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BETTING THEIR LIVES AWAY: How online gambling is ruining Kenyan youth

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BETTING THEIR LIVES AWAY: How online gambling is ruining Kenyan youth
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At a cybercafé somewhere in Nairobi’s South B estate, stone-faced male clients are glued to their computers. They are youthful, the type that ought to be attending college, or if they are working, should be at their respective work places. It is mid-morning on a weekday, the cybercafé’s computers are all occupied and the young men are not on the Internet doing research for a term paper, collecting data, compiling a literature review, or cleaning up their CVs; they are busy placing bets on football games that are being played thousands of kilometres away, mostly in European cities.

This cybercafé is a replica of the many cybercafés spread all over the city and in suburban areas that have been turned into betting sites. “Cybercafés are no longer the Internet places you knew where people came to download serious stuff, upload a government document or even watch porn,” said Moha, the cybercafé’s owner and himself a former betting addict. “With the introduction of online betting in Kenya, the cybercafé business was transformed and acquired a new model.”

In Rongai town in Kajiado County, 25 kilometres from Nairobi’s city centre, college students and young professionals have turned to cybercafés to gamble in the football betting craze that has left many residents befuddled. “All of them are male and between the ages of 19 and 35 years,” said a cybercafé owner. “A young man who was working for an IT company left his job to bet full time.” In Kikuyu town, Kiambu County, many young men have been sucked into the betting craze. They spend all day holed up in cybercafés, betting on nondescript teams in faraway countries, such as Bulgaria and Ukraine. They pay KSh1,000 upfront to cybercafés daily to satiate their betting addiction.

“Betting has become a full-time occupation for some people,” said Njoroge, one of the young men I found betting at Moha’s cybercafé.

A recovering gambler, Moha was so compulsively addicted to betting that he would bet his cybercafé’s daily proceeds relentlessly and non-stop. Convinced that the following day would be better than the previous one, he would place his bet again and again. Again and again, he would lose: day after day, week after week, month after month. “Just when the business was now about to collapse, I woke up to my senses. I was lucky, I salvaged myself. It could have been worse,” said Moha. At the end of his betting mania, Moha had lost hundreds of thousands of shillings. “That money was never meant to be mine,” he consoled himself.

A full-time occupation

Moha’s cybercafé is decked with a smart 43-inch TV that beams the latest European leagues’ football matches live. I watched as young men worked their bets with the seriousness of college students sitting for an exam. “Betting has become a full-time occupation for some people,” said Njoroge, one of the young men I found betting at Moha’s cybercafé.

Njoroge is your archetypal Kenyan gambler: intelligent, male, young, urbane and computer savvy. He is a recent graduate of Technical University of Kenya. He finished his BSc in IT studies just last year and told me that he was in the process of looking for a job. But as he looks for a job, he said, he is hooked to betting. “I will not lie to you – I cannot stop betting because I have become an addict.” Njoroge has been betting since 2013, when he first entered university as a freshman. “But I will also congratulate myself, I have been able to tame my betting mania to now just once a week,” said Njoroge. “I bet every Friday and I have cupped my betting to no more than KSh3,000. That is the maximum that I can bet.”

I asked Njoroge what was the highest amount he had ever won during his four years of betting. “Twenty-one thousand,” he replied. “I don’t play huge bets. For me to have won the KSh21,000, I had placed a bet of KSh1,000.” Since then, he has been winning small amounts ranging from KSh3,000 to 6,000. Was it out of choice that he was betting small money? I asked him. “Not really. It is because I have never had a huge lump sum. If I did, trust me, I would play in the big league. The bigger the odds, the greater the risk, the higher the reward,” Njoroge reminded me.

“Although I am not able for now to stay away from betting, I consider myself a safe bet,” said Njoroge. “I have been betting at Moha’s cyber for a while now and I know all my fellow gamblers. I do not consider myself a serial gambler.” Njoroge told me of a banker who worked at Kenya Commercial Bank who bet every single day. “His online account always has a floating minimum of KSh10,000 for placing his bets. Many times he has lost huge amounts, but he seems to have a constant supply of money. He does not seem to worry about his losses.” Every morning at 7am, his banker betting friend passes by at the cybercafé and places his bet before leaving for work. In the evenings, before going home, he passes by again and places more bets. “I think betting is like a sickness,” mused Njoroge. “I look at the banking fellow and I cannot believe that he often bets to win only KSh1,000 on top of his minimum KSh10,000.”

“Gamblers never have enough money. They are always begging and borrowing and are trapped in a vicious cycle of living in a make-believe world of delusion where they will wake up the next day and be declared a jackpot winner.”

Anthropologist Natasha Schull says, “For gamblers, it is not always the sense of chance that is attractive, but the predictability of the game that underpins the escapism. Even winning disrupts this state of dissociation.”

Before releasing Njoroge to go back to his computer machine, I asked him whether he was genuinely worried that his addiction would (finally) get the better of him. “That is why I am seriously looking for a job. I am hoping once I get a job, I will quit betting.” It sounded more of a wish than an expectation.

“But once you get a job, won’t you start earning some good pay and that may induce you into placing bigger bets? I mean you will now have the bigger cash you been craving for?” I asked him. “Remember what you told me about the greater the odds, the higher the reward?” He paused, then said, “Let me go back.”

A sickness

“Betting is a sickness, a sickness that can only be cured by oneself,” said Simon Kinuthia, a recovered gambler, who once lived in East London and came back home in 2008. It is in East London that he first learned how to bet and eventually got hooked. “Betting and gambling joints are all over the city of London. They are like your local neighbourhood kiosks here in Nairobi.” As a restaurant supervisor in East London, Kinuthia would use his break to dash to the nearest betting kiosk to place a bet.” He been back in Kenya for nearly ten years now, and says he would bet even his house rent and would be perpetually broke and always in debt “because you must always borrow to feed your addiction. Gamblers never have enough money. They are always begging and borrowing and are trapped in a vicious cycle of living in a make-believe world of delusion where they will wake up the next day and be declared a jackpot winner.”

With his colleagues, Kinuthia would bet in the morning, at tea break, during the lunch hour, in the evenings and even at night. “When we got our weekly pay, we would all head to gambling joints and bet the whole night. We would lose all our money, possibly only one of us would win his bets,” said Kinuthia. Yet, that did not deter them. “The more you lose, the more you want to place even more bets, erroneously believing it was not your lucky night. It is a paradox.”

