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Who Owns Kenyan Banks?

While banks have begun to adhere to disclosure requirements spelt out in the prudential guidelines issued by the Central Bank of Kenya (CBK) much more needs to be done, particularly pertaining to competition policy and regulation to put checks and balances on the monopolisation of the banking sector in Kenya. 

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Banking in Kenya dates back to the pre-colonial periods. The first banks largely concentrated on financing international trade along the Europe-South Africa–India axis, but later diversified operations to tap the opportunities for profitable banking created by a growing farming settler community and pioneer traders in the local economy to whom they provided deposit and credit facilities. 

Indian money lenders operating quasi bank services as early as the 18th century were probably the first bankers but the first recognisable bank was Jetha Lila Bankers from India, which was established in Zanzibar in 1880. In 1889 the National Bank of India appointed the trade house of Smith Mackenzie to be their agent in Zanzibar. Smith Mackenzie had a Mombasa branch in 1887 which was taken over by the Imperial British East Africa (IBEA) in 1888.  The National Bank of India established its own office in Zanzibar in 1892. In July 1896 the National Bank of India established a branch in Mombasa renting premises from Sheriff Jaffer. 

In April 1909, the East Africa Post Office Savings Bank Ordinance was passed and in April of the following year, the Ordinance for the Regulation of Banks established in the East Africa Protectorate was passed.  The former Ordinance established the first bank in the formal sense while the latter enabled the National Bank of India to become the first commercial bank. By 1911 there were only three banks: The National Bank of India, The Standard Bank of South Africa that came in December 1910 which later merged with Anglo-Egyptian Bank Ltd to form Barclays Bank in 1926 and Kathiawad and Ahmedabad Banking Corporation which had a short-lived presence in Mombasa from 1910 to 1915. 

In 1920 the East Africa Protectorate was declared a colony of the British Empire and its name changed to Kenya. The new colonial starters helped the Banks grow rapidly mainly through European Deposits and Asian customers. The banking services were not available to Africans, the only banking sources for Africans was the Post Office savings bank which started in 1910 as a department of the Colonial Postal service, even then the service was only available in places where Officials of the colonial service were stationed and therefore did not reach the majority of Africans who resided in rural areas.

The steadily growing economy in Kenya would soon lead to an influx of new banks between 1950 and 1959. In 1951 the Dutch bank Nedelandsche opened a branch in Nairobi. It was followed by the Bank of India which opened its first branch in Treasury square in Mombasa on January 17th 1953 and the Bank of Baroda on December 4th of the same year with its first branch also in Mombasa. The Pakistan based Habib Bank AG Zurich Ltd came in 1956 while the Ottoman Bank and Commercial Bank of Africa (CBA) rounded off the rush by establishing branches in the country in 1958.

After Indian attaining independence from Britain in 1947 and the subsequent hiving off of Pakistan, India changed its name in 1958 to National Oversees and Grindlays bank later called National and Grindlays Bank following its merger with Grindlays bank another landing based bank which traced its roots to Calcutta India. By 1951 the Banks had expanded its branches considerably but employment opportunities for Africans in the Banking industry took a long time to materialize. Indeed, it was not until June 1963 a few months before the country attained independence that the first African manager of a Bank branch Peter Nyakiamo was appointed. 

After independence, the changing landscape of banking began to note the entrance of fully indigenous banks. In June 1965 the first fully locally owned Commercial Bank, the Cooperative Bank of Kenya was registered as a Cooperative Society; initially, it served the growing farming community. Cooperative bank as it came to be known commenced its operations as a Bank on January 10th 1968.  The first fully Government-owned Bank the National Bank of Kenya was established on June 19th 1968. In 1971, the Kenya Commercial Bank was formed following the merger of the National and Grindlays Bank, with the government owning a 60-per cent majority stake. It took the poll position as the largest of the country’s commercial banks in terms of deposits and number of branches.

The formation of the Government-owned Banks had the desire to fight the speeding of the provision of affordable banking services to the majority of the population. It also prompted Foreign-owned bank to take measures to remain relevant in the Kenyan markets and beyond.  Today, according to the Bank supervision annual report 2017, Kenya currently has 44 banks. 31 of the banks are locally owned while the remaining 13 are foreign-owned. Among the 31 locally owned banks, the government of Kenya has a shareholding in three of them, 27 of them are commercial banks and one is a mortgage finance institution, known as Housing Finance.

