason they do not appear to have been tabled in the 2017 Supreme Court cases about the presidential election–I am sure that was just an oversight and it is easily rectified now for the upcoming vote.

As Kenya turns: watch as the Chris Murungaru Anglo Leasing suit against John Githongo heads toward Supreme Court—“feeding the pig of corruption”

Kenya has had that one widely accepted successful presidential election out of six in the multiparty era following the end of the Cold War. The 2002 “Kibaki Tosha” “National Alliance Rainbow Coalition” election has remained the taproot of mythology about Kenyan democracy in the United States to this day, nearly seventeen years later.

The 2002 succession of Moi, with the young Uhuru Kenyatta left to wait his turn, serving as Leader of the Opposition, then Deputy Prime Minister during Kibaki’s two administrations, was supposed to have ushered in an actual spirit of multiparty competition and higher-minded, cleaner governance that was missing as long as Moi was still in State House himself even though he had grudgingly agreed to change the law for the 1992 election to allow non-KANU parties.

The pick up and continuation of the Anglo Leasing national security looting scheme in spite of the turnover from Moi to Kibaki contradicted the myth and was egregious enough to risk the support of State Department diplomats for Kibaki’s re-election. When I arrived in Kenya in mid-2007 I inherited democracy assistance programs that reflected U.S. disappointment in the Kibaki Administration’s corruption as reflected in the Anglo Leasing scandal, which had been sharply and publicly criticized by the previous U.S. Ambassador and British High Commissioner. But the programs had been established back under the previous Ambassador more than a year-and-a-half earlier.

By the eve of the 2007 election the worm had turned:

This is from my Freedom of Information Act Series on on the 2007 election:

Getting back to the narrative, I also remember Tuesday, December 18, 2007, the date that Ranneberger wrote the second of the cables that I received recently through a 2009 FOIA request.

That morning’s Standard featured a big, full page exclusive interview with Ambassador Ranneberger, nine days before the election.  For me this article was something of a benchmark in terms of my instructions to take “no more b.s.” from the Ambassador.  There are several reasons I found the article troubling, part related directly to the independence of  our IRI election observation mission, and part related to the Kenyan campaign itself,  in particular the corruption issue.  On corruption:

[From“Envoy Predicts Free and Fair Election”, The Standard,December 18, 2007–an interview with U.S. Ambassador Michael Ranneberger nine days before the Kenyan election]

Q: What are your views on corruption?

A:Lots of people look at Kenya and say lots of big cases have not been resolved because of Anglo Leasing and Goldenberg. I always point out that we have lots of corruption even in the US. These cases take a lot of time to bring to justice. We had the famous Enron case. It took over four years to resolve in a system that works efficiently, yet only a couple of people were convicted. These things take a long time.

There has been substantial effort to fight corruption in Kenya and the award the country won for Civil Service reform [from the World Bank] is a pointer to that effect. The fact that the Civil Service is more professional than ever before is progress as are the new procurement laws recently put in place and the freedom of the Press to investigate and expose corruption. More, of course, needs to be done.

The economy has grown by 7 per cent. How much of that has actually trickled down to the people will again be determined by time.

A career diplomat, Ranneberger has been in Kenya for close to one-and-a-half years, and has served in Europe, Latin America and Africa.

During previous days The Standard had been running new revelations about corruption in the Kibaki administration from documents from exiled former Permanent Secretary for Ethics and Governance  John Githongo. Rumor had it that Githongo wanted to be able to return to Kenya and might want to be able to return to government after the election, although I had no knowledge one way or the other about whether that was true. Githongo’s personal adventure trying to address corruption in the Kibaki administration is the subject of Michela Wrong’s It’s Our Turn to Eat. Wrong rightly noted in her book that stealing the election was the ultimate corruption.

Githongo had previously alleged that the Anglo Leasing scandal that Ranneberger referred to was intended to fund the campaign to re-elect Kibaki. See this from BBC News, January 26, 2006, “Kenya ‘safe’ for anti-graft czar”:

On Wednesday, the World Bank urged Kenya’s president to take tough action against any cabinet ministers found to be corrupt.

The warning came as the World Bank approved a new $25m loan to help fight corruption – a decision slammed by former UK Kenya envoy Sir Edward Clay.

Sir Edward, who has condemned Kenya for not tackling graft, said the new loan would feed the “pig of corruption”.

‘Insensitive’

”The Anglo-Leasing cases represent an excellent opportunity for the authorities to invoke the disciplinary provisions of the code of conduct signed by the new cabinet weeks ago,” said World Bank Kenya director Colin Bruce.

“I believe that this is an historic moment for the government to signal where it stands on the issue of political accountability,” he said.

President Kibaki is under increasing pressure over corruptionPresident Kibaki was elected in 2002 on a pledge to fight corruption.

Some donors, including the UK, have suspended some aid to Kenya over concerns about corruption and Sir Edward, who retired last year, thought the World Bank should have sent out a tough message.“How can the World Bank be so insensitive and hapless to announce new loans to Kenya?” reports the Guardian newspaper.

“They have added insult to injury by feeding the pig of corruption in Kenya when many Kenyans were beginning to hope they might smell the bacon beginning to fry.”

