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Real or “Portal” Growth: Why Businesses Are Going Bust and People Are Struggling to Make Ends Meet as the Numbers Say the Economy Is Roaring like an Asian Tiger

The economies may be growing, but because unemployment and underemployment are also rising, the incomes of those that are earning are supporting more people. People are not feeling the growth. Instead, they are feeling the financial burden of adult children who were expected to be contributing to family upkeep.

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Real or “Portal” Growth: Why Businesses Are Going Bust and People Are Struggling to Make Ends Meet as the Numbers Say the Economy Is Roaring like an Asian Tiger
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Did the economy really grow by 6.3 per cent last year, or is someone pulling wool over our eyes? Or as we say these days, is it real growth or the one you have to log into the #GoKDelivers portal to see? When the figure was first disclosed by Uhuru Kenyatta in his State of the Nation address last month, I received a call from a very disturbed Nairobi businessman who challenged me to explain to the public, in language they can understand, how the economy can be said to be growing as fast as it was during the Kibaki years yet businesses are collapsing and ordinary citizens can barely make ends meet. As it happens, my very first op-ed of this, my second stint as a columnist (I wrote a weekly column for the Sunday Nation in the mid to late 90s), published in January 2014 and titled Why you are struggling to make ends meet, was on this very subject. 

One of the observations that has led people to question the 6.3 per cent growth is the poor performance of big companies. Year after year, listed companies are issuing profit warnings. There is now hardly a listed company – other than banks – that has not issued a profit warning over the last three years. Is it possible for the economy to grow while businesses are making losses? The answer is yes.

To see how this could happen, we need to understand what GDP actually is and how it is computed. GDP is short for Gross Domestic Product, which means the quantity (not value) of all goods and services produced in an economy. Sukari Mills is a sugar producer. In 2017, Sukari produced 20,000 tonnes of sugar, down from 25,000 tonnes in 2016, due to drought.

In 2018, production recovers to 25,000 tonnes. Trouble is, during 2017, the government opens the duty-free import window, and “tenderpreneurs” inundate the country with (contaminated) sugar. Consequently, in 2018, Sukari suffers both depressed prices and depressed sales, and posts a huge loss. The GDP accountants will capture the 25 per cent increase in production, as well as the economic activities created by the imported sugar, that is, the transportation, warehousing, packaging and distribution. Sugar GDP will be up big time, even as Sukari and other millers chalk up losses.

The recovery of the agricultural sector from drought is in fact the story behind the 6.3 per cent growth figure. Agricultural sector GDP grew 6.4 per cent, just about the same rate as the economy. But it was all recovery growth since the sector had slumped from 4.9 per cent in 2016 to 1.9 per cent in 2017.

Because agriculture is the single largest sector, accounting for a third of the economy, what happens to agriculture has a big effect on the overall GDP growth figure. This year’s long rains were late, and have been poor – another challenging year for agriculture

Looking at the actual production of some principal commodities, we see that coffee, sugarcane and milk are well below 2016 levels and that tea is only 4 per cent higher. Only maize production is well above the 2016 harvest (see table). Moreover, while production increased, prices for most products were lower in 2018. Maize led the way with prices down 56 per cent, from Sh4,000 to Sh2,260 per bag. Coffee prices were down 15 per cent while tea, sugar and milk prices were down by between 6 and 9 per cent. But as observed, GDP growth only captures volume, not value – hence the fact that milk farmers are suffering from depressed prices will not be reflected.

Chart 1.

It is readily apparent that a number that fluctuates with the weather is not an ideal measure of economic performance. In fact, in economics this is not what we mean by economic growth – we refer to it as “change in output”.

Because agriculture is the single largest sector, accounting for a third of the economy, what happens to agriculture has a big effect on the overall GDP growth figure. This year’s long rains were late, and have been poor – another challenging year for agriculture. Next year the story may be the opposite.

It is readily apparent that a number that fluctuates with the weather is not an ideal measure of economic

performance. In fact, in economics this is not what we mean by economic growth – we refer to it as “change in output”. It is useful for studying macroeconomic policy on managing inflation and the like, but not as a measure of progress towards prosperity or lack thereof. For prosperity questions, we are interested in how two – often very similar – countries start out at an income level of $500 per person and twenty years on, one is at $1,500 and the other $5,000. This boils down to the following simple question: how countries raise productivity. Let me illustrate.

Land is the ultimate finite resource, and when you use it for one thing, it not available for another. Material inputs, fertilizers, tractors, irrigation systems, etc. require us to save and invest, and there is a limit to how much we can save. The whole point of saving and investing is to consume more tomorrow, but starving oneself today in order to eat endlessly tomorrow does not make economic sense.

Nanjala, a maize farmer in Busia produced 100 bags of maize last year on ten acres of land. This year she has produced 120 bags. There are a number of ways in which she could have done this. I’ll focus on three. One, she could have obtained the additional 20 bags from tilling two more acres of land. Two, she could have applied more fertilizer on the ten acres and increased her yield to 12 bags per acre. Three, she could have adopted a new high yielding variety that gives 15 bags per acre, meaning that she obtained the 120 bags from tilling eight acres. To till more land, it stands to reason that she would have had to use more labour as well. It is also the case that if she used more fertilizer, more labour and more capital were also used. But the case of adopting new high yielding seeds is different. The additional 20 bags were obtained by using less land, less fertilizer and even less seeds. The only additional input is knowledge, that is, the science and research resources that developed the new seed variety.

