Hard truths about the Kenyan economy

The World Bank has just released a must-read report on the state of the Kenyan economy. Here is just one of many excellent observations about the structural impediments to accelerated growth in Kenya:

Screen Shot 2016-03-09 at 11.00.50 PMCompared with other fast-growing economies, Kenya invests less and the share of investment financed by foreign savings is higher. The economic literature and post-World War II history illustrate that investment determines how fast an economy can grow. Kenya’s investment, at around 20 percent of GDP, is lower than the 25 percent of GDP benchmark identified by the Commission on Growth and Development (2008). Kenya’s investment rate, as a share of GDP, has also been several percentage points lower than the rate in its peer countries. At the same time, the economy has largely relied on foreign savings as a source for new investment since 2007, while national savings have been declining. National savings—measured as a share of gross national disposable income (GNDI)—has not surpassed the 15 percent mark over the past decade. In contrast, Pakistan’s savings is above 20 percent of GNDI, and Vietnam’s is more than 25 percent. Cambodia had a low savings rate in the 1990s, but it more than doubled the rate in the 2000s.

You can find the whole report here.

 

The Kenyan Army’s Criminal Racket in Somalia

Quoting from a new report from the Journalists for Justice project:

With the death toll from al-Shabaab attacks inside Kenya rising to over 400, Journalists for Justice felt that the task of examining whether Operation Linda Nchi is actually delivering was overdue. This study looks at the conduct of KDF forces in two areas: 1) sugar smuggling and financial enabling of al-Shabaab and, 2) human rights violations.

This report presents the findings of several months of research in Somalia in Kismayo and Dhobley and inside Kenya in Liboi, Dadaab, Garissa and Nairobi. A desktop review, encompassing UN monitoring reports, academic studies, African Mission in Somalia (AMISOM) communication and media reports was followed by one-on-one interviews with over 50 people with intimate knowledge of KDF activities, including serving senior KDF officers, UN officials, western intelligence officials, members of parliament, victims of KDF human rights violations inside Somalia, journalists, doctors, porters at the charcoal stockpiles, drivers on the sugar routes and middlemen in the Dadaab camp.

…. JFJ research suggests that both KDF, the Jubaland administration of Ahmed Madobe and al-Shabaab are all benefitting from shares in a trade that is worth, collectively, between $200 million and $400 million.

More on this here.

For more on the challenges facing Kenya’s security operation in Somalia see here.

“Only four shooters at Kenya mall (Westgate) and they may have escaped alive, says NYPD”

On Tuesday morning the NYPD issued a damning statement [full report here] that pointed fingers at the Kenyan government for its handling of the terrorist attack at the Westgate Mall in September. Dozens of people were killed in the attack.

According to the statement:

  • Despite conflicting reports from the Kenyan government, “evidence suggests that there were only four attackers, who may have escaped alive.”
  • The commander of the police tactical team that went to quell the siege was most likely killed by the KDF. “The police department tactical team entered the mall at 3 p.m., without police markings or identifications, and were fired on by Kenyan soldiers, killing the commander of the unit.”
  • The security team “had no idea what the mall looked like internally, and didn’t know they could access the closed circuit television system.”
  • The NYDP “didn’t know what had caused the mall to collapse,” but it is likely that “the Kenyan military may have used rocket-propelled grenades and anti-tank missiles on the building, and that heat from fires caused by the explosions may have weakened the poorly built structure.”
  • And lastly, “the Kenyan military may not have killed any of the attackers, there was “significant” physical and video evidence that they had looted the mall.”

[UPDATE: A reader, @ZiadFazel, just reminded me of the KTN documentary in October that questioned the official line about the attack. Back then the government dismissed the documentary as inaccurate and alarmist and even threatened to arrest KTN journalists. This new statement from the NYPD adds credibility to the evidence previously dismissed by the government]

Westgate is not just an indictment of the KDF (a force that has and continues to sacrifice a lot for regular Kenyans in the north east and in Somalia) but of the entire security apparatus in Kenya. For the longest time Kenyan civilian administrations have obsessed with issues of coup-proofing, maintenance of public order and the suppression of dissent over actual provision of security.* Urban crime, banditry in the north and pockets of rural areas even in the more governed south and latterly the threat of terrorism have exposed the underbelly of the Kenyan security system.

President Uhuru Kenyatta praised the KDF and the police following the botched operation at Westgate. Was this an attempt to boost the morale of the boys or was he simply continuing the tradition of appeasement with the aim of keeping the army in the barracks and the paramilitary GSU and police ever ready to “restore order” whenever necessary?