Kinuthia, who is an accountant by profession, told me that betting is a business based on the understanding of probabilities. “What is the probability of a gambler winning the jackpot?” posed Kinuthia. “It is one out of 10 million, assuming every day 10 million Kenyans are placing their bets. In other words, your chances of not winning the big money is 99.9 per cent.” Many of these people, Kinuthia said, have little or no understanding of the probability of losses.

Kinuthia has faithfully kept away from betting in Kenya. “I saw people (in the UK) lose jobs, others got into manic depression. Others who could not live with the shame of losing everything they ever owned – after being auctioned – and of having mounting debts, committed suicide. “Betting is like being a drug addict: People begin using drugs as a leisure activity in the false belief that they can quit anytime, if the leisure becomes boring, or if they find something better to do,” said Kinuthia. “But no sooner do you start dabbling in drugs, then you realise you want more and more of the same. It is no longer a leisure activity, but an addiction that has to be fed to keep it going. That is precisely how betting works, even on the most innocent people, who cheat themselves they are doing it for fun, and if not for fun, at least then to win some money. They soon realise they are hooked onto an alluring activity that is intoxicating, that like a drug gives them a kick, or if you, like ‘a shot in the arm.’”

Photocopy of newspaper

Photocopied newspaper page with “hot games” for betting.

Social anthropologists have long observed that gamblers use their bets to chase losses and often they seek to be in a world where they can forget their problems. I found this to be true of my newspaper vendor friend, who has spawned a business idea from the betting mania: selling photocopied newspaper pages with “hot games” for betting. At KSh20 per page, the vendor mainly sells the information to security guards, casual labourers, matatu drivers and conductors, street vegetable vendors and hawkers, job seekers, as well as jobless Kenyans. All of these people’s dream is to win the jackpot and merrily transform their “miserable” lives by becoming instant millionaires. It is a dream fed daily by the fantastic news that a peasant women from Kakamega County can actually win KSh25 million from placing her bet correctly.

This paradox – of losing hard-earned cash in a betting game and instead of quitting, you immerse yourself even further in the quagmire is something I found prevalent among university students. To understand how the betting mania has caught on among Kenyan youth, I went to the University of Nairobi’s Chiromo campus, where science and medical students are housed. It is a campus for “serious students” who are not even supposed to have time to socialise. But with the onset of online betting in Kenya, Chiromo campus students have not been spared the craze.

Victor Rago, who is studying chemistry, admitted to me that the betting mania has afflicted his campus and is driving many students crazy. “Today students spend more time betting than they do in their academics. If only they spent half the time they did in analysing football matches so as to place the correct bets, we would have very many first class honours.” Rago told me about his roommate, who in their second year in 2017, placed his bet one Saturday afternoon with Ksh200. As luck would have it, by the evening his roomie was worth KSh250,000 sent to his smart phone. “I knew he had ‘struck gold’, because when he came to the room, he said he wanted us to go into town and eat some real food at some real restaurant. He excitedly told me he had won 250K and it was proper for him to take some time and enjoy life. For a whole semester he did not show up in the lecture theatre.”

Rago said students were now spending all their energies dreaming every single day about betting and winning bigtime money. It has become a full-time occupation for them. Studies have become secondary. “Here at Chiromo, there are betting groups, just like there are tutorial groups, but the betting groups are superseding the tutorial groups by the day,” said Rago. I asked him why many of these betting groups are mostly composed of male students. “Male students are ardent football followers, which they have done for a long period, so they have a knack for better and greater analysis and I also suspect they are not averse to risks.”

But that does mean female students do not bet, said Rago. “They do, but they are not in the forefront. And, because they are not as adept analysts like their male counterparts, they rely on ‘seasoned analysts’ to predict for them.” Many of the so-called seasoned analysts run online advisory chats on Telegram applications. “They are also WhatsApp advisory chats, but many gamblers prefer the Telegram app,” said Rago. He said the Telegram app is preferred because your contact details are not exposed to everyone. Unlike WhatsApp, where, if you have to belong to a chat group, you must share your mobile phone number, the Telegram app is created such that it is controlled by a sole administrator and he or she does not need to know your telephone number to chat with his or her clients.

Professional predictors

“One of the biggest of these Telegram app online ‘professional predictors’ is called Binti Foota,” said Rago. Ostensibly targeted at females who do not have the time to analyse or follow football matches religiously, it has an accumulated a following of nearly 19,000 gamblers. “What the betting craze has done is to spawn another industry, which is feeding into the gambler’s addiction,” said Rago. “So, for KSh530 a fortnight, Binti Foota can help you predict the outcome of football games. If you pay her KSh1,030, the site can predict for you for 34 days.” Rago said many of the female students who bet make the bulk of Binti Foota chat followers. “Binti Foota’s identity is not known, neither does she have to know the identity of her clients. So, if you are dissatisfied with her analyses, what you can do is migrate to another prediction site, or bad mouth her on a different site,” said Rago.

Social anthropologists say that the social costs of gambling are huge, and include bankruptcy, homelessness, suicide and domestic violence.

The student told me these online “professional predictors” had been infiltrated by online scammers, who have been conning people of their money in the guise of helping them place winning bets. “Many of the so-called online analysts and professional predictors are just scammers preying on the gambler’s addiction.” Scammers from as far as Nigeria have opened Telegram chat groups that pronounce how they have helped people win hundreds of millions of shillings. And because people are predisposed to greed, they fall prey to such scams,” said Rago.

He added that because of the obsessive compulsive disorder (OCD) behaviour displayed by the student gamblers, most of these students tend to neglect their studies and suffer from pendulum-like mood swings that are unpredictable. Rago told me of the Kenyatta University second-year student who committed suicide last year. “The student bet all his tuition fees – KSh80,000. What he did was to place two bets: KSh40,000 each. The odds were high, but he took the risk, convinced he would at least win one gamble. When he lost both bets, his world came crumbling down.”

Social anthropologists say that the social costs of gambling are huge, and include bankruptcy, homelessness, suicide and domestic violence.

The bigger the odds, the greater the risk, the higher the rewards is a principle many gamblers abide by, hoping to cash in on the odds they have placed. Many times, the risk is not worth it, “but then”, said Rago, “gambling is a compulsive behaviour disorder that overtime grips gamblers, who like alcoholics, to cure their alcoholism, must first accept they are suffering from an alcohol problem. Gamblers must also come to terms with their odd behaviour that drives them to bet compulsively.”

