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Set up to fail? Police reforms in Kenya

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Police reform

For over a decade now, Kenyans have been listening to talk about police reforms. And though it may be true that police now have more fancy crowd control equipment than they did 10 years ago, and more cars, a forensic lab, health care insurance, armed vehicles, and some extra housing, this has yet to translate into better police performance that is noticeable for the average Kenyan. And frankly, there is little reason to be optimistic things will change in the near future.

Ever since its inception by the colonial powers, police in Kenya have functioned as a class institution, where members of the higher classes receive quite different treatment from the lower classes. Rather than serving the interests of the public, police have been serving the interests of those in power, especially when those in power could exercise influence over promotions and removals. For the others, policing in Kenya has since long been characterised by excessive use of force, extra-judicial killings, torture, and corruption.

Police frequently fail to respond professionally to policing situations, whether they involve calls for assistance, criminal investigations, dealing with terrorist threats, managing peaceful protests or even the handling of traffic. As a result, the public lacks confidence and is reluctant to report to the police or otherwise provide them with information.

As with any misconduct, it doesn’t stop at the gates of the institution: members of the police also fall victim to (internal) corruption, nepotism and (sexual) harassment. Nor are all police officers bad – on the contrary, there are many good willing, hardworking officers, who want the system to change, who are desperate to build true professional pride, and who were hoping the reforms would bring the long hoped for changes.

In sum, there is no real incentive for the powers-that-be to build a truly effective, professional, accountable police service.

Also, members of the upper classes are certainly not safe from bad policing. Cases such as the killing of the son of a British aristocrat, Alexander Monsoon, in 2012, the killing of the son of a former MP in 2009, and last April, the killing of the son of a senior police officer spring to mind. Likewise, the upper classes’ safety is hardly guaranteed: though senior members of the political and executive elites usually have substantial security detail (drawn from the police), this provides only some protection, and certainly does not protect against terrorism; a case in point is the death of the President’s nephew during the attack on the Westgate Mall. Make no mistake; without doubt, the lower classes get far worse policing, if any at all, than the middle and upper classes and especially when it comes to the use of force, they find themselves on the receiving end much, much more often than their richer compatriots. But it is not true that policing for the higher classes is without problems.

How did this situation evolve the way it did? First of all, due to systematic underfunding, misallocation of funds and regular inappropriate interference in police operations, the police force has been unable to develop into a service that meets international professional standards. But why did the powers-that-be allow this situation to evolve like this? For this we have to go a bit deeper, looking at how Kenya, with its politics dominated by tribalism and a winner-takes-all mentality, is a country where winning the elections means access to wealth. As such, it is useful for those in power, at whichever level, to have police who are loyal to them, rather than politically neutral servers of the general public.

Moreover, let’s not forget Kenya still is a country with various leaders being accused of various levels of involvement in organised crime and corruption, and with a ‘culture of impunity’ (see Branch 2011; or look at the difficulty the judiciary is having to interpret Chapter VI of the Constitution, let alone getting it implemented in practice). Indeed, reports of political involvement in drug trafficking, ivory poaching and corruption involving senior Government officials and businessmen closely related to the political elite (Gastrow 2011; Kahumbu 2014), make it clear that it may not be that beneficial for the country’s elite to have truly professional police that handle crime effectively: indeed they themselves might be targeted by police investigations. In sum, there is no real incentive for the powers-that-be to build a truly effective, professional, accountable police service.

This says something about the context in which police, and indeed other Government institutions, operate. Police in Kenya, like in most other countries, have a level of discretion to decide how to deal with certain policing situations. Such discretion is often seen as a defining element of police professionalism: within the boundaries set by the law and policies, police officers have a level of freedom to decide how to respond to a given situation, based on the specific nature of that situation. Indeed, where the public trusts the police they are willing to ‘grant’ them operational independence, and discretion, for which the police have to account. Discretion must be balanced by effective accountability, so that afterwards the appropriateness of the police’s actions can be assessed.

What has happened, however, is that the police in Kenya have had limited operational independence, and there was limited if any, effective, external oversight. The lack of oversight made it even easier to deploy the police for personal gain, and also to block investigations and operations that became a threat, and at the same time it gave the police space to serve their own interests, as when they collect bribes and intimidate and harass members of the public. Though it is too simple to say that the police are merely a puppet for those in power – and ultimately the President – it must be recognized they operate within the boundaries set by them. An effective accountability structure that includes independent oversight would greatly diminish the ‘playing field’ of both the rulers they serve as well as their own, and as such is not in the interest of either. The police have been given by and large a free hand, as long as they do not interfere with businesses that should be left unpoliced and instead ‘deal with’ crime and other security threats; that free hand has, however, extended beyond control, hence the extortions, killings, and tortures.

The police have been given by and large a free hand, as long as they do not interfere with businesses that should be left unpoliced and instead ‘deal with’ crime and other security threats; that free hand has, however, extended beyond control, hence the extortions, killings, and tortures.

It should be noted that this context is facilitated by a sometimes rather permissive attitude of the general public towards police misconduct, and mixed messages about what it is they want from the police. For example, with regards to killings by the police, all too often the comments from the general public are not only permissive, but sometimes even literally calling on the police to kill more. Civil society could, and should, play a role in opening up, and guiding the public debate about the type of police we want for Kenya today. Yet, to date, such a debate has yet to materialize.

Over the years, this situation led to ever-louder calls, by civil society and other stakeholders, for police reforms. For some 15 years now, there have been several reform efforts. A first comprehensive police reform effort was undertaken in 2003-4 after the NARC Government came to power on an agenda of change and anti-corruption. An ambitious police reform document (Strategic Plan 2004-2008) was developed, largely focusing on improving salaries and allowances and enhancing budget allocation to address infrastructural, operational and administrative concerns, but failed to propose substantial reforms that would have resulted in more accountable, more fair and effective policing. Calls for police reforms gained strength after the 2007/08 post-election violence. Domestic actors and representatives of the international community convinced the two principals, Mwai Kibaki and Raila Odinga, to sign the ‘National Peace Accord’, of which ‘Agenda item 4’ addresses ‘Long term issues and solutions’, including ‘Constitutional, legal and institutional reform’. It is under this agenda item that police reform was addressed. As the National Task Force on Police Reform later noted: “the inclusion of Police Reform under ‘Agenda Four’ stemmed from a strong feeling that the level of post-election violence and destruction would have been minimized had the Police responded in a professional non-partisan manner” (p.1).

In line with the Peace Accord, the coalition-Government established the ‘Commission of Inquiry on Post-Election Violence’ (also known as the CIPEV Commission, or Waki Commission, named after its Chair, Justice Philip Waki). ‘Waki’ revealed that, not only had the police been unable to prevent the violence or protect members of the public against it, they also actively contributed to the violence, with estimates that one third of the people who were killed died at the hands of members of the police. The two Principals agreed to implement certain recommendations from ‘Waki’, including the establishment of an Independent Police Service Commission and an Independent Police Conduct Authority, as well as the establishment of the National Task Force on Police Reforms in May 2009, (known as the ‘Ransley Commission’ after its Chair, Retired Justice Philip Ransley). ‘Ransley’ was tasked to evaluate the current police, and make recommendations for improvement. In total, ‘Ransley’ made over 200 recommendations to improve the efficiency and effectiveness of the police, conditions of service, provision of welfare benefits and greater security for officers, enhance accountability and create attitude and culture change. It called for establishing an effective complaints system, a Police Council and a Police Service Commission. After Ransley, the Government set up the Police Reform Implementation Committee (PRIC) to prepare implementation of the recommendations.

