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.
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.
(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:
(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
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
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
(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.
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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Southern Cameroon: War and No Peace
The longue duree of the conflict in the Southern Cameroons, the rise of the current Ambazonian movement, as well as the dismal prospects for conflict resolution.
In power since 1982, Cameroon President Paul Biya has ruled autocratically for more than four decades. While Cameroon is officially bilingual, one manifestation of such authoritarian governance is the persistent marginalization of the minority English-speaking population in the Northwest and Southwest regions, the former British Southern Cameroons. Since 2016, in the face of state violence, peaceful protests by Anglophone groups have morphed into armed conflict in which separatist groups are fighting for an independent Republic of Ambazonia. In its sixth year, this hidden and neglected war has killed thousands and forcibly displaced more than one million people. Biya’s autocratic regime remains intent on a military solution to a political problem, uninterested in peace negotiations, and with little or no external pressure.
The colonial and post-colonial roots of this contemporary conflict are well-known to English-speaking Cameroonians. Originally a German colony (1884-1916) called Kamerun, after World War I, it was divided between France (80 percent) and Britain (20 percent), under League of Nations and then United Nations mandates. Britain subdivided its territory into Northern and Southern Cameroons and governed them as part of Nigeria. A botched reunification process occurred at independence in 1960 and 1961. French Cameroun and Nigeria gained their independence in January and October 1960 respectively. In February 1961, an UN-organized plebiscite was held to decide the future of Northern and Southern Cameroons, with the choice of joining either independent French Cameroun or Nigeria, but not independence as a separate state. Northern Cameroons voted to join Nigeria, while Southern Cameroons voted to join Cameroon. The terms of reunification between Southern Cameroons and French Cameroun were then agreed upon at the Foumban constitutional conference in July 1961, resulting in the Federal Republic of Cameroon, consisting of two federated states: West Cameroon (former Southern Cameroons) and East Cameroon (former French Cameroun).
The Federal Constitution came into effect in October 1961, with the federal system perceived to uphold the bi-cultural and bi-lingual nature of Cameroon within which the state of West Cameroon retained some autonomy, inclusive of separate governance structures and distinctive legal and educational institutions. However, federalism was short-lived, despite article 47 of the Constitution stating it to be “indissoluble.” In May 1972, President Ahmadou Ahidjo held a controversial national referendum that led to the abolition of the federal constitution and the creation of a unitary state called the United Republic of Cameroon. The 1972 referendum removed West Cameroon’s autonomous governance structures, most notably the West Cameroon House of Assembly.
In 1984 President Biya re-named the country, in French, as La Republique du Cameroun, returning to the name before reunification with Southern Cameroons. Writing in 1985, the barrister Fon Gorji Dinka described the 1972 referendum as a “constitutional coup” and the 1984 decree as an “act of secession” of La Republique du Cameroun from the 1961 union with Southern Cameroons. Current Anglophone separatist groups call themselves “restorationists,” fighting for the “restoration” of the state of Southern Cameroons or Ambazonia, and perceive this as an anti-colonial struggle given that British colonization was replaced by colonization by La Republique du Cameroun in 1961.
Although the current violence in Southern Cameroons is unprecedented, today’s conflict is a consequence of longstanding Anglophone grievances coupled with a strategy of “denial and repression” by the Francophone-dominated state towards Cameroon’s so-called Anglophone problem. Being Anglophone in Cameroon goes beyond language to encompass a cultural identity that has a history linked to Britain and a set of distinctive institutions. For decades, many Anglophones have felt that the Francophone-dominated state’s policy of assimilation has attempted to erode that identity, and feel treated as second-class citizens within Cameroon, with marginalization experienced in the socio-cultural, political, economic, and linguistic fields.
Anglophone opposition has risen at different times. In the early 1990s, political liberalization enabled Anglophone-specific trade unions, interest groups as well as political groups to emerge, advocating for Southern Cameroonian interests, notably the Southern Cameroons National Council (SCNC). Of particular note were the All-Anglophone Conferences (AACI and AACII) held in 1993 and 1994 and attended by more than 5,000 delegates from Anglophone organizations and associations. AACI’s Buea Declaration I called for a return to two-state federalism, but total disregard of such demands by Biya’s regime led to secession being placed on the agenda in the declaration from AACII. The aim was stated as “the restoration of the autonomy of the former Southern Cameroons which has been annexed by La République du Cameroun.” SCNC in particular advocated for secession, but notably by non-violent means through the “force of argument rather than the argument of force.”
