Apr 24, 2007

KENYA 2002-2007- A synopsis

By guest writer: M.S

This government came in with a bang… brought 5-6 months or less of fresh air, showed true potential of what good leadership to this country could achieve, and then started on its most probably pre-planned act of looting the coffers. Just as NARC came in, dodgy contractors were forced off, the corrupt in the civil service – Police, CID, City Council, Lands offices, etc started fearing and stopped demanding bribes; and there were several incidences where the public beat up policeman who were caught demanding bribes. Infrastructure started to improve; the proof being the beautification, repair and lighting up of Uhuru Highway and roundabouts.

But as the improvements were dieing, the political elite already had their hands in the coffers – Anglo Leasing was inherited from Kanu and it grew under NARC. There is not enough publicized evidence out there that Anglo Leasing, and the Artur Brothers – all had links to State House.

Very soon after elections, Kiraitu Murungi – who was nearly bankrupt just before the 2002 elections, had already taken over a huge chunk of businesses and buildings in Nyeri, and Mr Chris Murungaru was already a multi billionaire. Lucy Kibaki who had been active in the public for the wrong reasons went quiet after a series of blunders while Uncle Moody, who was since appointment as VP – active in the public spotlight, hid away from the press after directly being linked to the Anglo Leasing scandal – as the man who had approved the projects.

By this time, the lone man who was fighting to save Kenya, John Githongo, had seen he could not win and he was a lone fish in a sea full of huge corrupt sharks. For the sake of his life, he escaped the country and remains the only person with full evidence of all scandals. More and more bodies and committees are formed to supposedly fight graft, yet each have done absolutely nothing to halt the vice. Mr Aaron Ringera, who despite taking home KSh 2.5million a month and being the highest paid civil servant, heads the Kenya Anti Corruption Authority who have not proven guilty even a single serious offender involved in corruption. The corrupt politicians have got long hands into all these authorities to ensure there is no action taken – shown by the total hibernation of Transparency International – once a brave warrior against graft, and until recently became clogged with allies of President Kibaki's advisors.

Presidential aspirants took advantage of the government scandals to boost their popularity by forming the ODM which humiliatingly trounced the government in the referendum. Kenyans had finally spoken – the referendum loss was more a political defeat for the government by the majority of Kenyans who had seen the senior government officials were already on the ladder to boost personal coffers, against the grounds it was voted in for – to fight corruption.

The embarrassment of the referendum loss led to the dissolving of the cabinet. Kenyans now expected the powerful ODM members to be included in the new cabinet – to prevent the president further embarrassment, or a vote of no-confidence in the government, yet the president boldly left out most ODM members from his new Cabinet. Interestingly, the power-loving Mr Kombo and Ngilu accepted their new roles after first rejecting them. This new cabinet distinctly broadcasted the Kenyan Political Game – all about Cabinet posts for the more votes the candidate gets the president. No wonder why we see in parliament, the greatest of crooks with the least intelligence, some having only completed high school education.

As 2006 drew towards a close and the election year arrives, the greed for power and wealth intensifies. The more you earn this year, the more you can campaign with to win the jackpot of another 5 years in Parliament, or be elevated onto the cabinet. As presidential aspirants announce their promises, the government attempts to match them to defeat the opposition – hence the government appears close to promising free secondary education if voted in again.

The president launches yet another Anti-Corruption steering committee, which brings to over 20 the number of authorities created to fight graft, yet all are simply wasting government or donor funding.

The president launches the Vision 2030 – to have Kenya a developed nation. Why suddenly, as the elections approach? Simply to get the backing of Kenyans for another 5 years at the helm. In the last 4 years, what really has his government done to back this new plan for the future?

Yes, his men constantly boast about the rising economic growth – which in reality has only benefited the rich – most of who are in some way politically connected to the leaders. The country has seen a boom in the financial sector including the stock market, the tourism sector, and the agricultural sector amongst others. Yet, the numbers of new graduates and the unemployed are simply far higher for the country to derive real benefit and the entire population enjoying improved standards of living. 60 or 70% of Kenyans are just equal or worse than they were under the previous regime.

