the lion and the panda: still working on the relationship

The ambiguities in China’s relationship with Africa have created fertile ground for politicians. Opposition parties, especially in southern Africa, frequently campaign on anti-China platforms. Every country south of Rwanda has had acrimonious debates about Chinese “exploitation”. Even in normally calm places like Namibia, antipathy is stirring. Workers on Chinese building sites in Windhoek, the capital, are said to get a “raw deal”. In Zambia the opposition leader, Michael Sata, has made Sino-scepticism his trademark.

Much of this is wide of the mark. Critics claim that China has acquired ownership of natural resources, although service contracts and other concessions are the norm. China is also often accused of bringing prison labour to Africa—locals assume the highly disciplined Chinese workers in identical boiler suits they see toiling day and night must be doing so under duress.

Even so, the backlash is perhaps unsurprising. Africans say they feel under siege. Tens of thousands of entrepreneurs from one of the most successful modern economies have fanned out across the continent. Sanou Mbaye, a former senior official at the African Development Bank, says more Chinese have come to Africa in the past ten years than Europeans in the past 400. First came Chinese from state-owned companies, but more and more arrive solo or stay behind after finishing contract work.

Many dream of a new life. Miners and builders see business opportunities in Africa, and greater freedom (to be their own bosses and speak their minds, but also to pollute). A Chinese government survey of 1,600 companies shows the growing use of Africa as an industrial base. Manufacturing’s share of total Chinese investment (22%) is catching up fast with mining (29%).

That is the Economist reporting on the ever-growing Sino-African relationship. The main takeaway point is that Africa is increasingly becoming a manufacturing base for Chinese companies. With that comes transfer of technology, development of local expertise, increased competition and exposure to what’s happening outside the continent. In a few decades Chinese labor will get too expensive to support a robust export-oriented economy. That, coupled with increased domestic consumption in China will provide a good chance for African countries to finally begin their own move towards export-oriented industrialization and service provision.

signs of grand corruption in the kenyan treasury

Every year, the Treasury presents the Controller and Auditor-General a revenue statement, disclosing details of revenues received on income tax, VAT and corporation taxes.

The accounts for all revenue categories are kept separately. The gist of the new report by Mars Group is that the Auditor has discovered several cases where records of revenues received by KRA does not tally with what was actually received by the Treasury.

There are also cases where accounts of revenues banked at the Central Bank differ from the records kept by the receiver of revenues.

Where there are material differences, what the Auditor-General has been doing has been to exclude such revenue categories from the general certificate issued to the Treasury at the end of the year.

Is it just a matter of sloppy accounting? We all know that accounts which cannot reconcile are a recipe for irregular dealings.

That is Kisero writing in the Daily Nation. I am trying to get a soft copy of the actual report from the Mars Group. More on this soon.

Kenyan politician loses $10 million at airport

UPDATE: The blogosphere is already abuzz with the potential absurdity of the Standard story. Apparently $ 10 million in $100 notes weighs 100kg. It is hard to see if someone could carry that much weight around with them, much less be allowed onto a plane. There is vital information missing somewhere. The Standard editorial staff might have been asleep on the job,  again.

The East African Standard reports that a high flying Kenyan politician (either Uhuru or Ruto) lost $ 10 million at the Jomo Kenyatta  airport in Nairobi.

Police are investigating the case. It is believed the said politician had carried the money to the Hague in case he needed cash bail? [whatever happened to wire transfers??? This guy should fire the troupe of yes men around him, and his hapless bodyguards]

The incident raises the question of the legality of carrying such large sums of money in and out of the country. Did the Kenyan authorities know about this? How about the Dutch authorities?

The Kenyan blogosphere is already generating rumors about money laundering and what not. I say the CID should get their noses into this mess.

In unrelated news, parliament will, in a week’s time, be told the names of suspected gold smugglers from the DRC. A few weeks ago the president of the DRC, Joseph Kabila, flew into Nairobi to lodge a complaint with his Kenyan counterpart Mwai Kibaki. Mr. Kabila believes that a Kenyan cartel is smuggling minerals out of the Congo and denying his useless government of vital tax revenue.

what if ruto and uhuru were jailed by the icc?

