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BACK TO THE FUTURE: Africa and the new Cold War

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The neoliberal order that powered economic growth and technological progress between 1989 and 2008 is broken. This system, which not only provided the architectural designs to Reaganomics and Thatcherism, but also created a nomenclature peppered with terms such as free trade, privatisation, deregulation, open markets, and reductions in government spending, has now been proven bankrupt. The International Monetary Fund (IMF) and the World Bank, its chief merchants, once proudly hawked it to governments across the globe as the elixir to societal development and global peace and order. However, today it has collapsed under the weight of its own contradictions.

Joseph Stiglitz, the Nobel Prize-winning economist and former adviser to US President Bill Clinton, opined in a Business Insider interview that neoliberal ideology — the idea that markets function best when left alone and that an unregulated market is the best way to increase economic growth — has pretty much been disproved. Neoliberal ideology has created deep inequality and enriched a few. It also led to the 2008 financial and economic crisis and the Great Recession, delivering austerity to millions of people.

The “neoliberal euphoria” that has gripped the world since the 1980s has now been falsified. A revealing 2015 report by the Bank of England disclosed that between 1980 and 2015 – the entire course of neoliberal globalisation – growth remained more or less static. Another report by the Pew Research Centre also exposed that in the same time frame, the real wages of most Americans barely budged and that the average American today is actually poorer than her counterpart of four decades ago. Over the same forty-year period, the richest people had, on average, 35 million dollars each in 1976, whilst in 2014, they had 420 million dollars each- a twelve-fold increase.

In effect, the fourth industrial revolution, which begun at the turn of the century, builds on the digital revolution; characterised by machine learning and artificial intelligence, it is the final nail in the coffin of neoliberalism. This is because the central emphasis on the “atomised individual” embodied in neoliberalism has been replaced by machines, thereby rendering the human useless and with that neoliberalism as well. After all, as Professor Yuval Noah Harari aptly puts in his seminal work Homo Deus: “Liberalism did not become the dominant ideology simply because its philosophical arguments were the most valid. Rather, liberalism succeeded because there was abundant political, economic and military sense in ascribing value to every human being.” Neoliberalism, therefore, will have a difficult time selling itself, because the masses will lose economic importance.

Joseph Stiglitz, the Nobel Prize-winning economist and former adviser to US President Bill Clinton, opined in a Business Insider interview that neoliberal ideology — the idea that markets function best when left alone and that an unregulated market is the best way to increase economic growth — has been pretty much been disproved.

A recent study conducted by two Oxford researchers indicates that about 47 per cent of total employment in the United States is at risk, perhaps over the next decade, which, according to the study, will be characterised by a much broader scope of job destruction at a much faster pace than labour market shifts experienced in previous industrial revolutions.

These dawning realities have led to grave uncertainty amongst the populations, particularly in the global North, causing what the writer and academic Elif Shafak christened “the age of angst”. The rapid changes have upset the social order. People feel that their incomes and status are threatened, which has led to the rise and flourishing of movements heavy on ethnic hatred, imagined conspiracies and created visions from a distorted remembering of the past. In the heyday of European fascism, the threat came from the enormous job losses of the Great Depression, which in Germany followed the humiliating Versailles Treaty and ruinous inflation that wiped out savings. Today, among many of Donald Trump’s supporters, the threat comes from declining or stagnating wages, rapid automation and globalisation that make people feel that their jobs are ever less secure. In Europe, the “Brexit” vote by the United Kingdom to leave the European Union is a fitting exemplar of these phenomena.

Back to the Cold War

As always, power politics is still the major game in town. Another chapter in the rise and fall of the great powers – this time played by the United States, China, and Russia – has just opened. America is, however, still the world’s global superpower.

In recent years, relations in this love triangle between China, the United States and Russia have been driven to a post-Cold war low by disagreements between the United States and Russia over issues such as Russia’s role in Ukraine, its role in the war in Syria and its alleged interference in the 2016 US presidential elections and between the United States and China over the disputed South China sea and unfair trade practices. There is also a rumoured dalliance between Russia and China, both of which have a desire to challenge Washington’s dominant global position and to limit American power.

Trump’s administration, with its “America first” policy, seems to have recently exacerbated the issue. On December 18, the US unveiled a national security strategy that states that China and Russia are challenging American power, influence, and interests, and are attempting to erode American security and prosperity. The report further says that Russia and China “are determined to make economies less free and less fair, to grow their militaries, and to control information and data to repress their societies and expand their influence”.

People feel that their incomes and status are threatened, which has led to the rise and flourishing of movements heavy on ethnic hatred, imagined conspiracies and created visions from a distorted remembering of the past.

Russia and China have, however, criticised the US for its security strategy. Dmitry Peskov, Russian President Vladimir Putin’s spokesman, said that the new strategy has an “imperial character” and accused Washington of clinging to a “unipolar world”. The Chinese foreign ministry also counseled the US to abandon what it dubbed as a “Cold War mentality”, opining that China has always been a contributor to global development and a protector of the international order. The document was released at a juncture when US relations with China are at a post-Cold War low. Moreover, with the recalibration of the US to a global competitive order and a focus on America’s sovereignty and power, not engagement abroad, creates conditions – as witnessed during the Cold War – for a real politik-type foreign policy to prevail. Without moral or ideological considerations, the effects of this will be cataclysmic in the near future.

Colonialism 2.0

Ironically, it is when the West is weak that it rears its brutish Hobbesian tendencies; other nations, more so the developing nations, have reason to worry. From the 17th to the 19th centuries, when the world was being colonised by the European imperial powers, the two richest countries in the world were India and China, together accounting for over 50 per cent of the world’s GDP. And yet the two giant Asian nations ended up poorer after the colonialists gave them their independence in 1947 and 1912, respectively.

Similarly, facing economic uncertainty at home and challenges to it its global pre-eminence, the West is once again in a menacing mood. For the global South, Cold War-type posturing and a new economic race has been threatening a new type of colonialism and a transactional foreign policy posture. This seems to be a repeat of history. In the early 1960s, when a number of African states gained independence, the Cold War’s spill-over effect on the continent ensured a slew of conflicts between and within neighbouring states on the platform of ethnic bias and nationalism. A hoped- for bright future was eclipsed by the rise of despots and oligopolies who bled the continent over the course of the next three decades.

Ironically, it is when the West is weak that it rears its brutish Hobbesian tendencies; other nations, more so the developing nations, have reason to worry.

Today, after nearly 60 years of sovereign rule, countries such as Uganda, Rwanda, Burundi and Kenya have declined to vote against President Donald Trump’s Jerusalem policy at the United Nations for fear of losing billions of dollars in US funding. In 2016, Kenya received $632 million as economic aid and $468 million for other programmes from the United States, and Uganda, which was present but chose not to vote, received $741 million.

The Democratic Republic of the Congo, the world’s largest producer of cobalt, and which accounts for roughly 53 per cent of global production of the metal used in all rechargeable batteries used in mobile phones and other devices, is experiencing endemic poverty as China, the US and its allies scramble for its commodities. People live in highly unstable conditions, and children are forced to work in mines, exposed to all sorts of diseases and the possibility of accidental death while the government and the mining companies that employ them look on in silence.

Another chapter in the rise and fall of the great powers – this time played by the United States, China, and Russia – has just opened.

In Kenya, the just-concluded election season was a witness to this form of neocolonialism. International observers, led by former Secretary of State, John Kerry, were more than ready to “accept and move on” following the announcement of the August 8th results. Kerry, then representing the Carter Institute, even applauded the Independent Electoral and Boundaries Commission (IEBC) for a job well done, despite opposition and civil society groups questioning the credibility of the process.