It is not too difficult to see that we cannot sustain growth by using more resources. Land is the ultimate finite resource, and when you use it for one thing, it not available for another. Material inputs, fertilizers, tractors, irrigation systems, etc. require us to save and invest, and there is a limit to how much we can save. The whole point of saving and investing is to consume more tomorrow, but starving oneself today in order to eat endlessly tomorrow does not make economic sense.

Knowledge is different. New knowledge and technology enable us to do more with less. And once new knowledge is introduced, in this case a seed variety, its benefits will spread widely at little or no cost; word of mouth is sufficient to spread the news about Nanjala’s 15 bags per acre all over Busia County. In economics, we say that consumption of knowledge is non-rivalrous. We can’t farm the same land, but we can share seeds. In today’s tech parlance, we say that it has high scalability.

In economic accounting, we call the growth associated with more material inputs factor accumulation. The growth that remains after we have accounted for factor accumulation we refer to as total factor productivity (TFP). TFP is the growth that enables a society to become wealthy over the long haul. If we were to rely on tilling more land to feed the burgeoning population we’d wake up one day and find that we’ve cleared the entire Mau forest – which is where we are headed. If we are to rely on irrigation and other material inputs we will, sooner or later, run out of water and drown in a mountain of debt – which is where we are headed.

But TFP is not reported in the GDP growth headline news, and you cannot see it in the data unless you know where to look. We need to do a number-crunching exercise we call growth accounting, which decomposes the growth into its sources, namely capital accumulation, labour force growth and TFP. I do not have growth accounting analysis of Kenyan GDP readily available but as it happens, the most recent edition of the IMF’s Africa Regional Economic Outlook published this past April has just what we need.

Chart 2

The chart shows Africa’s and Asia’s growth decomposed into physical capital, human capital and TFP. These three components are what I defined earlier as factor accumulation. Human capital is “proxied” by the change in average years of education in the workforce. By proxy we mean that it is not the actual human capital but the closest data we have that approximates it.

In the decade and a half from 2000 to 2014, Africa’s economy grew by 5 per cent per year. Productivity grew at less than 1 per cent per year – about 17 per cent of the growth – with the rest coming from factor accumulation. Asia grew by 7.2 per year, with productivity growth at 2.7 points per year, contributing close to 40 per cent of the growth.

The red segment at the bottom of the bar is the TFP while the green, light blue and dark blue segments above represent growth attributable to more workers (or labour force growth), more human capital (better educated/skilled workforce) and more physical capital (infrastructure, machines, etc.) respectively, all of which add up to factor accumulation. But the IMF has its colours the wrong way round. The red ink is what corresponds to profit in a business, while the blue ink is capital expenditure, a cost. The red ink is what pays the bills.

In the decade and a half from 2000 to 2014, Africa’s economy grew by 5 per cent per year. Productivity grew at less than 1 per cent per year – about 17 per cent of the growth – with the rest coming from factor accumulation. Asia grew by 7.2 per year, with productivity growth at 2.7 points per year, contributing close to 40 per cent of the growth.

From 2015 onwards, Africa’s productivity growth has slumped to 3 per cent per year, and productivity growth has turned negative. This translates to investing more and getting less output per unit of investment. If we go back to Nanjala’s farm, it is the equivalent of increasing acreage from 10 to 12 acres but getting 108 bags, meaning that average yield has declined from 10 to 9 bags per acre. While Asia’s economies have also slowed down a little, productivity growth has actually increased to 3 per cent per year and, in fact, it is investment in physical capital that has slowed down the most.

The seemingly small magnitude of this divergence in productivity growth is deceptive. An economy where incomes are rising by three per cent per year doubles its income in 25 years; the one per cent economy will take 70 years. This is precisely the difference in growth rates that has left people asking how the Asian Tigers left us behind. Plus ça change, plus c’est la même chose.

Kenya is typical of the Africa growth story. This analysis is making a point that I have belaboured over the last five years – that we are squandering money on vanity infrastructure projects of little or no economic value. When the government borrows domestically and invests unproductively, it deprives the private sector of the use of those domestic savings on more productive investments. We also do not produce the capital goods that go into these investments. There is no money that comes into the economy when we borrow from China to build a railway. What we are really doing is taking Chinese goods and services on credit, but as every shopaholic knows, the credit card starts burning a hole in the pocket right away. Asia on the other hand, manufactures its capital goods, hence its infrastructure and other capital investments stimulate and create jobs domestically.