A consultant periodontist described to me how self-destructive compulsive behaviour disorder can be. A part-time lecturer, he narrated to me how one of his best students pulled out of class in his third year. “Aaah daktari, this course is taking too long: my peers are making money out there and here I am slogging through an unending degree course,” the student replied when he asked him why he had decided to pull out of medical school. “To my consternation, I did not know he had been betting on the side,” the consultant said. “I was told that his friends were boasting to him that by the time he is finished with his medical degree, they would be owners of real estate and funky vehicles.” His friends apparently were full-time gamblers and some had shown him their bank slips.

The consultant said he should not have been overly surprised: some of the young doctors known as registrars have become master gamblers. “In between their clinical rounds in the hospitals, the physicians are glued to their smart phones busy betting, so much so that one would be inclined to think that betting is one of their examinable units.” But the most shocking revelation came when he learned that some parents were encouraging their children to bet, oblivious of the dangers they are getting their children into.

Sports betting

I met a senior-level manager at one of the better known sports gaming companies for a chat in their posh offices in Nairobi. If a company’s employees is an indication of who its clientele might be, this sports gaming company told it all: The employees I saw were young – hardly more than 33 years-old with a look that declared: “We are here, we have arrived”. “It is not true sports gaming companies are impacting negatively on the Kenyan society, much less its youth,” he ventured to tell me. “This is a wrong notion that is being perpetrated by the mainstream media. It has become all hype and no substance. What I want are facts and figures, not emotional lurid stories.” He reeled off from his head the statistics from a recent poll conducted last November to find out how Kenyan youth are spending their money. “The survey, GeoPoll, showed that 26 per cent of the youth spend their money on saving and expenditure and only five per cent spent their money on betting. Which youth is this that is being destroyed by betting? The Kenyan media is obsessed with sensational reporting,” said the manager.

Implications of Sports Betting in Kenya – a study conducted by Amani Mwadime and submitted to the Chandaria School of Business at the United States International University in Nairobi in 2017, estimates that 2 million people in Nairobi alone participate in online betting.

The manager, who is not authorised to talk to the media, described betting as an entertainment and said people are entitled to some fun, some leisure, albeit in a controlled environment. “We operate under the rules and obligations of the Betting Control Licensing Board. We are therefore legitimate. What is destroying the youth is not sport gaming companies – on the contrary – it is the so-called amusement machines that are now found all the over the place, including villages in some far-off counties. Those machines are the problem: they are illegal, unregulated and accessed by all and sundry. Of course, most of them are used by pupils and students alike, who are yet to be of the adult age, that is above 18 years. That is what the government and the media should be concerned with and not licensed, legal betting companies,” pointed out the manager. The government should clamp down on these machines, not ask sports gaming companies to part with astronomical taxes – “it just does not make sense. We are a business, not a philanthropic company. The government is being unreasonable when it says sports gaming companies are making so much money, so they have to pay taxes that are pegged to their turnover. It never happens anywhere in the world.”

Implications of Sports Betting in Kenya – a study conducted by Amani Mwadime and submitted to the Chandaria School of Business at the United States International University in Nairobi in 2017, estimates that 2 million people in Nairobi alone participate in online betting.

The manager said his company has a cap on the amount one can bet in a day: KSh20,000. “I should let you know, we are not reckless. We also do not want people to overstretch their enjoyment.” Sports gaming companies and casinos consider gambling a “victimless” recreation, and therefore, a matter of moral indifference.

The sports gaming companies are up in arms because the government has asked them to pay 35 per cent on their monthly turnover in taxes. “And do not forget we still have to pay the annual 30 per cent corporate tax. Some people are misadvising the government,” said the manager. This “misadvising” began last April, 2017, when Henry Rotich, the Treasury Cabinet Secretary, proposed a 50 per cent tax on sports gaming companies when he presented the national budget. He also came up with the Finance Bill, which President Uhuru Kenyatta refused to sign, insisting sports gaming companies ought to pay the 50 per cent tax.

Social scientists agree that gambling blurs the distinction between well-earned and ill-gotten wealth.

When the matter was taken up by Parliament, it was shot down; parliamentarians rejected the 50 per cent tax idea and said that the tax should remain at 7.5 per cent. “Now we don’t know where this 35 per cent is coming from. There is a misconception about sport gaming companies in this country: That we make abnormal and humongous profits. The most profitable company in Kenya is Safaricom. I have not heard the government say, since Safaricom makes billions of shillings, they should pay higher taxes than what they are paying currently, because they happen to be making tonnes of money.”

I told the manager that my preliminary inquiries on the betting mania, especially among the youth, is that it is distracting them from productive activities, be it studies or work. I also told him that betting is unwittingly creating among the most productive cadre of Kenyans a false notion that gambling can be considered an economic activity.

“Kenya is not a theocracy and gambling has existed in independent Kenya for the last 50 years,” shot back the manager. “Where is all this hullabaloo about sports gaming companies coming from suddenly? I sense business envy here from some (powerful) quarters. Could be it that some people are sore because they cannot believe they missed an opportunity to make money?” The manager told me that a tycoon close to the powers that be fought one of the sports gaming companies when it started its operations, arguing that these companies were corrupting the morals of the youth. There are currently 25 sports gaming companies in Kenya, according to latest Kenya Revenue Authority (KRA) statistics, which were compiled last year in June.

“The argument about morals is both laughable and superfluous,” said the manager. “What then should we say of alcohol? Shouldn’t the government then shut down all the bars and drinking dens to curb alcoholism? What about beer and liquor manufacturing companies? Shouldn’t the government tax them an arm and a leg because they encourage our youth to drink? Alcohol is not only harmful to their health, but also leads to anti-social behaviour.” The morality argument falls flat on its face, said the manager. “That is the province of the purveyors of heavenly realm. I have not heard them say betting will take the youth to hell or that they are engaged in a sinful activity. ”

The manager dispelled the notion that betting and gambling are reckless behaviour. “Life is about gambling. Did you know prayer is a gamble? Everyday people are offering prayers to God, which are not fulfilled. Yet, they continue praying and they will not stop. At least we fulfil part of our bargain by paying people for their gambles. I can tell you this without a shadow of a doubt, we are going to create millionaires like no industry has done in modern Kenya.”

Anecdotal evidence shows that online betting is impoverishing poor people and reducing their levels of productivity. Dr. Mukhisa Kituyi, the Director General of the United Nations Conference on Trade and Development (UNCTAD), recently observed: “:….you are seeing sports gambling in Kenya today, but nobody is telling the gambling firms not to accept money from poor gamblers. It is the poor who must be told that they will live with the consequences of dreaming that gambling is an investment.” It is a fact that gamblers are drawn disproportionately from the poor and the low-income classes, who can ill afford to gamble: they are susceptible to the lure of quick imagined riches. This class of people are in financial doldrums and other societal tribulations that make them vulnerable to fantastic dreams of sudden wealth.