The key objective of the current reform project, as laid down by the Police Reforms Implementation Committee in 2011, is to enhance police professionalism and accountability; its ultimate goal ‘is to transform the police force into an effective, efficient and trusted police service’. The reforms have been codified in the 2010 Constitution and subsequent laws, most notably the National Police Service Act (c.11a), National Police Service Commission Act (c.30) and Independent Policing Oversight Authority Act (c.35), all of 2011. The Constitution gives an outline of the accountability infrastructure for the police. Overall command over the two Police Services, i.e. the Administration Police Service and the Kenya Police Service, is with the Inspector General who has security of tenure for four years, and is given independence of command. The Constitution prohibits the Cabinet Secretary, or anybody else, from interfering in police operations, investigations or employment and deployment matters. This also means that the Provincial Administration, or its equivalent, can no longer direct the police, which is a huge break with the past. Secondly, the Cabinet Secretary can give policy guidance only and this has to be in writing. Thirdly, the Constitution establishes the National Police Service Commission (the Commission, or NPSC) as responsible for recruitment and appointment and confirmation of promotions and transfers and gives the Commission the authority to observe due process, exercise disciplinary control and remove persons holding or acting in offices within the NPS. Even though the NPSC is a hybrid of both police and non-police (the IG and the two Deputy IGs are members, and the Commission includes two retired police officers, one from each branch of the Police Service; only the other four members are non-police), its independence is guaranteed under the Constitution. Fourthly, the Constitution places all national security organs under civilian authority and instructs the police to behave according to well-defined values of integrity and to reach out to the communities.

Yet, trouble loomed from the start. Normally, when a Bill has been adopted in Parliament, and is assented to by the President, it is sent to the Government’s Printer for printing and publication. As the key hurdle is parliamentary approval, followed by the President’s assent, printing should be a technicality only. Not so this time. Though the IPOA and the NPSC Acts were released fairly quickly, the NPS Act was only published one year later, in July 2012. Also, setting up the relevant institutions, most notably IPOA and the NPSC, was faced with delays. The IPOA Board was only appointed in June 2012 and the NPSC Commissioners were appointed in October 2012, more than a year after the Act was adopted in Parliament.

Tellingly, to date, there have been three amendments to the NPS Act, as well as one to the NPSC Act which strengthened the role of the executive, most notably the Cabinet-Secretary for Internal Security and Coordination of National Government, while weakening the NPSC.

In such a context, it should come as no surprise that implementation of the Acts, in letter but even more so in spirit, is wanting. For example, the Service Standing Orders should have been amended in order to comply with the new legislation and made public within one year after commencement of the Act. Not so. Releasing the Standing Orders would allow for a level of transparency that is apparently not in the interest of those in charge (whether de jure or de facto). Also, as can be seen by the many police shootings resulting in death, it is clear the police have not been instructed according to the new legislation. This is particularly clear when looking at IPOA, the official State body tasked with investigating deaths and serious injuries caused by police officers. Police have always been reluctant to notify the Authority of deaths and serious injuries that resulted from their actions, despite a statutory requirement to do so, and over the years the willingness has steadily declined. In the last 6 months of 2016, the police only notified the Authority in three instances. As IPOA wrote in its last Performance Report: ‘It is noted the number of deaths reported by the National Police Service is not reflective of the number of deaths as a result of police actions that were received through other channels. This implies a non-compliance by NPS.’ (p.21). IPOA has claimed the police fail to cooperate with the Authority, as was clear when IPOA inspectors were even detained by an Officer Commanding Police Division last year. Also, despite IPOA having conducted numerous investigations and inspections, and reviewed major police operations (for example, Operation Usalama Watch and also the Mpeketoni terrorist attacks), its impact on actual police performance remains modest as long as the police refuse to implement its recommendations.

The Commission hit the ground running, recruiting 7,000 new police recruits just weeks after it was established, and starting the recruitment of the new IG along with two deputies in late 2012, completing the make up of the Commission. However it was met with a hostile reception, from early 2013 onwards. Numerous were the headlines that the NPSC Chair, Johnston Kavuludi, was stepping on the mandate of then IG David Kimaiyo, and there were repeated calls to curtail, and even abolish the Commission. It was in this context that amendments started circulating shortly after the Commission took up office, which fed into the belief the executive had never been committed to implementing the legislation as it stood.

Tellingly, to date, there have been three amendments to the NPS Act, as well as one to the NPSC Act which strengthened the role of the executive, most notably the Cabinet-Secretary for Internal Security and Coordination of National Government, while weakening the NPSC. Though there has been repeated talk of amending the IPOA Act, this has to date been held off.

The Commission, meant to insulate the police from (political) interference by ensuring human resource management would be fair and merit-based, has received major criticism. It has conducted 5 major recruitment exercises, including one in 2014 that was marred with allegations of corruption and interference to the extent that IPOA went to court to get the exercise cancelled, much to the chagrin of the Commission, the police and wider executive, as well as the candidates affected (some of whom were said to have paid huge sums to acquire a spot while others had resigned from their jobs thinking they had gotten into the police). The 2015, 2016 and 2017 exercises went ahead – despite more allegations of malpractices (see for example the critical report by KNCHR).

Yet, probably the main activity for which the Commission is known to the public is the vetting process, which disclosed a lot of information about the inner workings of the police. As per the NPS Act, all members of the NPS are to be vetted on suitability and competence, by the Commission. The vetting, which started mid 2013, has been slow, and today the Commission has only vetted just over 3,000 officers. More worryingly, very few have actually been removed from the Service following the vetting, leading to many people questioning the value of the costly process. Indeed, there are many allegations, some of them substantiated, that the Commission does not comply with its own regulations, thus feeding into the belief the Commission is not fully independent and fails to prevent interference, raising questions about its own value.

All in all, despite the setting up of various institutions meant to hold the police to account, shield them from undue interference, and prevent misconduct or correct it where it does occur, police performance has barely changed. There are still numerous reports of crime committed by police officers, most notably corruption, extortion, bribery, excessive use of force and torture. Some have even argued that extra-judicial killings are on the rise, and there is a continuing failure of the police to respond professionally to policing situations, as the handling of various demonstrations in the past 12 months have shown all too well. The case of the Mavoko 3, where police were involved in the torture and brutal killing of lawyer Willie Kimani, his client, Josphat Mwenda, and their driver, Joseph Muiruri, is a particularly gruesome case in point.

All in all, despite the setting up of various institutions meant to hold the police to account, shield them from undue interference, and prevent misconduct or correct it where it does occur, police performance has barely changed.

Indeed, even though the government did spend additional resources, for example on cars, police housing, and insurance, this has yet to translate into better police performance and public confidence continues to be low. And despite the setting up of various oversight structures, a culture of non-compliance with the law has developed over the recent years and as a result, the (impact of the) enhanced accountability requirements have remained small, because the root causes of the current policing situation have been left, mostly, unaddressed.

In the current context, with few incentives to reform and just too many benefits to keeping things as they are, as well as limited political commitment to reform, both Cabinet-Secretary and the police leadership are likely to pick only those cherries from the reform package that are useful, and don’t rock the boat too much.

This should not come as a surprise, and unfortunately, all things staying equal, there is no reason to believe this will change in the near future. The current situation simply serves all involved all too well.

 

Sources:
Branch, Daniel, 2011. Kenya, between hope and despair, 1963–2011. New Haven: Yale University Press.

Commission of Inquiry into Post-Election Violence, Republic of Kenya. 2008. Report of the Commission of Inquiry into Post Election Violence. Nairobi: Commission of Inquiry into Post-Election Violence (CIPEV Commission).

Gastrow, Peter, Sept 2011. Termites at work. Transnational organized crime and state erosion in Kenya. New York: International Peace Institute.

Kahumbu, Paula, 2014. The war on poaching cannot be won in the field unless we take on highlevel corruption. The Guardian, 5 May 2014 [online].

National Task Force on Police Reforms, Republic of Kenya, October 2009. Report of the National Task Force on Police Reforms. Nairobi: National Task Force on Police Reforms.

Anneke Osse (2016) Police reform in Kenya: a process of ‘meddling through’, published in Policing and Society, 26(8), pp. 907-924.

Anneke Osse is an Independent Consultant on Police (Reform) and Human Rights.

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DEBT AND TAXES: Kenya is living large on borrowed money

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DEBT AND TAXES: Kenya is living large on borrowed money

Kenya’s fiscal policy – the means by which the government adjusts its spending levels, revenue generation and collection, and debt to monitor and influence the economy- has been a defining feature of the current administration. The three have been characterised by almost consistent features and trends.