Kenya Banking Sector

Illustrated by Mdogo / The Elephant

Of the 44 banks, ten are listed on the Nairobi Securities Exchange with respect to the names of their shareholders namely Barclays Bank of Kenya Ltd, Stanbic Bank Kenya Limited, Equity Bank Ltd, Housing Finance Ltd, Kenya Commercial Bank Ltd, NIC Bank Ltd, Standard Chartered Bank (K) Ltd, Diamond Trust Bank Kenya Ltd, National Bank of Kenya and Co-operative Bank of Kenya Ltd. The shareholding structure of these banks constitutes, one that is state-owned, six locally owned and three that are foreign-owned. 

Together, they act as representatives of local, foreign, state, single and block shareholding in Kenya. 

In 2016, in the wake of the collapse of three lenders —Dubai, Imperial and Chase banks — precipitated by weak corporate governance practices that allowed irregular issuing of loans to politically connected customers, wanton insider lending and running of parallel banks, the Central Bank of Kenya issued orders for banks to disclose top shareholders on their websites. An outcome of this has been greater transparency and public trust. However, as this analysis illustrates, is a network of individuals, companies and banks who are the major shareholders of Kenyan banks.

Let us examine this?

The National Bank of Kenya’s two key shareholders are the National Treasury of Kenya and the National Social Security Fund (NSSF). The NSSF holds 48.1% of the ordinary shares as well as 20.7% (253 million) of the non-cumulative preference shares in the Bank. The National Treasury holds 22.5% of the ordinary shares as well as 79.3% (900 million shares) of the Bank’s non-cumulative preference shares. The remaining 29.5% of the ordinary shares are held by the general public through the NSE namely, Kenya Reinsurance Corporations, Best Investments Decisions Ltd, Co-op bank custody a/c 4003a, Craysell Investments Limited, NIC Custodial Services a/c 077, Equity nominee Ltd a/c 00084, NBK Client a/c 1( Anonymous) and Eng. Ephraim Mwangi Maina who has 0.3% shares.

Kenyan Banks: Shareholding

Illustrated by Mdogo / The Elephant

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Co-operative Bank of Kenya public and was listed on December 22nd 2008.

Shares previously held by the 3,805 Co-operative Societies and unions were ring-fenced under Co-op Holdings Co-operative Society Ltd which became a strategic investor in the Bank with a 64.56% stake (3 Billion shares), followed by Gideon Maina Muriuki with 1.9% shares, Kenya Commercial Bank nominees a/c 915B 0.8% shares, NIC Custodial Services a/c 077 0.7% shares,Stanbic Nominees Ltd a/c Nr  1030682 0.5% ,Aunali Fidahussein Rajabali and Sajjad Fidahussein Rajabali 0.4%, Amarjeet Balooobhai Patel and Baloobhai Chhotabhai Patel, Old Mutual Life Assurance Company,Kenya Reinsurance Corporations and Standard Chartered Nominees Resd a/c ke11443 hold 0.3% shares each. 

Co-op bank custody a/c 4003a (anonymous) has shares in two banks, National Bank of Kenya and Standard Chartered.

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On 31st December 2014, Equity Group holdings PLC  finalized an internal restructuring that culminated in its conversion into a non-operating holding company, Equity Group Holdings Limited (EGHL) in order to further meet its objectives. The Bank arm was founded in 1984 as Equity Building Society (EBS). In 2006, the Bank was listed at the Nairobi Securities Exchange where it has become the largest Bank by market capitalization. The listing also attracted Helios, a strategic investor, to invest USD 185 million in 2007. 

Arise BV is the top investor at Equity Bank Limited with 12% shares. Aris-constituting Norfund, FMO and Rabobank-paid kes17.6 billion for a share of Equity Group Holdings KES147 billion market valuation. Aris took over the shares held by Norfininvest.

Other shareholders include James Mwangi and British American Investment Company Kenya Ltd with 127 Million shares, Standard Chartered Nominees with 121 Million shares, Equity Bank ESOP 117 Million shares, Standard Chartered Kenya Nominees Ltd a/c 107 Million Shares, Fortress Highlands Ltd 101 Million shares, Equity nominees Ltd a/c 93 Million shares, Stanbic Nominees Ltd a/c and Aib Nominee a/c Solidus Holdings Ltd hold 92Million shares. 

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Kenya Commercial Bank, Eastern Africa is the oldest and largest commercial bank started its operations in Zanzibar as a branch of National Bank of India In 1896. The bank extended its operation to Nairobi in 1902, which had become the headquarters of the expanding railway line to Uganda. In 1975, The Government of Kenya acquired majority shareholding and changed the name to Kenya Commercial Bank. In 1988, the Government sold 20%of its shares at NSE through an IPO that saw 120,000 new shareholders acquire the bank. The National Treasury is the top investor at Kenya Commercial Bank with 17.5% shares, followed by National Social Security Fund (NSSF) with 173 Million shares, Standard Chartered Nominee a/c with 69 Million shares, Standard Chartered Nominees Ltd a/c with 63 Million shares,CFC Stanbic Nominees Ltd a/c with 61 Million shares, Standard Chartered Kenya Nominee a/c with 58 Million shares, Standard Chartered Kenya Nominees Ltd a/c with 52 Million shares ,Standard Chartered nominees a/c ke002382 with 46 Million shares, Standard Chartered nominees a/c ke9688 with 45 Million shares and  Standard Chartered Kenya nominees non-resd a/c 9069 with 36 Million shares.