We already know that most of the capital is in public infrastructure with little or no impact on productivity – you need only think of the SGR railway. While the growth accounting analysis shows us the employment contribution, it does not tell us what the expanding workforce is doing. We know that the majority are absorbed in the informal economy where they have little capital to work with, since the government has hogged all the domestic savings, leaving little for the private sector to equip workers with productive capital. While the aggregate data will show that capital per worker is rising, in reality, it is falling since the aggregate figure includes every worker’s slice of the SGR railway, for example. Moreover, we do know that our economies are not creating nearly as many jobs as they should. As the African Development Bank’s (AfDB) most recent Africa Economic Outlook report laments, “the rapid growth achieved in Africa over the last two decades has not been pro-employment”. This is a consequence of the infrastructure-led growth paradigm that this very institution bears most responsibility for promoting.

The economies may be growing, but because unemployment and underemployment are also rising, the incomes of those that are earning are supporting more people. People are not feeling the growth. They are feeling the financial burden of adult children who were expected to be contributing to family upkeep.

Next time you hear them trumpeting five, six, seven per cent GDP growth, you know what to show them.

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David Ndii

David Ndii is one of Kenya's leading economists and public intellectuals.

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Saving Lamu: How a Campaign for Environmental Justice Was Fought

The campaign against a coal-fired plant in Lamu is a good example of how a small, voiceless community can be mobilised to fight powerful and influential forces intent on destroying the environment. RASNA WARAH explores key aspects of the campaign and the landmark ruling that has inspired environmentalists and social justice advocates worldwide.

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In a country where justice is often denied, delayed or distorted, the landmark ruling of the National Environment Tribunal (NET) to cancel the licence for a proposed electricity-generating coal-fired plant in Lamu has restored many Kenyans’ faith in state institutions. The significance of the ruling, which was a victory for environmental justice advocates at home and abroad, cannot be underestimated (though going by the local media coverage of the judgement, it might appear that nothing remarkable has happened).

For the people of Lamu, who will be the most negatively affected if the plant is built, the decision was nothing short of a miracle, especially given that this is a country where major infrastructure projects are often carried out at the expense of local communities and the environment – and where such projects often involve kickbacks and corruption at the highest levels of government. Ochiel Dudley, a lawyer with Katiba Institute, which litigated the precedent-setting case, said that the ruling was a major victory for the people of Lamu and Kenya. “It has stamped the authority of tribunals in courts to ensure compliance with the rule of law,” he stated shortly after the ruling on 26 June.

In a country where justice is often denied, delayed or distorted, the landmark ruling of the National Environment Tribunal (NET) to cancel the licence for a proposed electricity-generating coal-fired plant in Lamu has restored many Kenyans’ faith in state institutions

NET was established under Section 125 of the Environment Management and Coordination Act (1999). Its mandate is to hear disputes arising from decisions of the National Environment Management Authority (NEMA) on the issuance, denial or revocation of licences. In its 26 June 2019 judgement, NET ordered Amu Power, the key player in the proposed Lamu project, to halt construction of the plant and to undertake a fresh environmental and social impact assessment (ESIA) for the project. It noted that the ESIA carried out for Amu Power by a company called Kurrent Technologies was flawed in one key aspect: it did not involve public participation, a constitutional requirement that NET chairman Mohamed Balala described as “the oxygen that gives life to an ESIA report”. In its ruling, NET stated that the lack of public participation was “contemptuous of the people of Lamu”.

Other important points in the ruling included the project’s lack of a strategic environmental assessment and insufficient and unclear plans for toxic coal ash handling and storage, as well as the project’s failure to take into consideration Kenya’s Climate Change Act.

The wrong choice for Kenya

There were many environmental, social and health concerns raised by those against the construction of the coal-fired plant. Environmentalists pointed out that the burning of coal releases toxic particles into the air that can cause asthma, bronchitis, cardiovascular disease and cancer. These particles can also affect fish, crops and wildlife.

In addition, burning coal requires millions of gallons of water to keep the plant cool. Releasing this water into the ocean around Lamu would increase the temperature of the water and kill the fish and other marine life. It would also impact the livelihoods of fishermen in the area.

There are also cultural concerns. Lamu Town has been designated a World Heritage site by the United Nations, which means that the Kenyan government is obligated to protect and preserve it. The proposed plant’s location on 865 acres of land in Kwasasi, just 20 kilometres from this historical town, is especially worrisome. Lamu Town is world-renowned for being one of oldest settlements along the East African coast, and is a much-loved tourist destination. Its pristine beaches have attracted the rich and famous and its Swahili culture has been the subject of countless studies. The toxic particles emitted from the plant could corrode the centuries-old buildings in the town and increase air pollution levels, which will make this unique island town an unhealthy environment for the residents and a less attractive destination for tourists.

The government insists that the economic benefits of the plant outweigh any environmental concerns. It says that the plant will bring much-needed development to the area. Critics argue that if the national and county governments were really keen on improving the living standards of the people of Lamu, they might have built more essential infrastructure, such as sewerage and sanitation systems, which are woefully inadequate, or a first-class hospital, which is much needed in this neglected part of the country.

Proponents of the project say that the plant will significantly reduce the cost of electricity. Those advocating against the plant disagree. They say that the 1,050-megawatt plant will actually cause the price of electricity to increase because the price of electricity will be directly related to the price of coal, which fluctuates. Moreover, the cost of building transmission lines to get the electricity to people in Nairobi and elsewhere and a train to get coal from Kitui will increase the cost of the electricity generated. And if the original intention was to export surplus electricity generated in Kenya to neighbouring countries, that plan is no longer viable: Ethiopia is currently quadrupling its energy-generating capacity and Tanzania is doubling it.