Some background information is useful. Kenya has had an annual growth rate of about 5.46 percent from 2004 until 2016. Initially, the economy was slated to grow at around 6 percent in 2017 but this has since been revised to 5 percent. According to Genghis Capital, it will actually be between 4.25- 4.75 percent due to the drought-induced contraction in agriculture, the negative effects of the interest rate cap on the financial sector and the prolonged electioneering period. The Government thinks the economy will grow by over 6 percent next year though the World Bank projects a lower rebound to 5.8 percent in 2018 and 6.1 percent in 2019.

Kenya’s economy is primarily services driven and according to the Kenya National Bureau of Statistics (KNBS), under the Kenyatta administration, growth has largely been on the back of government spending on infrastructure projects such as the Standard Gauge Railway (SGR), the expansion of the road network as well as electricity generation and transmission projects. Other significant contributors to growth include a resurgent tourism industry and growth in information and communication, real estate and transport and storage.

Over the past 6 years, government spending has grown at an average of 14.7 percent, yet revenue growth has only increased by 12.7 percent. Under the current administration, spending has gone up by two-thirds, from Sh1.6 trillion in 2013/14 to Sh2.64 trillion in 2017/18.

Back to fiscal policy, we will address each component separately: expenditure, revenue generation and collection, and borrowing.

EXPENDITURE

Over the past 6 years, government spending has grown at an average of 14.7 percent, yet revenue growth has only increased by 12.7 percent. Under the current administration, spending has gone up by two-thirds, from Sh1.6 trillion in 2013/14 to Sh2.64 trillion in 2017/18. While some of this can be explained by inflation reducing the value of money, there is a consistent trend of notable increases in government spending.

Public spending as a % of GDP

(Source: Institute of Economic Affairs)

 

A fundamental problem in analysing fiscal policy at both national and county levels is determining the intended recurrent vs development budgets and comparing these to the actual expenditure pattern. The image below from the Institute of Economic Affairs Kenya (IEA) details this for the National Government:

Share of Recurrent and Development Budgets in Total MDA Budget.
(Source: Institute of Economic Affairs)

Overall, two key trends are clear, the first of which is that the national budget is still geared towards recurrent spending. Indeed, as the Treasury itself has admitted in the past, recurrent expenditure is reaching unsustainable levels.

There are several factors behind this aggressive growth in expenditure, the first of which is devolution. In 2010 Kenyans enacted a new constitution, which established a bicameral Parliament and 47 county governments. At the beginning of the implementation of devolution, a parliamentary report indicated that it would cost at least Sh36 billion to set up. Prior to devolution, it cost Sh6.6 billion per year to run Parliament, but that figure is expected to rise to Sh14.3 billion. The Parliamentary Budget Office has also stated that it will cost Sh21.75 billion annually to run the 47 county assemblies. Thus, while welcome, the reality is that devolution is expensive.

At the beginning of the implementation of devolution, a parliamentary report indicated that it would cost at least Sh36 billion to set up. Prior to devolution it cost Sh6.6 billion per year to run Parliament, but that figure is expected to rise to Sh14.3 billion. The Parliamentary Budget Office has also stated that it will cost Sh21.75 billion annually to run the 47 county assemblies. Thus while welcome, the reality is that devolution is expensive.

Linked to the point above is the public wage bill which, according to the Salaries and Remuneration Commission (SRC), has ballooned from Sh465 billion when the Kenyatta administration took over to Sh627 billion in the 2015/2016 financial year, an annual average growth of 9 per cent. SRC’s projections show that it will be Sh676 billion in 2016/2017. Earlier this year, the International Monetary Fund (IMF) raised concerns, stating that Kenya is among countries that exhibit large increases in the wage bill, particularly in the run-up to elections. IMF is of the view that given Kenya’s rising debt levels (more on this later) the decision to increase spending on public sector wages is a concern as less funds are left over for economically productive development expenditure. The SRC pooh-poohed the IMF’s concerns, stating that wages were actually falling as a proportion of GDP: from 10.3 per cent in 2012/2013 to 9.5 per cent in 2015/2016.

A second factor behind the growth in expenditure, which the government has been eager to finger as the primary reason, has been the investment in infrastructure. According to the Capital Markets Authority (CMA), Kenya’s current estimated infrastructure funding gap is USD 2-3 billion per year over the next 10 years. To address this, government has allocated nearly a third of total budget expenditure to infrastructure between the 2016/17 and 2019/20 financial years.

The World Bank makes the point that the infrastructure investment drive in Kenya needs to be done in a way that is both efficient and sustainable. With such a robust commitment, key questions must be asked. For example, is Kenya investing in the right infrastructure? The Brookings Institution makes the point that a push for more infrastructure only raises economic growth and people’s well-being if the focus is on quality and impact, rather than quantity and volume. Has Kenya fallen short here? Has the government conducted an audit of infrastructure investment and the development it has engendered thus far? Has there been an audit of its quality? How efficient is our investment? Without an answer to these questions, the country risks wasting resources on aggressive infrastructure expenditure that generates no real benefits for its people.

Indeed, the link between infrastructure and economic growth is more tenuous than previously assumed. According to the London School of Economics, most recent studies on infrastructure’s contribution to growth tend to find smaller effects than those reported in earlier studies; this is linked to improvements in methodological approaches. Kenya, therefore, shouldn’t assume that infrastructure investment and development will automatically lead to significant improvements in economic growth. It is time for a fundamental rethink of the scale, nature and efficiency of the government’s spending on infrastructure.

Kenya, therefore, shouldn’t assume that infrastructure investment and development will automatically lead to significant improvements in economic growth. It is time for a fundamental rethink of the scale, nature and efficiency of the government’s spending on infrastructure.

The final issue regarding expenditure is linked to the mismanagement of public funds at both national and county levels. At the national level, allegations of corruption and financial mismanagement are legion and include: the National Youth Service (NYS) affair where the Auditor General stated a loss of Sh1.9 billion; Sh5.2 billion misappropriated at the Ministry of health according to an in-house audit report; mobile clinics valued at Sh1.4 million each being sold to the government at more than 7 times the price then abandoned in an NYS yard; inflated rig charges at the Geothermal Development Company (GDC) in which the Ethics and Anti-Corruption Commission (EACC) found the tender committee culpable and six managers were sent on compulsory leave.

At county level, there are rising concerns with expenditure considering that the national government has sent to the counties more than Sh1 trillion since their establishment in 2013. Research by the International Budget Partnership Kenya (IBPK) reveals that county governments are not making available fiscal documents required by the Public Financial Management Act (PFMA). Only about 20 percent of key budget documents, including fiscal expenditure documents, meant to be online had been uploaded. Indeed, IBPK reports that in some cases, budget allocations are based on lists of projects drawn up by Members of County Assemblies (MCAs). There is no clarity on the criteria governing such allocations, and even less clarity on how county funds are actually spent. There is a distinct air of mischief informing this laxity. It is not a secret that the first iteration of devolution revealed how much autonomy county governments have in the planning and use of funds they receive and generate. This lack of transparency seems to be aimed at facilitating a culture of financial mismanagement and corruption at the county level in an environment where, frankly, no one is holding them accountable.

Further, county governments see themselves as expenditure units, not development units. This needs to change. Rather than concentrating on how much they have to spend, they ought to focus on the development dividends they are responsible for generating. Without this fundamental shift in thinking, county governments will continue to be like spoilt children, forever crying over what they are owed, but with nothing to show for the development they ought to deliver.

For example, 16 firms listed on the Nairobi Stock Exchange issued profit warnings in 2016, which meant less corporation tax could be collected. Additionally, the 7000 jobs lost to downsizing and shuttering of firms, mainly in the banking sector, reduced Pay As You Earn receipts.

The greatest concern beyond the moral question of the financial mismanagement of the public funds of a poor African country, is the issue of how corruption affects spending efficiency. As will be explained later, Kenya is getting into significant debt, particularly to finance development expenditure. If such debt is not being used as efficiently as possible and instead funds are stolen or dubiously spent, the country will be saddled with onerous debt without he means – the improvements in economic performance that were to come from debt financed development projects – to pay it.

Given the factors detailed above, there are several broad changes that ought to be made. At national level, the first recommendation is for government to commit more money to development expenditure and put more effort into actually absorbing the allocations given to the docket.

Secondly, the national government ought to be more consistent in the manner in which it presents data and should make it easier to track planned versus actual expenditure, particularly across the recurrent and development dockets.

