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Ridiculous Sums of Money: Why the War on Drugs Has Failed

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The war on drugs has failed. It has failed to stop, or even slow, the production, trafficking and consumption of drugs.

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The drug war
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Nairobi, Kenya – CONSUMERS IN FINAL MARKET COUNTRIES HAVE NEVER HAD IT SO GOOD

The war on drugs has failed. It has failed to stop, or even slow, the production, trafficking and consumption of drugs. The specific aim to destroy and inhibit the international drug trade — making drugs scarcer and costlier, and thus unaffordable, has only been partially achieved.

Most experts agree that the drug war has prevented some drug abuse by making forbidden substances less readily accessible. It has made drugs like heroin and cocaine vastly more expensive than similar agricultural-based psychoactive products such as coffee or tea. One study shows that the increase in price per gram as cocaine moves down its distribution chain is up to 100,000% that of coffee. Also, the fact that illegal drugs are not readily available at your local chemist or supermarket has undoubtedly meant fewer users are able to access them.

However, this is only part of the story. In fact, consumers in final market countries have never had it so good. Overall, the price of most illegal drugs has actually plummeted while the drugs have become even more potent.

A study published in the British Medical Journal’s BMJ Open found that in the nearly two decades between 1990 and 2007, the purity of cocaine available in the United States increased by 11% while its price collapsed by 80%; the purity of heroin shot up by 60% while its price fell by a precipitous 81%; marijuana saw more than a tripling in purity accompanied by a similar drop in price to that of heroin and cocaine. The trends were similar across the Atlantic. In 18 European countries, the street price of cocaine halved over the same period. At the same time, in the decade between 2003 and 2013, the value of the global drug trade grew by over 35% from $320 billion to $435 billion, and, according to the UN, the drug business continues to be the third biggest in the world after oil and arms.

The war on drugs amounts to a transfer of the economic, political, social and environmental costs of prohibition from rich consumer countries to poorer producer and transit countries in return for a few dollars in aid

The number of people using drugs appears largely unaffected by the war on drugs. It is true that increased seizure and crop eradication, coupled with alternative development aimed at reducing the incentives for illicit cultivation, have reduced the amount of cocaine on offer.

TRAFFICKERS ARE FINDING NEW MARKETS AROUND THE WORLD

Still, although the 2016 UN World Drugs Report cautiously concluded that ‘the global cocaine market has indeed been shrinking,’ this is attributable both to declining production as well as changing consumption patterns across the globe, not to a reduction in the total numbers of drug users. Essentially, traffickers are finding new markets around the world even as consumption in the US and Europe stagnates, even declines. ‘The drug trade is becoming truly more global,’ Vanda Felbab-Brown, senior fellow at the Brookings Institute, told CNBC in 2013. However, while in mature markets a small proportion of users buy the bulk of the product, their new customers tend to take less cocaine less often. Similarly, the huge fluctuations in the availability of opium – whether due to increased enforcement or not – have not led to dramatic changes in the number of opiate users though for different reasons.

The rub of it is that rather than reduce the number of people on drugs, the drug war has instead funnelled massive amounts of money into the pockets of drug barons and cartels. The global cocaine trade, though utilising a fraction of the land and labor resources required by the coffee industry, rakes in an estimated $85 billion annually from supplying under 20 million consumers with about half a million kilos of the drug. Compare that with the roughly $100 billion the coffee industry shares from providing about 9 billion kilos to the hundreds of millions of coffee lovers. At its peak, the Medellín Cartel in Columbia supplied 80% of the worldwide cocaine market and is estimated to have been generating at least $60 million a day in revenue. In fact, illicit proceeds from the drugs trade now account for half of all income from international organised crime.

In Latin America, drug interdiction efforts are associated with increasing murder rates, not just in the countries where the interdiction is carried out but, when it is successful, in the countries to which the traffickers are displaced

Such ridiculous sums of money make drug dealers immensely powerful and menacing figures. In fact, the war on drugs amounts to a transfer of the economic, political, social and environmental costs of prohibition from rich consumer countries to poorer producer and transit countries in return for a few dollars in aid. These costs include violence, corruption and the loss of legitimacy of state institutions, population displacements and environmental degradation.

In Latin America, drug interdiction efforts are associated with increasing murder rates, not just in the countries where the interdiction is carried out but, when it is successful, in the countries to which the traffickers are displaced. For example, in Colombia, the war against the Medellin cartel in the late 1980s and early 90s saw the homicide rate nearly double between 1985 and 1991. Some 16 years later, a fresh wave of interdiction in Colombia displaced the cartels and associated violence to northern Mexico which, combined with the effect of local policies, saw the homicide rate there triple between 2006 and 2010.

Narco-traffickers are able to corrupt governments and law-enforcement agencies and purchase political influence and even political power. Pablo Escobar, head of the Medellin cartel, created a Robin Hood image for himself in the 80s by building houses and public facilities for the poor. He even got himself elected to the Colombian House of Representatives in 1982. In the Kenyan Parliament, in December 2010, five legislators, Harun Mwau, William Kabogo, Hassan Joho, Simon Mbugua and Mike Mbuvi, were named in connection with the trafficking of narcotics. Two of those have since gone on to become county Governors and one a county Senator. In Guinea-Bissau, which the UN branded Afrca’s first narco-state, the value of the drugs trade is greater than the national income. ‘You walk in, buy the services you need from the government, army and people, and take over,’ was the way one senior official at the US’s Drug Enforcement Agency put it.

Further, drug money distorts the economies it washes through, creating huge inequalities and devastating local living standards. According to a 2009 report by the Financial Transactions and Reports Analysis Centre of Canada, drug traffickers have laundered approximately $100 million per year through the Kenyan financial system. ‘The proceeds of drug trafficking move through the [Kenyan] banking system,’ John Githongo, the veteran anti-corruption campaigner, told Investigative Reporting Project Italy in 2015. ‘In terms of movement of drug money, Kenya now rates higher even than Nigeria due to the rise of narcotics moving in and through the country, but also because of the country’s sophisticated financial system.’ The effects of such flows are not hard to discern.

The drug money is a significant part of the illicit money entering Kenya from fraudulent trade invoicing, crime, corruption and shady business activities, which by 2013 roughly equalled 8% of Kenya’s economy. Much of this money ends up in the country’s real estate, where it has inflated prices and made decent and safe housing unaffordable for the vast majority of the urban population.

The drug money is a significant part of the illicit money entering Kenya from fraudulent trade invoicing, crime, corruption and shady business activities, which by 2013 roughly equalled 8% of Kenya’s economy

Neither has the war on drugs spared populations in the West where it has contributed to mass incarcerations, and the virtual criminalisation of large segments of the citizenry. In the US, the war on drugs mostly targets minorities, particularly African Americans who, though not more likely than others to use or sell drugs, are much more likely to be arrested and incarcerated for drug offenses.

Further it has led to the increased militarization of police forces and new police powers such as asset seizures – meant to turn drug dealers’ ill-gotten gains against them – have in many cases undermined civil liberties. As detailed in The Economist, in the wake of a sharp rise in drug-related violence in the US, in 1990 Congress ‘allowed the Defence Department to transfer military gear and weapons to local police departments if they were deemed suitable for use in counter-drug activities.’

A WAR DOOMED FROM THE START

The war on drugs was perhaps doomed from the start as it was built on dubious philosophical, moralistic and even racist foundations and made assumptions that those bearing the most costs would continue to be happy to do so.

In 1875, it was racist hysteria over accounts of Chinese immigrants luring white women into opium dens that led to California passing the first anti-opium law

International drug control efforts can be traced back to the 1912 Hague Opium Convention that entered into force in 1919 and targeted opium, morphine, cocaine and heroin. Over the next half century, a series of international agreements would expand the scope of the anti-drugs effort to include restrictions on cannabis (1925), synthetic narcotics (1948) and psychotropic substances (1971). Drug trafficking was made an international crime in 1936.

The treaties negotiated prior to 1945, while imposing some restrictions on exports, did not actually criminalise drug use or cultivation or, indeed, the substances themselves. Rather, despite fierce debate, they were predominantly concerned with regulating the licit trade and ensuring the availability of a range of drugs for medical purposes. (Heroin was created by chemists working for the German company Bayer, and marketed alongside aspirin as a remedy for coughs, colds and ‘irritation’ in children. Cocaine, was first isolated in 1859 by German chemist Albert Niemann, made its debut in toothache drops marketed to children and was famously an ingredient in Coca-Cola.)

While the US increasingly pushed the issue of recreational and traditional use of drugs, it was primarily dealt with through attempts to prevent the leakage of licit drugs into illicit channels. In 1925, the two most ‘prohibitionist’ countries at the time, US and China, withdrew from negotiations on the International Opium Convention, because they considered it insufficiently restrictive.

The US, then in the throes of domestic alcohol prohibition, had hoped to entice the rest of the world into quitting, not just drugs, but booze for good. In fact, the aim of the US was to extend its prohibitive domestic laws across the globe. It was the US that had convened the 1909 Shanghai Opium Commission – which laid the groundwork for the 1912 convention, just 15 days after Congress had passed the Act to Prohibit the Importation and Use Of Opium for Other Than Medicinal Purposes, the first in a long line of prohibitive drug legislation. However, it was opposed by France, Great Britain, Portugal and the Netherlands, whose colonies were then turning a handsome profit from legal as well as illicit sales of opiates to Europe and the US.