A tax expert who did not want his name revealed said, “One of the sports gaming company’s act of sponsorship withdrawal can be interpreted as an act of industry intimidation. The company is taking advantage of the fact that there is no direct evidence attributing societal problems to its activities.” Sportpesa, one of the better known gaming companies, withdrew its sponsorship of 10 sporting entities in Kenya that it was supporting after the government asked all sports gaming companies to pay an upgraded tax of 35 percent.

The tax consultant pointed out that Chapter 12 of the Kenyan Constitution on public finance management requires the creation of a tax system that promotes an equitable society. “Translation: Sports gaming companies such as Sportpesa are obliged to engage in good management practices by not holding the country to ransom, and using scaremongering tactics and threats such as job losses, withdrawing to another country or jurisdiction.”

Social scientists agree that gambling blurs the distinction between well-earned and ill-gotten wealth. I thought of the young man Njoroge – smart and forward-looking – yet, gambling, a debased form of speculation, had reduced him to lusting for sudden wealth that is not linked to the process that produces goods or services. Through gambling he hopes to grow wealth without actually working for it.

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Mr Kahura is a senior writer for The Elephant.

Politics

Beyond Political Freedom to Inclusive Wealth Creation and Self-Reliance

Malawi can alleviate poverty and become a model for development and democracy by investing in and improving the quality of human capital, the quality of infrastructure, and the quality of institutions.

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Beyond Political Freedom to Inclusive Wealth Creation and Self-Reliance
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The Tonse Alliance that made history in June by winning the rerun of the presidential election, the first time this has happened in Africa. It represented a triumph of Malawian democracy, undergirded, on the one hand, by the independence of the judiciary, and on the other, by the unrelenting political resilience and struggles of the Malawian people for democratic governance. In short, we can all be proud of Malawi’s enviable record of political freedom. However, our democratic assets are yet to overcome huge developmental deficits. Our record of economic development and poverty eradication remains dismal, uneven, and erratic.

Malawi’s persistent underdevelopment does not, of course, emanate from lack of planning. In 1962, Dunduzu Chisiza convened “what was perhaps the first international symposium on African Economic Development to be held on the continent”. It brought renowned economists from around the world and Africa. In attendance was a young journalist, Thandika Mkandawire, who was inspired to study economics, and rose to become one of the world’s greatest development economists. I make reference to Chisiza and Mkandawire to underscore a simple point: Malawi has produced renowned and influential development thinkers and policy analysts, whose works need to be better known in this country. If we are to own our development, instead of importing ready-made and ill-suited models from the vast development industry that has not brought us much in terms of inclusive and sustainable development, we have to own the generation of development ideas and implementation.

I begin, first, by giving some background on the county’s development trajectory; and second, by identifying the three key engines of development – the quality of human capital, the quality of infrastructure, and the quality of institutions – without which development is virtually impossible.

Malawi’s development trajectory and challenges

Malawi’s patterns of economic growth since independence have been low and volatile, which has translated into uneven development and persistent poverty. A 2018 World Bank report identifies five periods. First, 1964-1979, during which the country registered its fastest growth at 8.79%. Second, 1980-1994, the era of draconian structural adjustment programmes when growth fell to 0.90%. Third, 1995-2002 when growth rose slightly to 2.85%. Fourth, 2003-2010, when growth bounced to 6.25%. Finally, 2011-2015, when growth declined to 3.82%. Another World Bank report, published in July 2020, notes that the economy grew at 3.2% in 2017, 3.0% in 2018, an estimated 4.4% in 2019, and will likely grow at 2.0% in 2020 and 3.5% in 2021.

Clearly, Malawi has not managed to sustain consistently high growth rates above the rates of population growth. Consequently, growth in per capita income has remained sluggish and poverty reduction has been painfully slow. In fact, while up to 1979 per capita GDP grew at an impressive 3.7%, outperforming sub-Saharan Africa, it shrunk below the regional average after 1980. It rose by a measly 1.5% between 1995 and 2015, well below the 2.7% for non-resource-rich African economies. Currently, Malawi is the sixth poorest country in the world.

While the rates of extreme poverty declined from 24.5% in 2010/11 to 20.1% in 2016/17, moderate poverty rates increased from 50.7% to 51.5% during the same period. Predictably, poverty has a gender and spatial dimension. Women and female-headed households tend to be poorer than men and male-headed households. Most of the poor live in the rural areas because they tend to have lower levels of access to education and assets, and high dependency ratios compared to urban dwellers, who constitute only 15% of the population. Rural poverty is exacerbated by excessive reliance on rain-fed agriculture and vulnerability to climate change because of poor resilience and planning. In the urban areas, poverty is concentrated in the informal sector that employs the majority of urban dwellers and suffers from low productivity and incomes, and poor access to capital and skills.

While the rates of extreme poverty declined from 24.5% in 2010/11 to 20.1% in 2016/17, moderate poverty rates increased from 50.7% to 51.5% during the same period. Predictably, poverty has a gender and spatial dimension.

The causes and characteristics of Malawi’s underdevelopment are well-known. The performance of the key sectors – agriculture, industry, and services – is not optimal. While agriculture accounts for two-thirds of employment and three-quarters of exports, it provides only 30% of GDP, a clear sign of low levels of productivity in the sector. Apparently, only 1.7% of total expenditure on agriculture and food goes to extension, and one extension agent in Malawi covers between 1,800 and 2,500 farmers, compared to 950 in Kenya and 480 in Ethiopia. As for irrigation, the amount of irrigated land stands at less than 4%.

Therefore, raising agricultural productivity is imperative. This includes greater crop diversification away from the supremacy of maize, improving rural markets and transport infrastructure, provision of agricultural credit, use of inputs and better farming techniques, and expansion of irrigation and extension services. Commercialisation of agriculture, land reform to strengthen land tenure security, and strengthening the sector’s climate resilience are also critical.

In terms of industry, the pace of job creation has been slow, from 4% of the labour force in 1998 to 7% in 2013. In the meantime, the share of manufacturing’s contribution to the country’s GDP has remained relatively small and stagnant, at 10%. The sector is locked in the logic of import substitution, which African countries embarked on after independence and is geared for the domestic market.

Export production needs to be vigorously fostered as well. It is reported that manufacturing firms operate on average at just 68 per cent capacity utilisation. This suggests that, with the right policy framework, Malawi’s private sector could produce as much as a third more than current levels without needing to undertake new investment.