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Amalgamated Banks of South Africa (ABSA) Group Limited formerly known as Barclays Africa Group Ltd has the highest shares, 68.5% at Barclays Bank of Kenya, followed by Standard Chartered Nominees Resd a/c ke8723 e with 75 Million shares, Standard Chartered nominees resd a/c ke11401  with 46 Million shares, Kenya Commercial Bank Nominees Limited a/c 915b with 41 Million shares,Standard Chartered nominees resd a/c ke11450 with 38 Million shares, Kenya Commercial Bank Nominees Limited a/c 915a with 34 Million shares, Standard Chartered nominees a/c 9230 and Standard Chartered nominees non-resd. a/c 9913 hold  23 Million shares, Goodwill (Nairobi) Limited a/c 94 with 21 Million shares and the Jubilee Insurance Company of Kenya Limited with 20 Million shares.

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Standard Chartered Bank Kenya Limited was established in 1911 with the first branch opened in Mombasa Treasury Square. The Bank was listed on the Nairobi Securities Exchange in 1989. The public shareholding is just over 25% (remainder held by Standard Chartered PLC) and comprises over 30,000 shareholders. Standard Chartered Holdings is the top shareholder with 73.5% shares and operates as a subsidiary of Standard Chartered Holdings International B.V.  Standard Chartered Holdings (Africa) BV is an Overseas UK company opened on 17 May 2002. Kabarak Limited follows with 3.5 Million shares, Co-op Bank Custody a/c 4003A with 1.9 Million shares , Standard Chartered Kenya Nominees – a/c KE002382 and Standard Chartered Nominees – resd a/c KE11450 they both hold 1.7 Million shares, Standard Chartered Nominees – a/c 9230 they both hold 1.5 Million shares, Kenya Commercial Bank Nominees Limited – a/c 915B and Standard Chartered Africa Limited, they both hold 1.4 Million shares, Old Mutual Life Assurance Company Limited  with 1.3Million shares and Standard Chartered Nominees – resd a/c KE11401 holds 1.1Million shares. 

Standard Chartered Kenya Nominees Ltd a/c (anonymous)  has almost equal shares in two banks, Equity Bank limited and Kenya Commercial Bank.

Standard Chartered nominees a/c ke002382 (anonymous) has shares in two banks, Diamond Trust Bank and Kenya Commercial Bank.

Standard Chartered nominees a/c ke11450 (anonymous) has shares in two banks, Housing Finance and Barclays Bank of Kenya

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Stanbic Bank Kenya Limited (SBK) was established in 1958 when Ottoman Bank incorporated its first subsidiary in the region. In 1969, Ottoman Bank sold its Kenyan operations to National and Grindlays Bank (NGB Kenya) making its exit from the East African market. Stanbic nominees ltd a/c nr00901 is the top shareholder at Stanbic bank with 60.0% shares, followed by Standard Chartered nominees non-resd. a/c 9866 with 34 Million shares, Standard Chartered nominees non -resd. a/c 9867 with 13 Million shares, Standard Chartered Kenya nominees Ltd, a/c ke20510 with 9 Million shares, Standard Chartered Kenya nominees Ltd a/c ke002012 with 8 Million shares, Standard Chartered nominees Ltd non-resd a/cke11663 with 7 Million shares, Standard Chartered nominees non-resd. a/c ke9053 with 5 Million shares, the Permanent Secretary to the Treasury of Kenya with 4.3 Million shares, Standard Chartered nominee account ke17661 with 4.1 Million shares and Standard Chartered Kenya nominees ltd a/c ke23050 with 3.6 Million shares.