Corruption still thrives at the senior level. Despite laws such as Public Procurement Act, there is far too much secrecy for it to really be implemented and lengthy arms of senior politicians will always make their way to win lucrative contracts. Wealthy crooks under the KANU regime, who were charged with corruption are still freely walking around, as the corrupt legal system has not dealt with their cases, or simply thrown them away – once again all thanks to the brotherhood of corrupt individuals. Judges who had been suspended for corruption in 2003 are all making their way back to their seats as the totally ineffective justice system can prove no wrong doing, or rather, being tried by their true friends and former colleagues who can see no wrong.

The country's transport system is once again a menace. Even Police efforts to crack down on offenders is halted by our embarrassing minister who shot the government in the foot by admitting to owning matatus – the reason for the country's transport troubles. Only in Kenya can this be legal, where the greatest offenders on the roads – Matatus are owned by Ministers, MPs, Police Inspectors and any other powerful individual – and for this reason the offenders are untouchables!

Being a victim of harassment is a part of every middle and low class Kenyan's life. It comes from Kenya Police, the CID, The Nairobi City Council, The Kenya Revenue Authority, NEMA – The National Environmental Management Authority, The Lands Office, and the list is endless. Corruption is now deep-rooted in the blood of 99% of Kenyan civil servants, from a Minister down to a Junior Police Officer. Without parting with wealth, you can simply not even attempt to get something you are entitled to.

1) Kenya Police:
- Getting a Police Abstract for a robbery/ theft is not straightforward without the officer receiving cash
- Commit a small offence and you'll be charged for something huge, if you do not fill the officer's pockets
- Theft and Robbery victims very often identify the thugs as Police officers themselves
- You will be falsely charged for offences that are not even in Kenyan law – e.g. for not wearing a rear seat belt, not carrying a fire extinguisher/ first-aid kit in a private car… yet they will lie and prove you wrong.
- A Kenyan driving license is valid abroad for a year, yet Kenya, being so advanced – only accepts foreign licenses for 2 weeks! Being unaware, you will simply be arrested until you bribe.
- Road license was abolished, yet you will still be harassed for it – expecting the victim to be scared and naive

2) Nairobi and Municipal Councils:
- You will falsely by accused and man handled/ assaulted into their trucks for littering, even when you are far away from any rubbish on the floor, or are setup by their own colleagues. You will not be set free for days without giving into their bribes, as legally you will never win them either
- Rates for Sewer/ Water/ Rubbish/ Land are often incorrect and overcharged yet no one will ever admit their mistake. Payments made will not appear in statements, and you are forced to bribe them to stop being assaulted and falsely arrested
- Car parking attendants will hide, while your car will be clamped or towed away as you attempt to seek an attendant to make a payment.
- Building owners are forced into repairs, yet the repairs take months for themselves to approve – during which time you are arrested and taken to court wrongful negligence

3) NEMA – Factories are given notices or sued for even little pollution they may cause, yet hugely guilty offenders which are controlled by politically powerful leaders will be totally exempted.
4) Kenya Revenue Authority officials will falsely accuse you of not paying or paying less tax, where as thousands of traders who do significantly more businesses are untouched. At the ports and airports, those who 'cleanly' import goods and pay charges – their goods will not be cleared for weeks and months, yet those of the politically powerful leave the ports and airports in hours, without any taxes, yet they will never be caught. A clear example – the goods sold in Eastleigh mostly by Somali traders who bring them in illegally without any taxes/ duties paid, and do not pay a cent in tax, yet are untouchable.

These are just some of the low-end harassments that Kenyans encounter daily. With the huge brain drain the country experiences, it is not even shocking that the talented and brainy would want to escape such harassment where they are proven wrong, assaulted when innocent.

With the hugely corrupt justice system, law makers and authorities such as the Law Courts and Kenya Police, there is no bright future for the average Kenya. Ruined further by our corrupt leaders who deal illegally at multi-billion shilling level, the majority of Kenyans have a very bleak future to strive for their daily bread while they see the evil & guilty offenders living in luxury.