Kenyan politics is currently in flux. Two key presidential candidates, Uhuru Kenyatta and William Ruto may be barred from running for public office next year on constitutional grounds. The key beneficiaries of such an eventuality will most probably be Raila Odinga and Kalonzo Musyoka, the Premier and Vice President respectively.

But what would such an eventuality mean for Kenya?

I’d say not much.

Over the last few weeks Uhuru and Ruto have been crisscrossing the country and holding chest-thumping rallies to prove to someone – either the ICC or the Kenyan political and economic elite – that they have the support of the grassroots. They have also issued thinly veiled threats that violence may erupt in the country if they are whisked to the Hague and barred from running for president in next year’s general election. Why does Uhuru and Ruto feel the need to do this?

In my view, and according to the rules of power politics, a tiger need not shout about its tigritude [I believe it is the great son of Nigeria, Wole Soyinka who coined this phrase].

That Ruto and Uhuru have felt compelled to shout about their support-base and issue threats tells me that they are feeling the heat. The fact of the matter is that the key backers of the duo are the ones who would lose the most in case of a resurgence of violence – think of Kenyan retail, banking, insurance, media and transport barons. These are the people that will lose the most when the Mombasa-Kampala Highway is impassable and Equity Bank closes everywhere. They know this and Uhuru and Ruto also know this. Furthermore, igniting further violence would most certainly attract sterner reaction from international watchdogs like the ICC and the UN Security Council.

There is also the [small] matter that now ordinary Kenyans will also know where exactly the violence is coming from.

Violence is therefore not an option. Not for Ruto and Uhuru. Not for their backers. And most certainly not for the rest of Kenya.

I suggest that the rest of Kenya call their (Uhuru and Ruto’s) bluff about violence next year.

Their battles with justice should not derail the much needed institutional reforms that will take the country out of the miasma of mediocrity that continues to engulf most of the Continent.

In the final analysis, the words of former VP George Saitoti will ring true: There comes a time when Kenya gets bigger than any single individual. Ruto, Uhuru and the wider political class are about to be schooled on this maxim the harsh way.

ethnicity and public employment in kenya

The Daily Nation reports:

The survey undertaken by the National Cohesion and Integration Commission (NCIC) gave shocking details of how political patronage and personality-based leadership had reduced the civil service into an exclusive club of the big communities at the expense of the so called small communities.

According to the survey, members of the Kikuyu, Kalenjin, Luhya, Kamba and Luo communities occupy 70 per cent of all jobs in the civil service.

Keep in mind that Kenya has about 42 ethnic groups.

I personally did not find this very shocking. The report indicates that the two ethnic groups that have occupied the Kenyan presidency since independence, the Kikuyu and Kalenjin, together make up 40% of the civil service.

My hope is that this report will initiate debate over merit in public employment. It is about time we had standardized and transparent ways of hiring public servants and not leave all the discretion in the hands of venal pols.

what next for the kenyan political class?

The truth of the matter is that the whole political class in Kenya is implicated in the murder of 1300 people and the displacement of hundreds of thousands following the post-election violence of 2007-08. Their continued contempt of the ordinary mwananchi is evident in the fact that three years on the displaced still live in IDP camps littered across the country. The lack of widespread moral outrage at this fact speaks boatloads about Kenyans’ moral character.

The ICC appears to be closing on the “Ocampo six” – individuals identified by the ICC prosecutor Moreno Ocampo as most culpable at the highest level for the violence that rocked parts of the Rift Valley in early 2008. An ICC pre-trial chamber ruled yesterday that there is evidence to suggest that six prominent Kenyans are criminally responsible for crimes against humanity committed in 2007-08. The six include Finance Minister Uhuru Kenyatta, Cabinet Secretary Francis Muthaura, former Commissioner of Police Hussein Ali, former ministers Henry Kosgei and William Ruto and radio personality Peter Sang.