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Diamond Trust Bank Group is an African banking group active in Burundi, Kenya, Tanzania, and Uganda. It has operated in East Africa for over 70 years. It is an affiliate of the Aga Khan Development Network (AKDN) and the flagship of DTB Group is Diamond Trust Bank (Kenya), which was founded in 1946.  Aga Khan Fund for Economic Development is the top shareholder at Diamond Trust Bank with 16.5% shares, followed by Habib Bank Limited with 45 Million shares, The Jubilee Insurance Company of Kenya Limited with 27 Million shares, Standard Chartered Nominees a/c KE18965 and ,Standard Chartered Nominees a/c KE18972  have 5.2 Million shares, The Diamond Jubilee Investment Trust (U) Limited with 3.8 Million shares, Standard Chartered Nominees a/c KE002382 with 3.5 Million shares, Aunali Fidahussein Rajabali and Sajjad Fidahussein Rajabali with 3.3 Million shares, Standard Chartered Nominee Non Resd a/c KE11752 and CFC Stanbic Nominee Limited a/c NR1873738 have with 2.7 Million shares.

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Housing Finance Limited is a large mortgage finance company in Kenya. The company was established in November 1965, to promote a savings culture and homeownership among the citizens of newly independent Kenya. Major investors in the company include the Commonwealth Development Corporation (CDC), whose shareholding at one time was as high as 60%, and the Government of Kenya, which at one time owned 50% of the company. CDC has since divested from Housing Finance Limited and the Kenyan Government has substantially reduced its shareholding.

In 1992 Housing Finance Company of Kenya became listed on the Nairobi Stock Exchange. 

Britam Investment Company (Kenya) Ltd is the top shareholder at Housing Finance with 19.9% shares, followed by Equity Nominees Limited a/c 00104 with 44 Million shares, Britam Insurance Company (Kenya) Ltd with 33 Million shares, Britam Insurance Company (Kenya) Ltd with 23 Million shares,Standard Chartered Nominees Resd a/c KE 11401 with 14 Million shares, SCB a/c Pan African Unit Linked FD with 11 Million shares,Permanent Secretary Treasury with 8 Million shares,Kenya Commercial Bank Nominees Ltd a/c 915B with 5 Million shares,Standard Chartered Nominees Resd a/c KE11450 and Kenya Commercial Bank Nominees Ltd a/c 915A have 4 Million shares. 

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Investments & Mortgages Limited was formed as a private company providing personalised financial services to business people in the Nairobi area. In 1980, I&M, as the company was known at that time, was registered as a Financial Institution under the Banking Act. Following changes in the regulations of the Central Bank of Kenya, I&M became a commercial bank in 1996. In 2013, I&M Bank created I&M Holdings Limited, as the holding company of all the group’s businesses and subsidiaries. The holding company’s shares of stock are listed and publicly traded on the Nairobi Securities Exchange under the symbol I&M. Minard Holdings Limited is the top shareholder at I&M Holdings with 19.9% shares, followed by Tecoma Limited with 76 Million shares, Ziyungi Limited with 73 Million shares, Standard Chartered Kenya nominees Ltd a/c ke002796 with 41 Million shares. 

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Kenya Reinsurance Corporation has shares in two banks, Cooperative Bank and National Bank of Kenya.

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National Social Security Fund (NSSF) has shares in two banks, National Bank of Kenya and Kenya Commercial Bank.

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NIC Custodial Services a/c 077 (anonymous) has shares in two banks, Cooperative Bank of Kenya and National Bank of Kenya. 

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The National Treasury has shares in two banks, Kenya Commercial Bank and National Bank of Kenya. 

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The Jubilee Insurance Company of Kenya Limited has shares in two banks, Diamond Trust Bank and Barclays Bank of Kenya.

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Banks play an important role in the economy of a country. When banks efficiently mobilize and allocate funds, this lowers the cost of capital to firms, boosts capital formation, and stimulates economic activities. Thus, weak governance in the banking sector can have far-reaching consequences to the economy of a country. In the recent past, the banking sector in Kenya has witnessed a number of corporate governance issues that sent jitters among millions of bank customers resulting in a confidence crisis. While banks have begun to adhere to disclosure requirements spelt out in the prudential guidelines issued by the Central Bank of Kenya (CBK) much more needs to be done, particularly pertaining to competition policy and regulation to put checks and balances on the monopolisation of the banking sector in Kenya. 

Dataset

This story was produced in partnership with Code for Africa’s iLAB data journalism programme, with support from Deutsche Welle Akademie.

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Juliet Atellah is a data journalist based in Nairobi, Kenya

Data Stories

Will 10 Million Kenyans Get At Least One Dose of a COVID-19 Vaccine by Christmas Day?

Based on the MOH daily cumulative number of vaccines administered, Kenya is on course to have 10 million vaccines administered by Christmas, based on the predictive AutoRegressive Integrated Moving Average (ARIMA( 5,2,1)) model.

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Will 10 Million Kenyans Get At Least One Dose of a COVID-19 Vaccine by Christmas Day?
Photo: Mika Baumeister on Unsplash
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During his eighth and last State of the Nation address on 30 November 2021, Uhuru Kenyatta reminded the nation of his pledge to have at least 10 million Kenyans vaccinated by Christmas. With just 25 days to go, the president urged Kenyans to get vaccinated to meet and surpass that target.