Whatever the case, it may be that President Kenyatta and his administration have found themselves in an unfamiliar territory. Kenya’s much touted bureaucratic-executive state may have worked well against internal dissent, but can it effectively deal with current security threats? Civilian control over the security apparatus demands for accountability and performance; and whenever there is failure, an attempt at correction. Is the Kenyan system capable of sustaining a civilian-military relationship that is responsive to the public and based on performance and accountability?

Kenyans were told many tales following that tragic Saturday afternoon in September and the ensuing four day siege. But the more Secretary Ole Lenku spoke of “exploding mattresses” the more questions emerged. The NYPD report is yet another reminder that the security system failed Kenyans, and that the civilian administration was unable to stand up to those responsible and demand for accountability.

*Read E. S. Atieno-Odhiambo’s chapter on “Democracy and the Ideology of Order in Kenya” and Tamarkin’s “The Roots of Political Stability in Kenya.”

Will rampant corruption jeopardize Kenya’s ability to prevent future terror attacks?

There is an interesting debate on this question over at the Guardian. Following the terror attack at Westgate Giles Foden made the following claim:

In Kenya crime and terrorism are deeply linked, not least by the failure of successive Kenyan governments to control either……… These attacks are part of a spectrum of banditry, with corruption at one end, terrorism at the other, and regular robbery in the middle. Some Kenyans will feel that the conditions in which the attacks have happened have arisen because of economic growth in a vacuum of governance. Money that should have been spent on security and other aspects of national infrastructure has been disappearing for generations.

Two days ago the Kenyan Cabinet Secretary for Foreign Affairs, Amina Mohamed, responded to Mr. Foden with a denial of the charge that corruption in the country was in any way related to the failure of security forces to thwart the attack at Westgate. She reminded readers that:

The disasters of 9/11 or the more recent Boston marathon in the US and 7/7 in the UK – both highly developed countries – could hardly be blamed on corruption, so why Kenya? We do not recall Foden blaming corruption within the security agencies involved.

So what is the relationship between corruption and the likelihood of successful future terror attacks in Kenya?

There is no denying the fact that corruption is a huge soft underbelly in the Kenyan state’s fight against al-Shabaab. As I have pointed out before, the attack at Westgate  showed Kenyans that AK-47s are not a menace only in the hands of cattle rustlers or carjackers. They can also be weapons of mass murder. So reports of police reservists renting out their AKs to criminals or being paid by the same criminals to look the other way do not inspire confidence in the government’s ability to prevent future attacks. Indeed last Friday Reuters reported that:

security officers, diplomats and experts describe a security apparatus that may be squandering skills built with the help of U.S., British and other trainers because suspects can buy their way through police checks and poor inter-agency coordination means dots are not joined up.

Add to this the fact that the country has about 600,000 light weapons and small arms in civilian hands (pdf) – including 127,000 illicit guns in Turkana County alone – and you begin to get the picture of why lax law enforcement, partly fueled by lack of funds and poor training and pay of regular police, but also by higher-ups’ venal proclivities, does not bode well for the likelihood of future Westgate-style attacks.

That said, to put terrorism on the same scale as carjacking would be a mistake, especially with regard to how the Kenyan state is likely to react to future threats of terrorism in the wake of Westgate. Obviously, due to entrenched interests and the administrative power (pdf) of the Civil Service the president cannot simply wish away corruption with a stroke of a pen. But he will be under tremendous pressure from the business community (which, in my view, is his number one constituency) to make sure that things that are singularly bad for business – like Westgate-style terror attacks – do not happen in the future.

Regularized murderous banditry in the less governed spaces in Kenya or carjackings in Kileleshwa are different from terror attacks in that the former are often localized “micro-events” on the national stage (even when they are of Baragoi or Tana River or Bungoma proportions) that rarely ever have systemic effects. Westgate, on the other hand, did have a systemic effect. And in a big way. As such I expect that the government will follow the trail and start closing loopholes wherever they are that might be exploited by terrorists in the future. This includes reforming the Kenya Police Service, to the extent that is necessary. It is hard for me to imagine that the president would risk failing to secure reelection just to keep a few corrupt officials happy.

So on balance Westgate might actually lead to a major push to rid critical state institutions of the scourge of corruption and to strengthen them with a view of increasing state capacity.

I could also be totally wrong.