Thirdly, large allocations to infrastructure projects need to be audited and a determination made on the effectiveness of the allocations, how funds can be better spent and recommendations on how to improve efficiency.

Finally, national government has to clamp down on financial mismanagement and prosecute and punish culpable officials. Without this, the government’s commitment to ending corruption will be seen as insincere and ineffective.

At county level, there are several issues that ought to be addressed the first of which is that there needs to be a very clear hierarchy of accountability for county expenditure. Governors and the County Ministers of Finance must be held accountable for their spending and individuals need to be punished if found guilty of corruption.

Secondly, counties must comply with the PFMA and provide breakdowns of their expenditure which includes a delineation between recurrent and development expenditure.

Thirdly, the principle of fiscal discipline should carry considerable weight when national government makes county allocations such that responsible use of resources is rewarded and poor performers are punished.

Finally, a citizen-led effort to create a ranking of county governments according to fiscal transparency with a focus on expenditure would likely create pressure on county governments to adhere to their legal obligations. Included in the ranking should be how well they comply with PFMA stipulations, with the top and bottom performers widely publicised.

REVENUE GENERATION AND COLLECTION

Kenya Revenue Authority (KRA) has been falling short of its revenue targets for some time. For example, in 2016/17 total collection stood at Sh1.365 trillion representing a performance rate of 95.4 percent, and a shortfall of Sh66.64 billion- a significant number. In the first four months of this fiscal year, KRA has already fallen behind by Sh40 billion. There are questions as to why revenue collection consistently underperforms. I am of the view that KRA is given unrealistic targets, more informed by aggressive increases in government expenditure and oblivious to the serious constraints that mute tax collection.

Without this fundamental shift in thinking, county governments will continue to be like spoilt children, forever crying over what they are owed, but with nothing to show for the development they ought to deliver.

Revenue generation targets tend to be revised upwards over the course of the year. KRA’s original revenue target for the 2016/17 was Sh1.415 trillion which was later revised to Sh1.431 trillion, an increase of KES 16.24 billion. This is a concern because motivations behind the increases in targets are not clear. Do they perhaps stem from a realisation in Treasury that it cannot raise as much as anticipated in borrowing?

The second constraint is that the macroeconomic environment informs the extent to which revenues deviate from targets. For example, it is estimated that a 1 percent reduction in GDP growth reduces revenue by Sh13.4 billion and as noted earlier, this has been something of a tough year. A similar increase in inflation also requires that revenue targets be raised by Sh13 billion.

This is linked to sectoral issues which can affect the ability of KRA to collect tax. For example, 16 firms listed on the Nairobi Stock Exchange issued profit warnings in 2016 –a rising trend since 2013– which meant less corporation tax could be collected. Additionally, the 7000 jobs lost to downsizing and shuttering of firms, mainly in the banking sector, reduced Pay As You Earn receipts.

Third, government policy decisions, particularly those related to tax policy, affect the ability to generate revenue. For example, the non-implementation of changes to specific excise rates in 2016/17 reduced revenues by nearly Sh5 billion. Additionally, the duty-free importation of essential foods (maize, milk, sugar) led to a revenue loss of over Sh4 billion in the fourth quarter of the same financial year. Indeed, it is estimated that government policy decisions cost it Sh13 billion in lost revenue that entire year. The government tends to shoot itself in the foot in other ways too. For example, delays in remitting income tax from public institutions costs it Sh823 million.

Finally, revenue generation and collection in Kenya like the rest of Africa is negatively affected by illicit financial flows from the country. According to the UN, Africa loses more than US$50 billion through illicit financial outflows per year. Companies evade and avoid tax by shifting profits to low tax locations, claiming large allowable deductions, carrying losses forward indefinitely, and using transfer pricing.

The main reason why consistent subpar revenue collection is worrying is because the national treasury continues to construct budgets based on the unrealistic targets. For example, revenue generated was meant to play a bigger role in the current budget, financing 60.7 percent of the overall deficit and 58.7 percent of the development expenditure. Since it appears as though targets will again not be met, government will have to borrow more than anticipated.

 

There ought to be fundamental rethink of revenue generation and collection in order to effect a sustained increase. There are several factors to address, the first of which is improvements in the business environment that increase profits and thus taxable revenue. A key component that is often ignored here is the environment for the informal economy. Current assessments largely ignore the sector in which 90 percent of employed Kenyans earn a living. More ought to be done to make informal businesses more profitable.

At the same time, the government ought to seek to expand the revenue base by encouraging the formalisation of these businesses. Concerted efforts must be undertaken to pilot schemes that remove barriers to – and create incentives for – formalisation, particularly of larger businesses that easily evade tax yet are robust enough to consistently pay.

As recommended by the Africa Progress Report 2013, alongside demanding the highest standards of propriety and disclosure from their government, Kenyans should push citizens of the developed world to demand similar standards from their governments and companies.

Finally, Kenya needs to work on curbing illicit financial outflows. The UN makes the point that G8 leaders have committed to the 2013 Lough Erne Declaration, a 10-point statement calling for an overhaul of corporate transparency rules. Among other things, the declaration urges tax authorities to automatically share information to fight evasion. It states that poor countries should have the information and capacity to collect the taxes owed to them. Kenya should join other African countries in lobbying rich countries to enact stricter laws against tax evasion. As recommended by the Africa Progress Report 2013, alongside demanding the highest standards of propriety and disclosure from their government, Kenyans should push citizens of the developed world to demand similar standards from their governments and companies.

BORROWING AND DEBT

In 2013, the Jubilee administration inherited a debt of Sh1.7 trillion after a decade of the Kibaki government. Less than 5 years later, that has ballooned by nearly 250 percent to Sh4.4 trillion. This year’s borrowing has been particularly aggressive. The Central Bank of Kenya (CBK) says that the government is borrowing an average of Sh86 billion per month, the highest level since the bank started listing public debt in 1999, and over Sh30 billion more than the monthly averages of 2015 and 2016.

Despite this, it seems the government’s debt appetite won’t wane any time soon. The Treasury recently announced that it is seeking to issue another Eurobond, which could be used to repay the outstanding US$750 million syndicated loan the government raised in 2015 and which came due in October. What seems to be clear is that given expanding expenditure and subpar revenue collection, borrowing from both foreign and domestic sources will continue to grow. Further, as a Bloomberg analyst points out, Kenya has among the highest debt levels in sub-Saharan Africa, partly a result of having neither the commodity revenue sources of Nigeria and Angola nor the budget support from donor countries enjoyed by neighbouring Tanzania and Uganda.

Before looking at the specific features of Kenya’s debt, it is important to state that debt itself is not necessarily a problem. If used wisely, it can fund investment into activities and projects that catalyse economic development, GDP growth and growth in per capita incomes. Concerns only start being raised when the pattern of debt accrual and servicing seems headed in an unsustainable direction. If expenditure is growing in the context of muted revenue generation, that creates momentum for more debt than cannot be sustainably serviced. Further, if debt is not used efficiently and linked to increases in productivity and GDP growth, it also saddles countries with burdensome repayments. At the moment, Kenya is on the cusp where the government can either take decisive action to put the country on a better debt path, or continue with current trends that are edging the country closer to an unsustainable position.

 

The IEA points out that as of June 2012, total public debt was composed of 52.9 percent domestic debt and 47.1 percent external debt. However, the share of external debt has been steadily growing and recent statistics show that today the situation is reversed, with external debt taking up more than half (52.3 percent) of total debt.

The National Treasury Report 2015 indicates that the external debt stock for Kenya is composed of multilateral debt (54.7 percent), bilateral debt (27.1 percent), export credits (1.5 percent), commercial banks (0.6 percent) and International Sovereign Bonds (16.1 percent). As the IEA points out, a large part of the external debt remains concessional (i.e. on terms substantially more generous than market loans) and mainly from multilateral creditors; however, the share of concessional loans has been falling over the last three years which means external debt is becoming ever more expensive for the country.

There are several factors affecting the composition of debt, the first of which is Treasury’s desire to reduce domestic borrowing in order to release domestic credit for the private sector. This was a major reason given for issuing the Eurobond. As shown by the statistics above, he government has stayed true to this intent in some ways. However, the cap on interest rates introduced last year, has perversely facilitated government’ ability to raise domestic debt as banks, reluctant to lend to the general public due to profit margin and risk concerns, have more aggressively pursued government securities. The attractiveness of government debt is thus pushing the domestic private sector out of the domestic debt market, which contradicts government’s original intent.