According to the report America’s Habit: Drug Abuse, Drug Trafficking, & Organized Crime, issued by the President’s Commission on Organised Crime in 1986, most of the opium reaching the US in the 1920s and 30s was coming from France, Asia and the Mideast.

US efforts to interdict the supply of cocaine – which the US had outlawed in 1914 – and to a limited extent, opium, also included trying to entice its southern neighbours to adopt similar policies. However, few were interested. As detailed by Maria Celia Toro in her book, Mexico’s ‘War’ On Drugs: Causes and Consequences, ‘Those early attempts to enlist the co-operation of Latin American governments in suppressing the drug market were for the most part unsuccessful.’ Some were happy to sign agreements but balked at actually implementing anti-drug policies.

A LUCRATIVE, ANCIENT AND LEGAL COCA LEAF MARKET

Further, Peru and Bolivia, then the largest producers of coca leaf and whose participation Washington prized most, ‘had little interest in curtailing a lucrative, ancient and legal coca leaf market.’ Only Mexico accepted. But not because it particularly agreed with the policy. According to Toro, ‘Rather than trying to appease the US or reduce drug consumption at home, Mexico was trying to influence US conduct regarding antidrug law enforcement.’

In 1916, the Mexican Revolution was still raging. The country had just emerged from a year-long civil war and was still battling an insurgent guerrilla group. The last thing it needed was conflict along its border. And border conflict is exactly what the US bans on cocaine and opium (and later alcohol) created. ‘What at the beginning of the century constituted legal exports of minimal value soon became a significant smuggling activity,’ writes Toro. Citing historian F. Arturo Rosales, Curtis Marez in his book Drug Wars: The Political Economy of Narcotics, describes it thus: ‘In the 1910s and 1920s, liquor and drug wars involving competing smugglers and US police … rivalled the border battles fought by political factions during the revolution. These contraband wars left numerous smugglers and border agents dead.’

But by joining the American prohibition bandwagon beginning with a ban on opium imports in 1916, Mexico created the very conditions for the violence and instability it was trying to avoid. Toro writes that smuggling ‘later turned into a black market problem after different Mexican administrations outlawed trade and production of opium and other drugs.’

John Ehrlichman: We knew we couldn’t make it illegal to be either against the war or black, but by getting the public to associate the hippies with marijuana and blacks with heroin, and then criminalising both heavily, we could disrupt those communities

Further, a distinctly racist attitude and fears of economic competition by minority groups informed US approaches to the regulation of drugs. In 1875, it was racist hysteria over accounts of Chinese immigrants luring white women into opium dens that led to California passing the first anti-opium law. Cocaine was similarly criminalised for its association with black communities. The white community’s economic fears of freed slaves gaining a foothold in the economy following the US civil war provided fertile ground for racist rumours of a drug that had the capacity to incite them to violence. With the New York Times running headlines warning ‘Negro Cocaine Fiends are a New Southern Menace,’ New Orleans became the first city to enact laws against cocaine in the early 1900s and the trend quickly spread. The banning of marijuana was a reaction to the influx of low-wage Mexican immigrants in the 1920s, sparked in part by the Mexican revolution. With the Great Depression creating massive unemployment, the ‘evil weed’ was the subject of lurid national campaigns that linked it to violence, crime and other socially deviant behaviours. By 1931, some 29 states had outlawed marijuana.

HOW PROHIBITION INCENTIVISED VIOLENCE AND DRUG SUPPLY

There are a number of things to note here. First, the US has been the primary driving force behind global prohibition efforts and has essentially sought to use international conventions to impose its drug puritanism on the globe and to export the problems drugs caused at home. Second, there was little appetite in the West, at least in Europe, for criminalising drugs when they were the countries that were benefiting from their illegal trafficking. Third, other countries initially resisted US-style prohibition and when Mexico caved in, it was for reasons other than the utility of prohibition in fighting drugs. Fourth, the effect of prohibition on drug prices immediately incentivised both violence and increased drug supply. In fact, the President’s Commission on Organised Crime acknowledged, ‘Heroin trafficking in this country first became big business in the 1920’s.’ And finally, the prohibition of drugs is fuelled at least as much by economic fears and cultural prejudice as by concerns over health effects and the social harm they cause.

All these trends have come to define the international drugs war in the decades after World War II. The US emerged from that conflict as the most powerful country in the world and the global prohibition of drugs was embedded into the DNA of the post-war order it crafted. However, unlike 20 years prior, it could now apply the necessary pressure to impose it on other countries via the United Nations system.

In 1961, the US initiated the United Nations Single Convention on Narcotic Drugs, which sought to consolidate the various international agreements into one regime governing the global drugs trade. But more than that, it included provisions that were not in previous treaties including controls over the cultivation of plants from which narcotics are derived, which placed a heavy burden on producer countries in the developing world where the cultivation and widespread traditional use of opium poppy, coca leaf and cannabis were concentrated at the time. The Single Convention institutionalised prohibition and targets for abolishing traditional and quasi-medical uses of opium, coca and cannabis within 25 years. The Convention was also notable, for it was the first time that penal provisions were included in a widely accepted international drug control treaty. Further it required countries to regulate not just production, manufacture and export, but also possession of drugs.

A decade after the Single Convention was signed, a parallel process started to emerge with the signing of the1971 Convention on Psychotropic Substances. Replicating the trends witnessed during the pre-war treaties, Western countries attempted, according to the President of the International Association of Penal Law, Cherif Bassiouni, ‘to impose strong controls over the cultivation, production and traffic of natural drugs originating in the developing countries, [but] were unwilling to impose the same types of control over their own chemical and pharmaceutical industries.

THE TARGET: ANTI-WAR HIPPIES AND BLACKS

That same year, President Richard Nixon famously declared what came to known as the ‘war on drugs’ in an address to Congress. Drug abuse, he said, was America’s ‘public enemy number one,’ despite the fact that consumption was not any worse than at any other time in history. What Nixon and his henchmen didn’t tell the public was that the ‘war’ was little more than a cynical ploy to fire up their political base using the tried and tested methods of the 1930s, and to curtail domestic dissent. John Ehrlichman, Nixon’s domestic policy chief who served time for his role in the Watergate scandal, made this stunning admission to journalist Dan Baum in 1994: ‘The Nixon campaign in 1968, and the Nixon White House after that, had two enemies: The anti-war left and black people. You understand what I’m saying? We knew we couldn’t make it illegal to be either against the war or black, but by getting the public to associate the hippies with marijuana and blacks with heroin, and then criminalising both heavily, we could disrupt those communities. We could arrest their leaders, raid their homes, break up their meetings, and vilify them night after night on the evening news. Did we know we were lying about the drugs? Of course we did.’

Seeing its political effectiveness, subsequent US presidents prosecuted the fake war, culminating in Ronald Reagan, who launched a period of mass hysteria over crack cocaine in the 1980s. As in the 1930s, the media painted crack users as violent, poor urban and most significantly, black. Crack and powder cocaine are the same drug. Crack is basically powder cocaine mixed with water and baking soda and the person who has the crack actually has less pure cocaine overall. For this reason, it is cheaper and preferred by low-income users. However, Congress, driven by the racist hysteria, concluded that crack was indeed the more dangerous drug and deliberately imposed much harsher penalties. The ‘Negro Cocaine Fiends’ of half a century before had become ‘crack-fiends,’ and mothers of ‘crack-babies.’ In three decades, the country quadrupled its prison population — all with no change in the rates of crime or drug use.

JUST LEGALISE IT, FOR GOD’S SAKE

Still, as discussed earlier, it has been producer and transit nations that have paid the highest price for the war of drugs. But many have begun balking at this and are openly questioning whether prohibition has been worth the cost. In 2009, three former presidents, Ernesto Zedillo of Mexico, César Gaviria of Colombia and Fernando Henrique Cardoso of Brazil declared that prohibition was simply not worth it. ‘Prohibitionist policies based on eradication, interdiction and criminalisation of consumption simply haven’t worked,’ they said. ‘The revision of US-inspired drug policies is urgent in the light of the rising levels of violence and corruption associated with narcotics.’

It is not surprising; Latin America, the region that perhaps more than any other, has suffered the consequences of prohibition. To understand how they feel, consider this thought experiment related by Daniel Mejia and Pascual Restrepo in their essay, Why Is Strict Prohibition Collapsing? ‘Suppose for a moment that all cocaine consumption in the US disappears and goes to Canada. Would the US authorities be willing to confront drug trafficking networks at the cost of seeing the homicide rate in cities such as Seattle go up from its current level of about five homicides per 100,000 individuals to a level close to 150 in order to prevent cocaine shipments from reaching Vancouver? If your answer to this question is ‘perhaps not,’ well… this is exactly what Colombia, Mexico and other Latin American countries have been doing over the past 20 years.’

Across the continent, many are rethinking their approach to drugs and rolling back prohibition. In 2010, Argentina’s Supreme Court ruled it unconstitutional to punish people for personal use of marijuana. Mexico has legalised limited amounts of all drugs for personal use. But it is probably in Europe that the greatest challenges to the prohibition orthodoxy have emerged.

The Dutch famously decriminalised cannabis in the early 70s and it has been available for recreational use in certain ‘coffee shops’ since 1976. Though technically illegal, possession of up to 5 grams for personal use is decriminalised. Italy too has decriminalised possession of less than half a gram of most illegal substances. Switzerland, Germany, and the Netherlands have successfully made heroin legally available to addicts through networks of government-run dispensaries.