After the 2007 general elections Kalenjin speaking supporters of Raila Odinga attempted to drive out members of the “Kikuyu diaspora” in the Rift Valley Province, the “ethnic homeland” of the Kalenjin. Raila’s opponent in elections, President Kibaki, is a Kikuyu. It is suspected that local ethnic leaders, including William Ruto, Henry Kosgei and Peter Sang, were in charge of directing these attacks. In the most gruesome episode in Kenya’s darkest hour mobs locked ethnic Kikuyu women and children in an Eldoret church and set it on fire. More than 30 perished. Kikuyu elites, allegedly lead by Finance Minister Uhuru Kenyatta and Cabinet Secretary Francis Muthaura, retaliated by mobilizing the proscribed Mungiki gang to carry out reprisal attacks. It is also alleged that the former Police Commissioner, Hussein Ali, conspired to keep the police off Mungiku’s back. Hundreds of ethnic Kalenjins and Luos, among other supporters of Raila Odinga, were killed or uprooted from their homes in Nakuru and Naivasha.

Ever since the announcement by the ICC prosecutor that he would go after the six a radically political realignment has taken place in the country. William Ruto and Henry Kosgei ditched the party led by Raila Odinga and joined alliances with Uhuru Kenyatta to oppose the ICC indictment. President Kibaki, who at the beginning appeared to be willing to throw Uhuru under the bus, also became wary of the ICC after his chief lieutenant Muthaura was named as a key suspect. Presently, Vice President Kalonzo Musyoka has embarked on a “shuttle diplomacy” mission to convince African leaders and the P5 of the UN security council to lean on the ICC to defer the charges against the Ocampo six. Many African leaders, given their own records at home, have supported the initiative. But the mission at the security council hit a snag yesterday when US representatives indicated that they will veto any attempts at deferral.

What then for Kenyan politics? Any analysis must focus on the Kibaki succession. President Kibaki is term-limited and must step down in 2012. Two members of the Ocampo six – Uhuru and Ruto – are key players in the succession game. If the two are convicted Raila Odinga stands to gain the most. But it all depends on what alliances ensue following such an eventuality. Uhuru and Ruto might remotely throw their weight behind Vice President Musyoka to enable the latter to capture State House. Indeed, the three have publicly declared to be members of the (unfortunately named) KKK alliance (the three are from Kikuyu, Kalenjin and Kamba ethnic groups, respectively). The more likely scenario, however, is that the Kikuyu and Kalenjin communities will experience internal fractures once their key ethnic chiefs are out of the game. Uhuru is already facing an insurgency led by the fire-breathing former Justice Minister Martha Karua. Ruto has maintained a facade of unity in his ethnic bloc but money can do wonders in Kenyan politics, and his potential detractors among the Kalenjin – including a son of former President Moi – have wheelbarrows of it.

In short, everything is in flux right now. The substantive reaction of the political class – beyond the shouting match that is currently underway – will only be apparent when parliament resumes in a few weeks. Lawmakers need to pass crucial laws needed to implement a new constitution that was ratified last August. The breakdown of the voting patterns will almost inevitably show some nascent realignment. Like the wikileaks records of Kenyan politicians bad-mouthing one another to low-level US embassy officials have shown, Kenyan politicians are an incorrigibly unprincipled bunch who will not hesitate to jump ship if they realize that their party leader is in trouble.

The political temperature in Kenya will no doubt go up in the next few days. The unfortunate thing in all this is that the hullabaloo is will continue to be a distraction from the fact that 1300 innocent KENYANS died and hundreds of thousands were displaced in 2007-08.

icc finds six kenyans culpable for ethnic violence

The ICC has ruled that six prominent Kenyans have a case to answer for the murder of 1300 people and the displacement of hundreds of thousands in the 2007-08 post-election violence in Kenya.

The spotlight is now on President Kibaki. About two of the president’s closest allies – Finance Minister Uhuru and head of civil service Muthaura – a local daily opines:

Retaining them in Government will send a signal to the ICC and the world that Kenya is not ready to co-operate and is a hostile State, putting it at par with Sudan, which has refused to hand over President Al-Bashir who is charged with crimes against humanity over Darfur.