After independence, Malawi, like many other countries, created policies and parastatals, and sought to nurture a domestic capitalist class and attract foreign capital in pursuit of industrialisation. The structural adjustment programmes during Africa’s “lost decades” of the 1980s and 1990s aborted the industrialisation drive of the 1960s and 1970s, and led to de-industrialisation in many countries, including Malawi. The revival and growth of industrialisation require raising the country’s competitiveness and improving access to finance, the state of the infrastructure, the quality of human capital, and levels of macroeconomic stability.

Over the last two decades, Malawi has improved its global competitiveness indicators, but it needs to and can do more. According to the World Bank’s Ease of Doing Business, which covers 12 areas of business regulation, Malawi improved its ranking from 132 out of 183 countries in 2010 to 109 out of 190 countries in 2020; in 2020 Malawi ranked 12th in Africa. In the World Economic Forum’s Global Competitiveness Index, a four-pronged framework that looks at the enabling environment – markets, human capital, and the innovation ecosystem – Malawi ranked 119 out of 132 countries in 2009 and 128 out of 141 countries in 2019.

Access to finance poses significant challenges to the private sector, especially among small and medium enterprises that are often the backbone of any economy. The banking sector is relatively small, and borrowing is constrained by high interest rates, stringent collateral requirements, and complex application procedures. In addition, levels of financial inclusion and literacy could be greatly improved. The introduction of the financial cash transfer programme and mobile money have done much to advance both.

Corruption is another financial bottleneck, a huge and horrendous tax against development. The accumulation of corruption scandals – Cashgate in 2013, Maizegate in 2018, Cementgate and other egregious corruption scandals in 2020 – is staggering in its mendacity and robbery of the county’s development and future by corrupt officials that needs to be uncompromisingly uprooted.

Malawi’s infrastructure deficits are daunting. Access to clean water and energy remains low, at 10%, and frequent electricity outages are costly for manufacturing firms that report losing 5.1% in annual sales; 40.9% of the firms have been forced to have generators as backup. The country’s generating capacity needs massive expansion to close the growing gap between demand and supply. Equally critical is investment in transport and its resilience to contain the high costs of domestic and international trade that undermine private sector development and poverty reduction.

Digital technologies and services are indispensable for 21st century economies, an area in which Malawi lags awfully behind. According to the ICT Development Index by the International Telecommunications Union, in 2017 Malawi ranked 167 out of 176 countries. There are significant opportunities to overcome the infrastructure deficits in terms of strengthening the country’s transport systems through regional integration, developing renewable energy sources, and improving the regulatory environment. Developing a digitally-enabled economy requires enhancing digital infrastructure, connectivity, affordability, availability, literacy, and innovation.

Malawi’s infrastructure deficits are daunting. Access to clean water and energy remains low, at 10%, and frequent electricity outages are costly for manufacturing firms that report losing 5.1% in annual sales.

The services sector has grown rapidly, accounting for 29% of the labor force in 2013 up from 12% in 1998. It is dominated by the informal sector which is characterized by low productivity, labor underutilization, and dismal incomes. The challenge is how to improve these conditions and facilitate transition from informality to formality.

Enablers and drivers of development

The challenges of promoting Malawi’s socio-economic growth and development are not new. In fact, they are so familiar that they induce fatalism among some people as if the country is doomed to eternal poverty. Therefore, it is necessary to go back to basics, to ask basic questions and become uncomfortable with the county’s problems, with low expectations about our fate and future.

From the vast literature on development, to which Thandika made a seminal contribution, there are many dynamics and dimensions of development. Three are particularly critical, namely, the quality of human capital, the quality of infrastructure, and the quality of institutions. In turn, these enablers require the drivers embodied in the nature of leadership, the national social contract, and mobilisation and cohesiveness of various capitals.

The quality of human capital encompasses the levels of health and education. Since 2000, Malawi has made notable strides in improving healthcare and education, which has translated into rising life expectancy and literacy rates. For the health sector, it is essential to enhance the coverage, access and quality of health services, especially in terms of reproductive, maternal, neonatal, and early child development, and public health services, as well as food security and nutrition services.

The introduction of free primary education in 1994 was a game changer. Enrollment ratios for primary school rose dramatically, reaching 146% in 2013 and 142% in 2018, and for secondary school from 44% in 2013 to 40% in 2018. The literacy rate reached 62%. But serious challenges remain. Only 19% of students’ progress to Standard Eight without repeating and dropout rates are still high; only 76% of primary school teachers and 57% of secondary school teachers are professionally trained. Despite increased government expenditure, resources and access to education remain inadequate.

Consequently, in 2018 Malawi’s adult literacy was still lower than the averages for sub-Saharan countries (65%) and the least developed countries (63%). This means the skill base in the country is low and needs to be raised significantly through increased, smart and strategic investments in all levels of education. Certainly, special intervention is needed for universities if the country, with its tertiary education enrollment ratio of less than 1%, the lowest in the world, is to catch up with the enrollment ratios for sub-SaharanAfrica and the world as a whole that in 2018 averaged 9% and 38%, respectively.

Human capital development is essential for turning Malawi’s youth bulge into a demographic dividend rather than a demographic disaster. Policies and programmes to skill the youth and make them more productive are vital to harnessing the demographic dividend. Critical also is accelerating the country’s demographic transition by reducing the total fertility rate.

As for infrastructure, while the government is primarily responsible for building and maintaining it, the private sector has an important role to play, and public-private-partnerships are increasingly critical in many countries. It is necessary to prioritise and avoid wish lists that seek to cater to every ministry or constituency; to concentrate on a few areas that have multiplier effects on various sectors; and ensure the priorities are well-understood and measurable at the end of the government’s five-year term. Often, the development budget doesn’t cover real investment in physical infrastructure and is raided to cover over-expenditure in the recurrent budget.

The quality of institutions entails the state of institutional arrangements, which UNDP defines as “the policies, systems, and processes that organizations use to legislate, plan and manage their activities efficiently and to effectively coordinate with others in order to fulfill their mandate”. Thus, institutional arrangements refer to the organisation, cohesion and synergy of formal structures and networks encompassing the state, the private sector, and civil society, as well as informal norms for collective buy-in and implementation of national development strategies. But setting up institutions is not enough; they must function. They must be monitored and evaluated.

Human capital development is essential for turning Malawi’s youth bulge into a demographic dividend rather than a demographic disaster. Policies and programmes to skill the youth and make them more productive are vital to harnessing the demographic dividend.