There were many environmental, social and health concerns raised by those against the construction of the coal-fired plant. Environmentalists pointed out that the burning of coal releases toxic particles into the air that can cause asthma, bronchitis, cardiovascular disease and cancer. These particles can also affect fish, crops and wildlife.

David Schlissel from the Institute for Energy Economics and Financial Analysis (IEEFA), in an assessment he conducted on the project, says that the Lamu coal plant is “the wrong choice for Kenya” for several reasons. First, Amu Power, the single-purpose joint venture between Gulf Energy and Centum Investment, calculated the price of electricity on the following erroneous assumptions: i) that coal would cost $50 per metric tonne (in 2017 the price of coal was $85 per tonne); ii) that Kenya’s demand for electricity would go up by 13 per cent annually (demand has actually grown by only 6 per cent a year, partly due to the slowing down of the economy); iii) that the plant would be utilised at 85 per cent capacity (if built, the plant will be grossly underutilised, running at a capacity of between 5 and 34 per cent and producing far less electricity than Amu claims it wil); and iv) that electricity would cost $0.072 per kilowatt hour (IEEFA calculated that electricity from the plant would cost three to ten times as much, from between $0.22 and $0.75 per kilowatt hour).

The most shocking part of the deal is that Kenyans will have to pay about $360 million per year in capacity charges (that’s over $1 million per day!) whether or not the plant generates any electricity and even if it is not operational. This makes one wonder how the government entered into the deal with Amu Power and whether any legal advice was sought before the agreement was signed. It also raises the question of whether people in government knew about the non-viability of the project beforehand but proceeded to go ahead with the project because there was $1 million to be made per day without any sweat or investment.

How this project was allowed in a world where countries including China (the biggest emitter of greenhouse gases and whose citizens are paying for this with their health) are weaning themselves away from coal is also disturbing, given that in 2018 President Uhuru Kenyatta pledged to move Kenya to 100 per cent renewable energy by 2020. But then in Kenya, it is not reason, common sense or environmental and social justice considerations that determine public policy but individual greed, myopic self-interest and lack of a long-term vision for the country and its future.

How it all started

In September 2013, five months after Uhuru Kenyatta was sworn in as president, the Kenyan government invited bids for the Lamu coal-fired plant. Twenty-six submissions were received. Gulf Energy was awarded the tender.

Amu Power, which did not even exist as an entity when the invitation for the bids went out, was only established after Gulf Energy, the developer and co-sponsor of the plant, started a joint venture with Centum, a Kenyan-owned investment company whose major shareholder is the Kenyan magnate Chris Kirubi and whose CEO is James Mworia. (Though there is suspicion that Amu Power is a front for powerful or influential people who wish to remain unknown.) The main potential funder of this $2 billion project is the Industrial and Commercial Bank of China. The African Development Bank initially showed interest in partially funding the project but pulled out after campaigners opposed the project. The Bank’s president stated that it was the lending institution’s policy not to fund coal projects.

The campaign against the project started in earnest in October 2016 when two civil society organisations – Save Lamu and Natural Justice – lodged an objection with the Energy Regulatory Commission (ERC) to Amu Power’s application for a coal plant in Lamu. This was the beginning of a successful campaign that culminated in the NET ruling last month.

So how did the people and organisations who campaigned against the construction of the coal-fired plant in Lamu succeed in their efforts? Well, two things stand out which other environmental campaigners might want to take note of as they provide a good case study on how to obtain environmental justice in the face of stiff opposition from government and corporate interests.

One, the campaign was fought not just by the affected communities in Lamu but by a coalition of local and foreign environmental and human rights organisations, namely, Save Lamu, Heinrich-Böll-Stiftung, 350 Africa, Centre for Human Rights and Civic Education, Sauti Ya Wanjiku, Muhuri – Muslims for Human Rights, National Resources Alliance of Kenya, American Jewish World Service and the Center for Justice Governance and Environmental Action. This coalition provided the campaign with the legal and financial resources and the moral strength and support that would not have been available if the campaign had been led only by members of the affected community in Lamu – though it is important to note that the residents of Lamu were both vocal and visible throughout the campaign.

Two, these organisations and their supporters designed a highly successful media campaign under the banner deCOALonize.org, which published regular updates online and on social media and organised street demonstrations both in Lamu and in Nairobi. By the time the case went to NET, opposition was so strong that a ruling in support of the plant in Lamu would have appeared to be totally misguided, or worse, highly compromised. Public pressure was thus key to the success of the campaign.

Organisers of the campaign say that the battle is not yet over. A spokesperson for the campaign said that while last month’s NET ruling will delay the Lamu coal project, there is no guarantee that the project will be halted indefinitely. “Amu Power can conduct a fresh environmental and social impact assessment and apply for a new licence, or can choose to appeal the decision, seeking to overturn the ruling and have the licence restored,” he said.