These long-standing grievances re-emerged in late 2016 with peaceful protests by lawyers and teachers against the francophonization of the legal and educational systems in the English-speaking regions. Lawyers were unhappy about the appointment of French-speaking magistrates educated in civil law and unfamiliar with common law, as practiced in the Anglophone regions, while teachers were concerned about the influx of French-speaking teachers. Separately, they undertook strike action and demonstrated in October and November 2016 respectively. These peaceful protests were violently dispersed by the security forces using tear gas and bullets, with some fatalities and many arrests. Following this violence, the Cameroon Anglophone Civil Society Consortium (CACSC) was established, advocating a return to pre-1972 two-state federalism. CACSC initiated “Operation Ghost Towns Resistance,” with closures of schools and businesses in the Northwest and Southwest regions on selected days as a tactic of non-violent resistance. The government’s response in January 2017 was to ban the Consortium, along with SCNC, and arrest their leaders on treason and terrorism charges, as well as a three-month internet blackout. Writing in April 2017, sociologist Piet Konings and anthropologist Francis Nyamnjoh likened the Francophone-dominated state’s approach to Anglophone grievances to that “of a workman whose only tool is a hammer and to whom every problem is a nail.” One consequence was that separatist voices became stronger.
State repression of, first, legitimate expression of grievances and, second, peaceful advocacy of federalism, led to increasing calls for secession of Southern Cameroons. Following the banning orders, existing separatist organizations, largely active in the diaspora, came together to form the Southern Cameroons Ambazonia Consortium United Front (SCACUF), with Sisiku Julius Ayuk Tabe, previously involved in CACSC, appointed as chairperson. While advocating secession, his strategy remained non-violent, echoing SCNC’s position in the 1990s. Divisions shortly became apparent, however, with Ayaba Cho Lucas, leader of the Ambazonia Governing Council (AGC), one of SCACUF’s constituent organizations, advocating armed struggle.
While SCACUF’s leadership remained largely outside of Cameroon, notably in Nigeria, civil disobedience continued in the Northwest and Southwest during 2017 with widespread support for the weekly “Ghost Town” days. The state’s response was military occupation, with arbitrary arrests and detention of young men on the pretext of supporting secessionism. In response, the AGC announced the deployment of their armed wing, the Ambazonia Defence Forces (ADF), with the first attack on September 9, 2017 in which three soldiers were killed. On October 1, 2017, the anniversary of Southern Cameroons’ independence from Britain, the independent Republic of Ambazonia was declared by SCACUF, alongside mass demonstrations in which 17 people were killed by state security forces. The SCACUF transformed itself into the Interim Government of Ambazonia (IG) on October 31, with Ayuk Tabe as President. The state intensified its militarization of the Anglophone regions, and on November 30, 2017 President Biya declared war on the secessionists, described as “terrorists.” Armed conflict continues to date.
War causes misery. Over five years later, the impact on the four million population has been severe. While figures are approximate and underestimated, at least 6,000 people have been killed and hundreds of villages razed, with 1.1 million people displaced by 2020, including 70,000 registered refugees in Nigeria, and 2.2 million in need of humanitarian assistance. School closures have caused education disruption to hundreds of thousands of children for years. Gross human rights violations committed by both warring parties have been widely documented, including by the Cameroon-based Centre for Human Rights and Democracy in Africa. The military is accused of extrajudicial killings, arbitrary arrests, disappearances, unlawful imprisonment, torture, as well as the burning and destruction of homes, schools, and health centers. Armed separatist groups are accused of kidnappings and extortion of civilians, killings of alleged informants (so-called “blacklegs”), and beatings of teachers and students for non-compliance with the school boycott. Evidence indicates that the security forces are responsible for a greater proportion of the various atrocities, with the World Bank stating that government forces have caused 10 times as many civilian deaths as separatist armed groups. Rape and other forms of sexual violence have increased dramatically, described as “pervasive” and “rampant” in a UN report, and perpetuated with impunity by the military and non-state armed groups. As in other conflicts, rape has been used as a weapon of war, terrorizing local communities into submission and grossly violating women and girls.