The three enablers of development require the drivers of strong leadership and good governance. Malawi has not reaped much from its peace and stability because of a political culture characterised by patron-clientelism, corruption, ethnic and regional mobilisation, and crass populism that eschews policy consistency and coherence, and undermines fiscal discipline. Malawi’s once highly regarded civil service became increasingly politicised and demoralised. Public servants and leaders at every level and in every institutional context have to restore and model integrity, enforce rules and procedures, embody professionalism and a high work ethic, and be accountable. Impunity must be severely punished to de-institutionalise corruption, whose staggering scale shows that domestic resources for development are indeed available. To quote the popular saying by Arthur Drucker, “organisational culture eats strategy”.

Also critical is the need to forge social capital, which refers to the development of a shared sense of identity, understanding, norms, values, common purpose, reciprocity, and trust. There is abundant research that shows a positive correlation between the social capital of trust and various aspects of national and institutional development and capabilities to manage crises. Weak or negative social capital has many deleterious consequences. The COVID-19 pandemic has made this devastatingly clear – countries in which the citizenry is polarised and lacks trust in the leadership have paid a heavy price in terms of the rates of infection and deaths.

Impunity must be severely punished to de-institutionalise corruption, whose staggering scale shows that domestic resources for development are indeed available. To quote the popular saying by Arthur Drucker, “organisational culture eats strategy”.

The question of social capital underscores the fact that there are many different types of capital in society and for development. Often in development discourse the focus is on economic capital, including financial and physical resources. Sustainable development requires the preservation of natural capital. Malawi’s development has partly depended on the unsustainable exploitation of environmental resources that has resulted in corrosive soil erosion and deforestation. Development planning must encompass the mobilisation of other forms of capital, principally social and cultural capital. The diaspora is a major source of economic, social and cultural capital. In fact, it is Africa’s largest donor, which remitted an estimated $84.3 billion in 2019.

In conclusion, Malawi’s development trajectory has been marked by progress, volatility, setbacks, and challenges. For a long time, Malawi’s problem has not been a lack of planning, but rather a lack of implementation, focus and abandoning the very basics of required integrity in all day-to-day work. Also, the plans are often dictated by donors and lack local ownership so they gather the proverbial bureaucratic dust.

Let us strive to cultivate the systems, cultures, and mindsets of inclusion and innovation so essential for the construction of developmental and democratic states, as defined by Thandika and many illustrious African thinkers and political leaders.

This article is the author’s keynote address at the official opening of the 1st National Development Conference presided by the State President of Malawi, His Excellency Dr. Lazarus Chakwera, at the Bingu International Convention Centre, Lilongwe, on 27 August, 2020.

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Kenya’s Gulag: The Dehumanisation and Exploitation of Inmates in State Prisons

Kenyan prisons today carry the DNA of their forebears – the colonial prisons and Mau Mau detention camps. They are about brutalising prisoners into submission and scaring the rest of society into compliance with the state. And like their colonial predecessors, they are also sites of forced labour.

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The influx of the Mau Mau transformed the prison population in Kenya from one predominantly made up of recidivist petty criminals and tax defaulters to one composed largely of political prisoners, many of whom had no experience of prison life and who brought with them new forms of organisation.

Prison life was harsh, with its share of brutalities and fatalities. Between 1928 and 1930, about 200 prisoners in Kenya died. According to British historian David Anderson, “Kenya’s prisons were already notably violent before 1952 [when the Mau Mau uprising began], more violent than other British colonies.”

However, the incorporation of prisons and detention camps into the “Pipeline” (the system developed by the colonial state to deal with the Mau Mau insurgents and to try and break them using terror and torture) inevitably led to the institutionalisation of the methods of humiliation and torture.

As Anderson notes, “Most of the staff in both the Prison Service and in the [Mau Mau] detention camps were Africans. Some were even Kikuyu. They certainly ‘learned’ these methods during their periods of early employment.” He goes on to say that “those who ran the service by the 1960s and early 1970s were all men who had been recruited and trained during the Mau Mau period”. He thinks it “very likely that these individuals practiced what they had learned as cadets and trainees in the 1950s…I think the Mau Mau experience certainly hardened Kenya’s prison system and introduced a greater range of punishments and harsher treatment for prisoners as a consequence of the conditions off the Emergency”.

Compare, for example, this account of the treatment of Mau Mau detainees in the 1950s published in Caroline Elkins’ book, Britain’s Gulag: The Brutal End of Empire in Kenya:

Regardless of where they were in the Pipeline (the system of camps established for deradicalizing Mau Mau detainees and prisoners), roll call meant squatting in groups of five with their hands clasped over their heads. The European commandants would then walk through the lines, counting and beating the detainees. “The whole thing was just so ridiculous,” recalled one former detainee from Lodwar. “Whitehouse [the European in charge] would just count us over and over again.”

It bears stark similarities to this account published in the Daily Nation about conditions in Kenyan prisons 65 years later:

Omar Ismael, 64, a former Manyani inmate who served nine years till his exoneration in 2017, says he woke up at 5am, despite his advanced aged. They then squat in groups of five to be counted and checked by guards. “My knees are still hurting to date. I have a joint problem too as a result,” he says. He says they had at least six head counts per day. The first one at 5am, followed by 10am, noon, 4pm, 6pm and 7pm.

Kenyan prisons today carry the DNA of their forebears – the colonial prisons and Mau Mau detention camps. They are about brutalising prisoners into submission and, along with the police and military, scaring the rest of society into compliance with the state. They are places of dehumanisation, abandonment and retribution. And like their colonial parents, they prefer to employ the least educated. (At present, out of a staff complement of 22,000, the Kenya Prison Service only has about 700 graduate officers.) As of 2015, according to the World Prison Population List prepared by the Institute for Criminal Policy Research, Kenya has incarcerated more of its citizens per 100,000 population than any other country in Eastern Africa with the exception of Rwanda and Ethiopia.

Notably, about 50 per cent of Kenya’s 54,000 prisoners are pre-trial detainees or those held in remand as they await trial – people legally considered innocent. By comparison, the median proportion of pre-trial prisoners in Africa is 40 per cent and nearly 30 per cent globally. In Eastern Africa, only Uganda and Ethiopia have a higher proportion of pre-trial detainees than Kenya. As in colonial times, pre-trial detention is driven by two factors – the need to extract resources from the populace and the subjugation of the native through criminalisation of ordinary life.

In 1933, submissions to the Bushe Commission provided some flavour of how the threat of arrest and imprisonment was ever-present among the natives.