There is a scenario in which the response to Westgate is al-Shabaab-focused and purely driven by the military (which presently has a huge PR problem with the Kenyan public and would want to save face) and other security agencies with little input from the political class. Such an eventuality would be a double bad because of the risk of erosion of civilian control of the military in Kenya (at least at the policy level) as well as a failure to reform critical domestic institutions to reduce the likelihood of future attacks (or attempts to bring back the bad old days…)

All this to say that on the off chance that someone asks you the question in the title of this post, the simple answer would be probably.

Statement from the Supreme Council of Kenya Muslims following Westgate attack

We Muslim leaders gathered here today condemn in the strongest terms the attack on peace loving Kenyans and our international guests who have chosen to live and work in Kenya.

We send our deepest condolences to the families of the bereaved and those wounded in the ongoing siege at the Westgate Mall.

We reiterate that wanton and indiscriminate killing of innocent men, women and children is against Islamic teachings and tenets.

We re-affirm our support to the government of Kenya and its security organs in the ongoing operations to secure the mall from the attackers.

We call upon our Muslim brethren and all Kenyans of goodwill to heed the appeal and come out in large numbers to donate blood to relieve our healthcare institutions provided care and treatment to the wounded.

We call upon all Kenyans to remain calm and refrain from being divided on sectarian grounds by this unfortunate incident.

Read by Adan Wachu, Secretary-General, Supreme Council of Kenya Muslims (SUPKEM)on behalf of the leaders gathered at Jamia Mosque Nairobi on Sunday  22.9.2013

What next for Kenyan Policy on Somalia?

For two years it almost seemed too good to be true. Kenya had invaded Somalia and occupied Kismayo, a key Al-Shaabab-held city in southern Somalia without carnage visiting the capital Nairobi. The group instead opted for sporadic attacks against churches and police installations in the border regions of North Eastern and Coast. A few explosions rocked the capital, but these were never spectacular. Indeed, some of them appeared to have been motivated by local business rivalries and not some revenge mission by the Somali Islamist group Al-Shaabab. Within Somalia, the African Union Mission in Somalia (AMISOM) mission made quick gains that left Al-Shaabab backpedaling. With a few exceptions, the Al-Shaabab was reported to have been severely weakened and on the run. Before the recent uptick in bombings, Mogadishu was slowly becoming a reasonably peaceful boomtown.

scenes from the Westgate Mall

A scene from the Westgate Mall siege

And then Westgate happened. At around noon on September 21st three groups of armed men (and allegedly at least one woman) stormed the upscale mall in Nairobi and started shooting indiscriminately. Several hours after the attack started Al-Shaabab claimed responsibility via twitter. A day later, the Islamist group gave an alleged list of the gunmen, all men between the ages of 20-27. Six were from the US, two from Somalia, and one each from Kenya, the UK, Finland and Syria. More than 36 hours after the attack began at least 69 people had been confirmed dead, including one gunman and two Kenyan officers. A visibly incensed President Uhuru Kenyatta condemned the attacks, and reassured Kenyans of a swift response to punish the perpetrators. Just a few minutes earlier Al-Shaabab had claimed responsibility for the attacks, terming them a retribution for Kenya’s invasion of Somalia in 2011. The Kenyan Defence Forces, under Operation Linda Nchi, invaded Somalia following sporadic kidnappings and attacks along the Kenya Somalia border. The forces still remain in Somalia under the command of AMISOM.

So how will Kenya respond? There will be both short-term and long-term responses to the daring terrorist attack. The likely short-term response holds more risk, and may even jeopardize the strategic objectives of the long-term response.

Understandably, in the short-term there is going to be considerable public pressure for a swift military response from the government. In the coming weeks the government’s response will likely involve both domestic crackdowns in suspected Al-Shaabab havens in Kenya (most likely in Nairobi, the Coast and North Eastern regions) and military operations against Al-Shabab targets within Somalia.

eastleigh

police recover suicide bombs in a past operation in Eastleigh (Courtesy of the Star Newspaper)

Crackdowns within Kenya will come with a lot of risk. Depending on how they are carried out, the government could end up walking right into Al-Shaabab’s trap by alienating Kenyan Muslims and ethnic Somalis who make up the majority of residents in Coast and North Eastern regions of the country that border Somalia.

Ethnic Somalis (both Kenyan and Somali nationals) also make up the majority of residents in Eastleigh, a district of Nairobi that has in the past witnessed government crackdowns targeting cells linked to the Al-Shaabab militant group.

Kenyan security forces must therefore proceed with extreme caution to ensure that as few innocent civilians as possible are arrested or roughed up by security forces in any operations within the country. A repeat of reported cases of police brutality in North Eastern following the murder of army officers by gunmen would be a terrible mistake. It is also vital that the government stresses the unity of all Kenyans of all ethnic extractions against terror attacks. Any victimization of ethnic Somalis must be met with swift punishment.