Back to Parliament – where each MP earns about KSh 600,000 per month – tax free [whereas the minimum wage for a Kenyan is about Ksh 5,200]. Ministers, their assistants and other post-holders earn even more. They are paid these obscene sums to do well for the country – yet the majority of the times are out at political events or attending to their thriving private businesses. Out of about 250 MPs, very often the Parliament runs with 20-30 MPs, yet not a single law exists to force their presence. These careless leaders bag a minimum KSh150million a month, yet do not care a rat's ass about the public! They are not even satisfied with these obscene figures and give themselves pay rises every year or 2 – during which case the government and opposition forget their differences to boost their coffers. They are the highest paid MPs in the world, while the country remains one of the poorest in the world!

To add insult to injury, simply to please the international community, the finance minister said during the 2006 budget that they will be introducing taxing the MPs. Nearly 10 months on, not a word from the Finance Minister again. Let alone Mr Brave Finance Minister dare anything – the opposition will unite with the government to shoot the action down. The 2006 budget also stated a reduction in Government vehicles from all ministries, yet only about 150 were returned, though in reality must have been about a 1000 vehicles. Ministers, Assistants etc were ordered to reduce the official cars they were provided – several of them objected and rebelled – yet, being powerful and having no law against them – no action has ever been taken 10months on.

This is Kenya – a country ruled by corrupt leaders who have injected corruption into the blood of civil servants. Politics here is a dirty game where only the politically powerful and dirty survive. The innocent here have no law to protect them, while the corrupt have a huge brotherhood covering every corner of the law to eliminate any barrier/victim and protect their interests. Sadly, as a patriotic Kenyan, I see no bright future for most of us low and middle class Kenyans, yet the corrupt will always remain untouchables.

IS KENYA'S GROWTH SUSTAINABLE?

I recently conducted a mini survey on peoples perception of Kenya and its future. Below is the email I sent out, followed by the responses I received.
IS KENYA'S GROWTH SUSTAINABLE?

Over the past four years Kenya's economic growth has continued to exceed expectations, surging ahead at an annual rate of more than 4%. Additionally, Kenya's recent Vision 2030 predicts that 10% percent annual growth will be achieved in the coming years. Do you think this is an achievable rate?
Have the dividends been notable so far, in terms of declines in poverty and increases in living standards? What about better governance? Corruption? What are the biggest worries for the near future?
What are the real prospects for Kenya's economy, and can growth continue in a balanced and sustainable way? How? What must Kenya do right? What in your opinion is it doing wrong?
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Vision 2030 is realistic! (the only optimisitc response!)

This administration has done a great deal for the economy! The only thing is we are yet to see the real economic gains due to policy lags. Consider all the following sectors or industries: dairy, coffee, flower & horticulture, the stock market, and real estate. All have increased tremendously over the past four years and have seen high returns and growth rates.

In the dairy sector -farmers are getting a better rate for each liter of milk delivered. This would of course have a positive multiplier effect on the economy. The farmers have more income available to spend and invest.
Roads: Contracts have been awarded and this time they have ensured and complied with strict procurement rules so that shady and/or bogus contractors are locked out. Money and all is available, but again the government has taken a back seat in terms of enforcing the contractors to do their jobs
KRA: Their revenue has increased by a huge margin!! This means better tax collection, sealing loopholes by which businesses used to evade tax.
Banks: Look at National Bank, KCB, Consolidated Bank, Co-operative Bank. All were loss making prior to 2002 and now?
Coffee industry-we are currently the third largest exporters of coffee in the world! can anyone remind me where we stood prior to 2002!???
Corruption: Any other major cases after Anglo leasing??

However, the police remain the worst public sector. They want to extort money and harass law abiding citizens for any small reasons!