More on the political reaction to this soon.

In related news, I am absolutely loving the wikileaks stuff on the drama that is Kenyan politics. Most politicians believe that Kalonzo is a janus-faced intellectual lightweight who pretends to love Jesus Christ. Raila is depicted as accessible but power-hungry and really bad at management. President Kibaki is sick, condones corruption and has been captured by vested interests in his inner circle. Ruto and Uhuru fret at the idea of taking all the blame for 2007-08. Uhuru Kenyatta is “lazy.”

This is valuable information, the effects of which will not be apparent any time soon. In the minds of Kenyans, a clearer image of these little men and women who parade as gods is slowly forming. It is only a matter of time before the myth of tribal loyalty is shattered and these tribal chiefs are seen for who they really are: a bunch of unprincipled and venal goons.


kenyan elites conspired to kill peasants in rift valley, and are getting away with it

President Kibaki’s embarrassment regarding the 2007-08 post-election violence continues. The latest information from wikileaks suggests that the top brass of the Kenyan military armed the proscribed group Mungiki which then went on to kill peasants in Kenya’s Rift Valley Province. The outgoing US Ambassador detailed to Washington how co-ethnics of Mr. Kibaki tried to arm-twist the army into providing guns and aerial support to Mungiki in their campaigns against Kalenjins in the wider Nakuru area.

In light of this new information the natural question that follows is how much Mr. Kibaki knew. I find it hard to believe that he had no clue about this. I find it harder to stomach the fact that the President of Kenya may have Ok-ed a move by some of his lieutenants to murder innocent women and children simply because they spoke a different language.

Here is an excerpt from the Standard:

In the cables published on the wikileaks website, the envoy reported he received information retired military generals from Central and Rift Valley provinces were involved in organising militias that were meant to play a bigger role in the violence.

Ranneberger identified a former commandant of the National Defence College as the main player in the deadly plot. “At one time he put pressure on serving military generals to arm the outlawed Mungiki sect with G3 rifles, and also provide them with helicopter support,” read part of the cables.

In one cable titled ‘Kikuyus Not Afraid to Strike Back’ Ranneberger quoted sources claiming elements of the “Kikuyu-dominated Party of National Unity (PNU)” were backing the so-called “Forest Guard” militia, which included members of banned Mungiki sect.

“He (name withheld) has reportedly put pressure on the current Kenya Army Commander, Lieutenant General Augustine Njoroge to release G3 rifles and provide helicopter support to the Forest Guard,” read part of the cable.

Lt Gen Augustine Njoroge has since left the force and is now Kenya’s Ambassador to Israel. It is not clear if he executed orders from his superior.

The cable claimed the Lieutenant General in question was assisted in his efforts by a retired Brigadier General who was “acting as Chief of Staff for the effort”. The name of the former presidential aide-de-camp has also been withheld for legal reasons.

The ambassador further wrote Mungiki was receiving funding from two businessmen, one of them based in Muthaiga.

Prof. Ndung’u should stay, away with the whining MPs

For once Kenya has a responsible academic running the Central Bank of Kenya (CBK). Prof. Njuguna Ndung’u has exuded nothing but confidence in his first term in office. Given that finance is a confidence game, this has been a most welcome scenario. It is therefore weird that there are MPs out there crowing that his reappointment be reviewed. Given the country’s political temperature this seems like a dumb misguided move. You remove Prof. Ndung’u and you might end up with someone who is down with printing money to pay for next year’s elections. I say let’s not play politics with the Central Bank.

I fully support Prof. Njuguna Ndung’u remaining as CBK governor. Just one request, echoing Jaindi over at the Daily Nation:

A piece of advice for Prof Ndung’u. You will go down as the best governor in the country’s history if you get the banks to reduce banking spreads. Commercial banks are fleecing borrowers.

kcse results to be released monday

The Kenya National Examination Council, through the Ministry of Education, will release KCSE results on Monday. Key stats will include whether gender and regional gaps persist in performance.