On the day of the president’s address, just 7,175,590 doses of the 13,909,670 received in the country had been administered.

The pressure to vaccinate Kenyans has been increasing. Data shared by the Ministry of Health in late November indicated that less than 10 per cent  of the targeted population was fully vaccinated and about 15 per cent had received at least one of the  COVID-19 vaccine doses.

Just nine days before the president encouraged Kenyans to get their COVID jabs, Cabinet Secretary for Health,  Mutahi Kagwe announced some tough measures. He said that Kenyans will be required to show proof of vaccination when boarding domestic flights, trains and buses, and while travelling from one region to another.

“Everybody seeking in-person government services should be fully vaccinated and proof of vaccination availed by December 21st 2021,” he said. “Such service will include but not limited to KRA services, education, immigration services, hospital and prison visitation, NTSA and Port services among others.”

The announcement sparked much debate among the public. Human rights defenders argued that the measures violated freedom of choice and threatened to deny basic services to citizens. Some taxpayers even joked about not paying their taxes since if they were unvaccinated, they would not be receiving government services.

Business owners, especially in the tourism sector, criticised the potential negative impact of these pronouncements on their businesses which experience a boom during the Christmas holidays.

But in the week following this announcement, the number of doses administered daily increased to over 100,000, except on the Saturday and Sunday. This is a significant rise. If we take data beginning on 28 September 2021, when MOH began to consistently upload the status reports, the average number of vaccines administered on a daily basis since that date was 52,796.

Vaccine roll out

The vaccination process has been highly dependent on the availability of vaccines, with more than half being  donations from higher-income countries like the US, UK, Denmark, Poland, France, etc.

Where the dates have been disclosed, the duration to expiry of the donated batches was between 25 and 136 days. While the Johnson & Johnson  batch that the government of Kenya had received on 3 September 2021, just before it last reported the expiry date of various vaccine batches, had 635 days to expiry.

It is not reported whether there were any vaccines that were discarded because they had expired.

Kenya had received 13,909,670 vaccines by 30 November 2021. The challenge is to match uptake with the now increased availability of vaccines. More than half of these vaccines are yet to be administered.

So, how likely is it that the government will have every adult Kenyan vaccinated by 21 December 2021 to avoid the consequences announced by CS Kagwe? Or is President Kenyatta’s Christmas pledge more realistic?

Predictions

Based on the MOH daily cumulative number of vaccines administered, Kenya is on course to have 10 million vaccines administered by Christmas, based on the predictive AutoRegressive Integrated Moving Average (ARIMA) model.

But this forecast will become reality if more Kenyans are persuaded to take the time to visit their nearest medical facility which according to the President is now stocked with the vaccine doses.

More realistically, about 9 million doses could be administered by Christmas if all factors remain constant.

The cumulative number of vaccines administered is non-stationary, meaning that it has a time-dependent structure and does not have constant variance over time. This can be  attributed to pattern changes based on the availability of COVID-19 vaccine doses in the country and also due to various efforts undertaken by the ministry at different times.

It is clear, however, that the uptake of the doses has now become steady. But the uptake is not increasing at the same rate as the vaccines are becoming available. This could be because of ineffective communication to the public. Also, there may be vaccination apathy following the long waits for sufficient vaccines, the long queues once they become available and visits to medical facilities only to find no vaccine. I made one such visit which was disappointing.

Worthy of note is that in August the government issued its first vaccine mandate to all public servants who were compelled to get COVID jabs or face disciplinary action.

Now, over 95 per cent of health workers and teachers are fully vaccinated. The new mandate widened the scope to the general population, including millions of jobless Kenyans, and seems to be bearing fruit already.

Data management challenges

The prediction above is based on the kind of data the ministry of health has released. The MOH Twitter page and website have been the main avenues through which vaccination progress has been communicated.

Looking at the vaccination data, one gets a sense of how the data aspect of this pandemic has been a case of “building a plane while you fly it”. This can be seen in the way data is released for public use.

Data is first shared in the form of images on twitter and PDF documents are then uploaded on the MOH website.

Let us drill down to illustrate some problems by focusing on 14 July 2021.

  • The vaccines that had been administered on this day were 1,565,344.
  • The same status report indicates that 31 first dose and 1034 second dose were administered on that same day.
  • Total vaccinations on 15 July 2021 were 1,590,765. It is not clear why the difference between the two days is 25,421, since the doses reported to have been administered on the 15th are 263 for the first dose and 6730 for the second dose.
  • The discrepancy is not comprehensible and it is the case for many other days until much later, in November, when the numbers start to add up.