The Cameroon government’s approach to the war was described recently as one of “hammer and lies,” in other words, military force alongside a disinformation campaign. The government continues to fight a counter-insurgency war, while simultaneously denying that a conflict exists, preferring to refer to a “security crisis” in the English-speaking regions, one which is largely resolved with a Presidential Plan of Reconstruction and Development in place from 2020. The lie to this is evident by Biya’s deployment of a new military commander and special elite forces to the two regions in September 2022. Essentially Biya seeks a military victory by crushing the separatists. But how strong is the Ambazonian movement and what threat does it entail to the Cameroonian state?
Like similar movements, the Ambazonian movement has political and military wings. Leaders of the political wing are mainly based in the diaspora or imprisoned in Cameroon, with significant divisions between them. The military forces, known locally as the “Amba Boys,” comprise up to 30 armed groups across the two regions. Initially, the main political split was between the Interim Government (IG) led by Ayuk Tabe and the Ambazonia Governing Council (AGC) led by Cho Lucas. However, in January 2018 Ayuk Tabe and nine other IG leaders were arrested in Nigeria and extradited to Cameroon. They were detained without trial, then all sentenced to life imprisonment by a military tribunal in August 2019. With Ayuk Tabe detained, US-based Samuel Ikome Sako was elected as interim IG president. However, infighting ensued with a split in early 2019 between “IG Sisiku” and “IG Sako.” Despite its initial rivalry with the Interim Government, the AGC supported the IG Sisiku faction and formalized cooperation ties in August 2019. In 2021, the AGC also formed an alliance with Biafran separatists in Nigeria, the Indigenous People of Biafra. Cho Lucas has also encouraged Francophone Cameroonian groups to take up arms against Biya’s regime.
Militarily, while the Ambazonia Defence Forces (ADF) remains the largest group, there is a proliferation of smaller armed groups, for instance, the Southern Cameroons Defence Forces (SOCADEF), Ambazonia Restoration Forces, Red Dragons, Tigers of Ambazonia, and Vipers, comprising around 4,000 fighters in total. Allegiance with the political factions varies, with Red Dragons and SOCADEF believed to be aligned with IG Sako, for instance, while other armed groups operate quite independently. Initially, equipment was rudimentary, including hunting rifles and machetes. But the armed groups’ combat strength has increased through the acquisition of more sophisticated weaponry, including improvised explosive devices (IEDs) and rocket launchers, with a greater intensity of operations. Precise figures are unknown, but both sides have lost considerable numbers of combatants.
The fragmentation of political leadership has led to disagreements and multiple policy directions. In response to the Swiss peace initiative, IG Sako formed the Ambazonia Coalition Team (ACT) in September 2019 to present a joint platform for negotiation. However, IG Sisiku refused to participate. Opposing policies over “lockdowns” (or “Ghost Towns”) and the so-called “liberation war tax” on civilians also indicate a lack of unity. The multiplicity of voices over policy directions is symptomatic of the disconnect between the diasporic leadership and their militias in Cameroon, with the absence of political authority on the ground.
While the war is unremitting and the government was forced to deploy special elite forces in September 2022 to bolster its counterinsurgency efforts, fragmentation and division amongst Ambazonian groups have weakened the movement.
As recently stated, the international response to the Cameroon Anglophone conflict has been “feeble.” with little or no pressure from Western governments and no political intervention from the AU or UN. Why is this? The Cameroon government’s “lies and disinformation” strategy has been relatively successful in hiding the reality of the war, and Western governments have prioritized economic and geo-strategic interests that require friendly relations with Biya’s regime. For the UK, for example, this included an off-shore natural gas deal in June 2018, and a UK-Cameroon Economic Partnership Agreement in April 2021. For France, its longstanding Françafrique policy prohibited criticism of the Cameroon government, evident in July 2022 when President Emmanuel Macron’s visit made no public reference to the Anglophone conflict. Stronger statements have come from the US Congress. House of Representatives’ Resolution 358 (July 2019) and Senate Resolution 684 (January 2021) which called for both warring parties to end all violence and pursue broad-based dialogue to resolve the conflict. However, neither congressional resolution has led to any significant action by the US government.
The African Union’s lack of response contrasts with the AU-led peace process in the Tigray conflict in Ethiopia, for instance. Cameroon’s membership of the AU’s Peace and Security Council has ensured its internal conflict has not been discussed. Similarly, successful lobbying by Cameroon’s diplomats has kept the conflict off the agenda of the UN Security Council.