Amu Power has until 26 July to file a notice of appeal. However, the deCOALonize campaigners believe that Amu is not likely to appeal the ruling because it wouldn’t want to stall the project any longer with a court case it might very well lose. They believe that Amu will most probably go for a fresh ESIA that will deal with the issues raised by the tribunal. If a licence to build the plant is then granted, the struggle to save Lamu will continue.

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Limuru III: SabaSaba@29 – A Call to Action

Our elites should never be politically underestimated as they have a genius for lies, distractions, diversions, and divisions. They have mastered the art of manipulating the divisions of class, clan, gender, generation, religion, region, occupation, race, and, recently, even the English Premier League. Politics of division must be replaced by politics of humanity, national unity, and inclusion. Above all, we must breathe life into our constitution and our vision of how our politics is to be organised.

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Limuru III: SabaSaba@29 - A Call to Action
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Those of you who read Mutemi wa Kiama’s The Real Lords of Kenyan Poverty in his articulate response to the Deputy President will have captured this truth: our burning political issue is our ruling class/elites, the root cause of poverty, corruption, theft of national resources, inequalities and odious debts. They are the authors of our divisions and our strife, and the agents of foreign interests in our motherland. Yes, this class must be replaced by its antithesis, an alternative patriotic political leadership. Governor Kibutha Kibwana has advised us thus: “The social reform movement needs to reimagine itself from the grassroots.” This is also advice for the alternative political leadership that is anchored to such a movement. The communities at the grassroots must organise themselves and we must facilitate such organisations on the basis that we also are educated by communities.

The ruling class is racketeering, unpatriotic, kleptocratic, and is also the running dogs of the imperialism of the West and the East. This class has been called wala watu, walalahai, ogas, mazimwi, mapebari, mashetani. In Kiikamba we call this class asumbi kitundumo, and the Kalenjin call them chemosi. The Kikuyu call this class uthamaki. David Ndii refers to them as “some animals [who] are more equal than others.” Alamin Kimathi has called them mabwenyenye. Each community in Kenya should have a name for this class. They hate us, the people they lead and mislead. They wish us dead when they do not kill us. How do you explain the illicit economy in our midst (counterfeits, wildlife crimes, human trafficking, trafficking in body parts, drug trafficking, piracy, terrorism, money laundering) that makes us sick and kills us? Even the so-called licit economy is mired in illegal financial flows by multinationals; exploitation, domination, and oppression by foreign interests enslaves our people.

The communities at the grassroots must organise themselves and we must facilitate such organisations on the basis that we also are educated by communities.

Which idiot said the British had left? Or the Europeans? Or the Americans? And now the Chinese are here. With a multi-racial, multi-ethnic elite owning most of the land and other national resources, do we own our motherland? With the skyrocketing national debt, is it not a matter of time before our patriotic youth do what the Mau Mau Land and Freedom Army did in the 1940s and 1950s; organise and fight to free our motherland from foreign occupiers and their national agents?

A recent Oxfam Report states that, in a population estimated at 51 million, 8,300 Kenyan billionaires and multi-millionaires own assets equal to those of the rest of us. This inequality can only be explained by the elites’ politics of division for the last 56 years. Our elites should never be politically underestimated as they have a genius for lies, distractions, diversions, and divisions. They have mastered the art of manipulating the divisions of class, clan, gender, generation, religion, region, occupation, race, and, recently, even the English Premier League. Politics of division must be replaced by politics of humanity, national unity, and inclusion. Above all, we must breathe life into our constitution and our vision of how our politics is to be organised.

The ruling class is racketeering, unpatriotic, kleptocratic, and is also the running dogs of the imperialism of the West and the East. This class has been called wala watu, walalahai, ogas, mazimwi, mapebari, mashetani. In Kiikamba we call this class asumbi kitundumo, and the Kalenjin call them chemosi. The Kikuyu call this class uthamaki. David Ndii refers to them as “some animals [who] are more equal than others.” Alamin Kimathi has called them mabwenyenye. Each community in Kenya should have a name for this class.

The long march to an alternative political leadership started with Me Kitilili and was joined by other patriots, leading to the Mau Mau war of independence. The march has never stopped; it may occasionally retreat but like the mole that keeps on digging underground, periodic progressive eruptions of this march have marked the course of our history. So, today we meet on this site, a site that has been part of this long march to freedom, emancipation, and the reclaiming of our land and national resources. Limuru is the home of the 2010 constitution. It is to this constitutional shrine that we return to assert its validity, condemn its betrayal, and organise for its protection and robust implementation. The constitution is an excellent framework for getting Kenya out of its governance and developmental mess. It only requires agency, an alternative political leadership and the support of all Kenyans.

Limuru has witnessed previous alliances between civil society and opposition political parties. These parties were not an authentic opposition in the country but part of the intra-elite struggles for political power. The NCEC [National Convention Executive Council] learned its lesson from the IPPG [Inter-Parties Parliamentary Group]. We cannot continue to view these baronial and elite factions as providing a political alternative. There is none among them that is the lesser evil. We are in Limuru to end opportunistic political strategies with the ruling elite that have been devoid of a proper class analysis. We cannot continue to be the transformative lambs reclining comfortably with the baronial lions. We cannot run with the hare and hunt with the hounds. It is time we had an authentic opposition that can contest for power after 56 years of a baronial rule that has promised to build bridges to get us to Canaan only to return us to Egypt.