Additionally, the number of total daily vaccinations in the status reports uploaded on the MOH website differs with what is in the Humanitarian Data Exchange (HDX), HUMDATA, an open platform for sharing data across organisations which relies on figures that are verifiable based on official public sources including Our World in Data (OWID) who in turn extract data from the updates from the MOH twitter timeline as well as on the website.

Another major issue for anyone seeking to explore Kenya’s vaccination data is missing data.

Dataset such as HUMDATA and OWID had data scraped from the MOH twitter updates initially.   We had to  combine data from the HUMDATA dataset and MOH status reports together to reduce the amount of missing data. However some figures recorded by Humdata were a day ahead compared to the figures in the available status reports presented on the MOH website.

The level of readiness in terms of how to capture and manage  the data is questionable. The status reports shared had not captured or anticipated the assortment and diversity of the vaccines Kenya would receive over time. Several elements (variables) are introduced at different times. This makes any automated technique of extracting the data extremely difficult and time-consuming. For example, up until 1 July, the reports had “Cumulative persons vaccinated to date”. But this was changed  to “Total vaccinations” to cater for those who were receiving their second doses of the AstraZeneca vaccination which began on 28 May 2021. Later it emerged that just a single dose of Johnson & Johnson would amount to full vaccination status so official data was changed from Dose 1 and Dose 2 to partially and fully vaccinated persons.

Gender was another variable that evolved with time. Initially genders were badged male, female and “other”. This was later changed to “intersex”, and “transgender” was subsequently added.

These discrepancies, in addition to the data provided in PDF forms, make it extremely difficult and time consuming for experts to explore the data and for the public to monitor the accountability and transparency of the vaccine uptake.

This OUTBREAK story was supported by Code for Africa’s WanaData program as part of the Data4COVID19 Africa Challenge hosted by l’Agence française de développement (AFD), Expertise France, and The GovLab

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Secondary Education: Kenya Needs to Think Beyond 100% Transition

COVID-19 has shown that there is a need for revolutionary thinking within the education sector if all children are to get a chance of an education.

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Secondary Education: Kenya Needs to Think Beyond 100% Transition
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The Ministry of Education in Kenya has continued to push for 100 per cent transition of pupils who sit for the Kenya Certificate of Primary Education (KCPE) examinations in order to ensure that every child gets the full benefits of a secondary education.

Secondary school is the bridge between primary level education and tertiary education whose benefits go beyond attaining a formal education. For instance, secondary education contributes to the reduction of HIV infection among girls, as they are able to delay becoming sexually active and avoid early marriages. Access to a secondary school education also reduces poverty among girls and enhances their chances of employment. Secondary education also benefits the whole society as girls, and the youth in general, spend more time in school, and are therefore less likely to become involved in violence, either as perpetrators or as victims of crime.

Moreover, evidence shows that a secondary education leads to a decline in socio-economic inequality between girls and boys, with secondary education having the most effect on bridging the gap. Furthermore, evidence suggests that children of educated mothers are more likely to progress and complete school than those children whose mothers are not educated. Overall, a secondary education levels the field of opportunity for young people and increases their chances of earning higher incomes and thereby attaining a higher standard of living.

What is the status of enrolment in secondary school?

The status of enrollment in secondary school
Data from the Kenya National Bureau of Statistics shows that between 2016 to 2020 secondary school enrolment by class and sex grew by 8 per cent to about 3,520,000, out of which 50.3 per cent were girls. This increase was attributed to the government’s policy of ensuring 100 per cent transition from primary to secondary school. Looking at the 2020 school year, following the COVID-19 pandemic, Kenya’s total secondary school enrolment decreased from 3.5 million in March 2020 to 3.3 million in March 2021, a 5.7 per cent drop as schools reopened. Moreover, out of those enrolled in March 2020, approximately 233,300 students did not return to school to resume learning when schools reopened in March 2021, representing 6.6 per cent of the students enrolled in March 2020. The number of secondary schools that were able to reopen increased by 0.4 per cent.

A persistent problem

While between 2016 and 2020, there was an increase in the number of pupils transitioning to secondary school, the decrease in enrolment between March 2020 and March 2021 prompted the Ministry of Education to reach out to parents across the country in a bid to ensure that all children returned to school. The drive faced challenges including poverty, poor parental attitudes towards education and ad hoc policy implementation.

Evidence shows that a secondary education leads to a decline in socio-economic inequality between girls and boys.