More than forty years of autocratic and centralized rule under Paul Biya means that the Francophone-dominated state is intent on maintaining its control over Southern Cameroons, with little or no concession to Anglophone grievances, and currently unwavering from pursuing a military solution to a political problem, whatever the cost to the English-speaking population. The lack of international pressure has contributed to enabling the regime’s hard-line stance. However, the outlook of the Anglophone population would seem to have changed irrevocably. The unprecedented military occupation, repression, and violence from the Francophone-dominated state have given rise to a shift in consciousness. Although the desire for peace is profound, the political status quo is no longer tolerable. Any peace settlement will necessitate that the Anglophone population determines its future, for instance by means of an internationally-supervised referendum on constitutional arrangements, with options including federalism and independence.
If the decolonization process of the Southern Cameroons in 1960 and 1961 was botched and contravened the original UN Trusteeship Agreement, then decision-making on Southern Cameroons constitutional future has to be fully democratic some 60-plus years later.
Worked to Death: Lack of a Policy Framework Fails Kenyan Migrants in the Gulf
The government’s failure to adopt a labour migration policy has left Kenyan migrant workers in the Gulf region open to abuse, torture and even death.
Reports by various institutions including Parliament, the Ombudsman and NGOs have established that the Kenyan government’s failure to develop a comprehensive policy and legal framework continues to put at risk thousands of Kenyan migrant workers in the Middle East and especially in the Gulf.
There could be anywhere between 100,000 and 300,000 Kenyan migrants in the Gulf countries. No one knows for sure as the Kenyan government doesn’t keep accurate records, though its estimates are at the lower end of the spectrum. Most are unskilled laborers, in sectors such as construction, hospitality and domestic work, and their numbers are expected to keep growing given the Gulf’s high demand for inexpensive foreign labour. Labour abuses in the region are widespread, systemic and deadly. And while the government has developed policies enabling Kenyans to seek employment abroad, it has been much slower to act to protect them once they are there, seemingly more interested in the remittances they send home rather than in their safety.
Concerns over the safety of workers, and especially the safety of domestic workers, in the Gulf and the Middle East in general are not new. In 2014, following the deaths of Kenyan workers and accusation of widespread abuses, the Kenya government suspended the export of workers to the region, revoking the licenses of 930 recruitment agencies involved in the trade. The ban was only rescinded in 2017 following the signing of bilateral labour agreements with Qatar and Saudi Arabia. However, the issues that had precipitated the ban, and the government inaction that had preceded it soon resurfaced.
At least 93 Kenyans died while working in the Middle East between 2019 and 2021, many of them in Saudi Arabia, the third largest source of remittances with Kenyans in that nation sending back KSh22.65 billion in the first eight months of 2022 alone. A study by the University of Chicago released in December 2021, whose findings reflect the experiences of Kenyans who had returned from the Gulf, found that “practically everyone heading to [Gulf Cooperation Council member states, Saudi Arabia, Bahrain, Kuwait, Oman, Qatar, United Arab Emirates]… would become a victim of forced labour at some point”. Over 98 percent of respondents claimed to have experienced some form of workplace abuse, or had been unable to leave an abusive employment situation. The abuses included physical violence, threats, restrictions on movement and communications, being forced to do something they did not want to do, denial of food and shelter, unfair and unsafe work environments, and deceptive contracts.
Parliament and other constitutional bodies have noted the absence of laws and regulations to secure the welfare of Kenyan labour migrants, and even recommended as recently as November last year, that labour migration to the Gulf be temporarily stopped until these are addressed. However, much of the focus has been on streamlining the system for recruitment and processing of migrants heading to the Gulf, rather than on fixing the conditions they face when they get there. For example, whilst the report of the Senate Standing Committee on Labour and Social Welfare, which visited the Middle East in April 2021, noted Kenya’s lack of a policy and a law to govern the migration process, its main thrust appears to be about reforms Kenya can make to make it easier for migrants to secure jobs. In its account of meetings with Saudi labour officials and employment agents, there is no mention of the deaths of Kenyans nor of the tribulations of those desperate to leave the Kingdom.
Still the committee recommended the immediate suspension of migration of domestic workers to Saudi Arabia until the Executive established the status of all domestic workers in Saudi Arabia and undertook a census of all Kenyans in Saudi prisons and detention centres with a view to their repatriation to Kenya. It also demanded the re-establishment of labour offices and safe houses in Jeddah and Riyadh, recognition of welfare associations in Saudi Arabia, and a review of the regulation of private employment agencies, including a minimum deposit to ensure swift repatriation of any domestic worker in distress.