However Portugal provides the most extensive, and most successful, example of decriminalisation. In July 2001, the country decriminalised all drugs, including cocaine and heroin. As is the case in several other European jurisdictions, purchase and possession for personal use and drug usage itself are still legally prohibited, but are dealt with as administrative, not criminal violations. Drug trafficking, however, is still a serious criminal offense.

No other country has gone so far, and Portugal is still the only country in the EU with a law explicitly declaring drugs to be ‘decriminalised.’ The results have been jaw-dropping. The expected tsunami of drug tourists never arrived. In a white paper for the libertarian think tank Cato Institute, constitutional lawyer and journalist Glenn Greenwald cites empirical data indicating that ‘decriminalisation has had no adverse effect on drug usage rates in Portugal, which, in numerous categories, are now among the lowest in the EU, particularly when compared with states with stringent criminalisation regimes.’

Dan Baum writes that ‘the lifetime prevalence of adult drug use in Portugal rose slightly, but problem drug use — that is, habitual use of hard drugs — declined after Portugal decriminalised, from 7.6 to 6.8 per 1,000 people. Compare that with nearby Italy, which didn’t decriminalise, where the rates rose from 6.0 to 8.6 per 1,000 people over the same time span. Because addicts can now legally obtain sterile syringes in Portugal, decriminalisation seems to have cut radically the number of addicts infected with HIV, from 907 in 2000 to 267 in 2008, while cases of full-blown Aids among addicts fell from 506 to 108 during the same period.’

Prohibition, and its misbegotten offspring, the war on drugs, have failed to bring about the promised drug-free world and have instead visited misery upon millions of the poorest people on the planet

Prohibition is under attack even in the US itself, though to a much lesser extent. Several states, including the District of Columbia, have allowed a legal trade in marijuana though at the federal level it remains prohibited. ‘We’re confronted now with the fact that the US cannot enforce domestically what it promotes elsewhere,’ a member of the UN’s International Narcotics Control Board, which monitors international compliance with the conference’s directives, told Baum.

GOOD RIDDANCE TO BAD LAWS

It is clear that prohibition, and its misbegotten offspring, the war on drugs, have failed to bring about the promised drug-free world. That they have instead visited misery upon millions of the poorest people on the planet is a fact that is only now starting to dawn on global policy makers. However, there is no consensus on how to move forward and in places like China and various Muslim nations where drug offences still attract draconian sanctions including the death penalty, there is little to suggest a changing mindset.

Still, the growing recognition of the failure has opened up the policy space and given reformers the room to imagine different approaches to dealing with drugs. No country is yet willing to experiment with full legalisation, but a broad spectrum of policy choices now exists under the banners of decriminalisation and de-penalisation (which eliminates jail terms for drug offences). One thing we can say for sure – the days of a simplistic, moralistic, one-size-fits-all solution to the challenge posed by the availability of drugs are very much over. Good riddance!

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Politics

South Sudan: Rebels Seek to Remove President Kiir From Power as Country Marks 10 Years of Self-Rule

Even as South Sudan marks 10 years since it attained its independence from Sudan, the fragile peace is at risk of collapsing.

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South Sudan: Rebels Seek to Remove President Kiir From Power as Country Marks 10 Years of Self-Rule
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In an interview with this writer in a Nairobi hotel on July 10, former SPLA chief of staff Gen Oyay Deng Ajak declared they are planning to oust President Salva Kiir this year.

Ajak, who is also a former minister of Investment and National Security, accuses President Salva Kiir of tribalism, destroying the ruling party SPLM, the SPLA army, the police and running down the country.

He also says that President Kiir does not want to leave power, and it is not possible for the youngest African country to go to 2023 General Election with him in power. Gen Ajak says he want to die on the seat.

Ajak is among the 11 political detainees accused of plotting a coup in December 2013 against President Kiir. The others were Deng Alor Kuol, Geir Chuang, Cirino Hiten, Kosti Manibe, John Luk, Gen Madut Biar Yel, Chol Tong Mayay. former SPLM secretary general Pagan Amum Ajak, former Defence minister Majak D’Agoot and former Ambassador to the US Ezekiel Lol Gatkouth.

They were released to Kenya in a deal between President Kiir and Uhuru Kenyatta under the auspices of Igad.

Only recently, before this interview, did President Kiir tell Citizen TV that he felt let down by Igad and particularly President Kenyatta.

“You know for Kenya, I am not happy because after the coup of 2013, President Uhuru took the lead that he was coming to take the leaders that I had apprehended during the coup. I told him, my brother, I cannot give you these people because they have to answer the charges on the role they played in the coup.”

“But President Uhuru put himself in front of me that he will not allow them to talk a single political sentence, that he would keep them safe in his house until I am convinced that they did not do anything. And so we released them to you [Kenya],” Kiir told Citizen TV in the interview aired on July 7.

The 11 detainees had become a sticking point at peace talks.

In his speech on the 10th Anniversary, Kiir vowed not to allow South Sudan to slide back to war. But he identified the National Salvation Front led by Gen Thomas Cirilo as a group that has refused to be part of the peace process and still contributes to instability in some parts of South Sudan.

General Ajak speaks about what happened in the 2013 alleged coup and the new plans to remove President Salva Kiir from power this year.

***

Eliud Kibii: What happened on that night before President Salva Kiir accused you of trying to overthrow the government?

Gen Oyay Deng Ajak: A week earlier, we had a serious discussion with Salva, me, Taban Deng, who is now a vice president, Paul Malong, now a minister and a former minister of Finance at the palace in J1 about the problems we were facing as a movement and party.

We advised that given the situation, it was better to delay the meeting of the National Liberation Council and meet with Riek Machar – First Vice President – and discuss the internal problems because people were talking about the SPLM convention, which was going to take place in May 2014.

We met with him and told him to talk to Riek, meet with Mama Rebecca [Garang], talk to [SPLM secretary general Amum] Pagan, all these people who want to contest the election next year. And these are your friends, your brothers, your comrades, you have been together – here to discuss with them. And after you meet and discuss with them, you call for a meeting of the Political Bureau, which is the most senior, and the Political Bureau will decide what action to take and how people are going to work and move ahead together.

Salva agreed and we had a good evening, had dinner, drunk and had a good time to relax up to very late hours.

At midnight, we went to our houses confident that Salva would agree to the proposal and would not call the meeting. But two days later, he called the meeting, The National Liberation Council is a big body.

Most of them [members] are very young, thus emotional. Salva raised many issues about people who want to challenge his position.

Riek said he would not attend another meeting because he was personally attacked in the way some people made their comments. Mama Rebecca also refused to go for another meeting.

Pagan was told not to attend the meeting and instead to stay in his house. Look, he is the Secretary General of the party. There is no meeting of the party without the Secretary General.

I was not a member of the National Liberation Council. I was a member during the struggle but when the army was separated from the party, I was relieved.

Now on the day the shooting took place.  I was doing a distance learning programme and there was no WiFi in my house for one week. So, I went to a hotel near the airport.

Two of my colleagues came to my house on that Sunday at around 10:30am and when they could not get me, they called and I told them I’m in the hotel and I will be coming home.

But instead waiting, they came to the hotel.

The message was that lets go meet Salva Kiir. It is Malong who was talking.

“We want you personally to go and sit and discuss with Salva,” Malong said.

I refused and said if there is a meeting with Salva, it can’t be me alone. It has to be all of us.  Malong was very disappointed with me.

We had lunch with them up to 1:32pm and they left.

Then Taban Deng called and asked me where we were having lunch. I told him we had lunch with Cirilo and General Malong, who have since left so let’s go home. General Gier also called and we went to the house.

One of the officers from the barracks called Taban and this officer used a local dialect. The officer and Taban are Nuer. The officer told Taban, “These Dinka boys have come to disarm us”.

This was the beginning of the problem.

Taban put the phone on speaker and I talked to the officer.

I said, “What is the problem?”

He said they there are Dinka boys who have come to disarm us.

And so, I asked him, how many boys have come?

He said a one company. One company is 120 SPLA officers.

But then the Nuer boys who are at the presidential guard unit are more than 1,000. They are 1,500. They cannot be disarmed by one company. Please don’t create problem, I said.

This officer told me big man, the way these people are behaving, we will not accept it. We are going to fight now.

I told them, please don’t. Let me call the SPLA headquarters and this problem will be solved.

I tried to call the Chief of General Staff then, he is a Nuer, but he was in Australia, and he was coming back by that evening.

Taban said the way this thing is, it will not reach evening. There will be a serious fight.

So, he said instead of waiting for lunch, let him go and brief Riek Machar about what was happening.

I was left with Gier.

Pagan’s sister came from church and passed by the house, Majak was coming from Nairobi, he passed by, Thomas Duoth, who was the Director General of External Security Service also came. I told him thank God you are here; you are the right man to take this message now to the President.

I tried to talk to the Acting Chief of Staff, he was not picking up the phone and I called the then Defence Minister Majak, who was also not picking up

I called the director of military intelligence who was in Uganda, the phone was ringing but nobody was picking up.

I told Luoth there is a problem in the barracks and it is you people who can solve this problem.

Unfortunately, he, with the director of internal security, decided to keep quiet. Nobody went to the president who was closing the meeting I talked about of the National Liberation Council.

Since nobody called me, I thought everything was okay and so I went out for the normal logistics.

The shooting took place at 7:30 at the barracks and Taban called me immediately.