 

However, the international community was left with the proverbial “egg on face” feeling when the Supreme Court of Kenya, led by Chief Justice David Maraga, annulled the elections on September 1, on grounds that the elections were not free, fair and credible and were not conducted within the dictates of the law.

The disposition of the West in Kenya’s elections has many similarities with the Cold War era when the West supported despotic leaders to curb the influence of communism on the continent.

Today, after nearly 60 years of sovereign rule, countries such as Uganda, Rwanda, Burundi and Kenya have declined to vote against President Donald Trump’s Jerusalem policy at the United Nations for fear of losing billions of dollars in US funding.

In 2017, it seems economic interests and curbing China’s influence in the region are the West’s top priorities because China surpassed the US as Africa’s largest trading partner in 2009; Sino-African trade has jumped almost forty-fold from US$10.6 billion in 2000 to nearly US$400 billion in 2016, according to Xinhua. In terms of trade volume, Chinese trade with Africa dwarfs US trade with Africa significantly. It is no wonder that as attention of the country was focused on the August 8 general election, the government of Kenya handed an American firm a tender for construction of what is set to be the single largest road project in Kenya, worth 300 billion shillings.

What next?

The question is what will be Africa’s response to the shifting global hegemony? Africa now finds itself between the devil and the deep blue sea. On the one hand, the West, through institutions such as the World Bank and IMF, still wields significant influence to steer public policy in its direction. Moreover, the soft power that the West exercises through its cultural influence is immense. For instance, the English Premier League is still the most preferred football league in Africa and Hollywood movies are the most watched in Africa.

In 2017, it seems economic interests and curbing China’s influence in the region are the West’s top priorities because China surpassed the US as Africa’s largest trading partner in 2009.

On the other hand, China is no saint either. The combination of rising imports and falling exports has created a rising trade imbalance between sub-Saharan Africa and the rising super power, which the latter doesn’t seem interested in ameliorating. In 2015, according to the China-Africa Research Institute (CARI), Africa’s 54 countries recorded a $34 billion trade deficit with China on total trade of $172 billion.

Though China is willing to provide loans to African governments, there are those who argue that massive repayment systems are China’s way of colonising Africa.

The debt treadmill that some countries in Africa have embarked on posits red flags. Though China is willing to provide loans to African governments, there are those who argue that massive repayment systems are China’s way of colonising Africa. For instance, in Sri Lanka, because the government was unable to pay China’s debt, they had no choice but to sign a concessionary agreement for a joint venture between the China Merchants Port Holdings Company Limited (CMPort), China’s state-owned port company, and the Hambantota port, which is the second largest port in Sri Lanka. According to the agreement, the Chinese company will own 70 per cent of the Hambantota port while the Sri Lanka Ports Authority (SLPA) will own the remaining shares. The Hambantota port was leased to China for 99 years.

Where should we look for meaningful and lasting change in a continent where endemic corruption, ethnic bigotry and mediocrity have hollowed institutions and rendered them ineffective, and where the ethno-nationalist middle classes – who in a democratic society are usually the drivers of change – are part and parcel of the extractive machinery?

Unfortunately, Africa’s whitewashed, Western-educated branded elites don’t possess the vision, the political will or the imagination to aid their people. Since independence, most of our political leaders have preferred to expend their time and energy amassing power and wealth, whilst the African masses exist in deplorable conditions. Past experiences have also indicated that in the face of their own selfish interests, this lumpen bourgeoisie will wholeheartedly act as local watchmen protecting the ill-gotten wealth their foreign masters acquire.

Where should we look for meaningful and lasting change in a continent where endemic corruption, ethnic bigotry and mediocrity have hollowed institutions and rendered them ineffective, and where the ethno-nationalist middle classes – who in a democratic society are usually the drivers of change – are part and parcel of the extractive machinery?

In the struggle for independence and in the subsequent years that followed, Pan Africanism as a movement crusaded against imperialism in all its forms and for the liberation of black Africans from the evils of black enslavement and colonialism. In times of great peril and disillusionment, such as in the times of slavery in America and apartheid South Africa, it provided hope and even summoned visions of a better future for all Africans.

Perhaps the time is ripe again for Africa to revisit this idea and find once more hope, meaning and identity in this juncture of history. Only time will tell whether Africa will act with expediency in the face of its imminent demise.

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The author is an analyst based in Nairobi, Kenya.

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Why Colonial-Era Edicts Will Not Defeat the Coronavirus in Kenya

8 min read. In tackling COVID-19, the Kenyan government appears to be oblivious to the needs of the majority of citizens. What do “social distancing” and “self-quarantine” mean in urban areas where slum dwellers share a single room with half a dozen family members, and where the majority of people work in the informal economy?

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Why Colonial-Era Edicts Will Not Defeat the Coronavirus in Kenya
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Abraham Maslow once said that to those who only have a hammer, the whole world looks like a nail. The reactions of world governments to the coronavirus pandemic is proof of this. Around the globe, it appears that a one-size-fits-all basket of prescriptions – from closing borders to locking down societies – seems to be all the rage. Catchphrases like “social distancing” and “self-quarantine” abound in international media reports and political speeches and proliferate all over social media.

Not to be left out, African governments have followed suit. Last week, the Kenyan president, Uhuru Kenyatta, ordered all schools closed, forbade entry into the country to all but a few foreigners with residence permits and urged citizens to work from home, to wash and sanitise their hands, and to avoid crowding in public spaces, including transport. A few weeks ago, these measures would have seemed extreme. But not today, as the global advance of the virus sparks a stampede for the global system’s exits.

However, while the government’s rhetoric may make sense when viewed from a public health perspective, a closer look reveals the dangers inherent in blindly following the crowd. Take, for example, the situation in the Kenyan capital, Nairobi. Here, two-thirds of the city’s 4.4 million people are crammed into informal settlements, which cover just 6 percent of its land area. Within these crowded slums, entire families are forced to share single-room dwellings. With no running water, conditions are unsanitary and disease is rampant. Many slum residents work in the informal economy, running small businesses or providing casual labour to nearby rich and middle-class housing estates or to factories in the industrial areas. Few have job security or get sick leave.

The city’s public transport system is similarly crowded, unsanitary and chaotic. It is dominated by matatus – privately owned minibuses in which passengers are routinely packed shoulder to shoulder for journeys that, thanks to the city’s horrendous traffic, rarely last less than an hour. Another popular means of getting around are boda bodas or motorcycle taxis, where passengers share filthy helmets (when available) and can sometimes squeeze three to a bike.

In these circumstances, what do concepts such as “social distancing” mean? How practical is it to ask people to work from home? How exactly is someone who shares a single room with half a dozen other family members be expected to “self-quarantine” if they were to fall ill with symptoms associated with COVID-19? How are they to avoid infecting their neighbours or make it to the city hospitals – themselves hopelessly overcrowded and unsanitary at the best of times – without spreading the infection?

These practical considerations do not appear to have troubled President Kenyatta and his mandarins as they regurgitate the advice from the World Health Organization (WHO), which seems to take Western lifestyles as a template for life in the rest of the world. Perhaps this is because the government is fond of issuing “directives” when dealing with social issues, rather than consulting with its citizens. For example, researchers have noted that “approaches to reducing exposure to air pollution in informal settlements…have very little input from the people they target. As a result, they may have a low rate of acceptance”.

The people making decisions exhibit little awareness of or acquaintance with the realities of everyday life for the majority of urban Kenyans. Safely ensconced in their gated estates, accustomed to having the roads cleared for them and to being treated in well-equipped private hospitals (when they have opted not to fly abroad for medical treatment), these folks have no qualms about simply repeating the dictates from global elites. From where they sit, it can seem quite reasonable to propose that those in self-imposed quarantine have their own separate room and bathroom at a time when access to a flush toilet and piped water is a luxury for many of their fellow countrymen.