Here there seems an implicit acceptance that Kenyans going to Saudi Arabia and elsewhere in the Gulf will be subjected to abuse and, rather than demand action from the governments in the region to stop it, the focus seems to be on mitigation. The aim seems to be enabling Kenyans navigate an abusive system rather than pressuring the Gulf states to end the abuses. Thus the report pushes for finalization of a labour migration policy and a Labour Migration Management Bill mooted in 2021, and notes that “labour migration to key labour destinations has been happening in the absence of formal agreement or MoUs. And where they exist, the agreements fall short of taking care of the interests of workers”. It stresses need to better regulate recruitment processes and recruitment agencies in Kenya, and to streamline pre-departure training for migrating workers as well as systems for their identification and registration on arrival. It also recommends improved linkages between relevant ministries in Kenya and those in destination countries. A September 2022 Report on Systemic Investigation into the Plight of Kenyan Migrant Domestic Workers in the Kingdom of Saudi Arabia, the Commission on Administrative Justice (the Ombudsman) came to similar conclusions.
The Kenya and Saudi Arabia Bilateral Labour Agreement on the recruitment of domestic workers was adopted in January 2016 and was meant to secure the interests of both domestic workers and employers. While Kenya was tasked with ensuring proper documentation and screening of departing workers, Saudi Arabia was to take measures to ensure that the welfare and rights of employers and domestic workers employed in Saudi Arabia are promoted and protected in accordance with the applicable laws, rules and regulations.
The Saudi government was also to ensure implementation of the employment contract, provide 24-hour assistance to the domestic worker; endeavour to facilitate the expeditious settlement of any contractual dispute arising and ensure that workers are permitted to remit savings derived from their wages.
However, going by the number of abuses and deaths, Kenyan domestic workers have not benefited from the agreement, despite the Ministries of Labour of both countries being designated as the implementing agencies.
In its analysis of the level of implementation of the Bilateral Labour Agreement, the Ombudsman found that the two governments have not implemented many of the provisions. For instance, nearly 7 years after the adoption of the Agreement, the Joint Technical Committee has yet to be constituted and as a result, the required annual meetings have not taken place. Moreover, although the Commissioner of Labour told the Ombudsman that a review had been initiated, it has not been completed as required by law.
Within government, ministries have been passing the buck and it is unclear who between the Foreign Affairs and Labour ministries bears overall responsibility for the mess. The Ministry of Foreign Affairs has told Parliament that it had in July 2021 written to the Ministry of Labour recommending a temporary ban on the recruitment and export of domestic workers to Saudi Arabia and describing the situation as “dire”. However, the Labour Ministry rejected the advisory, with then Cabinet Secretary Simon Chelugui saying the local job market could not absorb all new workers. Chelugui’s comments appeared to prioritise the remittances from the Middle East, which at the time stood at KSh120 billion, at the expense of Kenyans’ safety and welfare in the Gulf states. ‘
“We will address the mistreatment of our people because from the statistics we have, about three to four per cent of Kenyans working in those countries are affected. Over 104,000 Kenyans are working in those countries who are doing their jobs happily,” Chelugui said, adding that there are “many social-economic benefits we gather from this migration”.
On the other hand, the advisory from the Foreign Affairs Ministry is an admission of the failure to implement the Diaspora Policy launched in 2014 which recognizes the constitutional imperative for government to protect citizens abroad, and requires it to develop a registry of Kenyans outside the country as well as review the 2007 Labour Institutions Act and gazette rules regulating operations of private employment agencies.
And while the Commissioner of Labour claims to have begun be reviewing the bilateral labour agreements, the senate in November was scheduled to debate a motion demanding the Foreign Ministry conduct the review.
The new Cabinet Secretaries for Labour and Foreign Affairs have committed to ending the problem once and for all. Dr Alfred Mutua chose Saudi Arabia as his first overseas trip as Foreign Affairs Cabinet Secretary, but again suggested the problems facing Kenyan migrants start back home in Kenya. Following meetings with victims, agents, and Kenyan and Saudi officials, he blamed “massive corruption in the way Kenyans are prepared before they leave to be domestic workers in Saudi Arabia and follow up of Kenyans when they arrive”. According to him, the behaviour of Kenyan “cartels” and agencies was a major concern to everyone, “including the Government of Saudi Arabia”. There was no mention of the seeming lack of prosecutions of Saudi employers who have abused and murdered dozens of Kenyan workers, or compensation for their families. Instead he promised the yet-to-be-formed Joint Technical Committee would start its work on November 17 to fast-track “labour issues”.