The Kenyan education system is in need of urgent restructuring. The content of most of the curriculum is outdated, as the Minister of Education himself admitted. Nearly 60,000 students who qualify for university education never get admitted to the country’s public universities because of lack of space. Private universities are oftentimes too expensive and, in a growing number of places, of dubious quality.

Instead of promoting class mobility, the education system continues to perpetuate the existing class system by heavily subsidizing higher education at the expense of students from poor households who fail to qualify for admission because of the low quality of their primary and secondary education.

The messy story of drug trafficking in kenya (will Lucy spill the beans?)

The story of powerful and connected drug lords running amok in Kenya is slowly trending into the realm of conspiracy theories. First it was a case of MPs – Kabogo, Mbuvi “Sonko”, Mwau and Joho – being the suspected culprits. But after a government report cleared the names of the MPs (on the grounds that no evidence was found against them) it emerged (according to Kabogo and Mbuvi) that President Mwai Kibaki’s infamous “mistress” Mary Wambui and her daughter Winnie Wangui Mwai were also connected to drug-trafficking.

Interestingly, in 2007 a parliamentary report linked Ms Wambui, her daughter and President Kibaki’s principal political adviser Stanley Murage to the thuggish Artur brothers. Quoting the parliamentary committee report:

Evidence adduced before the Committee established that the Artur brothers had direct connection at the highest levels of Government. Mary Wambui and her daughter Winnie Wangui Mwai, were close associates of the Artur brothers. Mr. Stanley Murage, Permanent Secretary and Special Adviser to the President on Strategy and based at State House was a key player in the saga, As will appear elsewhere in this report, the ultimate questions are: what did the Head of Government know about this matter? When did he get to know it and what did he do about it?

The report proceeds…

Artur brothers were enjoying state protection at the highest levels of Government. These involved the registration of their two companies, Kensingston Holdings Ltd and Brother Link International, importation of goods where tax was not paid as well as their strange appointment to the police force as Deputy Commissioners of Police, their use of government vehicles, amongst many others

The report concludes on page 39:

From the evidence adduced to date before the Committee, the gravity of this mater (sic) has emerged. It is for example abundantly clear that the two brothers were conmen and drug traffickers. That they enjoyed protection by the high and mighty in the Government is not in doubt.

The report does not say anything implicating President Kibaki in drug trafficking. But it certainly raises questions about how it is that the Kenyan security authorities have been able to unearth evidence about the involvement of all sorts of actors (from the military to police officers to government bureaucrats) linked to drug trafficking without finding a single individual guilty of an offense.

It might be time Kenyans consulted First Lady Lucy Kibaki about the activities and business relations of her much-hated “co-wife.”

the African Union and its problems

The just concluded AU summit in Addis Ababa, Ethiopia had two key problems to address: the political crisis in Ivory Coast and the legal battles involving six Kenyans who face charges at the ICC. So far the continental body appears to have failed on its attempts to address both problems.

In the Ivory Coast, Mr. Gbagbo’s camp has already declared that the five person panel formed by the AU is dead on arrival unless Burkinabe president, Compraore is dropped. The Daily Nation reports:

The president of Burkina Faso, named on a high-level African Union panel tasked with settling Cote d’Ivoire’s leadership crisis, is “not welcome” in this country, a top ally of strongman Laurent Gbagbo said here yesterday.

And in Kenya, the political football involving the setting up of a credibly clean local judicial system to try perpetrators of the 2007-8 post election violence diminished the prospects of a deferral from the UN Security Council. Kenya must guarantee that it will try the suspects for the ICC to consider a deferral. It does not help that the appointment of high members of its judiciary, including the chief justice, the attorney general and the director of public prosecutions has already been soiled by political grandstanding.

power-play in public appointments in kenya

It emerges that Kenya’s Prime Minister Raila Odinga wanted President Kibaki to appoint a foreigner to head the judiciary. This can only mean one of two things: either (i) Mr. Odinga wants a super clean judiciary that will interpret the law in a disinterested manner or (ii) he thinks that the Kibaki-PNU faction is so strong that they will be able to buy off any local judge appointed to head the judiciary.