The Central Bank of Kenya (CBK) notes that the government is borrowing an average of Sh86 billion per month, the highest level since the bank started listing public debt in 1999, and over Sh30 billion more than the monthly averages of 2015 and 2016.

It is important to note that, as reported in The Standard, World Bank data indicates that the average grace period on repaying new external debt has shrunk by half in the last four years. On average, in 2013, the country was given 8.2 years before starting to repay loans. This had reduced to 4.6 years by 2016. Shorter grace periods reduce the government’s room for flexibility and could be an indicator of jittery lenders keen on getting their money back as soon as possible. Indeed, Bank of America Merrill Lynch notes that Kenyan debt underperforms its peers as evidenced by the fact that yield premiums over U.S. debt have not narrowed as much as those of other sub-Saharan debt. In short, Kenya is seen as riskier to lend to than other African countries.

Informed by the expansion in borrowing, Kenya’s fiscal deficit has also grown. Its ratio to GDP has widened significantly from 6.4 percent in 2013/14 to 10.4 percent in 2016/17. The IEA points out that the large increase in deficit partly reflected the financing of the first phase of Standard Gauge Railway (SGR) project.

Fiscal deficit as a percentage of GDP

Fiscal deficit as a percentage of GDP
(source: IEA)

The government is targeting a fiscal deficit of 5.9 percent of GDP, in the 2018/19 fiscal year, down from an estimated 7.3 percent this fiscal year. Others however do not expect this will be met. Genghis Capital thinks Kenya’s budget deficit for this fiscal year will likely reach 8 percent of GDP. Further, the government doesn’t always hit its fiscal deficit projections. Indeed, according to Cytonn Investments, in the 2016/2017 fiscal year, the government’s deficit actually widened to 8.3 percent of GDP, some way above its revised target of 6.9 percent. In any case, despite the efforts it may be making to reduce the deficit, current government targets and performance are still higher than its own preferred ceiling of 5 percent.

 

The IEA points out that as the amount of debt held increased, the cost of debt has also gone up with debt servicing increasing from about Sh19 billion in 1990 to Sh400 billion by the end of 2015. A larger component of debt servicing emanates from servicing of domestic debt, but since the proportion of domestic and external debt to GDP are almost at par, it may indicate that it is costlier to service the former.

Debt service 1980 – 2016, KES billions

Debt service 1980 – 2016, KES billions
(Source: IEA)

There are growing concerns as to how much revenue is being committed to servicing debt. In the first nine months of the 2015/16 financial year, the government spent four out of every 10 shillings it collected as tax to settle debts. In April, the IMF estimated Kenya’s debt-service to revenue-ratio at 34.7 percent against a threshold of 30 percent, and a report in the Business Daily pointed out that in the last fiscal year, the country spent more money to settle debt (Sh435.7 billion) than it did to finance development (Sh394.2 billion). If more and more revenue has to be locked into servicing debt, government will either have to ramp down spending on development (given the relatively fixed burden of recurrent expenditure) or borrow even more, none of which is good.

The IEA also notes that the ratio of debt to GDP rose from 40.7 percent in 2012 to 56.4 percent in June, which merited a ranking of 78 out of 138 countries on the World Economic Forum’s Global Competitiveness Index.

Government Budget and Public Debt as % of GDP

Government Budget and Public Debt as % of GDP
(Source: IEA); GDP is for full year (FY) and measured in thousands; * Provisional estimates

As borrowing continues to grow aggressively, it will lead to higher imbalances that will raise concerns about sustainability.

Views differ on whether Kenya’s debt is sustainable. Some are of the view that given the massive gaps in key sectors such as energy and transport infrastructure, the country must continue to do everything possible to finance and address the gaps and that debt accrued now will pay off in the long term. Kenya remains below the World Bank’s debt-to-GDP ratio ceiling (or tipping point) of 64 percent. The IMF, in its review of Kenya a year ago, said Kenya’s risk of external debt distress remains low but notes there is need for reduction in the deficit over the medium term. While the IMF has raised concerns about Kenya’s public debt, it is below what they view as the applicable ceiling for Kenya – 74 percent of GDP.

The IEA points out that as the amount of debt held increased, the cost of debt has also gone up with debt servicing increasing from about Sh19 billion in 1990 to Sh400 billion by the end of 2015.

Others, however, are of the view that a debt-to-GDP ratio beyond 40 percent for developing and emerging economies is dangerous. The IMF itself envisages fiscal consolidation that targets a 3.7 percent of GDP deficit by 2018/19 (compared to the government’s own target of 5.9 percent) which it says is critical to maintaining a low risk of debt distress while preserving fiscal space for development priorities.

I disagree with the Treasury’s assertions that the national debt is manageable and that there is headroom for more. Kenya’s debt is only manageable if decisive action is taken to reduce expenditure, boost revenue collection and reduce borrowing. If this does not happen within the next three years, the country will start feeling the effects of debt distress.

The credit rating agency Moody’s has already raised concerns about the country’s accumulating debt. Indeed, the agency is currently assessing whether it needs to downgrade the country’s credit rating from the current B1 status on grounds of its weakening ability to repay debt. Moody argues that unless a decisive policy response is introduced, the upward trajectory in government debt will see the debt-to-GDP ratio surpass the 60 percent mark by June 2018, pushing financing costs for the private sector even higher. Its assessment points to the fact that in the latest fiscal year, the government spent 19 percent of its revenues on interest payments alone, up from 10.7 percent five years ago. It notes that persistent, large, primary deficits and high borrowing costs continue to drive government indebtedness ever higher. Further, government liquidity pressures risk, the danger that the government may not have enough readily available cash to settle its immediate and short-term obligations, is rising in the face of increasingly large financing needs.

Another credit rating agency, Fitch, has also indicated that it could downgrade Kenya’s rating due to its debt position. Fitch noted that the country was spending a larger proportion of its revenue on paying debt compared to its economic peers such as Uganda, Rwanda and Ghana.

Fitch gave Kenya a B+ rating, with a negative outlook. These credit ratings are important as a fall in rating will mean any new foreign debt taken on by the country will be more expensive.

 

There are several broad strategies Kenya can use to better manage its debt the first of which is to aggressively reduce expenditure. Government must implement austerity budgets and limit unnecessary expenditure. I also think here should be a fundamental downward review of salaries of those in government. While those of technocrats such as Cabinet and Permanent Secretaries as well as professionals such teachers and doctors should remain attractive, there are far too many people in elected office on overly generous terms, and the related wage bill is not sustainable for a relatively poor African country.

Secondly, government needs to improve its recurrent vs development expenditure allocations. As elucidated before, year after year, more money is allocated to recurrent expenditure which is not economically productive. A reduction in recurrent expenditure is crucial and this can be partially addressed by a downward review in wages as explained above. The IEA points out that although in relative terms the proportion of recurrent expenditure to GDP has slightly declined while that of development expenditure has nearly doubled from 5.7 percent of GDP in 2007/8 to 11.0 percent in 2016/17, recurrent expenditure still remains comparatively high.

In April this year, the IMF estimated Kenya’s debt-service to revenue-ratio at 34.7 percent against a threshold of 30 percent, and a report in the Business Daily pointed out that in the 2016/17 fiscal year, the country spent more money to settle debt (Sh435.7 billion) than it did to finance development (Sh394.2 billion).

Development expenditure should be prioritised by considering projects which bring immediate returns to the economy. More money must be committed to spurring the growth required to pay debts, if Kenya is to avoid a repayment crisis.

Thirdly, government has to create strategies to ensure more development expenditure is absorbed. A November 2017 report by Controller of Budget showed the use of development funds for the financial year ending in June was at 70 percent, the highest since 2013. While this is good news and higher than the 66 per cent rate recorded in the previous year, it is not good enough. Indeed, the organisation Development Initiatives notes that the 2017/18 fiscal year actually saw a decline in total allocations to development spending by 12.3 percent, as a result of lower absorption of development spending by ministries in 2016/17. The problem is at both national and county levels. As Price Waterhouse Coopers points out, if the entire amount allocated is not being absorbed, it defeats the purpose of the budget especially around development expenditure. Given that the country is getting into a great deal of debt for development expenditure, it is crucial that absorption rates in this docket increase in order to spur economic growth.