Over the weekend, Mr Githongo’s leaked report said his attempts to investigate the Anglo-Leasing scandal were blocked by four top ministers – Vice-President Moody Awori, Energy Minister Kiraitu Murungi, Finance Minister David Mwiraria and sacked Transport Minister Chris Murungaru.

Mr Murungi and Mr Awori have publicly denied the claims.

Mr Murungi said the report was “untrue” and an attempt to bring down the government.

Mr Githongo resigned last year amid reports that his life had been threatened.

The money raised by the alleged scam was to be used to fund the ruling Narc coalition’s campaign in elections due next year, Mr Githongo said.

Following the leaking of the 31-page report, the opposition has urged President Kibaki to dissolve cabinet.

Opposition Orange Democratic Movement leader Uhuru Kenyatta said: “This is clear evidence that the government can no longer be trusted to conduct detailed and honest investigations into this saga.”

Other diplomats were maintaining effective “radio silence” in the sensitive closing days of the 2007 campaign, while Ranneberger was speaking out to defend the Kibaki administration’s corruption record. In the meantime, after my December 15 experience at the Embassy residence I was quietly preparing the new last-minute pre-election Langata survey, along with all the other work for the exit poll and Election Observation Mission.

After reading the Standard article, I e-mailed my local USAID officer on the Election Observation and Exit Poll to complain, noting my opinion about the article and where things seemed to be going in regard to my obligation to supervise an objective and independent Observation Mission and the Ambassador’s alternative approach.

Part One;   Part Two;    Part Three;    Part Four;    Part Six;    Part Seven;   Part Eight Part Nine Part Ten

So by December 2007, we had the U.S. Ambassador having pivoted to the role of offering apologetics for Anglo Leasing in the context of Kibaki’s re-election.

At some point after the election debacle I was asked to submit to my Washington office names for IRI to send to an international women’s leadership event and we passed along a current MP and Njoki N’dungu who had an NGO and who had been a member of the Ninth Parliament from 2002-2007. Shortly afterward I was informed by a diplomatic source that N’dungu was “closely connected” to Chris Murungaru of the Anglo Leasing matter. Reporting to Washington it was agreed that the invitation would not have been made had we realized this problem in time.

Today, Uhuru Kenyatta is in his sixth year as president and has in effect adopted Anglo Leasing by paying out more millions on the bogus procurements over the years while notional prosecutions languish. Githongo continues to be subject to nasty tribalist attacks from jingoists for revealing admitted truths that were embarrassing to purported tribal leaders, including from one pundit who may have received some Western support in 2013 while pushing his tribal election theories to demonstrate that the opposition could not compete with UhuRuto.

Today, corruption is worse–no surprise there– but the World Bank is stepping in again, with $75M. The local World Bank Director Colin Bruce was right back when the Anglo Leasing scandal broke that it was “an historic moment for the government to signal where it stands on the issue of political accountability”. The Government of Kenya was quite clear and remains so–it is Kenya’s donors that have twisted and contorted to avoid hearing.

Today, Githongo has a new personal judgment against him for defamation for the leaked publication of his work as Permanent Secretary in trying to “stop these thieves” and protect the Kenyan government and public from looting and insecurity. He is appealing and Kenyans are raising funds to support the appeal.

Today, N’dungu is Justice on the Supreme Court. (She will need to recuse herself from any involvement in the Murungaru versus Githongo matter.)

I have to shake my head in remembering the window back about a decade ago when the U.S. and other Western donors were vocally backing what we called “the reform agenda” and USAID even got involved in supporting the National Council of Churches of Kenya in using the Michela Wrong book, It’s Our Turn to Eat, to teach against corruption.

Now we have a new Ambassador, the fourth since Anglo Leasing broke to the public. As I have written I have a sense that he wants to help change the dynamic on corruption in Kenya. He can make progress if he makes the sacrifices necessary but he does have to realize it will be much harder than it would have been back in 2007 or at so many other turning points in the past and that pushback will come from places other than Kenya.

Update: be sure to read Rasna Warah’s “In Whose Interest? Reflecting on the High Court Ruling Against John Githongo” in The Elephant’s East African Review.

Is Washington finally losing patience with governance by UhuRuto? If so, what is seen as “the way forward”?

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:

1). First was the report that Ambassador McCarter had said in Kisimu that the U.S. was putting on hold financing for the Bechtel Mombasa-Nairobi expressway due to concerns about corruption risk and debt levels escalating costs such that the intended value to the Kenyan people was not delivered. Here is the version from “Kenyans.co.ke” which has been running a bunch of pieces bringing up events from political inflection points from years past with no specific explanation of the timing, such as the piece I posted about last week taken off from my June 2017 piece in The Elephant on “The Debacle of 2007: How Kenyan Politics was Frozen and a Election Stolen with U.S. Connivance“.

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.

2) Next is Macharia Gaitho in the Daily Nation publishing today’s column: “Either rebels in Jubilee ranks join opposition, or Uhuru steps down” calling out Jubilee’s divide:

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.

A necessary and complimentary read is the latest from Rasna Warah in the East African Review with what needed to be said on the most egregious act of contempt toward what we used to call “the reform agenda”: “In whose interest? Reflecting on the High Court judgment against John Githongo?”

Kenya 2007 election Kibaki Tena Kazi iendelee re-election