The Ombudsman highlighted the creation of the Philippine Overseas Employment Administration by an amendment of the Migrant Workers and Overseas Filipinos Act of 1995 in a bid to improve the standard of protection and promotion of the welfare of migrant workers, their families and overseas Filipinos in distress. This is not to say that Filipinos do not face challenges in the Middle East; they do and in fact, in January 2018, former President Rodrigo Duterte threatened to ban labour migration to the Middle East.
However, the Filipino government has taken steps to engage directly with the governments in the Gulf region to protect its nationals. In May this year, Philippines Foreign Affairs Secretary Teodoro L. Locsin Jr lauded the labour reforms in Bahrain and Saudi Arabia that protect Filipinos and encouraged other countries to follow suit. According to Philippines News Agency, the country collaborated with Bahrain in 2018 to provide flexible pathways to migration, leading to the issuance of flexible visas that regularized more than a thousand undocumented Filipinos. The government also invested some US$1.5 million to purchase flexi-visas for over a thousand Filipino migrant workers.
The Sri Lankan government has, for its part, developed a framework for labour migration that is enshrined in the Sri Lanka Bureau of Foreign Employment Act, 1985. This was done through the creation of the Ministry of Foreign Employment Promotion and Welfare to articulate State Policy regarding Sri Lankan citizens employed in other countries.
However, any engagement with the Saudi and other Gulf governments must recognize that the abuse, rape and killing of Kenyan migrant workers is happening within their jurisdiction and largely with their acquiescence. Reforms to systems within Kenya that does nothing to address their failure to provide justice and redress, including domestic reforms to hold perpetrators to account, will not protect Kenyans travelling there. Especially given the desperation of Kenyans to secure jobs, and the legendary corruption of the state, it is likely that there will continue to be incentives for people to circumvent bans and sidestep regulations. Ultimately the problem is not in Kenya but in the Gulf where most of the abuse is allowed to take place within families and behind closed doors.
The impotence of the government was highlighted by former Labour CS Chelugui during his vetting to become Cooperatives minister: “It is an issue that has not satisfied us as a country. We’ve been told some of the victims were (. . .) in breach of the laws of that country, but we cannot confirm these explanations since I have no jurisdiction there,” he told the vetting committee after Deputy House Speaker Gladys Boss questioned why many migrant workers end up dead in Saudi Arabia. Appearing before the Labour Committee in November, his successor, Florence Bore, blamed “insufficient budget, lack of enabling legislation and inadequate labour personnel” for the failure to protect Kenyans working in the Middle East.
For his part, PS Kamau has termed Saudi traditions around housework “very ancient” and suggested that the problem was actually the Kenyan victims’ lack of subservience! The sentiment encapsulates the Kenya government’s reluctance to take on their Saudi counterparts. And Kenyans will continue to pay the price.
This article is part of a series on migration and displacement in and from Africa, co-produced by the Elephant and the Heinrich Boll Foundation’s African Migration Hub, which is housed at its new Horn of Africa Office in Nairobi.
New Wine in Old Bottles: EAC Deploys Regional Force to the DRC
For the first time since its reformation in 1999, the East African Community is sending a regional force to the DRC. But can it win where others have failed?
The M23 rebel group was formed in 2012 as an offspring of the National Congress for the Defence of the People (CNDP). The group’s reason to wage war against the government of the Democratic Republic of Congo is to protect the Congolese Tutsi and other ethnic communities in North and South Kivu from persecution and discrimination. After 10 years of inactivity, the M23 has once again become a thorn in the flesh of the DRC government—especially in the province of North Kivu—by conquering territories and displacing populations in the process. According to the United Nations, over 200,000 Internally Displaced Persons have been forced to flee since March 2022 when the latest flare-up began. On June 21, the East African Community Heads of State agreed to send the East African Community Joint Regional Force to the Democratic Republic of Congo to help quell the fighting sparked by the re-emergence of the M23 rebel group. This was formalised through a Status of Force Agreement (SOFA) signed on September 11 between DRC President Felix Tshisekedi and the EAC Secretary General Peter Mathuki.
The decision to set up the regional force is the first military deployment the EAC has undertaken since its reformation in 1999. According to the International Crisis Group, the initial plan indicated that the regional force would be made up of between 6,500 and 12,000 soldiers with a mandate to “contain, defeat and eradicate negative forces’’ in the eastern DRC. In addition, Kenya was to take the command role, to be stationed in Goma, North Kivu’s capital. The force would cover the four provinces of Haut-Uélé, Ituri, North Kivu and South Kivu and the mandate was to last for an initial six months.