Public health in the colonial economy

The lack of appreciation for the circumstances of their fellow citizens stems from the fact that for over a century, Kenyan elites have been happy to exploit their poor neighbours for their cheap labour while doing little to invest in public services. The model was made during the colonial period. European authorities were not overly concerned with the health of the African population. In a 1987 paper titled “The 1920s Anti-Yaws Campaigns And Colonial Medical Policy In Kenya”, Marc Dawson notes that prior to 1920, “colonial medical officials were not responsible for the health of the bulk of the African population, only for caring for the health of government employees and European settlers and ensuring that epidemic disease did not disrupt the colonial economy”.

These practical considerations do not appear to have troubled President Kenyatta and his mandarins as they regurgitate the advice from the World Health Organization (WHO)…Perhaps this is because the government is fond of issuing “directives” when dealing with social issues, rather than consulting with its citizens.

Thus the focus of the colonial government was on ensuring that Africans did not carry diseases to work and did not threaten the health of Europeans, not that they were themselves healthy. For example, the outbreak of plague in Kisumu in the first decade of the 20th century elicited a quick response because of the potential for economic disruption, as well as the threat to the small European population. One can see a similar dynamic in the treatment of the poor in Nairobi’s slums today. Like the Africans in colonial Nairobi, their presence in the city is only tolerated because their labour is required. While typically their lives are blighted by disease and squalour, the government is not interested in them unless their illness poses a threat to the economy.

The response of the colonial authorities to the Third Plague Pandemic, which broke out of China’s Yunnan Province in the mid-19th century and spread globally via European steamships and merchant routes, is also illustrative. The pandemic reached Nairobi in 1902, where an outbreak led to the burning down of the Indian Bazaar, the city’s first business district. Nairobi would suffer frequent plague outbreaks over the next two decades. The persistence of the plague, according to Owaahh, “stimulated the first official town planning efforts for Nairobi, although most of the efforts were to segregate Indians whose sprawling townships were thought to be breeding grounds for carrier rats”.

In 1914, a report prepared by Prof. W. J. Simpson proposed not just the segregation of residential and commercial centres, but also, according to the book Indians in Kenya by Sana Aiyar, a “neutral belt of unoccupied land of at least 300 yards around European areas to ensure the healthfulness of the locality”. Following the outbreak of plague in Kisumu in December 1904, according to Health, State, and Society in Kenya by George Ndege, the Under Secretary of State for the Colonies declared that “great care should be exercised in the selection of sites for settlements, in keeping the native and European locations well apart”. Over the years, this segregation of the races has morphed into the class segregation that is a feature of Kenyan cities today.

To tackle the plague, the colonial authorities imposed harsh measures, including forced vaccinations, house burnings and quarantines. The Africans who bore the brunt of these measures were rarely consulted and quickly became loath to cooperate or to report plague cases in their homesteads, knowing it meant the destruction of their homes. This tendency to talk down to the people and to issue directives rather than consult with the citizens has been inherited by the current Kenya government.

Another colonial trait is the preference for quick, short-term fixes rather than long-term investments. When the first mass health survey of the African population was carried out in 1915 in the form of medical examinations of male conscripts for the Carrier Corps, the results sufficiently alarmed the authorities about the poor health situation in the African reserves from where they drew their labour. The main culprits were yaws and heart disease. The long term and more expensive solution would have been to improve the quality of life, especially as yaws has been described as a disease of poverty.

To tackle the plague, the colonial authorities imposed harsh measures, including forced vaccinations, house burnings and quarantines. The Africans who bore the brunt of these measures were rarely consulted and quickly became loath to cooperate or to report plague cases in their homesteads, knowing it meant the destruction of their homes.

However, while the 1920s anti-yaws campaign represented a first attempt by colonial medics to expand provision of healthcare beyond government employees to rural Africans, the government and physicians still chose to do it on the cheap. As Dawson notes, “rather than raising the living standards of the rural population (prevention), the colonial authorities tried to cure the population of yaws with injections of a drug of uncertain property”.

Similarly, to date the government has done little to raise living and sanitary standards in the slums. The big promises of slum upgrading have turned out to be little more than either looting schemes or empty talk. Many of the informal settlements that sprung up to house unwanted Africans when the colonials ran Nairobi persist to this very day. And while there will undoubtedly be a concerted effort to combat the coronavirus outbreak, it is unlikely that there will be any determined effort to improve livelihoods and eliminate slums.

The Spanish flu in Kenya

The next big foreign-born disease to hit Kenya in the colonial period was the Spanish flu, the deadliest pandemic in history. Originating in the United States and transported to the killing fields of World War I by American soldiers, the pandemic circled the globe, infecting between 3 and 5 per cent of the world’s population, including people in remote Pacific islands and the Arctic. It cut life expectancy around the world by about 12 years.

An interesting similarity with the current coronavirus epidemic is that the disease at the beginning was “mild, the mortality not unusually high”. Preoccupied with the events of the war, the first wave of the flu went largely unnoticed and it wasn’t until it started killing people in large numbers that the world paid attention. But by then it was too late. By the time it was brought under control, it had killed about 50 million people, more than had died in the war. And remember, this as all before the age of international commercial air travel.

The flu hit East Africa in two waves, the first beginning September 1918 and another in late 1919, killing at least 155,000 people, or an estimated 5.5 percent of the African population in Kenya. Again the reaction of the colonial authorities was largely driven by concerns over the loss of African labour. For example, as related by to Kirsten Moore in her 2013 paper, “Placing Pandemics: History of the 1918-19 Influenza Epidemics in Kenya and Uganda”, “the District Commissioner of Voi cited the influenza epidemic in arguments for a permanent native hospital, saying, ‘it is absolutely essential that adequate hospital provision be made to deal with sick labourers from […] Estates and Railways.’ A native hospital was up and running in Voi by 1921”. She points out that the pandemic was killing off African labour, “just as an influx of British settlers came to establish large, labour-intensive estates. Facing significant war debts and the prospect of bankruptcy, the administration depended on these new plantation enterprises to revitalise the economy”.

Again, it is clear that concern for the health of the natives was not the driving force behind the colonial provision of medical care to Africans. A century later, facing another epidemic, the Kenyan elite is showing itself to be similarly oblivious to the needs of the African majority and is really only concerned about its own economic and political interests.

Sink or swim together

Ironically, just as the colonials imported plague and influenza pandemics into Kenya, it is largely the wealthy, those with the means to travel abroad, who have brought the COVID-19 pandemic back to Kenya. Yet, as with the previous diseases, it is the poor, who did nothing to bring on the crisis, who will get to bear the brunt of both the disease and the government efforts to contain it.

However, there is a critical difference. As the pandemic exposes the systemic weaknesses in Kenya’s healthcare system, the shutdown of the global system means there is no escape for the wealthy who have profited from the plunder and neglect of public services. They will share the fate of the rest of the society. Thus, allowing the pandemic, whether through negligence or incompetence, to become established in the slums, will inevitably be fatal for the elite themselves.

A century later, facing another epidemic, the Kenyan elite is showing itself to be similarly oblivious to the needs of the African majority and is really only concerned about its own economic and political interests.

Since the virus threatens all, both rich and poor, it will require a whole society effort to confront it. Top-down directives will not suffice. In any case, after decades of hollowing out the state from within, the ability of the governing elites to enforce them is severely compromised. Thus it will be critical to work with communities to translate WHO advice into practical protocols that cater to the daily realities of the majority of the population rather than to the global imaginings of a privileged few.