Fourthly, government needs to better track how the debt which is financing the development docket, is being used. Given concerns with financial mismanagement of public funds at both national and county levels, it is crucial that the debt spending is meticulously tracked. This is because financial mismanagement of debt funds poses the dangerous risk of pushing the country into debt unsustainability as money is pocketed rather spent to generate growth.

 

CONCLUSION

This article has elucidated Kenya’s fiscal policy and position in terms of expenditure, revenue generation and debt accrual. It is important that the country reduces expenditure, increases revenue generation and better manages debt spending to put the country on a more sustainable fiscal path. We are in a position where Kenya’s fiscal health can be dramatically improved by taking decisive action as per the recommendations herein. It is my hope that the government takes the required action to improve the country’s fiscal path so that fiscal policy plays the positive and important role it can in driving the country’s development.

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MIND YOUR LANGUAGE: Roots of the crisis in Cameroon

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MIND YOUR LANGUAGE: Roots of the crisis in Cameroon

Since October 2016, Cameroon – one of the most stable states in a volatile subregion – has been making international headlines. A political crisis – the Anglophone Crisis – is shaking the country to the core. It started as a sectoral crisis – with lawyers and teachers demanding for English to remain the primary language of the education and judiciary systems of the English-speaking part of the country – but later turned into a political crisis after the protests were met with military violence, mass arrests and torture.

A country in turmoil

In November 2016, hundreds of people took to the streets in Bamenda after violence was inflicted on lawyers asking for Common Law and English to remain the basis of the judiciary subsystem and on teachers asking for the non-Francophonisation of the Anglophone education subsystem. At first, many people from the northwest and southwest regions were not for separation or violence; people were peacefully protesting for change. However, denial in official statements and the continuous violent responses from the government led to the emergence of small secessionist groups that are taking advantage of the situation to radicalise local activists and non-activist citizens.

Local groups and parts of the Anglophone diaspora have revived the separatist agenda: some demand federalism, others secession.

On October 1st, thousands of people in the English-speaking regions of Cameroon took part in a peaceful march to symbolically proclaim the independence of Ambazonia, the name of an independent country that would be located in the northwest and southwest regions.

According to an International Crisis Group report, security in Cameroon has deteriorated in the Anglophone regions of the northwest and southwest. To protest against the government’s marginalisation of Anglophones, protestors set fire to seven schools and several shops and, for the first time in Cameroon’s post-independence history, homemade bombs were detonated in mid-September 2017. Between 14th and 20th September, two bombs exploded in the northwest region; there were no casualties. On 21st September, another bomb was detonated at a police station in Bambenda, injuring three police officers. A fourth bob nearly exploded in Douala.

After the explosion, the governors of the northwest and southwest regions imposed a de facto curfew, cutting off the Internet for 24 hours, barring movement between Anglophone divisions, and banning gatherings and demonstrations until 3rd October. Despite these measures, around 50,000 people took to the streets in tens of towns and communities in the northwest and southwest regions on September 22nd, demanding the departure of President Paul Biya, the release of Anglophone political leaders and separation. The date chosen coincided with the president’s speech at the United Nations General Assembly. However, what was supposed to be a peaceful march turned violent in some areas. According to local newspapers, some protesters in Buea vandalised the home of the town’s mayor, who is Anglophone but against the protesters. In Mamfe, a police station was set on fire. Four protesters were shot to death by police forces and several more were injured.

On October 1st, thousands of people in the English-speaking regions of Cameroon took part in a peaceful march to symbolically proclaim the independence of Ambazonia, the name of an independent country that would be located in the northwest and southwest regions. This also coincided with the anniversary of the reunification of Cameroon under French mandate and British Southern Cameroon in 1961.

The response of military forces to the march was the most repressive to date. According to Amnesty International, 17 people were reported dead and more than 200 people were arrested during demonstration. The government put the figure at around 10 deaths, but according to locals, the army killed about 100 people on that day. In total, since the beginning of the crisis in October 2016, at least 55 people have officially been reported dead.

These repressive measures led to retaliation by the populace. People burnt vehicles belonging to the sub-prefect and prefect in Boyo and Fundong (in the northwest), snatched weapons from gendarmes in Kumba (in the southwest), ransacked police stations in Ikiliwindi, Mabanda Teke and Kongle, and threw stones at police and military officers in Buea and Bamenda. Since the beginning of November, four military men have been killed in conditions that are still not clear. Cho Ayaba, a leading member of the political wing of the separatist movement who lives abroad, told Reuters, “Cameroon soldiers are enforcing an occupation. The only thing that will make us stop these attacks is if the regime withdraws. If they stop using the military to impose political exclusion and systematic terror on our people.”

The so-called Anglophone Crisis is not something new, as the international media suggest; it has its roots in the decolonisation era.

Currently, the English-speaking regions of Cameroon have become ghost towns due to general strikes – an initiative taken by the Cameroon Anglophone Civil Society Consortium as part of their long-term protest against a government they deem biased towards French speakers. For a year now, schools have not been fully operational, a lost year for students. In September, the so-called Ghost Town operations continued for three days each week. Several stores and seven schools were burnt down to protest against them opening despite the ban. Paul Biya agreed to release some Anglophone leaders and activists to stop the operations and to prevent the school year from being jeopardised for the second year in a row. However, the releases had little or no effect; enrolment rates remain very low and the ghost town operations are still ongoing.

The root of the crisis

The so-called Anglophone Crisis is not something new, as the international media suggest; it has its roots in the decolonisation era. Despite the fact that the current crisis started as a language issue between Anglophones and Francophones, the problem is not really about language; it is about people fighting for respect, integration and identity.

In July 1884, the German government and the traditional Douala chiefs signed a treaty that established a protectorate called Kamerun. After Germany lost in World War I, the victorious powers imposed punitive territorial, military and economic provisions that led to Germany losing her colonies. Kamerun, which was a former German colony, was partitioned between Britain and France under a League of Nations mandate, which appointed France and Britain as joint trustees of Kamerun. France gained the larger share and ruled its territory Cameroun from Yaoundé. Britain’s territory, Northern and Southern Cameroon – a strip bordering Nigeria from the sea to Lake Chad – was ruled from Lagos. During the period of the mandate and the trusteeship, each colonial power shaped their territories in their own image.

 

A report from International Crisis Group describes the situation clearly:

This resulted in major differences in political culture. English was the official language in the territory under British administration. The justice system (Common Law), the education system, the currency and social norms followed the British model. The system of indirect rule allowed traditional chiefdoms to remain in place and promoted the emergence of a form of self-government to the extent that freedom of the press, political pluralism and democratic change in power existed in Anglophone Cameroon prior to independence. The territory was administered as though it was part of Nigeria and several members of British Cameroon’s Anglophone elite were ministers in the Nigerian government in the 1950s.

 In contrast, the Francophone territory was directly administered by France following the assimilationist model, although colonisers and the traditional elites also practised a form of indirect government, especially in the north of the country. French was spoken and France’s social, legal and political norms shaped the centralist political system of successive regimes. Bogged down in a total war against the nationalist movement (Union des populations du Cameroun – UPC), which challenged French presence, the Francophone territory was less democratic.

Being used to self-administration, Southern and Northern Cameroon were in many ways more developed than French Cameroun, with several industries and a sense of democracy. French Cameroun accessed independence before English-speaking Cameroon on January 1, 1961. British Cameroon was aspiring to independence as an autonomous state, but former colonial powers believed that it would not be economically viable and advocated for not creating microstates. So a referendum took place on February 11, 1961: British Cameroon was supposed to choose between joining Nigeria or the new Republic of Cameroon. Northern Cameroon chose to join Nigeria and Southern Cameroon chose to join the Republic of Cameroon. This led to the independence of Southern Cameroon in October 1961 and the creation of a federal state with a flag with two stars symbolising the two territories coming together – West Cameroon being the former Southern Cameroon and East Cameroon being the former Republic of Cameroon. Both territories were now one under the name United Republic of Cameroon.