Because Mr. Odinga or his allies could potentially find themselves facing the judiciary in the future, I don’t think it is the former concern that is motivating the Premier. It must be the case that he realizes he has no way of locally dealing with the Kibaki-PNU faction, except through name-and-shame games and other sanctions involving foreigners. To compensate for the fact that he cannot contain the Kibaki-PNU coalition politically, Mr. Odinga is hoping he can do so via independent institutions.

What does this mean for Kenyan democracy? It means that it is not yet Uhuru. As long as there is a faction in the country that can do whatever it wants under a “wapende wasipende” mentality Kenya will remain a democracy in name only. True democracy will only come once all factions involved realize that the country belongs to all Kenyans and that they cannot get away with subordinating the interests of regular Kenyans to those of a few ethnic chiefs.

The man to blame for all of this is Kalonzo Musyoka. Mr. Musyoka is bad for Kenyan democracy because he is the all important median veto player, but lacks principles. Because his support gives either side the needed majority he remains the biggest stumbling block to any compromise arrangements that might ensure that regular Kenyans truly benefit from the new constitutional dispensation. Kibaki does not need to negotiate with Odinga as long as he has Kalonzo on his side. But given Mr. Odinga’s political clout, good and lasting institutions will only emerge if Kibaki and Odinga arrive at a self-enforcing arrangement.

Mr. Musyoka initially campaigned against the new constitution. Mr. Musyoka has been at the forefront of efforts to protect perpetrators of the 2007-8 post-elections violence that killed over 1300 Kenyans. Mr. Musyoka continues to stand on the wrong side of Kenya’s reform agenda. Given the recent comments from Francis Atwoli, the trade union leader, it is encouraging that Kenyans are cognizant of these facts.

Will Bashir pay for “losing the south”?

Omar Bashir faces a tough few days ahead. More than 99% of Southern Sudanese voted for secession in the just concluded referendum, effectively guaranteeing the split of Africa’s biggest country in July of this year. Many in the North blame Bashir for losing the South. The waves of protests in the Middle East following the Jasmine Revolution in Tunisia is adding fuel to the flames. The Independent reports:

Violent clashes broke out at two Khartoum universities yesterday as heavily armed police surrounded stone throwing students. Social media groups similar to those used elsewhere in the Arab world to mobilise protesters have started to mushroom in northern cities.

One of them calling itself “Youth for Change” has attracted 15,000 members to its Facebook page. “The people of Sudan will not remain silent anymore,” it says. “It is about time we demand our rights and take what’s ours in a peaceful demonstration that will not involve any acts of sabotage.”

Security forces arrested Hussein Khogali, the editor of al-Watan newspaper, whom they accuse of orchestrating the online protests.

And in other news, the African Union summit opened on Sunday with the Ivory Coast top of the agenda. The Continental club of autocrats body agreed to set up a five member panel to continue negotiations with Laurent Gbagbo, the Ivorian president who lost an election but refuses to step down. Also on the AU’s agenda is Kenya’s misguided attempts at battling the ICC through threats of en masse pullouts from the Rome treaty by African countries.

The failure to force Gbagbo out of power and the ill-fated fights with the ICC are additions to the litany of failures that make most on the Continent question the relevance of the AU. In my opinion regional bodies are only as strong as their dominant members. With South Africa continuing to be disinterested in regional matters and Nigeria being Nigeria the AU is guaranteed to remain rudderless into the foreseeable future.

kosgey resigns

Tinderet MP and Minister of Industrialization Henry Kosgey has resigned. Mr. Kosgey is being charged with 12 counts of abuse of office and faces a maximum of 120 years in prison if convicted. In the latest case of fraud linked to the Minister, vehicles older than 8 years old were illegally imported into the country under his direction.

Only a few weeks ago Mr. Kosgey was among five prominent Kenyan politicians and a radio host named as suspects by the ICC prosecutor Luis Ocampo in relation to the post election violence in Kenya (2007-08) that killed 1300 and displaced 300,000.

Mr. Kosgey is Prime Minister Raila Odinga’s pointman in the Rift Valley and is the current chairman of the Orange Democratic Movement (ODM).

More on this here.