Relates one Ishmael Ithongo:

Once I was arrested by a District Officer on account of my hat because I did not see him approaching. He came from behind and threw it down. I asked him why because I did not know him. He called an askari and asked for my name. It was in a district outside. He asked me, “Don’t you know the law here that you should take off your hat when you see a white man?” Then he asked me, “Have you got your kipandi?’ I said “No, Sir.” So I was sent to prison… When an askari thinks that you look smart he asks if you have your kipandi. I have seen natives who are going to church in the morning who have changed their coat and forgotten their kipandi. They meet an askari. “Have you got your kipandi?” “No.” “Ah right” and they are marched off to prison.

This will sound familiar to many Kenyans today whose encounters with the police often begin with demands for the production of the kipande (ID card) and end with a stint in overcrowded police cells. However, there are some differences. An audit of pre-trial detention by the National Council on the Administration of Justice found that police generally arrested and charged people for petty offences, with close to half of those arrests occurring over weekends. Most releases from police custody also happened over the weekend with no reason recorded for two-thirds of those releases. Further, only 30 percent of all arrests actually elicited a charge, the vast majority for petty offences. This implies that most police detentions today are something of a catch-and-release programme designed to create opportunities to extract bribes rather than labour.

However, for those who get incarcerated, matters are somewhat different. The exploitation of prisoners’ labour continues. Like the Mau Mau detainees, they are required to work for a token amount determined by the government, which, unlike its colonial ancestor, does not even pretend that the 30 Kenyan cents per day is meant as a wage, with the Attorney-General declaring in court that “prison labour is an integral component of the sentence”. The courts have held that it is entirely compatible with the protection of fundamental rights for the Prison Service to do this as well as to deny convicts basic supplies such as soap, toothpaste, toothbrushes, and toilet paper. Apparently, the conditions the convicts are experiencing cannot be called forced labour and servitude because, the strange reasoning goes, “the Constitution and the Prisons Act do not permit forced labour or servitude”.

Notably, about 50 per cent of Kenya’s 54,000 prisoners are pre-trial detainees or those held in remand as they await trial – people legally considered innocent…In Eastern Africa, only Uganda and Ethiopia have a higher proportion of pre-trial detainees.

Like in colonial times, the beneficiaries of this prison industrial complex are the state and those who control it. Remandees and convicts are liable to be put to work cleaning officials’ compounds and there have been persistent rumours of them being compelled to provide free labour for the private benefit of prison officers and other well-connected government officials, as is the case in Uganda.

While in 1930 earnings from convicts’ labour accounted for a fifth of the total cost of the Prisons Department, the official goal today, as declared by the Ministry of Interior, is for the Department to transform into a “financially self-sustaining entity”. To achieve this, President Uhuru Kenyatta has created the Kenya Prisons Enterprise Corporation with the aim of “unlocking the revenue potential of the prisons industry” and to “foster ease of entry into partnership with the private sector”.

This basically entails deeper exploitation of prisoners’ labour. And even though Kenyatta speaks of improving remuneration, it is notable that this is not a free exchange. Whatever the courts might say, it is clear that the state and its owners feel entitled to the labour of those they have incarcerated, much like their predecessors (the colonial regime and the European settlers) once felt entitled to African labour.

This will sound familiar to many Kenyans today whose encounters with the police often begin with demands for the production of the kipande (ID card) and end with a stint in overcrowded police cells. However, there are some differences. An audit of pre-trial detention…found that police generally arrested and charged people for petty offences, with close to half of those arrests occurring over weekends.

In this regard, the attitude is very like that of the white settler in Kiambu, Henry Tarlton, who told the 1912 Native Labour Commission regarding desertion by African workers that “this is my busiest season and my work is entirely upset, and it is hardly surprising if I am in a red-hot state bordering on a desire to murder everyone with a black skin who comes within sight”. Another white settler, Frank Watkins, in a letter to the East African Standard in 1927 boasted of his “methods of handling and working labour”, which included “thrash[ing] my boys if they deserve it”.

This brutality, especially directed towards African males, was paired with forced labour from the very onset of the colonial experience. (Brett Shadle, Professor and Chair of the Department of History at Virginia Tech, notes that the settlers were much more reticent about their violence on African women, which tended to be sexual in nature.) These settlers were already pushing the colonial state to institute unpaid forced labour on public works projects in the reserves (which it eventually did) as a means of driving Africans to wage employment for Europeans.

But it was within the prison system and Mau Mau detention camps that the practice of forced labour found its full expression. According to Christian G. De Vito and Alex Lichtenstein, “Conditions inside the detention camps created in Kenya in the 1910s and 1920s and in the prison camps opened in 1933 depended on the assumption that forced labour, together with corporal punishment, could actually serve as the only effective forms of penal discipline.” The influx of Mau Mau detainees, they explained, overwhelmed the system “since police repression by far exceeded the capacity of the already overcrowded prisons, and the colonial government decided to establish a network of camps, collectively called the ‘Pipeline’, characterized by violence, torture, and forced labour.”

These are the footsteps in which the Kenyan state is walking. Nelson Mandela once said that a nation should not be judged by how it treats its highest citizens but by how it treats its lowest ones. By that measure, the current Kenyan state is no different from its colonial predecessor.

“It is also worth thinking about what happens to the prison at the end of colonialism,” says Prof Anderson. “There is no movement for prison reform in Kenya after 1963 – rather the opposite: the prison regime becomes harsher and is even less well funded than it was in colonial times. By the end of the 1960s, Kenya is being heavily criticised by international groups for the declining state of its prison system and the tendency to violence and abuse of human rights within the system.”

Prof Daniel Branch stresses that “post-colonial prisons urgently need a history. The Mau Mau period rightly gets lots of attention, but there’s very little by scholars on the post-colonial period”.

It is critical, as Kenya marks a decade since the promulgation of the 2010 constitution, that we keep in mind Mandela’s words and ask whether, if at all, it has changed how those condemned by society – “our lowest ones” – are treated. That will, in the end, be the true measure of our transformation.

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The Myth of Unconditionality in Development Aid

Based on interviews and ethnographic fieldwork in Western Kenya, Mario Schmidt argues that local interpretations of Give Directly’s unconditional cash transfer program unmask how the NGO’s ‘myth of unconditionality’ obscures structural inequalities of the development aid sector. Schmidt argues that in order to tackle these structural inequalities, cash transfers should be ‘ungifted’ and viewed as debts repaid and not as gifts offered.