In the short term, it is likely that the political elite will get its act together and do what is necessary to contain the pandemic. However, it is hoped that the lessons of history will not be quickly forgotten once the pandemic has passed. Maintaining a system predicated on inequality and the neglect of public services endangers everyone, not just those at the bottom of the pyramid. Kenyans, regardless of their station in life, will all sink or swim together. They can no longer afford to keep a colonial system where so few get so much at the expense of so many.

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Religion in the Age of Coronavirus

13 min read. If we have learned anything from COVID-19, it is that the miracle and faith-healing industry in Kenya is nothing but a sham and that prayers alone will not solve the country’s imminent health crisis.

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Religion in the Age of Coronavirus
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Our world, as we know it, has been turned upside down by the coronavirus (COVID-19). The virus has not just exposed our fragility as human beings, but has also raised our awareness of our interconnectedness as people sharing one planet with viruses and microbes.

First identified in China in November 2019, COVID-19 has since spread to more than 100 countries worldwide, including Italy, the USA, UK, Germany and 24 African countries so far.

The magnitude of this pandemic, as well as its fast geographical spread, has not only paralysed both rich and poor nations, but also caused global panic, creating gripping fear for our lives. On March 11, 2019, the World Health Organization (WHO) declared the COVID-19 a pandemic. At the time of writing this article, the pandemic had killed 8,000 people and infected 200,000.

The virus, which experts says is most certainly passed from animals, in this case the bat, has already infected seven people in Kenya, if the government reports are anything to go by. Other African countries that have reported its presence include South Africa, Nigeria, Ghana, Rwanda, Tanzania and Ethiopia. For many Kenyans, it was not a matter of if, but when the virus would strike. The country is a major travel hub in East and Central Africa, with nearly every major global airlines stopping at Jomo Kenyatta International Airport (JKIA) in Nairobi.

After seemingly dilly-dallying for some time, President Uhuru Kenyatta, finally, on March 15, ordered schools and institutions of higher learning to close. He also banned political rallies and religious gatherings.

However, despite the ban, on Sunday, March 15, Kenyan churches were packed to capacity with throngs of people, apparently oblivious of the coronavirus pandemic and the risk of spreading the disease. They (the churches) dulled the congregants’ fears and cried to God for protection. My neighbours even held a prayer fellowship in my neighbourhood to pray against the demonic virus as many have christened it, except that COVID-19 is not a demon.

In a country whose easy dalliance with the supernatural is legendary, this is not surprising. In moments of political, social and ecological crises, Kenyans turn to God, supposedly for guidance. Such challenges are seen through the prism of religion. In a country with a highly educated and exposed population, pandemics like COVID-19 and HIV/AIDs are still said to be caused by the devil and other dark forces. Even when science is very clear on the genesis of the viruses, the majority of Kenyans and other people elsewhere will still interpret them as the invention of the devil. Not surprising in a country where nearly 85 per cent of the population is Christian.

Kenya, in particular, is a highly religious country with diverse religious groups with high levels of religious participation across various religious traditions. Belonging and participating in various religious activities is essentially important to many people across the country. A 2015 study showed that for 95 per cent of Kenyans, faith informs how they conduct their daily lives.

Given the important role of religion in the lives of millions of people, it is important that we change how we practise our faiths in the face of this global pandemic that has already heavily impacted all of us. Already, the virus has killed 19 priests in Italy, which sadly means that no one is immune from the virus, not even our religious leaders.

Similarly, no amount of prayers and faith healing could cure this virus. African Christians have been praying for a cure for AIDS/HIV and Ebola for decades not but not a single person has certainly been cured of these dangerous viruses. The same logic should apply to COVID-19.

This is not to say that prayers and faith don’t work. Neither does it mean they have no significance in the lives of people. Faith is the glue that holds people together in moments of crisis like this. It is also a purveyor of hope in moments of immense anxieties and fears. Yet, in times of global pandemics like the coronavirus, science and medicine would seem the more reliable solution. After all, it is science that has continually sought cures for these epidemics. The antiretroviral drugs and the Ebola vaccine (not prayers and demon-bashing) have given a new lease of life to millions of people around the world. It is also science that will come up with a cure for COVID-19, not miracles and faith healing.

Given the important role of religion in the lives of millions of people, it is important that we change how we practise our faiths in the face of this global pandemic…

Yet, science and religion are not enemies, neither are they in competition with each other. There is nothing wrong with people praying and casting out the demons of disease if that is how they understand it, even as they wash hands, self-isolate, self-quarantine and maintain social distance, as advised by science and medical practitioners. Faith and science should not be in contradiction with each other. Each plays important and significant roles in our lives. Faith and prayers hold us together in hope and community while science tackles the virus in scientific and practical ways.

Yet, the easy resort to religion and prayers as the only solution during times of crisis like this is not only problematic but is also risky and reckless. It takes away our focus from holding our negligent governments accountable. The Kenyan healthcare system has been struggling for decades, but the ruling elite does not care because it can afford to seek the best medical care abroad. Our blind religious faith does not allow us to question the massive inequality in our healthcare system, in particular, and in Kenyan society in general. We also do not ask why the poor lack sanitation and why they live in dehumanising conditions.

The national day of prayer and other diversionary tactics

This is not a far-fetched assertion: Every time we are faced with a crisis as a country, the government, in collusion with religious leaders, call for prayers. Saturday, March 21, 2019 was slated as a national day of prayer by President Uhuru Kenyatta, who asked Kenyans to pray for forgiveness. Kenyans who have suffered years of neglect and broken healthcare systems must ask what we are repenting for. Who between Kenyans and the government should be repenting for the sins of the nation, for the inaction, corruption and bad governance that have seriously put our health at risk for decades?

It seems to me that the government wants to divert attention from its inept and tardy response to the pandemic, while religious leaders are seeking for relevance and respectability at a time when the virus has rendered them impotent. The national prayer day called by the government is meant to dull our anxieties. It is a diversionary tactic to manage the public’s fears and soothe our anxieties as we are socialised not to squarely put the blame where it belongs: on the government.

Kenyans who have suffered years of neglect and broken healthcare systems must ask what we are repenting for. Who between Kenyans and the government should be repenting for the sins of the nation, for the inaction, corruption and bad governance that have seriously put our health at risk for decades?

Across the world, religious leaders are making hard and painful decisions to close their worship sanctuaries. Because religious services, by their very nature, bring together large groups of people, houses of worship in Africa are potential hubs for virus transmission. In developed democracies, religious leaders are scrambling to understand the COVID-19, even as they as find ways of protecting their congregations, while African clergy are either denying the virus or praying against the demons that cause the virus.

In Saudi Arabia, the annual Muslim pilgrimage to Mecca’s holy sites have been substantially reduced. The Vatican is streaming mass on television. Rabbis in many parts of the world are discouraging their followers from hugging and shaking hands. These are hard and painful decisions, but practical and important measures to keep followers alive.

Secondly, there is evidence in South Korea that the virus spread quickly because of the social interactions of the worshippers. South Korea was the first country to report significant coronavirus infections outside of China. In New Rochelle in New York, a synagogue, as reported by Slate.com, was the centre of an outbreak of coronavirus that eventually led to the summoning of the National Guard.

In Houston in the US, the world-renowned Pastor Joel Osteen of Lakewood Church, which attracts upwards of 50,000 people, has closed his church. Similarly, the famous megachurch pastor T.D Jakes of Potters House suspended church services for his thousands of followers.