Problems started when, despite the constitutional provision stating that English and French were both official languages, French became the language of administration.

A federal constitution approved by the National Assembly of the Republic of Cameroon in August 1961 and promulgated by the then president Amadou Ahidjo in September 1961 was imposed when negotiating the terms of reunification. (Southern Cameroon was then still under the trusteeship of Britain since as it obtained independence on October 1, 1961.)

Centralisation was the governing mode of the former French territory, and the federated state was administrated from Yaoundé, where political leaders held all powers in their hands to the detriment of traditional chiefs whose authority was recognised and respected during the trusteeship. The assimilationist model the former French territory experienced under French trusteeship became its way of governance. In line with the constitutional provision stating that the vice president must be from West Cameroon if the federal president comes from East Cameroon and vice versa, John Ngu Foncha became vice president of the country and prime minister of West Cameroon.

Problems started when, despite the constitutional provision stating that English and French were both official languages, French became the language of administration. Then Amadou Ahidjo divided the country into six administrative regions and appointed federal inspectors in each region. English- speaking Cameroonians were not happy because West Cameroon could not at the same time be a federated state according to the constitution and be an administrative region by decree. The appointed federal inspector had more powers over the region than its prime minister. At the economic level, Ahidjo imposed an exchange rate of £1 to FCFA692 instead of the normal FCFA800, which reduced the purchasing power of the region that still had strong ties with Britain. Then he demanded for West Cameroon to cut ties with Britain, which made the region lose export duty advantages.

Though the southwest and northwest regions play an important role in the economy, especially when it comes to agriculture and trade, and though most of Cameroon’s oil, which accounts for one-twelfth of the country’s gross domestic product (GDP), is located off the coast of the Anglophone region, these regions are still lagging behind.

The economic decline of West Cameroon became evident. Reunification came with the dismantlement of the federal state/region’s economic structures, such as the West Cameroon Marketing Board, the Cameroon Bank and Powercam, as well as abandonment of several projects (the port of Limbé, and airports at Bamenda and Tiko), with investments in the Francophone part of the country having more advantages. The problem still persists to date.

Though the southwest and northwest regions play an important role in the economy, especially when it comes to agriculture and trade, and though most of Cameroon’s oil, which accounts for one- twelfth of the country’s gross domestic product (GDP), is located off the coast of the Anglophone region, these regions are still lagging behind.   As Amindeh Blaise Atabong declared on Quartz, “In Cameroon’s 2017 public investment budget, home region of president Paul Biya, in the south, was allocated far more resources than the northwest and southwest regions put together. Going by the country’s government project logbook for the year, the south region was accorded over 570 projects at a total sum of over $225 million (FCFA 126 billion). For its part, the northwest region had no more than 500 projects to be executed with over $76 million (FCFA 42 billion), while the southwest region had slightly over $77 million (FCFA 43 billion) for over 500 projects.”

When Paul Biya succeeded Amadou Ahidjo in November 1982, he further centralised power. On August 22, 1983, he divided the Anglophone region into two provinces: North-West and South-West provinces. The following year, he changed the country’s official name to the Republic of Cameroon and removed the second star representing the English-speaking part of the country from the flag. (The Republic of Cameroon was the name of the former Francophone territory.) These decisions symbolically killed West Cameroon and assimilated it within the Republic of Cameroon.

The separatist agenda and the way forward

As previously mentioned, the separatist agenda is not a new one. In 1993, English-speaking Cameroonians organised the All Anglophone Conference (AAC) and called for a return to federalism. During this period, Anglophone political leaders Muna and John Ngu Foncha went to the United Nations to demand independence for former Southern Cameroon. The position of the Social Democratic Front (the main opposition party then and now with a strong contingent of English-speaking Cameroonians) was judged to be ambiguous since it was against secession, which led to the creation in 1995 of the Southern Cameroons National Council (SCNC). Since 1996, the SCNC has been demanding secession and has taken its case to the UN, the African Court of Banjul, the Commonwealth and national embassies.

Cameroon cannot afford another armed conflict. The country is already engaged in the fight against Boko Haram in the far north and militias from the Central African Republic in the east. The president has to take drastic and lasting measures to solve the crisis.

Despite the situation being a stalemate, measures have been taken to solve the crisis: there have been several attempts to dialogue; about a thousand English-speaking teachers across the southwest and northwest have been appointed; a Commission for the Promotion of Bilingualism and Multiculturalism has been created; and leaders of the separatist movement have been released. In reality, however, these measures were doomed to fail from the start. Dialogue was actually the government trying to impose its conditions on the English-speaking leaders at the table. And the Commission is nothing but the recycling of former members of government or people with close ties to it.

Cameroon cannot afford another armed conflict. The country is already engaged in the fight against Boko Haram in the far north and militias from the Central African Republic in the east. The president has to take drastic and lasting measures to solve the crisis.

Firstly, the president should act as if he cares about the situation and spend more time on national soil instead of abroad. Secondly, a mediator should be appointed to negotiate high-level talks between the government and the separatists, be they on national soil or from the diaspora, since the diaspora is playing a major part in the movement. Thirdly, each official who has ever been publicly disrespectful when addressing or talking about English-speaking Cameroonians should apologise and resign.

The law on decentralisation promulgated in 2004 should be enforced, not for regions to operate autonomously, but for each of them to be in charge of social and financial development of the region for the sake of the region and of the country as a whole. English-speaking regions of the country are not the only ones suffering from bad governance, so this will be an opportunity for the government to solve the crisis and improve the desperate situation of the country as a whole. The best way to go about this is to work on these issues before the next presidential election that is supposed to take place in 2018.

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CHANGING FACES: How Zimbabwe’s Liberation Movement is Re-Inventing Itself to Hold on to Power

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Changing Faces: How Zimbabwe’s Liberation Movement Re-Inventing Itself to Hold on to Power

Zimbabwe has a new president thanks to what its military chiefs called an “intervention” to “weed out criminals” that were negatively affecting the work of the President.  The actions of the army generals ended up leading to a popularly, if not emotionally, supported removal of President Mugabe, the man they had initially pledged to be acting to protect.

The new president, Emmerson Mnangagwa was sworn in on Friday 24 November 2017.  The state media glowingly called it an inauguration at Harare’s National Sports Stadium at a ceremony attended by at least 60,000 people, including serving presidents from the Southern African Development Community (SADC) member states, Ian Khama, Edgar Lungu and Filipe Nyusi of Botswana, Zambia and Mozambique respectively.

There are multiple reasons why the army and those sympathetic to the ruling party within SADC would not out rightly call the tumultuous political events in Zimbabwe over the last two weeks a coup.  Or why the commander of the Zimbabwe Defence Forces (ZDF) General Constantino Chiwenga and his subordinates would reach such alarming levels of national popularity.

The most obvious reason is that a lot of people in Zimbabwe, the region and the continent were genuinely tired or annoyed by Mugabe’s long stay in power.  His wife most certainly did not help matters in a patriarchal society by insulting those who were long time loyalists (including Mnangagwa) in public. The move by the military, well-choreographed as it was, invariably had a popular veneer to gloss over what it really was, a decision by the military to defy their commander in chief and hold him in captivity. Also generally known in political science studies as a military coup d’etat.

There are multiple reasons why the army and those sympathetic to the ruling party within SADC would not out rightly call the tumultuous political events in Zimbabwe over the last two weeks a coup. Or why the commander of the Zimbabwe Defence Forces (ZDF) General Constantino Chiwenga and his subordinates would reach such alarming levels of national popularity.

The other more significant motivation for the military intervention is that the ruling ZANU-PF party had failed to deal with its succession politics via the clearer political route.  And that the veterans of Zimbabwe’s liberation guerilla war which run from the late 1960s to 1979 and who are recognized in the national as well as the ruling party constitutions, were beginning to stake a claim on who they thought should succeed Mugabe. Initially, and this is to their credit, the Zimbabwe National Liberation War Veterans Association (ZNLWVA) sought the political route to resolving this issue. They were the only members of the ruling ZANU-PF party that consistently asked Mugabe to appoint his successor, much to the latter’s chagrin. Mugabe would insist that his successor would come from the people via congress and that it was only the people who would tell him to go.