But by far the most common and most significant challenge to the push for 100 per cent transition to secondary school has been poverty. Many parents say that a lack of resources hinders them from sending their children to secondary school, a challenge that has been exacerbated by the impact of COVID-19 on household incomes across the county. Parental attitudes where for one reason or another parents resist sending their children to school also pose a challenge. Calls for parents’ cooperation from the Cabinet Secretary for Education echo my reflections in a 2018 article where I observed that “bottom-up strategies” may be useful in creating the groundswell for the transition push. This would help avoid the implementation of haphazard policies such as sending government officials around the counties to “drive children back to school”. If parents work with both the national and county governments, they will create a sustained push to ensure that students not only make a transition to the first year of secondary school but that they also stay in school.

Why we may need to reimagine education

Why we may need to re-imagine education
In addition to stimulating an attitude shift in parents, particularly towards their children’s education, it is important that the Ministry of Education, in collaboration with Non-Governmental organizations, develop programmes that can empower the parents financially to keep their children in school. The Advanced Learning Outcomes project (ALOT Change), a community-based initiative by the African Population and Health Research Center (APHRC), has been instrumental in working with parents in Nairobi’s informal settlements so that they can better understand their own roles in the education of their children.

By far the most common and most significant challenge to the push for 100 per cent transition to secondary school has been poverty.

Education stakeholders in both the public and private sector need to work in close partnership to seek better ways of providing scholarships for those children who are in need of school fees support. Through A LOT Change, APHRC has provided subsidies to pupils transitioning to secondary school. The US$ 113 subsidy has been instrumental in decreasing the financial burden of parents, as they are able to purchase books, school uniforms, and other materials required for school. The lessons learned from such programmes can be adopted and scaled up by both the public and private sectors in order to provide relief to parents facing financial challenges.

Some of the students who were “driven back” to the first year of secondary school had to go to school in their primary school uniform. Might it also be time for the education system in Kenya to reconsider the issue of school uniforms? This could also contribute in a small way to reducing the financial burden for parents. Moreover, COVID-19 has shown that there is a need for revolutionary thinking within the education sector if all children are to get a chance an education. The government therefore needs to ensure that schools are better able to take advantage of emerging technologies such as EdTech by, for instance, improving school infrastructure (including computer labs) and access to electricity. This would enable schools to provide both virtual and in-classroom teaching and thus ensure that students get the best of blended learning, linking the finest tenets of in-person and virtual learning.

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Data Stories

Deedha: How Pastoralists Communities Are Effectively Managing Drought and Conflict

With climate trend likely to worsen, it is crucial now for development partners, Civil Society Organizations (CSOs), and policymakers to rethink climate change adaptation and management in light of pastoralist’s indigenous knowledge and traditional resource governance structure such as Deedha to protect pastoralism which has continued to provide a lifeline to millions of households in the horn of Africa.

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Deedha: How Pastoralists Communities Are Effectively Managing Drought and Conflict
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The first known drought in Northern Kenya was about 120 years ago (Wajir 1901, Mandera and Garissa 1902, Tana River 1905, and Isiolo 1927). Since then, 30 major droughts have been recorded in Northern Kenya. While a slow-onset disaster, drought occurrence has reduced to an interval of every 1-2 years in the last two decades.

Despite Africa’s minimal role in global warming, climate risks in Africa are growing bigger and continue to impact negatively rural agriculture and the pastoral economy.

In northern Kenya, drought often results in loss of lives and livelihoods, forcing thousands of households to drop out of pastoralism. Additionally, the Lack of rains undermines the growth of pasture and water availability for both humans and livestock. And as scarcity sets in, the use, control, and access to pasture and water are contested, often leading to risks of violent conflict.

Drought uncertainty triggers an old age survival strategy; – mobility where pastoralists either move to escape drought, conflict, or both. This strategy is incorporated within a traditional resource governance mechanism called Deedha amongst the Borana pastoralists group living in southern Ethiopia and Northern Kenya counties of Isiolo and Marsabit.

Deedha: How Pastoralists Communities Are Effectively Managing Drought and Conflict
Practiced over a century, the system is elaborate; ‘it considers and plans how pasture and water resource’ is planned to last between seasons. Unique and structured, Deedha planning depends on the number of rains received and the pasture regenerated. So effective is the ‘system’ that the knowledge has supported the rearing of cattle to date despite high vulnerability and weak resilience traits.

For a long time in Kenya, cattle keeping has remained synonymous with the Maasai people. Yet in Kenya’s north and southern Ethiopia, the Borana communities have kept cows for equally long periods, so valued attached is that they have family names.

Various groups, including men, women, and young men, have also composed songs praising the cow’s beauty, walking style, milk yields, and how the herd owner moves around with them in the best of rangelands with constant surveillance against the raiders.

So emotive is any cattle disposal plan that a family meeting must be called, where reasons are evaluated to ascertain whether the sale is justified or not.