Kenyans also enjoy living in a democracy: try criticizing the government in Zimbabwe...!!
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“Kenya has lots of natural and potential-look at the success of horticulture exports. Kenyan businesses and entrepreneurs need financing and help from Govt - corruption needs to be curbed. Also, Kenya needs to make use of technology to increase productivity and drive efficiency for growth - which also means IT/technology education needs to be part of the school curriculum.
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In my opinion it’s simple – each person does his job/duty in the most ideal and effective way that they can. Yes, it is true at times circumstances/conditions may be a constraint to working ideally...but hey...what's life without challenges...keep focusing on your target. For e.g....if a sweeper doesn’t sweep properly, garbage will pile...creating a dump, diseases, take up useful space. In the same way if a government does not govern properly (meaning they just eat, drive 4WDs and grow fat)....you have Kenya :) Kenya and Kenyans have the potential....that's where it ends sadly!
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Note: The following comments were in response to me putting up an “optimistic scenario” argument for Kenya
The targeted 10% growth that forms the Vision 2030 is indeed laudable. But will this be the kind of growth where the rich shall be richer and poor poorer....so the growth just pertains to barely 20% of the entire country?! I want to see overall growth...not the superficial kind that shows up in the international polls whilst there still remain joblessness, hunger, and disease.
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While I agree with a lot of the things, I also think that Kenya’s performance in things like manufacturing, agriculture is affected by the lack of infrastructure, especially a good transport system. Our roads are terrible. Look at the Mariakani/Mombasa road…..Mombasa is Kenya’s only port and yet the road that connects it to the main city is in a sad state. This affects business tremendously. The same goes for the Nairobi-Naivasha highway. Kenya has some of the best flower farms yet they lose out in terms of international competitiveness because of the high transport and maintenance costs of trucks using the Naivasha road to transport flowers
As for brain drain and emigration, it is true that a lot of people are returning to Kenya because of the huge prospects here. But it is also more a case of people who are not getting jobs overseas and are likely to get jobs here through their connections and the unfair recruitment process.
Security is a big issue in Kenya as well (not just because it is an election year), there is a lot of constant police harassment going on which is and will continue to eventually drive people to move out if it’s not curbed. As much as statistics show a rosy picture, there are so many thorns which affect the whole economy especially in terms of lost business and investment opportunities.
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Kenya's recent outlook of 10% GROWTH is quite ambitious. The effects of the growth even if any will be hardly felt. For example, if the US economy is growing by only a meager 2% in a given period, the effects will be felt because USA is already developed ,but for a country like KENYA 10% will not be felt as she is still a third world country, coming out from years of negative growth.
So far I haven’t seen any decline in poverty as there still rampant growth in crime all over the country. This indicates that a lot of the population is still poor and jobs are so scarce that they have to resolve to crime. Living standards are still below as the per capita income is still below a dollar a day. And, how do you reduce poverty when the inflation rate is so high. If the inflation is so high this means that there is need to increase interest rates thus increase cost of borrowing so as to contain inflation. This effect will be felt across the board as money will not be cheaply accessible thereby making the economy slowdown again and hampering growth. In terms of governance, I still think it is a pathetic government. Take the example of ministry of roadworks- it is are still sleeping on the job. Most of the upcountry roads are inaccessible and yet they assert they are doing the job. The funding that they receive is still being siphoned. That is where the economy growth sets in again; if most roads are bad then how will farmers transport their good to and fro? Kenya is an agricultural dependent country; if the farmers face these kinds of difficulties then how do you expect the economy to grow? In sum, the biggest worries for Kenya are:
  • BAD/DIRTY POLITICS
  • ENVIROMENTAL EFFECTS
  • FOOD INSECURITY
  • JOB INSECURITY
  • BUDGET IMBALANCES
  • CORRUPTION
  • POOR INFRACSTRUCTURE
  • HIGH INFLATIONARY PRESSURES
  • SECURITY ISSUES
I think to make the economy grow we first need to work out these problems facing kenya then forge ahead with the growth
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About banking/ICT....it seems again that there are extremes....we have M-banking, internet billing and the likes...where as we have manual ledgers and typewrites as well....so...any sane person can see that the technology is SO available, it's for industries/companies/individuals to take advantage of it if they want to be at par with the market (global and local)....yes, you do need the capital to invest in these expensive technologies...but in the long term the ROI will be well worth it!
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