Kenya gave birth to a beautiful baby, the 2010 constitution. We then proceeded to hand over the baby to a child-trafficking class to take care of it. We now know what a grievous mistake we have made. We must reclaim this baby and entrust it to an alternative political leadership to avoid it being killed and its body parts being trafficked.

A recent Oxfam Report states that, in a population estimated at 51 million, 8,300 Kenyan billionaires and multi-millionaires own assets equal to those of the rest of us. This inequality can only be explained by the elites’ politics of division for the last 56 years

We want the implementation of the constitution, not the further weakening of its structure through defective and self-serving amendments that will only entrench bad behaviour. Tinkering with the constitution is an attempt at create a bypass to misrule, misgovernance, and authoritarianism. Such amendments will result in Kenya sinking deeper into a political and economic morass.

So, in this journey of a thousand miles, we are starting the last lap and taking the last step, driven by the revolutionary spirits of our ancestors and our God of freedom, equality, equity, emancipation, inclusiveness, non-discrimination, integrity, accountability, peace, national unity and prosperity.

So then, what must be done?

We have with us social movements and political parties: Muungano, Ukweli, and the Communist Party of Kenya. We also have experts and intellectuals. Let each of these groups choose a man and a woman to constitute the Interim Leadership of the Peoples’ Popular Initiative Convention (PPIC) to address this issue of alternative political leadership. Let us ensure that a multi-racial, multi-ethnic, multi-gendered, and multi-religious face of Kenya is represented as we expand this Interim Leadership and choose a collective leadership of the first among equals. Let various Committees be formed to work on narratives that run counter to those of the elites, with the sole aim of contesting for political power. A fundamental committee will be the Finance Committee because, indeed, we must raise our funds from among the Kenyan people as happened during the struggle for independence.

Without capturing state power our resources will not be safe, and our national debt will never be paid, resulting in our enslavement. We announce here that we will never pay debts that were illegally contracted or stolen. On the contrary, we will help the creditors recover their debts from those who are liable to pay them. After all, the bulk of the assets of these people are in the countries of the creditor nations, institutions, and individuals; the math will be really easy.

The Interim Leadership should ensure we work on basic papers – with the group reports here forming the background of such papers – to enable the PPIC to come up with a broad manifesto that Limuru IV will ratify before the end of the year.

Let us get down to work.

Thank you.

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Memo to Uhuru Kenyatta: Finish up and Go

With nothing but political blunders and policy failures behind him, there is only one thing left that Uhuru Kenyatta can do for Kenya, and that is this. Mr Uhuru Kenyatta, please do us and yourself a big favour; you have neither the mandate nor the wherewithal to shape our political destiny. Just finish up and go.

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December 30 ought to be a memorable day on Kenya’s political calendar. On this day in 2002, Mwai Kibaki took office as the first democratically elected President of Kenya. When it is remembered, though, it is not for the inauguration of Kibaki, but for Moi’s humiliation. The only account we have of the chaotic event is that of Lee Njiru, Moi’s communications chief. According to Njiru, as soon as Uhuru Kenyatta conceded defeat on the afternoon of the 29th, the Kibaki people insisted on an immediate handover. The inauguration was scheduled for the following day without any consultations. At 3 p.m. on that day, Moi got tired of waiting and decided to go down to Uhuru park to get it over and done with. This is how he ended up in the chaotic situation, being jeered at and pelted with mud, bottles and whatever else people could lay their hands on. Kibaki’s description of Moi’s tenure as “years of misrule and ineptitude” did not suggest that there was any intention to treat Moi kindly.

Shortly after assuming power, the NARC administration replaced Moi’s face on the currency with Jomo Kenyatta’s. It was ill-advised. By then, the NARC dream had dissolved into a toxic nightmare. The Kibaki men — later to emerge as the Anglo-Leasing cabal — had walked out of Bomas and gone off to write the Wako/Kilifi draft constitution. Seen through the prism of the NARC fallout, this was not just further humiliation of Moi; it symbolised the resurgence of Kikuyu restorationism — the thing Kikuyu supremacists metaphorise as gūcookia rūūī mūkaro, literally, returning the river to its course, meaning the return of power to where it belongs. For some reason, the Kibaki men seemed to have conflated Moi’s humiliation with the redemption of Jomo Kenyatta. They were mistaken. The rejection of Uhuru Kenyatta in the presidential bid in Central Kenya was, in part, antipathy towards his father’s rule which had already cost him the Gatundu parliamentary seat in 1997. Kaī tūgūthīnjīra hiti keerī? (are we to slaughter our goat for hyenas a second time?), people would ask.

A decade later the humiliation was invoked in conversations that would have seemed completely unrelated — the constitutional debate on the features Kenyan currency should have. It is these sentiments that informed the constitutional provision that outlaws portraits of individuals on the currency. So there was considerable disquiet in many quarters recently when new notes revealed a disingenuous way of keeping Kenyatta’s image on the currency — his statue prominently in the foreground of the Kenyatta International Conference Centre. There are many arresting images of the KICC that do not feature the statue. The State will no doubt seek, and may find defense in legal interpretation, but it is not lost on anyone that the intention is to defeat the spirit of the Constitution. The timing is awful.