If I take you back to the part where I said the Neur said the Dinka boys were disarming them, it was not really a disarmament.

The Nuer boys had put their weapons in an armory and the Dinka boys had surrounded it. Not that they were carrying the arms with them.

Up to now, nobody knows who sent these boys.

So, when Riek boys came under intense pressure, he gave the order that they take their arms and to do that, they had to break in the store and that’s when the shooting happened around 7:30 in the evening.

I was away at the hotel, Lumulul Logistics, and when coming back at around 9pm I passed by Jimmy’s house, the Chief of General Staff and told him there is an ongoing shooting, which is getting very serious.  Let’s go to the barracks. He said no, there are officers controlling the situation and they’re not in dire need. These are the presidential guys fighting themselves. So, you go to your house and relax you just rest, he said.

There was a lot of movement of forces on the road and my house is not very far from that of Salva Kiir.

I told Jimmy, as you see I do not have bodyguards, give me some of your bodyguards for escort to my house. He agreed.

Some of Salva’s soldiers asked me why I was still moving at this time when there is a shooting and I am a General. I told them where I was coming from and that I was going to my house.

When I got to the house, I told the kids to sleep down stairs as there was shooting all over Juba.

I stayed in the sitting room until morning.

Salva’s bodyguards were deployed and that’s when they came and put me under arrest with the others in the morning.

We really don’t know, and this is something that has not been investigated, who gave the order for part of the presidential guard unit, mostly Nuer, for their arms to be taken.

Eliud Kibii: Why do you think you were fingered as one of the suspects? Could these meetings have been the reason? 

Gen Oyay Deng Ajak: Possibly. Or maybe Salva did not expect me to be part of this Malong group that came to signal me to meet with Salva. But all of us are friends of Salva.  When I was relieved from SPLA, most of these soldiers who are mostly were Nuer from Bentiu they were the bodyguards of the former general Paulino Matip, who was a militia commander working with Bashir and we were fighting them. So even one time these same forces, they tried to attack me in my office when I was Chief of General Staff. And my argument was Salva was over this force that there is no way you can have a unit, which is mostly from one particular tribe and staying in one place.

As the Chief of General Staff, I wanted these forces to be disarmed, sent to the unit, and then mixed with the other forces so that they are part of the rest SPLA. It was Salva himself who refused this.

Salva was then thinking that he would use this force from Nuer to intimidate Riek, who is also Nuer, who was also having problems with Paulino Matip, who was also Nuer.

This force was not trained in SPLA, they were former militia and then the Dinka boys, who were also brought to Juba after I was released, were locally recruited and armed from the Office of the President, not through the Minister of Defense, not even the Chief of General Staff knew anything about them.

So, this special force, which was locally recruited and privately armed were brought to Juba by Salva himself.

When we go back to that day of the shooting, it is not SPLA soldiers and officers who fought in Juba. It is this private militia group. The militia of Omar Bashir, mostly Nuer from Bentiu, and the privately recruited militia from Dinka who fought. And this is the crisis of leadership, which has affected that country up to today. As we talk now, we the SPLA has fought and split up.

Up to today, you do not have a national army in South Sudan. SPLA has been destroyed by Salva Kiir.

Eliud Kibii: So how many of your comrades who were victimized during that alleged coup are outside the country right now?

Gen Oyay Deng Ajak:  Cirilo, myself, Pagan, Kosti, the former Minister of Finance. We are still out up to now. And there are so many others.

Eliud Kibii: Didn’t the last agreement have a provision for your safe return?

Gen Oyay Deng Ajak: The last one? We call it Khartoum agreement and we don’t see this as an agreement because the deal that we discussed was signed in Addis.

Salva refused to sign in Addis Ababa but due to regional and international pressure, he agreed to sign the agreement in Juba. But he said to everybody in Juba that this agreement is neither the Quran nor the Holy Bible.

Precisely, after few months, he broke the agreement and shooting took place in J1, in Juba because Salva was not convinced of the agreement he signed. The fighting continued until 2018.

In 2018, when these talks took place, we were in Khartoum and recommended that we go back to the previous agreement. But Khartoum, the likes of Bashir, said no and the whole thing ended up being shuttling between Khartoum and Entebbe.

So, we as the South Sudanese did not sit down to discuss and agree on something in Khartoum. It was just Khartoum telling us accept this one, don’t accept this, you have to agree to this and that through a lot of intimidation to Riek Machar.

And of course, we said no, we are not going to sit and agree on something we did not discuss. We left Khartoum some of us came to Nairobi, Kampala others went to Addis.

Those of us in Nairobi went to a meeting at Mama Rebecca’s house after the signing of the Khartoum agreement. We signed a document delinking ourselves from Khartoum peace talks. We said they were not genuine peace and its implementation would be difficult.

We rejected the Khartoum agreement because there was a lot of mess. It was not practical and that’s why we remain outside.

But again, after the signing of that agreement, Salva sent for our colleagues and said he has a special request for us. He wanted us to go to Juba.

I was in Addis and Mama Rebecca called saying we had to send a team to meet Salva. I and Cirilo refused to go.

The team went to Juba and came back but here was practically nothing.

What was the special offer? Some ministerial positions? That’s not enough. There are real problems that need to be solved in that country.

Cirilo, Pagan and myself refused to go and went back to Addis.

We remain outside and believe the Khartoum agreement was not really an agreement. It is like Salva telling us come to Juba and keep quiet.

Eliud Kibii: The Economist says it is Unhappy Birthday to South Sudan. From where you stand, how do you think the problem in South Sudan should be resolved? 

Gen Oyay Deng Ajak: The problem in South Sudan is the problem of leadership. You solve the problem of leadership; you solve all the problems in South Sudan.

But there is every reason for the people of South Sudan to celebrate the 10th year of the Independence Day because our people started fighting the colonial government in 1955.

In Anyanya 1, they didn’t gain much they agreed on regional autonomy. That agreement was not respected and the South Sudanese again started fighting in the 1980s. We achieved the Independence of South Sudan and the people voted on vote given to them after many years of fighting and sacrifice. They voted 97 [er cent for the Independence of South Sudan. We lost so many people and comrades to achieve this independence.

There are some issues we did not solve and which should have been part of the discussion between Juba and Khartoum. The issue if Abyei, Nuba Mountains and the border demarcation between the north and the south are still pending.

The fact that South Sudanese attained their independence is something we continue to celebrate.

One day, were sitting with an old man discussing the problem of South Sudan and he said, “Look, if God wants to punish you, He will give you a bad leader”.

Sometimes I want to believe in what the old man said. But still ask myself, what did we do as the people of South Sudan for God to give us a bad leader?

Because during our struggle, on so many years of this struggle, we had the best leader.

John Garang was an excellent and exceptional leader.

Garang was just a normal South Sudanese, or Sudanese and he did not consider himself as coming from this particular tribe or this particular community. He treated people equally.

So when John Garang died, we found ourselves in a serious problem.

Can we give the leadership to Salva?  We knew his weakness!

Or do we say no? And if we say no, Salva would create problems and Khartoum could use those differences amongst ourselves against us.

So, we said okay, knowing the weakness of Salva Kiir, we gave him the open support and unshakeable solidarity given his seniority.

The crisis in South Sudan can be solved in a day, if you have the right and strong leader.

But you cannot solve it with Salva Kiir because he destroyed the SPLM, the party we created in 1983.

And you know what Salva did? He organized tribal leaders called the Dinka Council of Elders, who now the one who are taking over the role of the party, the SPLM. They destroyed it.

You have the Dinka Council of Elders from their own communities, and they came to the capital Juba, and they are sitting in Juba running the party running the SPLM. Where in the world can you get such as thing?

I give an example of myself. I come from the community of the Shilluk, from the Kingdom of the Shilluk. The current king was a banker, university graduate. And when the community called him, he removed his suit and tie and put on the Shilluk traditional dress and went to the Shilluk land where he stays. He does not stay in Juba or Marakal.

If the Dinka want to have a Dinka king, we don’t have a problem with that. Let them go to the Dinka land. But there is no way that they can come take over the party and assume the role of advising Salva.

So Salva destroyed the party, created these tribal differences and now the Dinka are taking land from other communities. So, you are creating problems in the future even for the Dinka themselves.

It’s not a good thing to do. You cannot expect Salva will unite the people of South Sudan and we will not have a country called South Sudan under Salva Kiir. Not until he is gone.

He has destroyed the national army the SPLA, the national security, the national police and the national party, which was the biggest party in South Sudan, the SPLM.

Eliud Kibii: How entrenched is ethnicity in South Sudan? 

Gen Oyay Deng Ajak: Salva Kiir entrenched it. During all these years of the struggle, the people of South Sudan were united.

By then, you could move from the Ethiopian border to the border of Central Africa Republic and every village you go to, the people would serve you.

When Garang was the leader, there were many commanders from various tribes and could go everywhere to fight. There was nothing called tribalism. But now, it is Salve Kiir who created this [tribalism] in a very serious way.

So now, the people of South Sudan are fighting e.g in the greater Upper Nile, tribes are fighting. Every tribe in South Sudan now has its private army and commanders in chief. So in general, it is Salva Kiir who created this.

Eliud Kibii: Do you think Riek Machar is a better leader than President Kiir? 

Gen Oyay Deng Ajak:  He has never been a leader and I don’t want to assume he would be better, unless the people of South Sudan elect him. But there are many people in South Sudan who can be leaders.