Military operations within Somalia will likely involve significant cooperation with Mogadishu, pro-AMISOM militia in Jubaland, AMISOM and the US and may not be completely under the control of Nairobi. I suspect that Nairobi might push for a more aggressive hunt for the leaders of Al-Shaabab, including Samantha Lewthwaite a.k.a. the “white widow,” a British national that is rumored to have been the mastermind of the Westgate Mall attack. Lewthwaite, the widow of London 7/7/2005 suicide bomber Jermaine Lindsay, is suspected to be on the run in Mombasa, Kenya with her four children. Crucially, any military operations in Somalia must be informed by analysts’ observation that it might be the case that Al-Shabaab is a group on the decline that is just lashing out to maintain relevance.

jubaland

An outline of the Jubaland region of Somalia

In the long-run, Nairobi will most likely push for a more robust Somali solution to the security crisis posed by the lack of a functional state in its backyard. Top on the agenda will be the strengthening of the security apparatus in the administration of Jubaland, the Somali state that is on the border with Kenya (For a detailed analysis of the situation in Jubaland see here). The creation of Jubaland has long been a goal of the Kenyan government as a buffer against the chaos that has been Somalia for the last two decades. Despite obvious objections from Mogadishu, Nairobi has never publicly denounced this policy goal. The brazen attack in the capital creates even more need for a strong buffer region that can help the Kenyan security forces to deal effectively with a terrorist group that appears desperate and willing to do just about anything to remain relevant. The success of this policy will depend on Mogadishu’s ability to veto it, and support from Ethiopia and AMISOM.

Ethiopia, Djibouti, Somaliland, Puntland and Kenya all have reasons to support the creation of Jubaland, or in general, a more decentralized state in Somalia. Kenya, Djibouti and Ethiopia remain wary of a potential rise in Somali nationalism and any irredentist attempts that might follow to unite all lands that make up the so called Greater Somalia – which would include the Ogaden in Ethiopia, North Eastern region of Kenya, and Djibouti. This is not a crazy fear. Mogadishu once attempted this in the late 1960s in a botched operation (in the Shifta and Ogaden wars) that ultimately led to a military coup and the rise of Siad Barre to power (See Laitin, 1976 [gated]). Ethiopia has the most to worry about regarding this potential risk. The Ogaden remains at the periphery of the Ethiopian state, giving the Somali population lots of reasons to rebel against Addis Ababa.

In the recent past Kenya has experienced an increasing level of integration of the Somali elite into the Kenyan state. Prominent Kenyans of Somali extraction include the leader of Majority in the National Assembly, the Foreign Minister, the Industrialization Minister, the head of the electoral management body (IEBC), among others.

Furthermore, many Somalis both Kenyan and from Somalia have in the recent past made significant investments in Kenya, most notably in the real estate sector. A lot of the investments have been means of laundering money got from illicit activities (some say including piracy). Indeed the governor of the Central Bank of Kenya is on record to have said that he could not account for billions of shillings in the economy. With an estimated total of only 20,000 mortgage accounts, most of the Kenya’s real estate boom has so far been financed by cash.

Yes, a lot more needs to be done for the average Kenyan of Somali extraction in North Eastern region, but the Somali elite in Kenya have every reason to not rock the boat and remain wedded to Nairobi. This same elite has so far tacitly supported Nairobi’s policy regarding the creation of an autonomous region in Jubaland.

The powerful imagery of a picture that went viral showing a Kenyan police officer, who also happens to be an ethnic Somali, carrying a baby while shielding three adults as they ran for safety at Westgate is hard to miss.

A domestic outcome of the Westgate attack will likely be greater scrutiny of the police and intelligence forces. The Kenyan police have been exposed in the past for having looked the other way in exchange for bribes to allow gun-runners to do their thing along the country’s highways. President Kenyatta will likely call for a cleaning of house both at Vigilance House and at the NSIS headquarters. All security agencies will likely see closer scrutiny from the political class and calls to pull up their socks. The minister in charge of internal security, Joseph Ole Lenku, probably has his days numbered on the job.

The quest for greater security will be completed by the proliferation of small arms and light weapons in the country on account of civil wars and general insecurity in the border regions with Uganda, South Sudan, Ethiopia and Somalia. According to a 2012 a study by the Small Arms Survey and the Kenya National Focus Point on Small Arms and Light Weapons, there are between  530,000 and 680,000 firearms in civilian arms across the country. The government must tighten its disarmament operations. Westgate has shown that AK-47s are not just the weapons of cattle rustlers, bank robbers and carjackers.