Another anecdote is also told of how various species respond to different needs, particularly water where camel would stay for a more extended period, followed by goats and sheep and cow in that order. At the same time, this story avers different resilience traits; the Boran has refused to divorce themselves from cattle keeping despite scaled up advocacy on the need for livelihood diversification in the wake of climate change and conflict risks.

Promotes Sustainable use of rangelands

Founded on the principle of sustainable use of the rangelands, the Deedha system is reciprocal. It encourages sharing resources and providing a safe drought haven for other pastoralist groups from other fragile counties such as Wajir, Garissa, Marsabit, Samburu, and even Laikipia.

The system is designed to encourage mobility over large tracts of land, helping the pastoralists break the pest cycle, aerate the soil (breakdown of soil with hooves), and manage unwanted vegetation.

The institution of Deedha is headed primarily by an elder, with each area having its Deedh (traditional grazing area to a particular group), which is linked to other deedha’s.

Informal but highly effective, the Deedha employs critical rangeland management, where the systems consider rangeland planning based on ecological vulnerabilities, livestock populations, an anticipated influx in determining when and where livestock moves, and whether there is a need for activation of the strategic boreholes.

The system partitions the rangeland into three grazing parts as dry, wet, and drought grazing areas, with also flash floods along the Ewaso Ngiro River considered as a season and blessing due to pasture regeneration in the swampy areas. In managing and protecting the rangelands, the Deedha traditional systems discourage sedentarization in strategic rangeland as part of conservation strategy after the use and boreholes areas, where Genset/pumps are mobilized during drought crises and demobilized on the fall of rain.

Manage drought and conflict

The system also incorporates the young people into Deedha resource planning and use and this is for two reasons; undertake pasture and security surveillance (Aburu and shalfa) in the far-flung Deedha’s which borders known or perceived enemy territory.

The system is so unique that critical access planning is done based on anticipated risks and livestock (species) vulnerabilities where Hawich (Milking herd) and non-milking herds (Guess) are split as defined by production and physical traits, respectively.

Hawich (Milking herds) are lactating, and some old and weak female breeds while non-Milking (Gues) are young female and male breeds with the ability to trek long distances searching for pasture and water. The system also calls for the protection of migratory and watering routes. While water for all livestock species is a priority, this customary system prioritized water for livestock in transit and the donkey over other livestock species for its role in household management. The system’s effectiveness has also seen it advocates for the protection of watershed areas and ensuring the cleanliness of the water point environs after all the livestock has been watered.

Deedha: How Pastoralists Communities Are Effectively Managing Drought and Conflict
The Deedha also has in place resource sharing plans internally and externally, where Deedha in one location consult another Deedha before any decision is made. Such arrangement is also captured and advocated for by more recent attempts in enhancing resource sharing and ending conflict through such declaration as the Modogashe-Garissa, first entered in 2001 which calls for strengthening of resource governance and sharing framework between communities during drought. Thus, Deedha proactively enhances resilience through resource sharing and a framework for negotiations between communities during drought.

While Isiolo also had its fair share of drought, the use of this highly effective system has cushioned pastoralist group in Isiolo against the drought, only making foray into other communities’ rangeland in 1992 when Isiolo livestock moved to then Moyale District, Kauro in Samburu in 2000 and 2017 again to Moyale. The migration in 2017 was necessitated by fear following conflict escalation between the Borana and Samburu, leading to loss of 7 lives and over 3000 head of cattle in what the local Borana communities cite as security imbalances created by the Northern Rangeland Trust (NRT) to instil fear and force local pastoralists communities to abandon key strategic drought reserve in Chari Rangelands in favour of wildlife conservancies.

Untold, Deedha also calls for the protection of endangered tree species such as AcaciaAnthath and Qalqalch in which users are not allowed to overexploit, with individuals found out on the wrong punished. Equally, the system put communities at the Centre of wildlife conservation as it discourages reckless killing either for food or even trophies. The system also advocates for leaving water in the trough for wildlife to access in areas where the only water sources are deep wells.

Deedha is an example of bottom-up ‘law or rules’ for rangeland management; it addresses environmental and wildlife conservation. Like in predictive climate science, Deedha elders consider planning on how the previous seasons have performed. Further, the elders can predict trends and rain behaviour patterns based on Uchu, who closely work with the institution of elders.

With climate trend likely to worsen, it is crucial now for development partners, Civil Society Organizations (CSOs), and policymakers to rethink climate change adaptation and management in light of pastoralist’s indigenous knowledge and traditional resource governance structure such as Deedha to protect pastoralism which has continued to provide a lifeline to millions of households in the horn of Africa.

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