I was at a social gathering in Kiambu recently where the dismay and disillusionment with Uhuru Kenyatta hovered over the otherwise succulent goat ribs and aged single malts like the smell of stale beer. The question was raised as to how the gathering would like their sentiments conveyed to Kenyatta. The “session chairman” distilled the sentiments aired into a four-point message: Andū mena thīna mūno (the people are suffering a lot); Ee toro ta Njoramu (he slumbers like the biblical Joram); Nītūmenyete nī mūkoroku ta ithe (we have learned he is as greedy as his father); Nī gūtee (we wasted our votes).

Seemingly unaware of these undercurrents in his backyard, or perhaps all too aware of them, Kenyatta recently appeared at a public gathering where — forgetting that he is the president of all Kenyans — he unleashed a diatribe in Kikuyu, repeatedly addressing the gathering as “andū aitū” (“our people”), and assuring them that he was on top of things. I gather that the outburst was triggered by his deputy arriving at the meeting fashionably late. We witnessed the same thing happen at Kenneth Matiba’s funeral service in Murang’a when Kenyatta came out guns blazing. But his outburst at the Akorino event is of far greater significance.

I was at a social gathering in Kiambu recently where the dismay and disillusionment with Uhuru Kenyatta hovered over the otherwise succulent goat ribs and aged single malts like the smell of stale beer.

The Uhuru-Ruto political pact was sold to the Kikuyu as a peace treaty that would shield the Kikuyu diaspora in the Rift Valley from politically motivated violence — a homegrown solution for which the Kikuyu sacrificed justice for the victims of the 2007/8 post-election violence. The Akorino community has a large presence in the Rift Valley epicenters of political violence. With their distinctive white turbans, this insular, exclusively Kikuyu sect, is a vulnerable, easy target. During Ruto’s trial at the International Criminal Court, evidence was adduced that the Akorino were specifically targeted using the euphemism “plucking mushrooms.” Ruto was personally implicated in the incitement and his defiant arrival at the Akorino meeting would have been unsettling for both Kenyatta and the Akorino — it was as if he had showed up to remind them that they have a deal, and that choices have consequences. Kenyatta, who is not given to introspection or self-restraint, let rip.

The Kenyatta-Ruto succession is the third chapter in the Kikuyu-Kalenjin land-for-power pact which began with the co-option of KADU into the Government, bringing Moi into the centre of power at the expense of Oginga Odinga. In 1967 Moi was elevated to the vice-presidency at the expense of more capable leaders — notably Tom Mboya. Prof. Anyang Nyong’o recalls asking Lee Kwan Yew for his thoughts on how Singapore’s and Kenya’s development trajectories diverged, to which Lee Kwan Yew quipped that we had killed Mboya. The deal with Moi facilitated the migration of the Kikuyu peasantry into the Rift Valley, which in turn enabled Kenyatta and other wealthy Kikuyu notables to acquire for themselves the migrants’ more valuable ancestral lands in central Kenya.

The Uhuru-Ruto political pact was sold to the Kikuyu as a peace treaty that would shield the Kikuyu diaspora in the Rift Valley from politically motivated violence — a homegrown solution for which the Kikuyu sacrificed justice for the victims of the 2007/8 post-election violence

Then came the Kenyatta succession intrigues that can be said to have begun with Mboya’s assassination and the Gatundu oathing ceremonies that sought to ensure that “biki biki itigakīra Chania (the motorcycle outriders will never cross the Chania River, meaning that power would remain in Kiambu). The machinations ranged from an attempt at constitutional change to preclude the Vice President from assuming power in the event of the president’s death (that elicited Charles Njonjo’s decree purporting to criminalise imagining the death of the president) to the more sinister Ngoroko affair, a hit squad embedded in the anti-stock theft police unit suspected to have been meant to assassinate or otherwise incapacitate Moi when Kenyatta died. The scheme was predicated on Kenyatta dying in Nakuru, his favourite retreat, in which case the schemers would have been the first to know. But Kenyatta died at the Coast.

It is now clear that, for whatever reason, Kenyatta and the interest groups he represents have decided that it is not in their interest that he be succeeded by William Ruto. What is unclear is whether there is a Plan B because Plan A, a corruption takedown, is not working. There is only one way to make it work and that is to convict Ruto for corruption. But such is the obsession with neutralising him that they just could not resist the opportunity to weaponise the change of currency notes for a financial takedown. It is believed that a sizeable chunk of William Ruto’s seemingly inexhaustible political war chest is hoarded in cash that he may not be able to convert to the new currency, in effect rendering the stash valueless.