Church business as usual in Kenya

While there were only seven confirmed cases of coronavirus in Kenya, by the time of writing this article, there was general panic in the country, which suggest that everyone should avoid crowds. Yet, religious leaders across the country have yet to cancel church services. Only the All Saints Cathedral, Christ is the Answer Ministries (CITAM), Presbyterian Church of East Africa (PCEA), Nairobi Chapel, Mavuno church and Jamia Mosque had suspended mass worship by the third week of March. Instead, many have provided water and soap for members to wash their hands at the entrances of the church compounds. While washing hands has been suggested as one of the ways to fight the virus, it does not cancel the benefits of social distancing. Are religious leaders feigning ignorance about the latter, or are they simply turning a blind eye to this important measure? I posit a number of theories to explain this lackadaisical behaviour.

First, church spaces in Kenya are not about people; they are about the church founders who use the tithes and offerings to enrich themselves and live a life of luxury. They are never about people-centred theologies or a gospel of social justice, but about personalities. This is the logic that underlies the majority of spiritual spaces, especially those that are prosperity gospel allied, where the church founder’s main concern is not to build a community, but to make money.

Second, Kenyan churches are generally small and crowded in mostly poorly ventilated buildings and semi-structures. Except for mosques, and the more established mainstream churches, the majority are in bad condition. Many Pentecostal/evangelical church services, for example, are held in tents or shelters made of iron sheets and with poor sanitation. These are hotbeds for the spread of the disease.

Why are the majority of Kenya’s popular churches in such dilapidated conditions? Why don’t tithers demand for safe and healthy spaces of worship? Don’t the poor tither have dignity? These are questions that the Kenyan religious population need to interrogate!

Church spaces in Kenya are not about people; they are about the church founders who use the tithes and offerings to enrich themselves and live a life of luxury. They are never about people-centred theologies or a gospel of social justice, but about personalities.

The majority of Pentecostal clergy rarely invested in building decent churches because they don’t think about the comfort and welfare of their members, but only about offering and tithes. Prophet Owuor of the Ministry of Repentance and Holiness, for example, hires school venues and tents, where his followers meet on Sundays. The reason he has given his followers for not building a permanent sanctuary is that Jesus Christ is coming back to rapture the church, hence there is no need for a physical church. However, he built himself a palatial home, complete with a bunker, where he can self-quarantine himself, while the millions of his followers who live a life of squalour can easily die from the coronavirus infection. Many other big and smaller churches have not invested in building decent spaces of worship yet their founders live in opulence and luxury. It is about them, not the people.

Yet the behaviour of the clergy in Kenya is hardly surprising. Rather, it mirrors class divisions in a country where religious elites, just like their political counterparts, have created heaven on earth for themselves, while ordinary Kenyans live in hell. The Kenyan clergy, just like our politicians, does not care for its members. It uses them to ascend to power (political and religious) and respectability. This is why the status of our churches mirrors the status of our public hospitals and schools and informal settlements. Many of our public facilities, just like many houses of worship, are in terrible condition, with no running water and poor sanitation. Yet pastors rarely raise the issue of the sorry state of our broken healthcare systems, even though some churches have built a semblance of health clinics to provide some form of medicare.

More importantly, religious leaders do not want to call off church services because they will be rendered irrelevant. Many a clergy use the pulpit, not just to mint money, but also to prop up their egos and advance their social status. The clergy are in the business of making money. Many churches in Kenya, particularly those of Pentecostal and charismatic church inclinations, are run like business enterprises, so closing a church has serious financial implications. In Africa, the church is an enterprise, just like the stock market: and their owners are afraid that their business empires will crash like stock markets.

Third, there is a fear that COVID-19 will expose the clergy’s dark underbelly and call to question Africa’s faith-healing and miracle industry. For so long, religious leaders have trafficked in miracles and faith-healing. COVID-19 has rendered them incapable of healing the sick and incapable of praying away the coronavirus. In fact, the virus has rendered them impotent and fragile; they have no power to pray away the disease or perform dubious miracles.

Fourth, the clergy has been averse to scientific discoveries because science makes their miraculous shenanigans questionable. Prayers for healing have not calmed a shocked and scared populace. Many a clergy has frowned on science, medicine and theological education, instead spiritualising even non-spiritual matters as serious as the coronavirus pandemic. Science shakes the foundation of their spiritual teachings. After all, and in the case of this pandemic, science has proved to be more practical and reliable than faith.

These fly-by-night pastors have also trafficked in guilt and false prophecies to shock people into a particular way of being religious. Self-proclaimed Prophet Owuor has trafficked in fear-mongering threats, and has even claimed that he had prophesied the pandemic. He also said it would kill people in Asia because the continent rejected his prophecy. In Kenya, a section of the public has cajoled him to unleash his “mighty prophetic powers” to fend off the virus. They have also called on him to pray it away.

Apostles James Maina Ng’ang’a’s video on coronavirus – where he is unable to pronounce the word coronavirus – showed not just his sheer ignorance, but also how ill-equipped he and his ilk are when it comes to offering solutions to such complex 21st-century problems.

A Meru-based Pentecostal clergyman with a huge following angered many Kenyans when he said that coronavirus is a global hoax and that God has instructed him not to cancel church service because there is no coronavirus.

Fifth, many of the clergy have not built an infrastructure that would enable them to continue their ministry in times of crisis like this. While many pastors have invested in TV stations, radio frequencies, social media pages, YouTube and websites, the intention has always been to win souls and tithes that will make them more powerful. Investing in sound infrastructure that would have allowed them to go online or on radio or televised church services at times of crisis like this was never part of their plan because their short-sightedness does not allow them to rethink about ministry for 21st-century challenges, including climate change and its links to our health. The available infrastructure has been mainly directed at international audiences, not local congregations. It has also never been about their congregations but about how they can use such platforms to minister to gain respectability, online audiences and donations.

The question is, where is that spiritual power to perform miracles and heal people of coronavirus when we really need it? Prophet Owuor, who claims to have caused the virus because the world has rejected his gospel of fear and threats, is impotent. A couple of Sundays ago, he preached without an interpreter, as many of his followers wore masks and kept a safe distance from each other for fear of catching a disease he supposedly brought to the nation for rejecting his message. His sermons have always been fear-inducing. He preachers about a dreadful God who kills people on a whim. It is interesting that a man who claims that the clouds clap for him and the glory of God descends on him while preaching cannot pray away a global pandemic that can infect him and his retinue of thousands of followers in Kenya and beyond.

More importantly is that religious leaders are no longer the voice of the voiceless, the conscience of the nation and defenders of social justice. It is about them and not the vulnerable. I have not seen any statement or press conference by the interreligious forum or the National Council of Churches of Kenya (NCCK) or the Evangelical Alliance of Kenya or the Conference of Catholic Bishops to assure a nation in a moment of deep fear and frustrations.

Yet, many leaders have the audacity to force members to go to church. Where is the voice of religious leaders in Kenya? Who will call out the government’s bluff for putting the lives of Kenyans in extreme danger? Where is Prophet Owuor, Kenya’s “spiritual president” who “resurrects the dead” and claims to have prophesied about COVID-19? Where are the miracle workers who claim to have the powers to delete HIV/AID, cancer, and diabetes? The refusal of many churches to cancel church services must be questioned by all. But even more importantly, the Kenyan religious community must defy their clergy and stay at home for their own health and that of their families and communities. I suggest that in light of this moment of great social anxieties, all religious activities must be cancelled to help contain the spread of the disease.

Exposing the sham

If there is anything we have learned from this experience, it is that the miracle and faith-healing industry is nothing but a sham. No religious leader has the power to heal you. Science is our only hope. Going to church right now is not just the height of spiritual carelessness, but also an act of foolishness. When the virus is under control, we can all troop back to our houses of worship.