After months of uncertainty over the deployment of the regional force, on November 2nd 2022, Kenya became the first country to send troops to the DRC. This was followed by the announcement by Uganda and Burundi that they would be sending contingents. As the EAC deploys the force, reports on what exactly is the mandate of the regional force have been inconsistent. This being the first deployment by the EAC, its success and exit will rely heavily on the handover of responsibilities to an effective Armed Forces for the Democratic Republic of Congo (FARDC). With incomplete security sector reforms, the FARDC remains as politicised, divided, and ineffective as ever. Considering this reality, an improvement seems unlikely in the short-term while the EAC regional force is in place. Therefore, there is a likelihood that the EAC force may end up extending its stay much longer than the initial guidelines provided. This will not be a surprise; AMISOM’s mandate in Somalia was an initial 6 months to 2 years before handover to the UN.
Historically, the AU and UN military intervention missions have been involved in cyclical internal conflicts; MONUSCO in the Democratic Republic of Congo, and missions in South Sudan, Central Africa Republic, Somalia, and Mali come to mind. No matter how precise and effective the interventions have been, they have never been the magic wand to resolve the underlying internal political challenges. They tend to prolong their stay, a perfect case being MONUSCO which was first deployed in 1999 and is still in the DRC.
There is a likelihood of the troops engaging in illegal smuggling to ‘’pay themselves’’, ending up becoming part of the problem rather than the solution.
As the EAC regional force continues to take shape, there are multiple underlying and interconnected challenges facing eastern DRC today. First, the M23 group is not the only armed group that is fighting in that region. According to the Kivu Security Tracker Report of 2021, more than 120 armed groups operate in the entire eastern DRC— in parts of North Kivu, South Kivu, Ituri and Tanganyika. Generally, the conflict in the eastern DRC has been characterised by fragmentation among the rebel groups. Many of the groups identified by the KST report, have either been in existence for a long period or are splinter groups of the major groups. This makes it difficult to pinpoint the goals each group aims to achieve. More importantly, these armed groups are all driven by the need for survival which relies on extracting the rich mineral resources in the region and protecting their territories. Recent history has shown that outside intervention has been unsuccessful in addressing the security challenges and, therefore, the EAC regional force already has its work cut out.
Second, President Felix Tshisekedi has not given much needed attention and priority to the conflict in the east since coming to power. President Tshisekedi’s election remains contested, with allegations that it did not pass the democracy threshold test. His opponents believe that he was unduly announced as the winner due to the influence of former President Kabila. This has greatly contributed to his legitimacy being challenged and his influence reduced. As a result, his initial focus was geared towards managing the fledgling coalition he entered into with former President Joseph Kabila which ended up taking up much of his time. This might have distracted him from the much needed security sector reform. According to a January 2022 report by the Governance in Conflict Network, President Tshisekedi’s government has not undertaken a full and comprehensive security sector reform to improve capacity and efficiency.
This slow process of transforming the security sector is perhaps informed by the history that African presidents have with armies. As has been the norm, many African presidents have shown little interest in developing effective armies as they are viewed as potential threats to their hold on power. For instance, the 2013 peace deal signed between M23 and the Congolese authorities involved giving amnesty to the group members and reintegrating some of them into the FARDC. But President Tshisekedi never acted on the deal and according to reports, calls for talks have been ignored by Kinshasa. Faced with a re-election in 2023, is his inaction part of his strategy to get re-elected? Some analysts believe the current push to regionalise the conflict fits into the argument that whipping up nationalist sentiment is aimed at scoring political goals to gain legitimacy across the country. Thus, his recent focus and interest in the eastern DRC conflict may stem from the realisation that the elections are near and he needs an agenda around which to centre a rallying call for his campaign.