However, in comparison with Salva, I think Riek would be better but I don’t think he would be better than Garang because he demonstrated his leadership and up to today, people cry, even in the Sudan.

The people will in future decide if they want to work with Riek, but I don’t think anybody will vote for Salva again. But there are many people who can lead that country in a better way.

Eliud Kibii: What do you think about the upcoming election in 2023?

Gen Oyay Deng Ajak: I don’t think there will be an election under Salva Kiir.

What created this problem in 2013 was because Salva was afraid of going for election. The agreement they signed talks of an election but I don’t think it will happen.

How do you conduct an election when you do not have national security? When you do not have national army?

Look, we are the only country in the world, if we can call ourselves so, where you have, take an example, Uhuru Park in Nairobi where you have Kenyans running away from President Uhuru Kenyatta and they are being protected by Somalis and Rwandese in the park and Uhuru is sitting at State House. Would Kenyans agree to do this?

This is what is happening in South Sudan. In Juba, you have 200,000 South Sudanese who are running away from Salva Kiir and are being protected by Rwandese, Ethiopian and Kenyan armies in Marakal, in Bentiu. These are our citizens being protected by regional troops in the capital city.

You have more than two million refugees in Uganda alone, half a million in Kenya, another half a million in Ethiopia and more than three million in Sudan. So, how can you talk about an election. How are you going to organize it? So, these refugees in Uganda, will they vote there for the President who chased them from Juba? This election talk is at best a joke. Nothing will take place. It will not work.

Eliud Kibii: If there are no foreseeable credible elections and you say there can’t be peace under Salva Kiir, so what is the way out?

Gen Oyay Deng Ajak:  There are two options. The first is concerns the region – and I know they have their own problems. But if South Sudan is a member of Igad, EAC and the African Union, the only solution is for the regional bloc and the international community to pressure Salva Kiir to step down. To resign. And he can stay peacefully anywhere in the region or we in South Sudan can forgive him and let him stay in Juba but let the current regime resign and form the government of technocrats that will restructure and lead the country for three to four years or whatever to a credible election. This cannot happen under Salva Kiir.

If that doesn’t work for Salva, the only other option if for us the South Sudanese to fight and chase him away from that chair. Otherwise, there will be no election and there will be no peace under Salva. And Salva wants to die on that chair.

So, there is always time for everything but time will come very soon for Salva to go. Either he goes by resigning as I said or we are going to fight him.

Eliud Kibii: You speak like there is already a plan?

Gen Oyay Deng Ajak: Yes, it is there. Look, when we went for these peace talks in Rome I told them that if there are any mistakes that I have done in my life, it is to refuse to take up arms from 2014 when we were released from jail. I could have joined Riek or I could have formed a separate front to fight Salva. And there are so many of my colleagues who are calling. So, it is a mistake which I have done almost eight years now. We have been made refugees from the country we liberated, we have been chased from but we will not continue staying in Kenya, Ethiopia or Uganda. This year, we are going to put on our uniform and go back and fight Salva Kiir. And he must go. That country belongs to all of us not to a particular group or leader to destroy. So definitely, we are going to fight him.

Eliud Kibii: You are confirming there are plans underway?

Gen Oyay Deng Ajak: Yes, we are working on it and this is what I am saying. We are talking to various SPLA officers from all communities and Salva is going to be shocked very soon. And there are no peace talks that will work with Salva Kiir again and so the only option left to us is to fight him. We are planning, we are organizing and we are ready.

Eliud Kibii: Could President Salva Kiir be reacting to such plans when he says Uhuru betrayed him when he released you, then detainees, to Kenya only for him to issue you with passports?

Gen Oyay Deng Ajak:  He is always blaming other people. If President Kenyatta were to help us, even with weapons, we would have marched to Juba a long time ago. But Kenyatta said he wants peace in South Sudan and wants a peaceful solution. What did Kenyatta do? Nothing.

Salva is unable to unite his own people and now wants to blame leaders in the region. The region has told us they can only help us by facilitating talks. No country has given us weapons to fight him.

So, if he is complaining about a passport, that’s an assistance he can blame the region for it. Of course, I need a Kenyan passport to go for treatment in South Africa. Is it a crime for Kenya to give me this? You don’t go and fight with a passport. So he has failed and just wants to blame other people.

Eliud Kibii: Do you feel there are people in his government who like you feel he needs to go?

Gen Oyay Deng Ajak: They are many but there are very few in government who are revolutionaries. But the government in Juba has been taken over by former Khartoum people, the National Congress Party. Those we were fighting. They are the ones who have taken over in Juba, traitor who have blood of the South Sudanese in their hands. We will get them soon. This year, the time of Salva is coming. And it has happened all over the world.

Eliud Kibii: What message would want to send to the people of South Sudan?

Gen Oyay Deng Ajak:  They should celebrate this Independence Day. From every family, we have lost a child during the struggle. They must always remember they fought and attained their independence. They should be proud of themselves.

And the tragedy we are going through is man-made and Salva will go. And when he goes this year, we will have a strong government of South Sudan.

My message is those who are being misled by Salva Kiir, don’t join them We are going to look for them. It happened in Rwanda, Liberia, Sudan and it is now going to happen in South Sudan. Those responsible for the atrocities will he held to account, we are going to arrest them, including Salva Kiir. Either he goes to court at The Hague or arrest him as the Sudanese have arrested Bashir and try him. I would not want to kill him, he must be arrested and taken to court. This is what I have to say.

Eliud Kibii: And how are the five vice-presidents working with all the divisions?

Gen Oyay Deng Ajak:  There is no government in South Sudan. It is gang of criminals and the five vice presidents, we as the South Sudanese did not discuss and agree on them. Riek was just pushed.

It was Bashir or Museveni who came up with the idea. They are not working; they are not even functioning. One of them asked the President to relive him of his duties. It is only Salva who is running government alone.

For instance, what is the function of Riek in Juba? His army, which he has been commanding for six, seven years is still out there. How can you be proud of yourself and you sit in the chair as vice president when you leave your own people who have been fighting for you all these years outside and you run to Juba to get money or positions. That is rubbish.

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Wolf in Shepherd’s Garb: Bishop Gakuyo and Stolen Middle Class Dreams

Unless more interventionist regulation is put in place, Kenya’s elites will continue to use Saccos as vehicles for predatory accumulation and Kenyans will continue to see their dreams deferred.

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Wolf in Shepherd’s Garb: Bishop Gakuyo and Stolen Middle Class Dreams
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1When Michael Kariuki* first heard about Ekeza Sacco in 2016, he was quietly excited. He was listening to Kameme FM, the popular Gikuyu language radio station, when host Njogu wa Njoroge began talking about a new savings opportunity live on air. What wa Njoroge described was intriguing. Ekeza’s promise was of a middle-class lifestyle embodied in homeownership, entrepreneurship and family success. Through such radio broadcasts, television adverts and even its own campaign bus, Ekeza exhorted Kenyans to join the Sacco in order to pursue their dreams and aspirations, to use loans for “putting up a residential house, buying a dream car, purchasing a plot/piece of land, start a business or any other venture.” Like other Savings and Credit Cooperatives in Kenya (Saccos for short), Njoroge explained how Ekeza was offering its members the opportunity to withdraw three times the amount of their savings in the form of a loan.

But there was an important twist to Ekeza’s offer, one that gave members a distinct advantage. Unlike other Saccos, Ekeza was offering loans without the need for guarantors – other Sacco members who personally put up their savings as a guarantee for another member’s loan. Instead, at Ekeza, the title deeds and logbooks of the properties and vehicles that members would eventually purchase with their loans would act as loan securities. In other words, Ekeza was offering easy access to capital that is hard to come by in contemporary Kenya where banks charge high interest rates and Saccos require social membership. For Kariuki, that a guarantor was not required made saving with Ekeza an attractive opportunity – the chance to obtain capital that would allow him to purchase a car and become a taxi driver without having to undertake the difficult task of finding other Sacco members to stand in as his guarantors. Along with thousands of other Kenyans, Kariuki soon joined the Sacco.

A construction worker who worked long, hard days in the heat of Mombasa, Kariuki went on to save KSh180,000 with Ekeza over the next two years, sending money to his Sacco savings account directly from his MPesa account on his mobile phone. It was the first time in his life that Kariuki had ever saved such a large amount of money. He told me of the sacrifices he and his family made so that he could put more of his earnings into his savings, that there were “some things” — basic necessities and even food — they had to forego in the hope that his savings, and the taxi business that he would start with the loan, would allow him to build them a better future.

But in December 2017, Kariuki started to realise something was wrong. He had gone to withdraw a loan of KSh25,000 from the Sacco’s office in Thika. After filling out the paperwork, he was asked by Ekeza staff to wait the normal 60 days that it would take for the loan to be cleared and arrive in his account. Kariuki went back to Mombasa and waited, but his loan never arrived.

In January 2018, he returned to the office to find out what had happened with his loan. Ekeza staff assured him that his loan was on its way and he was asked to wait again but this time Kariuki refused. Suspecting something was wrong with the Sacco itself, he asked to withdraw all his savings at a fee of KSh1000. Kariuki filled out the paperwork and was once again asked to wait for 60 working days for his savings to reach his bank account.

In March 2018, four days before he was due to receive his savings, Kariuki’s wife called him. She had seen on the news that Ekeza had been officially deregistered by the Kenyan government pending investigations into its accounts. With the SACCO’s accounts frozen, Kariuki could do nothing but wait; he returned to the Ekeza office three times in 2018 and 2019 asking about the status of his savings, to no avail. Like tens of thousands of other Ekeza members, he has been stuck in limbo ever since.