In developed countries, pastors have been at the forefront of ministering to their congregations at home. Many have come up with innovative ways of being Christian in the age of the coronavirus. They have asked communities of faith to change not just their usual religious practices, but their worship as well. Parishioners are not only conducting mass online but offering online prayer support and educating congregations about the scientific ways of mitigating the virus.

More importantly, they have come up with spiritual resources to help their followers remain spiritually connected during such times. These clergy and churches are institutions that are congregation-centred, not individual-centred. They have invested in infrastructure for a coronavirus pandemic and 21st-century challenges. For such churches and congregations, God is not found in a physical church, but everywhere and God does not speak to the clergy alone.

There is need to deinstitutionalise the church and question our high dependence on the so-called men and women of God. We must re-evaluate their moral and intellectual standards, and we must critically debate the theological foundations of the church in Kenya.

In developed countries, pastors have been at the forefront of ministering to their congregations at home. Many have come up with innovative ways of being Christian in the age of the coronavirus.

The Kenyan Christian needs to be socialised not to depend so much on the clergy. God does not live in church but is everywhere. No clergyman has the monopoly and direct line to God. God lives in our minds and hearts. We can have church with ourselves and our families. The pastor has no magic to ward off coronavirus. He is as afraid as you are. But he can be a voice of hope and reason.

Many churches and clergy have denied science and climate change. The evangelical and Pentecostal churches, which are the fastest growing churches in Africa, Latin America and Oceania, have always been at odds with science and climate change. One of the effects of climate change is the spread of pandemics like this. As human beings, we share the world with viruses and they attack us. Yet we have refused to be good stewards of the environment and we have denied climate change despite tremendous scientific evidence about its links to our human body.

The sheer magnitude and fast spread of the virus has paralysed the world and caused huge fear and confusion. For many religious people, it has caused an ecclesiological conundrum. Fear and confusion have taken over reason. Yet scientific data available calls us to do things differently; wash hands, minimise unnecessary travel, stay home while sick to reduce infecting others, keeping social distance, avoiding large crowds, such as church services, and maintaining social distance.

Different ways of being religious

What does it mean to be church in the age of coronavirus? How much should it matter that we continue to physically gather in spaces of worship in the midst of a pandemic that by its very nature is anti-crowding? Isn’t it the wise thing to do that the clergy should call off all religious activities to save lives and avoid mass spread of the pandemic? Is it not a death sentence to encourage people to go to church at such a time as this? Does it make any sense at all for people to continue to troop to churches, and other spaces of worship for prayer, fellowship and community making, when such actions put people in serious danger? Why do pastors have such a hold on peoples’ abilities to think? Is God only found in churches and mosques? Why are Kenyan churches clergy-centric and not people-centric? Can the African and Kenyan clergy spring to action and guide their congregations and provide the much- needed leadership in an era of crippling fear and uncertainties?

For many religious people, this time calls for many ways of being. It calls on us to deinstitutionalise faith and rethink innovative ways of being spiritual communities. It calls on us to decentralise the role of a clergy that does not think about us but about themselves. It calls on us to give science a chance, even as we continue to pray and hope and take care of each other. Taking care of each other is a spiritual exercise. This is the time to be good neighbours. This is the time for us to think about compassion and empathy, After all, science and faith are not in contradiction with each other.

Now is the time to ground ourselves in a gospel of social justice, not fake miracles and questionable cures.

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Unfair Trade: How Dutch Rose Growers Avoid Paying Taxes in Kenya

14 min read. Dutch growers who dominate the flower sector in Kenya were already in the news because of environmental violations and poor employment conditions. Now, as investigative journalists Romy van der Burgh and Linda van der Pol found out, they are also being accused of avoiding taxation in Kenya while proudly wearing the “fair trade” badge.

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Unfair Trade: How Dutch Rose Growers Avoid Paying Taxes in Kenya
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A wide tarmac road winds around the freshwater Lake Naivasha, about a hundred kilometers away from the capital city of Nairobi. A stream of heavy traffic manoeuvres from one side of the road to the other in order to avoid the large potholes – sometimes half a meter deep. Drivers of matatus (minibuses) often prefer the dirt tracks on either side of the road, where the chance of a tyre blowout is less likely. Occasionally, individuals are spotted putting their lives at risk pushing a wheelbarrow with stones onto the road to seal a pothole.

The condition of Moi South Lake Road stands in contrast with the well-paved roads that branch from it and lead into fenced compounds manned by armed guards. The flag of Dutch professional football club, Feyenoord, flutters behind one of those gates. The flower farms that are nestled in between Moi South Lake Road and Lake Naivasha are mostly owned by Dutch farmers and appear to be in perfect condition.

In the Netherlands, rose cultivation has decreased spectacularly in recent decades. Between 2000 and 2019, the area under rose cultivation in the Netherlands dropped from 932 hectares to 200 hectares. Many Dutch growers moved their companies to African countries such as Kenya and Ethiopia. Labour, energy, water and land prices are lower in Eastern Africa than the Netherlands and the Eastern Africa climate is favourable for rose cultivation. Roses thrive in sunlight and warmth. The cut flower has since become the largest export product in Kenya and the sector offers work to 500,000 Kenyans. However, the flower industry in Kenya has faced criticism in recent years due to poor working conditions, the large-scale use of toxic pesticides, and the negative impact on the environment, including the pollution of Lake Naivasha.

In light of these past controversies, a new one arises: Flower companies are avoiding their tax liability in Kenya, the Dutch investigative journalism platform Investico revealed. A search through registrations and annual reports show us how flower companies are evading local taxes through export companies in the Netherlands and trusts located in tax havens such as the Cayman and British Virgin Islands, Liechtenstein and Jersey. Others sell their revenue to sister companies in Dubai for an artificially low price, which means that profits do not fall at the Kenyan farm, but at a foreign entity where the profit tax is also much lower than in Kenya.

Of the 32 companies we investigated, of which at least 13 have Dutch origins, 45 per cent can be linked to tax havens. Almost all Dutch growers who went to Kenya transferred part of their business to a Dutch company. Companies that set up an international group of several companies can transfer and settle profits and losses within that group. This way they can ensure that the profit is as low as possible in the country with the highest tax rate. Because Kenya has a high profit tax, this model is attractive for companies that operate there. The Netherlands has tax treaties with many other countries. This makes it easier to channel money through the Netherlands to a tax haven than from Kenya.

While the growers are avoiding paying tax in a country like Kenya, where 36 per cent of the population lives in poverty, they still call their business “fair trade”. In fact, more than half of all the companies that we investigated have a Fairtrade certificate. Fairtrade, a premium label that stands for fair trade between the West and African countries, presents a blind spot for tax avoidance. “Fair trade – that is an oxymoron,” says Alvin Mosioma, director of Tax Justice Network Africa. “There is nothing fair about this trade. Not to the workers who cut the flowers, nor to the government.”

***

In a small hall at Oserian Primary School in Naivasha, parents scramble to get hold of plastic chairs with “Oserian Church” written on the back of the chairs. They have been borrowed from a nearby church and placed in neat rows. During this ceremony, the ten best performing students of the national exam from last year are being honoured: one of them may even join the top five hundred students in the country and soon journalists will swarm around him for soundbites. But first the school principal opens the proceedings with a prayer and in one breath he thanks God and the Oserian flower company for the brilliance of the students.

Oserian is a huge company with Dutch roots: it was founded in 1969 by ex-marine Hans Zwager and is now one of the largest exporters of roses and cut flowers in Africa. A million roses are processed every day. A portion is transported by air to Schiphol to be traded at the auction in Aalsmeer (Netherlands); the rest is delivered directly to European supermarkets such as Sainsbury’s. More than four thousand employees work at the nursery, and hundreds at the rest of Oserian’s estate.