Third, the biggest elephant in the room remains the key objective of the EAC regional force being deployed to the eastern DRC. What are the key objectives of the countries that are contributing troops to the regional force? And what will be different from their previous involvement in the DRC? Each EAC member state has in one way or another deployed troops in the DRC. In 2021, President Tshisekedi granted Uganda authority to deploy its troops in Ituri and North Kivu. According to Kampala, the main aim of this deployment was to pursue the Allied Democratic Forces which were responsible for the increased bombings in Uganda. Along the same lines, President Tshisekedi allowed Burundi troops to enter the DRC to fight the RED-Tabara rebel group that is opposed to the Bujumbura government. In 2022, Kenya deployed around 200 soldiers to join MONUSCO under the Quick Reaction Force. Tanzania has its troops under the Force Intervention Brigade which is also part of the MONUSCO peacekeeping force. And finally, Rwanda has long held that the remnants of the 1994 genocide perpetrators, the Forces démocratiques de libération du Rwanda (FDLR), still pose an existential threat to Kigali and thus the need to always intervene.
Recent history has shown that outside intervention has been unsuccessful in addressing the security challenges.
Dr Colin Robinson, a researcher on African militaries, argues that the foreign military interventions being witnessed in the DRC are more for the deeply entangled and vested interests of neighbouring countries than for the citizens of the DRC. Dr Robinson asks, “What do Kenya, Burundi, Uganda, and Rwanda want to achieve?” According to him, part of the agenda is not so much to make the eastern DRC peaceful but is an opportunity for the neighbouring countries to gain better access to the DRC’s rich resources. He contends that the deployment alone will not address the security situation in the eastern DRC unless the FARDC is transformed, saying that, as currently constituted, the FARDC often behaves just like any other splinter rebel group, exploiting the mineral resources and incapable of protecting the DRC’s territorial integrity. However, he also believes that transforming the FARDC to effectively function does not guarantee peace as this might force the neighbouring countries to support rebel groups in order to continue benefitting from exploiting the resources in the DRC.
The EAC member states contributing troops to the regional force will need to harmonise their various interests if they intend to achieve their goals. Otherwise, they will be fighting their separate wars for their interests under the EAC banner. Despite the agreement having Kenya assume the command, the country’s late entry into the DRC makes it difficult to see how Kampala, Bujumbura, Kigali and the FARDC will allow a newcomer to take over influence. Another challenge that has not been factored in is whether command of the force will rotate among the member states or whether it will be drawn from the country contributing the largest number of troops. There is need to address some of these teething problems if the regional force is to achieve its mandate.
Fourth, there have been debates about where the funding for the EAC regional force will come from. The EAC is not known for robust and timely contributions towards the running of its operations. In a recent address to the Kenya Parliament, Defence Cabinet Secretary Aden Duale said that Kenya was to fund its contingent to the tune of KSh4.5 billion (approximately US$37 million) in the first six months. Kenya is the largest economy in the region and can to some extent afford to fund its adventure in the DRC. However, bearing in mind that it has another commitment of troops in Somalia, the country may need additional support from other partners like the EU and the US. There is a high possibility that some troop-contributing countries may struggle to fund their troops in the long run. The risk with this is that there is a likelihood of the troops engaging in illegal smuggling to ‘’pay themselves’’, ending up becoming part of the problem rather than the solution.
On a positive note, the M23 seems to have accepted the calls for a ceasefire from the heads of state mini-summit under the Luanda process. This was followed by the group requesting to speak to the EAC-appointed facilitator, former President Uhuru Kenyatta. This is a timely call that should not be ignored as it will avert the possibility of violent action in addressing the conflict.
The EAC is not known for robust and timely contributions towards the running of its operations.
Finally, the intervention of the regional force should not be an isolated act but should be accompanied by a political process. The continued isolation of the M23 from the peace talks negates the whole principle of inclusivity and if indeed the EAC wants to send a signal that it can justify why the DRC joining the EAC was the best idea, there is a need to be magnanimous and to involve all the belligerent forces in the conflict. The perception that the EAC is taking sides by selecting rebel groups to invite to the peace talks only contributes to the misinformation pervading the eastern DRC that it is simply a Trojan Horse for neighbouring states to exploit the country’s riches.
Overall, the EAC’s decision to set up a regional force to intervene in the eastern DRC is a positive sign that it is asserting its security role and slowly transforming itself from a purely economically-driven integration bloc. There is an emerging regional security complex in the East African region whereby an intractable conflict such as the one witnessed in the eastern DRC can engulf the entire region. However, to achieve the much needed stability, one hopes that the administration in Kinshasa is ready to first galvanise its authority by becoming ready to govern in partnership with different actors in DRC. Second, it must work together with the neighbouring states and other partners to address the proliferation of armed groups in the country. Renewed political agreement among these competing groups and Kinshasa’s willingness to work together with its neighbours could be the game changer.
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