The Ekeza Sacco story

Michael Kariuki’s story is a fairly common one for members of Ekeza Sacco – that after carefully building their savings for around two years, they were finally on the brink of receiving a loan, only to find it constantly delayed before eventually discovering that the SACCO had been deregistered by the government. But even Kariuki’s story is just one aspect of the Ekeza debacle. Other Sacco members reported how Gakuyo “bought” land from them without ever paying them in full. Others had their land and vehicles seized even after repaying their loans in full. All told, members lost around KSh2.6 billion in savings.

In March 2018, Commissioner of Co-operatives Mary Mungai formally closed Ekeza pending an investigation and an audit of the Sacco’s accounts. Suddenly, the Sacco’s 53,000 members were plunged into confusion and concern about the fate of their savings. The Sacco’s chairman, David Ngari Kariuki, an evangelical church pastor known as Gakuyo, assured members that their savings were safe. However, an audit of Ekeza’s accounts revealed around KSh1.5 billion of irregular transfers to bank accounts of persons and businesses associated with the chairman.

The audit report revealed fraud on an enormous scale but little has been done to address the plight of the members who have lost their savings. Over the last two years, Ekeza has maintained that its liquidity was damaged by rumours rather than Gakuyo’s expropriation of funds. In the aftermath of the Commissioner’s audit, Ngari moved to sell several of his assets and has repeatedly assured members that their deposits will be refunded, announcing a new 5-tier schedule for doing so in January 2020. Audaciously, Ekeza offered its members plots of land in what were seen as sub-par locations, their monetary worth far below what members had invested. Whilst Ekeza insists that it has refunded thousands of its members, particularly those with savings worth less than KSh50,000, reports from Ekeza victims suggest that there are many more thousands who are yet to receive their money. On social media, victims’ groups continue to organise, but with waning hope that they will ever see their money returned.

The audit report revealed fraud on an enormous scale but little has been done to address the plight of the members who have lost their savings.

Over the past three years, I have been exploring the effect the fallout of Ekeza’s deregistration and the subsequent uncertainty faced by its members. The majority live in muted hope, actively choosing not to think about the money because of the stress the loss of their savings has caused them. Marriages have been ruined. Some Ekeza members have committed suicide after losing their savings. The overwhelming story is one of bitterness and anger towards Ngari. The words of the man I have anonymised in this article as Kariuki give some sense of that bitterness:

If I could be like a soldier holding a gun, I could be searching for that man just to kill him and leave everything. If I die, I die. Because that money, it was my first time to enter into a SACCO, save things. I have never saved an amount like that.

This article aims to recap the story of Ekeza Sacco – how it came to prominence, how its deregistration has shaped the lives of its members, and how its collapse reveals the illusory promises of the “working class” dream in contemporary Kenya, how aspirations of leading better material lives are undermined by political authority. The story of Ekeza Sacco is not merely one of fraud, but also one of frustration and anguish with a contemporary Kenya that works for the powerful few, depriving ordinary citizens of the material basis on which they might build their dreams.

The rise, the fall, and the resistance

Ekeza Sacco was established in 2013 and formally registered in 2014, but it rose to prominence in the run-up to Kenya’s 2017 elections. Throughout the first half of the year, the Sacco was regularly advertised on Gikuyu language radio stations like Kameme FM alongside its partner firm, Gakuyo Real Estate. During the same period, Ngari attempted to vie for governorship of Kiambu, but eventually joined Ferdinand Waititu’s “United 4 Kiambu” team, an alliance of Kiambu politicians (including current governor James Nyoro) through which Waititu contested and ultimately won the gubernatorial seat. Through his association with Waititu, Ngari appeared at rallies across the county throughout 2017. At the time, friends and acquaintances of mine in Kiambu were optimistic of the impact Ngari would have on the county through his association with the prospective new governor. “He will be the one bringing development, I am sure”, one Kiambu farmer told me.

At the same time, an Ekeza Sacco-branded mobile truck was travelling around Kiambu exhorting people to “Invest to nurture your dreams”. “His adverts were so convincing,” one member told me. Another told me how Ekeza’s near-ubiquitous presence made him believe in its legitimacy. “It was everywhere during the elections.” Whilst the new Sacco gained prominence and legitimacy through its relentless advertising campaign, for many of those who joined the Sacco in 2016 and 2017, it was Ngari’s status as a pastor that helped earn their trust. “Because he’s a bishop. He has a good reputation. So I thought my money was safe”, one member reflected. Others found out about the Sacco through family members. Ann Njeri, a 30-year-old woman from Githurai, found out about the Sacco through her mother-in-law, and soon encouraged her husband to invest in the Sacco to save for a plot of land. For Njeri, “It was a normal Sacco just like others but at least this particular one had been started by a bishop so it had more credibility.” She convinced her husband that they should invest in Ekeza in order to buy a plot of land in Nairobi’s outskirts on which to build a home. The couple went on to save KSh500,000 with the Sacco.

Ngari attempted to vie for governorship of Kiambu, but eventually joined Ferdinand Waititu’s “United 4 Kiambu” team, an alliance of Kiambu politicians.

For many of the people who joined, Ekeza offered easier access to capital than some of its competitors. As mentioned above, one of the main advantages of saving with Ekeza was that it did not require members to have guarantors for their loans. “They weren’t even asking for security in the case you were taking a loan to buy land from the sister company, Gakuyo,” one member explained. “They would just wait until you pay the full amount before giving you the title deed, and that was my strategy then.” Members contrasted the ease of entry into Ekeza with the difficulty of becoming a member of what are viewed as more successful and legitimate Saccos such as Mwalimu Sacco. Another member reflected how difficult he thought it would be to join Mwalimu Sacco compared to Ekeza. “I have to have some friends there.”

Ekeza Sacco promised ordinary Kenyans the chance to live their dream as members of Kenya’s fledgling middle-class. “Invest to nature [sic] your dreams”, read one of the Sacco’s slogans. Many Ekeza members were attracted by the prospect of acquiring land – either to build a home to live in, or to rent out in order to supplement their incomes. In this regard, Ekeza’s popularity ought to be viewed in the light of Kenya’s current “gold rush” on land — the idea that land in Kenya is “getting finished”, ever increasing in value because of its growing scarcity. It is precisely the same scarcity-speculation combination that fuels elite land grabs.

But it was partly through the purchase of Gakuyo Real Estate plots that members began to discover that their investments were flawed. Gakuyo Real Estate’s practice was to buy large plots of land and sub-divide them into individual plots for the construction of stone houses. But in some cases, members would arrive at their new, loan-purchased plots, only to find that the original owners still held the title deed. It was also revealed that Gakuyo Real Estate was in the practice of purchasing land via instalments and allowing members to access their land before completing the payment to the original owners. Some Ekeza members were denied ownership of plots that they had paid for because the Sacco had not paid for the plots in the first place.

Ekeza Sacco promised ordinary Kenyans the chance of living their dreams as members of Kenya’s fledgling middle-class.

For others, it was in far more mundane circumstances that they began to realise something was amiss. One member, Andrew Mwangi, arrived at the Ekeza office in Thika one afternoon in early 2018 to find a commotion at the front desk. Another member was complaining that they had filed for complete withdrawal of their savings and had waited months but received nothing. Mwangi was alarmed. “I immediately filled the withdrawal form.”

The deregistration of the Sacco by Mary Mungai in March 2018 opened a new phase in the Sacco’s lifespan – a political struggle for its control. Not prepared to wait, Ekeza members quickly organised themselves into victims’ groups. Under the leadership of Charles Mage, one group of Ekeza Sacco members stormed the Sacco’s office in Thika. Soon enough, the police took note and in March 2019, Ekeza victims were invited to the Directorate of Criminal Investigations on Kiambu Road to record statements.

For its part, Ekeza maintained that its collapse had been caused by “panic withdrawals’ – that the Sacco’s reputation had become a “political tool” in the 2017 elections, a target for opponents who had raised doubts amongst the membership, causing a raft of withdrawals and a liquidity crisis. The Sacco described the situation as a “mishap”. No mention was made of the immense suffering caused to members through the loss of their savings. The message to members was: “bear with us”. In 2018, Sacco members with smaller amounts of savings — KSh5,000 and below — were refunded, but it left around 53,000 members with substantial savings still waiting.

More significant shifts were to come. At an AGM in February 2019, overseen by the Commissioner Mary Mungai, Sacco members voted to remove Gakuyo and put a temporary board of five people in charge, including Charles Mage as acting Chairman. At the same time, the Commissioner reinstated the Sacco, with the intention that the new interim board would begin refunding members’ deposits.

This moment of optimism quickly passed as Ngari’s lawyers moved rapidly to challenge the new board’s appointment in the courts, citing the possibility of members’ savings being plundered by the new committee. The court issued an injunction, and its effect was to return power to Ngari, locking out members who thought they were on the cusp of regaining control of their savings through access to the Sacco’s bank accounts. At several meetings in 2019, Ekeza Sacco members debated their predicament; the interim committee now had no control over the Sacco’s accounts, the offices were closed and no form of redress was available. The atmosphere at these meetings was combative.

The Ekeza debacle is characteristic of a contemporary Kenya defined by an unequal capacity to secure a place in the future.