“Fair trade – that is an oxymoron,” says Alvin Mosioma, director of Tax Justice Network Africa. “There is nothing fair about this trade. Not to the workers who cut the flowers, nor to the government.”

Oserian is the banner of the Kenyan flower industry. It puts a lot of effort into conserving wildlife and on its grounds are schools, a hospital and houses for the staff. Founder Hans Zwager was decorated by recently deceased former president Daniel Arap Moi for his pioneering work in the Kenyan horticulture industry and for socially responsible entrepreneurship.

From the Moi South Lake Road there is a view of a palace with white spiers that protrude above the tree line. It once belonged to the colonial British family Delamère and is now occupied by the Zwager family.

“Oh, you disappear in life there,” says Fredrick, 46, a former employee of Oserian, as he digs into a plate of fish. Cafe Hollywood, located a few kilometres from the flower nursery, is full in the evening. The space is heated by charcoal mounds on which freshly caught tilapias are baked. “Oserian provides all facilities. When I was on vacation, I didn’t know where to look, as if there were no more worlds outside the company.”

For nearly twenty years, Fredrick ensured that the rose buds were fertilized. He now works for himself: he repairs and rents out bicycles. Fredrick initially worked for the flower company for 12,000 Kenya shillings (around 110 euros) a month, but people with that salary were slowly being phased out, he says. New employees earn half that amount. This figure is confirmed the next morning when we chance upon a new rose cutter at Oserian and give her a lift. She confesses that she only gets 59 euros for a month’s work. A third employee, whom we speak to when we deviate from the route during a tightly guided tour of the sorting center, speaks of the same amount – which is roughly equal to the minimum wage for unskilled personnel in Kenya. However, Mary Kinyua, the administrative director of Oserian, claims that the average salary of an Oserian worker is 167 euros.

In 2017, Oserian split the company on paper in two. Some activities, such as the packing of roses, were transferred to a new company. That company is evading the sector CAO (Collective Labour Agreement) that requires a salary of 10,000 shillings (91 euros). In practice, there appears to be little difference in employees from one or the other company. In the pale-green greenhouses, which extend as far as you can see, employees of both companies interact. Both groups do not come close to the living wage calculated by Hivos in Naivasha, which is 2.852 euros per year. Nevertheless, Fairtrade currently agrees with both the minimum wage and the sector CAO.

Dutch flower farmers moved to Africa because of the prosperity that was promised. But in Kenya that landscape has since changed considerably; flower cultivation is also in decline there. “My sixteen hectares in the Netherlands yields more than the seventy in Kenya,” says flower farmer Arie van den Berg, who is farming both in the Netherlands and in Kenya. Dutch roses in Europe are still available for a few euros every Valentine’s Day at the florist, but African roses are sold at Lidl (a European supermarket chain) for a dumping price of 1.99 euros per bunch. Sometimes auction prices are so low that it is more beneficial to destroy a load of roses than having to pay for the flight costs to send it to the auction in the Dutch Westland that revolves around horticulture.

Competition is increasing worldwide and African countries are trying to outdo each other: Ethiopia has begun to compete by offering so-called tax holidays – and there is no question of a minimum wage at all. Another problem is the tax, which is high in Kenya for foreign entrepreneurs: the corporation tax is 37.5 per cent. In a market where every cent counts, some companies do everything they can to get out of that tax burden.

A few years ago, in 2012, Oserian FC and Karuturi Sports football teams, sponsored and named after two competing rose nurseries, competed against each other in the Premier League, the highest football division in Kenya. The “derby of Naivasha” was a crowd puller. Barely two years after this high point, fortunes took a dramatic turn and the players of Karuturi Sports had to hang up their boots in 2014. The Karuturi site has since been abandoned. The vacant greenhouses stretch hundreds of meters. The iron structures occupy one’s view for as far as the eye can see, interrupted only by the occasional individual plucking a stray rose from the wild growing plants in the abandoned greenhouses.

Dutch flower farmers moved to Africa because of the prosperity that was promised. But in Kenya that landscape has since changed considerably; flower cultivation is also in decline there.

Five years after the bankruptcy, a former employee still lives in a hut at the entrance of the company premises – hoping that he will be paid the three-month wages that he is owed, plus his accrued pension. “In the last months before the nursery closed, the working conditions were terrible. There was no longer any protection against the pesticides and the face masks we had on were not even really suitable for dust, let alone poison,” he says.

But the closure of Karuturi was not due to its pesticide use. The company was found guilty of evading more than 18 million euros in taxes. Although Karuturi and the tax authorities came to a settlement of 4 million euros, it turned out to be enough to bankrupt the company. Roses were systematically exported at an extremely low price to their own company in Dubai, from where they were further distributed throughout the market. The Kenyan branch turned into a loss, while the branch turned green figures in the Emirates. But Karuturi paid no tax on this profit: the United Arab Emirates have no income, profit, or dividend taxes and no import duties on transit goods. While 37.5 per cent tax is charged in Kenya, tax in Dubai is 0 per cent.

Dubai is a new tax haven. Free zones, where the official language is English and foreign entrepreneurs may be the full owners of a company, are advancing. Three Dutch nurseries in Kenya have already found a home in the Emirates, according to various annual reports from the Dutch Chamber of Commerce, including the large Oserian, which opened a logistics center, Airflo FZE (Free Zone Enterprise), at Dubai airport.

In addition to low taxes, Dubai offers far-reaching confidentiality to business owners: annual reports are not mandatory and requesting them is impossible. That is why we cannot verify whether Oserian applies the same rulebook as Karuturi. Karuturi was ultimately unsuccessful because it had to disclose more information as a listed company in India. The Dutch companies do not have to disclose financial records to the public because they are not registered on the stock exchange.

***

We track the offshore trade and walk of Dutch companies for the first time via the FlowerCompanies.com database, founded by a Dutch entrepreneur. Out of 21 African companies, the country of establishment does not state Kenya or Ethiopia, but the Cayman Islands, a sunny place, but without a single mega farm.

“No idea why this is, how crazy. This is a bug in the website,” the founder says when we have him on the line. After a few hours, the addresses were removed from the website, but we discovered through other means that the majority of those companies do indeed have branches in tax havens such as the Cayman Islands. It is more difficult to prove that they pay little or no tax in Kenya.

By law, all Kenyan residents have the right to request data from government agencies and private companies. Because we are not Kenyan residents, a tax law student in Nairobi helped us to view annual reports of Dutch growers in Kenya. During his first visit to the Kenya Chamber of Commerce, he was summoned to communicate his choices via the internet. During his second visit, he was only given an empty file. During his third visit, he finally got the Oserian file. He paid more than six euros for inspecting it.

Taking photos is not allowed at the Chamber of Commerce and security cameras dissuade visitors from doing so. Our “informant” is reluctant to use a hidden camera. Calling the Netherlands, he browses through the book, which contains an independent Deloitte audit, in which Oserian’s revenue for 2013 is estimated at 2.7 million euros. Below the line, only 3,910 euros of profit remains on their own financial statements, of which Oserian paid just under 1,041 euros to the tax authorities.

We wrote, in accordance with the law, a letter to the Kenya Chamber of Commerce, asking for copies of the file – but the papers that the Kenyan student saw a few days before suddenly got “lost”. The company also refuses to transfer any information about its finances.