The decisive factor to consider, therefore, is how the war veterans eventually got to the stage where their preferred successor, Emmerson Mnangagwa, got fired and made what is with hindsight a startlingly prescient claim as he left for exile in South Africa that he would be back to lead Zimbabwe.  He would also cheekily refuse to meet Mugabe before the latter resigned because the ‘people have said so’.

The war veterans are not only former guerrillas in Zimbabwe’s liberation war. They are also still serving in key command positions in all sections of the National Army, the Police Service, the Airforce and the Prisons Services.  The commander of the ZDF, General Chiwenga is himself a war veteran, and so are all of his subordinates.

In the corridors of the ZNLWVA, it is an open secret that the veterans felt it was the turn of one of their own, or at least one who had undergone military training during the war to take over. This, it was argued by some of the war veterans leaders, was because the nationalists (such as Mugabe, Joshua Nkomo and others) had had their turn at the head of the liberation movement and, more significantly in Mugabe’s case, as head of state and government.

Their consistent argument was that as a liberation movement, due recognition should be given to those that went to war but are still alive and still capable of playing a leadership role in the post-independence ruling ZANU-PF party and its government.  And quite literally, this role meant having ‘one of their own’ being the first secretary and president of the ruling ZANU-PF party. (Mnangagwa is viewed as exactly that by the war veterans.)

And that the veterans of Zimbabwe’s liberation guerilla war which run from the late 1960s to 1979 and who are recognized in the national as well as the ruling party constitutions, were beginning to stake a claim on who they thought should succeed Mugabe.

Zimbabwe’s military is therefore led by those that were and are part of ZANU-PF in two specific respects.  First as a liberation movement and secondly as a contemporary ruling party.   It is also important to note that unless they have been unwell, all service chiefs, including the commander of the ZDF, have religiously attended, the ruling ZANU-PF party’s annual conferences and periodic congresses.

Though they will claim neutrality in politics, their actions clearly indicate that the military top brass is embedded in the liberation struggle claim of being the military wing of what once was a revolutionary movement prior to independence.

When Mugabe used to claim that his party had committed itself to the Maoist dictum that it is ‘politics that always leads the gun’, he probably assumed that those holding the gun had no vested interests.  Nor thought that they could carry out an internally (to the party) and externally (nationally) popular coup.

They did this using a combination of understanding national constitutional and internal ruling party processes and procedures, knowing the then first lady Grace Mugabe’s lack of popularity, and reaching out through cultural events/music to younger Zimbabweans.  (There is a popular musical outfit called Military Touch Movement that, as its name suggests, is rumoured to have close ties to the military establishment).

On the national party processes and procedures, they knew that SADC would never accept anything that they referred to as a coup.  Their carefully choreographed public statements – referring to Mugabe as being confined to his home, and as still being in charge of the country while allowing him to appear at a graduation ceremony and undertake a “State of the Nation” address where he conceded that their actions had his permission – were testament to that. Allowing and urging Zimbabweans, through the ZNLWVA to march on the capital’s streets and closely controlling the domestic media narrative, the veterans managed to get the American and British governments to support their cause through issuing positive statements even as SADC dithered.

The subsequent roping in of the ZANU-PF Central committee to dismiss Mugabe and recommend Mnangagwa to succeed him until not only their extraordinary congress scheduled for early December 2017 but also the harmonized general elections for 2018, entrenched a civilian dimension in what was a military-led deposing of the party leader.

After it turned out Mugabe was ‘refusing’ to resign, a process of parliamentary impeachment that ZANU-PF embarked upon, ironically with the support of the mainstream opposition Movement for Democratic Change-Tsvangirai (MDC-T), sanitized the military change of ZANU-PF leadership.

The generals had however not stopped trying to persuade Mugabe to resign and through a mediation process facilitated by a Catholic priest, eventually got the letter they wanted on 21 November 2017 as parliament sat to impeach their Commander in chief.

When Mugabe used to claim that his party had committed itself to the Maoist dictum that it is ‘politics that always leads the gun’, he probably assumed that those holding the gun had no vested interests. Nor thought that they could carry out an internally (to the party) and externally (nationally) popular coup.

Emmerson Mnangagwa upon his return was well aware of this and made it apparent in his first remarks to his supporters at a rally held at the ZANU-PF headquarters.  He however indicated that he had all along had a hand in this ‘intervention’ by staying in ‘constant touch’ with the generals even though he was in exile.

He also made it clear in his first address as president of Zimbabwe, that he owed his ascendancy to the ruling party.  This is a point that the generals would have no problem with, as they were acting, in the final analysis, in tandem with their role as what General Chiwenga has referred to in previous interviews with the state media as ‘stockholders’ of the liberation struggle and therefore the country. All via the party.

SADC could do little else.  Not least because of the fact that apart from Malawi, Zambia, Seychelles and Mauritius, all of the current governments in the region are led by former liberation movements (Kabila’s in the DRC claims Lumumbist origins to his government).   And they tolerated this military action on a serving president so long there was deference to the ruling party and a modicum of constitutionalism could be salvaged from the process.

For now, with Mnangagwa sworn in as a president to finish off Mugabe’s term as outlined in the sixth schedule of Zimbabwe’s constitution, this would appear to be the case. I am certain that SADC will probably follow up with the new president on the holding of free and fair elections in 2018 as scheduled, which Mnangagwa confirmed in his first speech as president and when he will pursue a full five-year term.

This is not to say ZANU-PF’s military-political complex does not understand the need for ‘performance legitimacy’ despite having the capacity to deploy force for a political outcome. They understand this entirely hence Mnangagwa’s new focus is on the national economy.

SADC will definitively seek a greater role in supervising these elections and closely monitor the role of the military in how they are conducted.  But the ruling party will not worry too much about this as it is already riding on a peculiar wave of popularity that while it is surprised by, it is still very keen to consolidate, not only to renew its stay in power, but also to make it unthinkable for the opposition MDC-T, or any new opposition parties for that matter, to realistically hope to wrestle away power. Also, because the war veterans actively serving in the defence forces have become the guarantors of the ruling party’s succession politics and its ability to stay in power at a time of political crisis.

This is not to say ZANU-PF’s military-political complex does not understand the need for ‘performance legitimacy’ despite having the capacity to deploy force for a political outcome. They understand this entirely hence Mnangagwa’s new focus is on the national economy.  His government intends to introduce free market economic policies and probably do so within the ambit of Chinese-style ‘state capitalism’ which will court foreign direct investment and introduce property rights to the controversial issue of the Fast Track Land Reform Programme (FTLRP).

One of the first acts of his government will be to ease the liquidity crisis and seek the effecting of what Mugabe had referred to as ‘mega deals’ with the Russians and the Chinese in order to create a massive influx of jobs. The American and British governments will be courted to invest in the economy in return for the removal of sanctions and the re-integration of Zimbabwe into Western investor circles. And the Australian government will get promises to protect its mining interests again in return for support in other areas of the national economy.

What is apparent is that in the aftermath of this military intervention, there is limited scope for a value based politics in Zimbabwe. The now very popular actions of the ZDF in tandem with the political endorsements of ZANU-PF have left a void that the opposition cannot fill.

While this temporary and highly politicized economic shift is underway, the opposition will be courted with carrots such as support for the livelihoods of some of its leaders along with deferential treatment.  But essentially, they will be a divided lot that will be unable, barring a miracle, to defeat Mnangagwa’s militarized but popular version of ZANU-PF in what the latter will be at pains to prove to SADC, the African union and the world, is a free and fair 2018 election.

What is apparent is that in the aftermath of this military intervention, there is limited scope for a value based politics in Zimbabwe. The now very popular actions of the ZDF in tandem with the political endorsements of ZANU-PF have left a void that the opposition cannot fill. That void is the inability to articulate what would have been a democratic alternative to ZANU-PF rule, especially given the backing of war veterans in the military and the neo-liberal global west and east in their pursuit of markets, minerals and military dominance.

As it is Zimbabweans must brace themselves to be governed by a military–political complex that claims legitimacy on the basis of national liberation and assumes it can re-create itself in subsequent generations of not only civilians, but also those that would serve in the defence forces.  All in aid of an intended perpetuation of ZANU-PF’s hold on political power and the cosmetic maintenance of a hapless and long suffering political opposition.

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