But by 2020, the resistance of Ekeza Sacco victims’ groups had begun to weaken. The death of Charles Mage in a road accident in March 2020, an event that went unreported in national media outlets, further weakened the leadership of members who want to see their savings returned. Whilst some members are preparing court cases against the Sacco in 2021, arrangements are increasingly being made in private rather than through collective action, with Ekeza victims wary of being spied upon by members of “Gakuyo’s team”. Meanwhile, Ngari has re-emerged as a figure close to James Nyoro, promising a bigger, better Ekeza, assuring members that refunds are on the way. Ekeza victims have found their plight politicised, used as a football in Kiambu’s politics. Ngari has blamed the failure of his Sacco on Ferdinand Waititu, the now disgraced former governor of Kiambu, claiming that Waititu used Ekeza funds in his campaign.

Lives in limbo 

The Ekeza debacle is characteristic of a contemporary Kenya defined by an “unequal capacity to secure a future”. It is emblematic of how those in political authority cannibalise the aspirational projects of ordinary Kenyans, “eating their sweat”. “We are ready to prosper here in Kenya, bwana Peter,” one Ekeza member told me at a victims’ group meeting on Thika Road. “It is our leaders who cut us. These people who lead us are not honest, they just deceive us.”

For Ekeza members, the immense difficulty in generating savings and capital for aspirational projects compounds the sense of loss. Most Ekeza members I spoke to described themselves as “hustlers”, working long hours for uncertain wages in the informal economy. Their struggle is evoked here by Andrew Mwangi:

You know I lost a lot of money. And you know, I was thinking about that thing each and every day. And I was thinking, maybe we will get our money back. Finally, I came to find out we are not being paid at all. So I told myself I will never think about it again. I agree, the money is lost. And up to now, I don’t engage in any way [with the Sacco]. I just left it like that. I’m sick and tired, I’m tired. I don’t think about that any more. Every time I talk about it, my heart bleeds. That was my money. That was my sweat. I worked so hard for it. My goal was to own a property. That was my dream. My dream was broken by this guy. . . . I even hate mentioning the name. So what I can say is that I do not even follow the money anymore.

Michael Kariuki’s words strike a similar tone:

My faith is still there. But I can’t put all my faith in there. I have to work, feed my family, do everything. I can’t put all my mind there, thinking about all that money I saved and it went. If it got lost, it got lost. So, I’ll never get it back. But, for the rest of the victims are just struggling if the money will come. If I stay thinking about the money, I’ll just get sick.

Whilst their words belie a remarkable capacity to move on, for most members the fallout from their loss has been blame within their families. Ann Njoki told me how her husband was understanding, but how other Ekeza members she knew had ended up divorced as a result of losing savings, facing the blame from their partners for the loss of family money.

Meanwhile Ngari continues to walk free, having faced no charges from the DCI, working now as advisor to James Nyoro in the Kiambu County government, a state of affairs that some Ekeza victims find not only frustrating but also insulting — indicative of a Kenya that works for the privileged few, rather than the common mwananchi.

Up to now, he’s in this government, of which even Kenyan government is not bothering about these people who saved their money in that account. It is not bothering with. The chairman now is just talking and talking nonsense of which the government is not bothering anything.

These frustrations extend beyond Ekeza itself to perceptions that Kenya has failed as a place in which one can live and better oneself. A 24-year-old friend of mine from Ruaka who lost KSh64,000, his entire savings, was despondent. “This is Kenya, man”, he told me. “Most likely the politicians have been given something to make sure nothing happens. If I had a choice of leaving this place, I would definitely do that.”

Warnings for the Sacco sector

“Limited liquidity is holding SACCOs back from becoming specialised housing finance providers — or mortgage SACCOs (SAMCOs) — like the saving and loans and building societies in industrialised markets,” remarks a recent academic paper on housing finance in emerging markets. “It is therefore critical for SACCOs to deepen deposit-taking activities.” Ekeza Sacco might be an outlier case — an instance where a particular “fraudster” has deprived members of their savings. As a recent report by FSD-Kenya reiterated, a single case of fraud need not lead to fears that the Sacco sector is fundamentally flawed.

But there are important lessons to learn from the Ekeza Sacco story. As the FSD report noted, the increased size of Saccos “comes at the cost of it becoming increasingly difficult for members to look after their own interests directly; to ensure that the management and boards of the SACCO are not taking undue risks or worse.” In order to increase that membership, Saccos like Ekeza begin to look ever more like Ponzi schemes, their business models based on the recruitment of new members and the sale of a dream, rather than community banking. This was a point not lost on the late Charles Mage.

“The SACCO is not meant to be managed by one person,” he remarked to me when we first discussed the Sacco in August 2019. “This guy [Gakuyo] was making all the decisions as if it’s his own company”. As Mage put it, Gakuyo was withdrawing funds from Ekeza “any time he wanted”, buying plots and buildings, building hotels. As he found out in the Commissioner’s audit, “there was a time the SACCO’s account went down to 0.”

Meanwhile Ngari continues to walk free, having faced no charges from the DCI, working now as advisor to James Nyoro in the Kiambu County government.

If Saccos can enter the market already in the hands of wealthy and politically connected individuals, and members can be recruited ad infinitum, the scene is set for Kenya’s elites to use them as vehicles for predatory accumulation. Stronger and more interventionist regulation is required to ensure internal transparency — that there are proper lines of communication between members and boards. If Saccos chase greater liquidity through ever-increasing membership, further regulation and oversight from members will be imperative. Recent research suggests that Ekeza evaded regulation through setting up in different counties.

But despite the early action of Sacco Commissioner Mary Mungai, the eventual lack of government action has already damaged the trust that regulators are up to the task. Many Ekeza members say that they have lost trust in the Sacco sector, vowing never to save with one again.

Fault lines and futures

More than a story of individual fraud, the Ekeza debacle reveals the fault lines in the false promises of contemporary Kenya. Whilst politicians and business leaders promise Kenyans wealth and prosperity, they are able to manipulate institutions to their liking, consuming the sweat of those who work while avoiding sanction. Ordinary Kenyans find themselves struggling for better lives without any such advantage. When one looks at the Ekeza case, fears and suspicions of theft seem justified, anti-elite sentiment vindicated. The cynicism and hopelessness, depression and suicide that have followed in the wake of the Ekeza collapse are hardly surprising. When one struggles in the informal economy, only for one’s savings to be “eaten” by a self-proclaimed pastor, when national and county governments practically ignore your plight, what can you do? It is little wonder that William Ruto’s “hustler” narrative is gaining traction when frustration is brewing over the way things work in “hii Kenya”. If the Ekeza collapse has provoked immense anguish, it has also fuelled Kenyans’ desire for a different Kenya — one where institutions work in the interests of the citizen, of the “hustlers”. Regardless of its as yet unknown trajectory, Ruto’s “hustler” narrative promises Kenyans that a new Kenya is at hand. Without understanding injustices like Ekeza, palpably and materially felt, we cannot appreciate the new calls for justice and an end to the “dynasties” that Ruto’s campaign now promulgates.

* All names have been anonymised to protect identities.

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Politics

The Politics of Violence in Marsabit County

A weak state, corruption, political entrepreneurship and improper creation of administrative units fuel deep conflict and hatred between the communities.

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The Politics of Violence in Marsabit County
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 “. . . one half of Kenya about which the other half knows nothing about and seems to even care less.” 1950s American writer Negley Farson describing the Northern Frontier Districts.

Ethnic rivalries are a global phenomenon that has spared neither the most established economies nor the developing nations. Kenya is no exception, most notably Northern Kenya which has been haunted by ethnic conflict since time immemorial. The conflicts in Marsabit, in particular, date back to the establishment of the postcolonial African state.  Prior to colonisation by the British, pastoralist communities in the region were grazing on the slopes of the Ethiopian highlands and in the Kenyan lowlands. The establishment of the Kenyan-Ethiopian border by the British colonialist disrupted traditional grazing patterns and resource sharing, and affected how communities relate to each other. The creation of artificial boundaries by the colonialist without the involvement of the local populations created hatred among the pastoralists, distorted grazing patterns and led to competition for natural resources.

The treatment of northern Kenya as a separate region within Kenya and the marginalization of its communities led to demands for secession at Kenya’s independence. When these were not met, the NFD exploded in rebellion in late 1963. Known as the Shifta War, the guerrilla insurgency lasted four years and resulted in massive loss of human life. The war of secession ended when Kenya and Somalia agreed to put their differences aside and signed an agreement in September 1967 that did not involve the insurgents. The agreement left some communities feeling betrayed by others, in particular the Somali whose relations with the Borana were left in tatters.

Conflicts and violence among the pastoralist communities living on the periphery of Kenya take different forms, including cattle rustling, clan and ethnic violence, and the displacement of people. The proliferation of Small Arms and Light Weapons (SALWs), climate change, land and water scarcity, the collapse of inter-communal social contracts, and bad politics have exacerbated this already tenuous situation.

The vast arid and semi-arid upper eastern region of northern Kenya experiences intermittent communal conflict because it shares a porous border with the Republic of Ethiopia to the north and has routes into Somalia which feed the illegal gun market. According to a 2017 small arms survey, the number of illegal arms in civil possession in Kenya is estimated at 750,000; the country has the highest number of unregistered firearms compared to other East African countries. The illegal arms economy is driven by supply from Ethiopia, most notably through the rebel fighters within the country. It is also fed by the al–Shabaab militia group through the Somalia corridor to neighbouring Wajir County. The supply of illicit arms also flows from South Sudan through the Lake Turkana route where unpaid soldiers and rebel fighters are still at large. Easy access to arms and light weapons has increased the severity of armed conflict undermining peaceful co-existence.