The Zwager family, owner of Oserian, built a whole web of companies around the nursery that together cover the entire chain, from breeding to sales and distribution. A company in the Netherlands is concerned with “sales and marketing of cut flowers”. The Dutch company of Peter Zwager generated a gross turnover of 47 million euros in 2010. Most employees, according to the LinkedIn reference, simply work from Kenya. That cannot be otherwise, because there are no workplaces in Amsterdam: the company was transferred to Align trust office.

The ultimate stakeholder in all these “Dutch” companies is Mavuno Group Holding Company Establishment, a trust in tax haven Liechtenstein, which is again managed by a trust office. No country in Europe charges as little tax as Liechtenstein, and above all, it is not open to public scrutiny. The only two shareholders that we identify are a company at the same address in the principality, and one near the picturesque harbour of Road Town, the capital of the British Virgin Islands, which in turn owns a whole range of companies, including a Florida real estate company.

Other branches of Oserian also end up vanishing in the smoke of vague shareholders and directors on tropical islands where neither annual reports nor ultimate owners are made public. We identify New Zealand, the Bahamas and Jersey.

“We do not sell anything in Liechtenstein, we do not trade there, we certainly do not get a tax advantage there – it is just a trust,” explains administrative director Mary Kinyua. “The owner of Oserian, Peter Zwager, puts his assets in.” When asked why Oserian in Kenya only makes about 2,000 euros in profit, she has no answer.

“This is super signing. It is very clear that we are trying to evade taxes here,” says Vincent Kiezebrink of the Research Foundation for Multinational Enterprises (SOMO) when we present the drawn-up corporate structure of Oserian. “It looks like she can try to get the most out of it,” he chuckles. “All tax ports come by. You don’t need so many havens to evade tax. Many large companies nowadays invest in their public image: they no longer settle in the Bahamas but in lesser known tax havens such as Ireland or Cyprus, because they still claim to levy about 15 per cent tax. I do not see that consciousness here. It would not surprise me if this company thinks: ‘The closer to zero, the better.’”

We wrote, in accordance with the law, a letter to the Kenya Chamber of Commerce, asking for copies of the file – but the papers that the Kenyan student saw a few days before suddenly got “lost”.

A world full of crafty lawyers and accountants unfolds around emigrating farmers who show them around in Kenya and, where necessary, help them with agricultural land and tax constructions. The fulcrum in this is the law firm Raffman Dhanji Elms & Virdee based in Nairobi. On its website, the law firm states: “The Firm has been heavily involved in advising the flower and horticultural industries over the last decade in particular with foreign investment into this country and the methods to acquire land and the corporate structures required. This has led to joint ventures between Kenyan and overseas investors and the protecting and balancing of the respective interests.”

Controversial city lawyer Guy Spencer Elms was one of the three names given to us. He was once infamously associated with a multitude of corruption scandals in Kenya. Nonetheless, he has never been convicted and maintains in his defence of a plot by a criminal cartel to always paint his image in a bad light. Guy Spencer Elms says he arranges the tax planning of various Dutch nurseries himself, and he also helps farmers with agricultural land transactions. When we present him with the offshore constructions, he says: “People immediately think of something bad like hearing about a trust in Liechtenstein or the British Virgin Islands, but often it is just a way of’ estate planning. Trusts are not necessarily a bad thing “.

***

“Tax is Life!” reads the slogan celebrating 100 years of income tax in Kenya. The luxurious Safari Park Hotel in Nairobi is the location of the tax conference organised by the University of Nairobi. Joan, a student, takes a credit note from her bag, and points to the 16 per cent VAT. “This is why I think tax is so important. Taxes can pull Kenya out of the mud,” she says.

Students speak of tax obligations in glowing terms; they see it as the future. Where that change must take place is something that everyone agrees with: the government. Tax guru Attiya Waris, a professor of tax law, points out the loopholes in tax collection throughout Africa. According to the OECD, Africa misses 46 billion euros in tax revenues every year from evasive multinationals. The United Nations estimates that amount to be 92 billion euros. Waris did research for a long time on flower companies in the country. “Kenya transfers its land to foreign companies, but the profit they make falls elsewhere. It is not a win-win situation,” she says.

Other branches of Oserian also end up vanishing in the smoke of vague shareholders and directors on tropical islands where neither annual reports nor ultimate owners are made public. We identify New Zealand, the Bahamas and Jersey.

The Dutch company Berg Roses received 1.8 million in income tax with retroactive effect. The company was accused by the Kenyan tax authorities of conspiring with its parent company in the Netherlands. The Kenyan branch would sell most of its flowers for extremely low prices to the parent company in the Netherlands so that the profit is not realised in Kenya, but in the Netherlands.

The lawsuit is still ongoing because Van den Berg challenged the matter. “We ensure that we make fifty percent profit in Kenya and fifty percent in the Netherlands. We think that is fair. If we lose this case, it will be the death blow for our company.” Van den Berg knows of companies that channel the profit away to offshore trusts and, according to him, we never hear about it.

“Not only in the sector, but also in government is it only in terms of profit, not what is good for the country,” says tax expert Waris at the end of the celebration. She pulls her colourful scarf a little tighter around her shoulders and continues in a whisper when a duo of armed guards walk past. It should be a moral obligation to pay taxes in a country whose land, water and people you use, she says.

But monitoring the flower industry often leaves much to be desired because business and the political elite are intertwined – a euphemism for corruption. That became clear, for example, in the Paradise Papers – leaked files from the law firm Appleby – which show that Sally Jemngetich Kosgei, the former Head of Civil Service, and owner of a flower nursery in Kenya, bought a luxurious apartment in London through an offshore company based in Mauritius. Kosgei told the International Consortium of Investigative Journalists (ICIJ) that she bought the apartment with her personal funds.

Fair trade organisations do not see tax ethics as their responsibility. The cover page of a recent issue of Fairtrade International is adorned with a photo of the Waridi Limited nursery, which is almost entirely in the hands of a company in the Virgin Islands. Almost all Dutch nurseries in Kenya are in possession of the Fair Trade quality mark, which stands for good conditions.

According to the OECD, Africa misses 46 billion euros in tax revenues every year from evasive multinationals. The United Nations estimates that amount to be 92 billion euros.

“Oserian sells 14 per cent of its production as a Fair Trade rose,” says Tara Scally, the spokesperson for Fair Trade Netherlands. Part of the proceeds from Fair Trade roses, which are often more expensive, are returned to a pot that employees of the farm can dispose of themselves: for example, they invest it in education or in the salary of a doctor.

Fairtrade’s focus is on the position of farmers and workers, says Scally. Tax constructions are not part of this. Moreover, tax research requires a lot of specialist knowledge and financial resources, she adds. She fears that companies will no longer participate in the programme if they are required to disclose what is in their books. “The consequence may be that workers lose part of their income. We would rather not see that.”

A ridiculous line of reasoning, counters Alvin Mosioma, founder and director of Tax Justice Network Africa. “Wear a Fair Trade label while not paying your taxes? That is an oxymoron.” Mosioma regards Fair Trade as a marketing gimmick:

“People don’t buy a rose with blood on it. Social responsibility is part of the brand of these companies. They build hospitals, schools. That gives the consumer who buys such a rose a good feeling – the idea that they are making a contribution to the development of such a country. Nothing is further from the truth. These people work under very precarious conditions for a minimum wage. It is rather paternalistic: you give them jobs, and a school. But you also buy people around with it. They are happy with such an investment. ‘Look,’ they say to the government, ‘this company takes care of us, the government does not do that’. No, that’s because the government has no money for that, and also because the same companies are engaged in aggressive tax evasion.”

This article was previously published in the Dutch language in the Netherlands in the following papers/ online: (frontpage) daily paper Trouw, weekly paper De Groene Amsterdammer and online investigative journalism platform Investico

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