Will the reforms succeed? Very likely. The Kenya Revenue Authority is a testament to the fact that when it matters, the Kenyan government can reform key state institutions. The security sector is need of just such a reform drive. Insecurity is on the rise across the country, both from common criminals and organized gangs and terrorists. The Kenyan leadership appreciates that insecurity is not just bad in terms of risk to human lives. It is also bad for business.

If Mr. Kenyatta’s first term is to achieve even a modicum of success, the security sector must be reformed.

In all likelihood the president’s quest for a successful first term will outrank a few officers’ venal machinations within the administration. Police ineptitude in dealing with common petty and not-so petty crime creates loopholes for spectacular attacks like Westgate. Reform will therefore need to go beyond capacity building within the Special Forces and dedicated anti-terror units.

For regular Kenyans, life in Nairobi will never be the same again. It is almost impossible to imagine that things that most only read in the news could happen right at home; that a Saturday afternoon at the mall could turn into a ghastly massacre. It will take time before the capital, and the nation, finds its new normal, if at all it does.

blooddrive

Kenyans queue to donate blood at Uhuru Park on Monday Sept. 23rd (Source: The Standard)

So far Kenyans’ resiliency has been outstanding. People showed up in their thousands to donate blood. Buses in Nairobi lowered their fares to take people to blood donation points. More than 40 million Shillings has so far been raised through MPesa for affected victims. Never before in my life have I felt or seen this level of patriotism from fellow Kenyans.

I hope it sticks. Especially because the country will need it in the next few weeks and months as the government formulates and effects a response to the Westgate Mall attack.

President Uhuru Kenyatta’s statement following Westgate terror attack

Fellow Kenyans,

This morning, a group of armed terrorists forcefully entered the Westgate Mall in Nairobi’s Parklands area and unleashed senseless violence upon customers and workers. They have killed at least 39 innocent people and injured more than 150 others. With the entire nation, I stand with the families of those who have lost their lives and extend every Kenyan’s deepest condolences. (I know what you feel having personally lost very close family members)

I ask God to give all of you comfort as you confront this tragedy. My Government will provide the support you will need in the days to come. To those who were injured, I wish you a quick recovery from the physical and other shocks you underwent today. The Government will be at hand to ensure that your lives return to normal as quickly as possible. The people of Kenya have been wonderful, as always. With your support we safely evacuated hundreds of people from the Mall. I salute your conscientious and selfless acts of solidarity in response to the terrorist attack. 

Your courage and sympathy saved lives and reassured countless people.

I commend those who volunteered by giving first-aid, transporting the injured to hospital, donating blood, locating and contacting loved ones and making it easy for rescue, medical and security personnel to do their work. I appreciate those who have used media to rally help of all kinds, condole with and comfort the affected and thank all those responsible citizens who have desisted from spreading panic and despondency. Please continue helping, and continue praying.

The despicable perpetrators of this cowardly act hoped to intimidate, divide and cause despondency among Kenyans. They would like us to retreat into a closed, fearful and fractured society where trust, unity and enterprise are difficult to muster. An open and united country is a threat to evil doers everywhere. With our values of solidarity and love for our homeland, we fought proudly and bravely to secure the freedom to lead our lives as we choose. Our choice is codified in our Constitution. 

We have overcome terrorist attacks before. In fact, we have fought courageously and defeated them within and outside our borders. We will defeat them again. Terrorism in and of itself, is the philosophy of cowards. The way we lead our lives; in freedom, openness, unity and consideration for each other represents our victory over all those who wish us ill. We are as brave and invincible as the lions on our Coat of Arms.

My Government stands ready to defend the nation from internal as well as external aggression. I urge all Kenyans to stand together and see this dark moment through. Donate blood. Provide information to the authorities. Comfort and reassure the affected families. Let us ashame the Devil and his works by demonstrating our timeless values of love, compassion and solidarity. Our security forces are conducting a multi-agency response to this attack as we speak and are in the process of neutralizing the attackers and securing the Mall. 

It is a very delicate operation as our top priority remains to safe guard the lives of innocent people held up in this unfortunate incident. But let me make it clear. We shall hunt down the perpetrators wherever they run to. We shall get them. We shall punish them for this heinous crime. 

I have directed security agencies to be decisive in their response to this or any other threat. They must and will do this to demonstrate our constitution’s categorical guarantee of Kenyans’ indefeasible rights to life and property.

Across the country, we have tightened security but I urge all of you to remain calm and vigilant.

God bless you. God bless Kenya.