Prof. Anyang Nyong’o recalls asking Lee Kwan Yew for his thoughts on how Singapore’s and Kenya’s development trajectories diverged, to which Lee Kwan Yew quipped that we had killed Mboya

Article 262 (34) of the Constitution — the transitional provision relating to the currency change — states that “Nothing in Article 231 (4) affects the validity of coins and notes issued before the effective date.” Conflating the currency change mandated by the Constitution with this purported war on money laundering has left Ruto’s takedown hostage to the interpretation of this provision by the courts. But even the presumption that repudiating the cash hoards will cripple Ruto financially, and that crippling him financially will neutralise him politically, is wishful thinking. Uhuru Kenyatta’s anti-Ruto schemes are evidently as hare-brained as his father’s acolytes’ ill-fated anti-Moi schemes. And like Moi before him, the longer he survives this onslaught, and the more Uhuru Kenyatta reverts to type — ethnic chauvinism, contempt, dynastic privilege and arrogance of power — the stronger Ruto becomes.

The Kenyatta-Ruto succession is the third chapter in the Kikuyu-Kalenjin land-for-power pact which began with the co-option of KADU into the Government, bringing Moi into the centre of power at the expense of Oginga Odinga. In 1967 Moi was elevated to the vice-presidency at the expense of more capable leaders — notably Tom Mboya

In their “handshake” memorandum, titled “Building Bridges to a New Kenyan Nation,” Uhuru Kenyatta and Raila Odinga promised to lead the nation in correcting the sins of their fathers:

We are grateful for our fathers, we stand on their shoulders. Yet we can also see that the promise of our nation has not been met as fully as it should have been; we know there are different measures our founding fathers should have taken as they forged this young nation. H.E. President Uhuru Kenyatta and H.E. Raila Odinga are the two leaders who symbolise the many ways in which the country has gone full circle in its divisions. Intent on not witnessing the country suffer similar future cycles of the same tribulations it has since 1963, they are determined to offer the leadership that prevents future generations inheriting dangerous divisions and offer them a path to a bright future for all.

We have seen none of this. What we see instead is the same shameless politics of self-preservation, cynical ethnic mobilisation, arrogance of power and that quintessential Kenyatta disease — greed.

It has recently emerged that Uhuru Kenyatta is exerting pressure on the government to prioritise the upgrading of the Nairobi Eastern by-pass specifically to benefit the Northlands satellite city project on one of the family’s expansive, dubiously acquired, land holdings. Last week, the official State House twitter handle @StateHouseKenya was promoting Stawi, the lending platform fronted by the Commercial Bank of Africa, the Kenyatta family bank featured in this column some weeks ago. The Central Bank Governor — who is now doubling up as CBA’s chief marketing officer — lied to the public that Stawi will provide cheap credit to small businesses at an interest rate of 9 per cent per year, while in truth, the cost of the loans as measured by the annual percentage rate (APR) averages 35 per cent, and is no different from other digital lenders in the market. Corruption could not be more egregious.

In their “handshake” memorandum, titled “Building Bridges to a New Kenyan Nation,” Uhuru Kenyatta and Raila Odinga promised to lead the nation in correcting the sins of their fathers

Yet some Kenyans continue to cling to the hope that he is fighting corruption. Uhuru is not fighting corruption. He is fighting Ruto. And he no longer bothers to hide the fact that he is using state power, his office and public resources to further his private business interests. Much of what we are seeing from him suggests that he may be under the impression that the “Kenya” in Kenyatta is proprietary. One of the sins of the fathers is the personality cult that Uhuru Kenyatta is hell-bent on perpetuating by retaining his father’s image on our currency, against the letter and spirit of the constitution he has sworn to defend. But all is not lost. By showing us the middle finger, Uhuru Kenyatta has ensured that there will come a time to do unto Kenyatta what was done to Moi. And when the music starts, it will not stop at the currency — streets, airports and universities will be fair game.

Having floundered on providing the promised leadership — no surprises there — the handshake is now clinging onto the hope of constitutional amendments to either exclude or neutralise Ruto, a scheme reminiscent of the 1966 Limuru KANU Conference constitutional amendments that replaced the deputy party leader’s position with eight regional vice presidents, in effect ending Oginga Odinga’s chances of succeeding Kenyatta. This constitutional amendment scheme is now a poisoned chalice. We say in Gikuyu, mbūri igūthinjwo ndionagio kahiū (one does not approach a goat for slaughter with the knife in full view).

We have seen none of this. What we see instead is the same shameless politics of self-preservation, cynical ethnic mobilisation, arrogance of power and that quintessential Kenyatta disease — greed.

I have stated many times, and I will restate here again that the leadership that Uhuru and Raila promised behoves them to play the role of honest statesmen who would midwife political reforms leading up to a free and fair election, followed by retirement for both of them. But they have eschewed statesmanship for skulduggery and political intrigue, lending credence to suspicions that the handshake is nothing more than a Kenyatta self-preservation scheme to which Raila Odinga has been enticed with a share of the spoils and a reinstatement of the Odinga clan to the pantheon of Kenya’s ruling dynasties. It is time to end this nonsense.

With nothing but political blunders and policy failures behind him, there is only one thing left that Uhuru Kenyatta can do for Kenya, and that is this:

Mr Uhuru Kenyatta please do us and yourself a big favour; you have neither the mandate nor the wherewithal to shape our political destiny. Just finish up and go.

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