The Ethiopian government has little or no control over its porous border with Kenya through which illegal arms are trafficked. This contributed to the Turbi massacre which was linked to conflicts over water points and grazing land between the Gabra and Borana communities.  Despite the formation of peace committees representing both sides, and numerous initiatives by different groups and peace declarations, the conflict has not subsided.

The question of land 

Land remains central to the conflict in Marsabit County, most notably in the Saku Constituency which borders Isiolo and Garissa counties. Unlike other parts of Marsabit County, Saku enjoys a moderate climate and has plenty of green pasture and ample boreholes (mainly within the grazing zones).

Saku shares similar geographic characteristics with the neighbouring Isiolo County, which has experienced conflict with Garissa County. Every pastoral community would like to have access to the green pastures and water points at Saku but the politicisation of access has worsened this conflict.

Skewed policy responses to conflicts over land by government authorities have worsened the situation. Dialogue to address land conflict and establish administrative units has degenerated into ethnic conflict due to failure to ensure proper public participation as enshrined in Constitution of Kenya 2010. There is an “implementation gap” between theory and practice when it comes to land policy that is often sacrificed at the altar of short-term political gain.  The failure by the government to include women, the youth, and the elders of the affected communities in discussions on how to close the implementation gap in order to minimize conflict and achieve durable peace has created an unsustainable environment in Marsabit County.

The state’s failure to determine land boundaries has also exacerbated the situation and the vague demarcation of community land boundaries and the politics of land expansion have further aggravated the problem and intensified ethnic conflict.

The Borana and Gabra

In explaining ethnic conflicts like the Moyale and Marsabit clashes, and the Turbi and Forolle massacres , the standard argument advanced by many interlocutors is that conflicts occur due to competition over pasture and water sources. This reasoning does not really explain the trade in arms and the “political entrepreneurs”. The whole conflict revolves around the battle for votes and wealth as well as the expansion of administrative boundaries. To gain more recognition and support from the electorate, politicians act both within and outside the law to maintain their status, for instance by establishing new administrations units, awarding tenders to those of their tribe and offering lucrative jobs to their families and those from their own tribe. This breeds hatred and conflict as other tribes are left out.

The arms economy is another aspect that is left unexplained. The gun trade is massive business in the vast north and it is mostly the community that does not take part in the conflicts that does the trading. The trade in small arms is carried out with the full knowledge of the security apparatus. Money for the purchase of guns is raised by the community through collections from households and from those in employment. Failure to pay the set amount for gun purchases attracts heavy sanctions and penalties. Once the money is raised, the supplier is provided with the specifications of the arms and ammunition to be delivered at a specific location. Members of the security administration sometimes sell bullets to the communities in conflict at exorbitant prices. All these demonstrates how a weak state, corruption, political entrepreneurship and improper creation of administrative units fuel deep conflict and hatred between the communities.

There is an “implementation gap” between theory and practice when it comes to land policy which is often sacrificed at the altar of short-term political gain.

Conflict in Marsabit is predominantly between the Borana and the Gabra communities. These two warring communities previously lived harmoniously together, sharing compounds and household necessities. They intermarried and agreed on mechanisms to manage shared pasture and water points during periods of drought and in the rainy season. However, the situation has changed over the past decades and people have fled their homes and settled elsewhere.

The Gabra displaced the Borana from Hurri Hills and they resettled in Elle Borr near Sololo town. In their turn, the Gabra were evicted from the Gadamoji region of Saku Constituency during the 2005 Turbi massacre and they resettled in Jirime location in central Marsabit. These incidents point to an increasing rift between the two ethnic groups, which primarily revolves around land politics.

Attempts by the political elite to bring zones with plenty of pasture within “their” tribal boundaries have inflamed the situation. The Shurr region had been in Saku Constituency when former Member of Parliament for Saku, Jarso Jillo Falana, took office. Shurr came under North Horr Constituency in suspicious circumstances during his term.

Similarly, Horronderr and Shegel are in Saku Constituency but there are plans to move them to North Horr Constituency, which will shrink grazing zones for the pastoralists living in the Saku region. This is being done without public participation. Furthermore, Gabra encroachment into regions like Horronderr, which are Borana grazing zones, has led to loss of lives and livestock.

Traditional methods of resolving land issues have failed because of the breakdown of the social compact between these ethnic groups and the deep political divide. The communities have left it to politicians to find solutions but corruption within the local government has led to partial implementation of land policies.

Assigning districts and regions inappropriately to one ethnic group to the detriment of others living in the same area is a major cause of alarm and concern. For instance, two new sub-counties – Turbi and Dukana – were created in North Horr Constituency and gazetted on 7 October 2020. The change brought additional benefits like recruitment into the military and other special services from the national government. With the gazettement of these two sub-counties, other ethnic communities with larger populations felt left out, the skewed land boundary changes and the selective allocation of benefits from the national coffers resulting in more profound division and hatred.

The creation of the two sub-counties has pitted the Borana against the Gabra because it was seen as politically driven process. The land and boundary disputes are made worse by the fact that there are no clear land boundaries between the Borana and Gabra communities who coexist in the same  settlements and share the same grazing lands. The boundary disputes are likely to escalate if the process of demarcation of boundaries by the Independent Electoral and Boundaries Commission (IEBC) ahead of the 2022 general elections proceeds without proper public participation and sensitivity to the conflict.

The Dedha system

The communities of northern Kenya have established traditional methods of managing water resources and pasture. In the Borana community, a management council called the Dedha manages these resources.

The Dedha system breaks down pasture into grazing units (artha) which in turn are divided into several small grazing camps (fora). The existence of Dedha natural resource policies, some of which are incompatible, has resulted in complex rangeland management regimes and given rise to fragmented interventions and inadequate natural resource policies in relation to pastoralism. The majority of pastoral land resources are held by the national government under a controlled access system that regulates the management and utilization of resources.

The Dedha manager (jars dedha) controls access to the resource, with the control being intensified during periods of drought. The management of shallow wells falls under the owner of the well (aba ella) and the person who decides the watering rotation for each water point (aba erega).

Conflict in Marsabit is predominantly between the Borana and the Gabra communities.

Aba ella assigns first rights based on a clan’s membership and affiliation (sunsuma), and ownership. In case the well has extra capacity, the aba erga decides second rights, which are assigned to other clans whilst third rights are accorded to pastoralists from other ethnic groups.

In extreme cases, those moving with livestock (qunn) are granted temporary first rights to water use just like the sunsuma and the owner.

This well-crafted sustainable natural resource management system is challenged by the modern rules where people and livestock can move anywhere across the country. This throws the traditional mechanisms into disarray and makes resource management difficult.

What future for Marsabit?

Marsabit County has in the past experienced intense tribal conflict over the control of natural resources, land boundaries, and more recently, political power.

Devolved governance was meant to guarantee the equitable distribution of national resources. However, in Marsabit County it has ushered in a new era of power struggles, deep hatred and division among the ethnic communities. The divisions between the communities are so deeply entrenched that ethnicity is a common factor in how the county government undertakes development projects and programmes and offers jobs.

There is no one-size-fits-all approach for handling the multifaceted land problems in Marsabit County. The top-down peace-making process spearheaded by the NGOs in collaboration with the state agencies has failed due to lack of well-defined community boundary policies from the state, politicisation of the security apparatus and war as political business.

The United Nations Development Programme (UNDP), in collaboration with the Kenya government and Intergovernmental Authority on Development (IGAD), have spent US$200 million on a five-year integrated peace programme to engage both sides in peace-building. However, to date, the spending of this colossal amount of money has not yielded any remarkable results. The current peace-building process needs to take into account the developing dynamics of conflict in Marsabit.

The county government needs a conflict-sensitive service delivery and development plan instead of playing the tribal card in developing infrastructure, providing job opportunities and services to its community, which is against the principles enshrined in the Constitution of Kenya 2010.

Although there is no all-encompassing approach to diminish the frequency and intensity of land-related conflict in Marsabit County, there are vital considerations that development practitioners, policymakers, national and local administration need to take into account concerning resource management and governance.

The first step is to establish the political will to solve land problems. Securing land and resource governance entails engaging political processes as well as consolidating land social movements. Political will is pivotal as it plays an essential role in how boundaries are mapped and administrative units are established.

The communities of northern Kenya have established traditional methods of managing water resources and pasture.

The second is mainstreaming conflict and conflict mitigation into the planning and implementation process across all sectors and stakeholders and subsequently establishing district peace committees. This structure should be constituted with the help of all local communities and should encourage the collection of vital data relating to conflict in order to forestall outbreaks of conflict.

The interests of the citizens should be prioritized and public participation in land and water resource governance and management should be strengthened, just like in the case of the Dedha system established by the Borana community. Failure to include the views and opinions of the locals, in creating new administrative units and boundaries, for instance, has led to bloodshed in many of the ASAL regions. Government policy responses should be also be void of political interest.

The illegal flows of guns and ammunition must be stemmed and the local populations disarmed. This will help to reduce hostilities among the existing communities. The state security machinery needs to be committed to this duty in order to regain the public’s confidence.

Finally, policy interventions to the build capacities of local customary institutions to undertake water and land governance and management should be the preferred option as, with the support of the state in terms of coordination and resources, these informal institutions are best suited to resolve local conflicts.

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