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The New York Times praises the US-American NGO GiveDirectly (GD), a GiveWell top charity, for offering a ‘glimpse into the future of not working’ and journalists from the UK to Kenya discuss GD’s unconditional cash transfer program as a revolutionary alternative in the field of development aid. German podcasts as well as international bestsellers such as Rutger Bregman’s Utopia for Realists portray grateful beneficiaries whose lives have truly changed for the better since they received GD’s unconditional cash and started to invest it like the business people they were always meant to be. At first glance, GD indeed has an impressive CV.

Since 2009, the NGO has distributed over US$160 million of unconditional cash transfers to over tens of thousands of poor people in Kenya, Rwanda, Uganda, the USA and Liberia in an allegedly unbureaucratic, corrupt-free and transparent way. Recipients are ‘sensitized’ in communal meetings (baraza), the cash transfers are evaluated by teams of internationally renowned behavioral economists conducting rigorous randomized controlled trials (RCTs) and the money arrives in the recipients’ mobile money wallets such as the ones from Mpesa, Kenya’s celebrated FinTech miracle, without passing through the hands of local politicians.

In 2015 and after finalizing a pilot program in the Western Kenyan constituency Rarieda (Siaya County), GD decided to penetrate my ethnographic field site, Homa Bay County. On the one hand, they thereby hoped to enlarge their pool of potential beneficiaries. On the other hand, they had planned to conduct further large-scale RCTs (one RCT implemented in the area, studied the effects of motivational videos on recipients’ spending behavior). To the surprise of GD, almost 50% of the households considered eligible for the program in Homa Bay County refused to participate. As a result, the household heads waived GD’s cash transfer which would have consisted of three transfers amounting to a total of 110,000 Kenyan Shillings (roughly US$1,000).

In order to understand what had happened in Homa Bay County and why so many households had refused to participate, I teamed up with Samson Okech, a former field officer of Innovations for Poverty Action (IPA) who had conducted surveys for GD in Siaya. Samson had been an IPA employee for over ten years and belongs to the extended family I work with most closely during fieldwork. During our long qualitative interviews with recipients of GD’s cash transfer and former field officers as well as Western Kenyans who refused to be enrolled in the program, the celebratory reports by journalists and scholars were replaced by a bleaker picture of an intervention riddled with misunderstandings and problems.

Before I offer a glimpse into what happened on the ground, I want to emphasize that I am neither politically nor economically against unconditional cash transfers which, without a doubt, have helped many individuals in Western Kenya and elsewhere. It is not the what, but the how against which I direct my critique. The following two sections illustrate that a substantial part of Homa Bay County’s population did not consider GD’s intervention as a one-time affair between themselves and GD. In contrast, they interpreted GD’s program either as an invitation into a long-term relationship of patronage or as a one-time transfer with obscured actors.

These interpretations should make us aware of ethical problems entailed in conducting social experiments (see Kvangraven’s piece on Impoverished Economics, Chelwa’s and Muller’s The Poverty of Poor Economics or Ouma’s reflection upon GD’s randomisation process in Western Kenya). They can also crucially encourage us to think about ways of radically reconfiguring the political economy of development aid in Africa and elsewhere.

Instead of framing relations between the West and the Rest as relations between charitable donors and obedient recipients, in my conclusion I propose to ‘ungift’ unconditional cash transfers as well as development aid as a whole. Taking inspiration from rumors claiming that Barack Obama, whose father came from Western Kenya, has created GD in order to rectify historical injustices, I suggest rethinking cash transfers as reparations or debts repaid. Consequently, recipients should no longer be used as ‘guinea pigs’ but appreciated as equal partners and autonomous subjects entitled to reap a substantial portion of the value produced in a global capitalist economy that, historically as well as structurally, depends on exploiting them.

Why money needs to be spent on ‘visible things’

Those were guidelines on how to use the money. It was important that what you did with the money was visible and could be evaluated’, William Owino explained to us after we had asked him about a ‘brochure’ several other respondents had mentioned. One of the studies on the impact of GD’s activities in Siaya also mentions these brochures. In order to ‘emphasize the unconditional nature of the transfer, households were provided with a brochure that listed a large number of potential uses of the transfer.’ 

When being asked which type of photographs and suggestions were included in these brochures, respondents mentioned photographs of newly constructed houses with iron sheets, clothes, food and other gik manenore (‘visible things’). When we inquired further if the depicted uses included drinking alcohol, betting, dancing or other morally ambiguous goods and services, the majority of our respondents dismissed that question by laughing or by adding that field officers had also advised them against using the money for other morally dubious services such as paying prostitutes or bride wealth for a second or third wife.

One of our respondents in Homa Bay took the issue of gik manenore to its extreme by expressing the opinion that GD’s money must be used to build a house with a fixed amount of iron sheets and according to a preassigned architectural plan so that GD, in their evaluation, would be able to identify the houses whose owners had benefited from their program quickly and without much effort. Such practices of ‘anticipatory obedience’ are also implicitly at work in the rationalizations of another respondent. He expected that GD’s field officers who had asked him questions about what he intended to do with the money during the initial survey – questions whose answers had, in his opinion, qualified him to receive the cash transfer – would one day return to see if he had really used the money according to his initially stated intention. The logic employed is clear: The ‘unconditional’ cash transfers needed to be spent on useful and, if possible, visible and countable things so that GD would return with further funds after a positive evaluation.

Recipients understood the relation with GD not as a one-off affair, but as an entrance into a long-term relation of fruitful dependency. In contrast to GD which, like most neoliberal capitalists, understands unconditional cash as a context-independent techno-fix, the inhabitants of Homa Bay framed money as an entity embedded in and crystallizing social power relations.

From such a perspective, free money is not really free, but like Marcel Mauss’ famous gifts, an invitation into a ‘contract by trial’ which has the potential to turn into a long-term relationship benefitting both partners if recipients pass the test and reciprocate with obedience. While some actors framed the offer of unconditional cash as a test that could lead into an ongoing patron-client relationship between charitable donors and obedient recipients, others, the majority who refused to accept GD’s offer, interpreted it as a direct exchange relation with unseen actors.

Why money is never free

‘People in the market and those I met going home told me it is blood money’, Mary, a 40-year old mother remembered. After she had been sampled, Mary had never received money from GD but failed to understand why and believed the village elder had ‘eaten’ her money. She further told us that rumors about ‘blood money’ circulated in church services and funeral festivities. ‘Blood money’ refers to widespread beliefs that accepting GD’s cash implied entering into a debt relation with unknown actors such as a local group sacrificing children or the devil.

Comparable rumors playing with the well-known anthropological trope of money’s (anti)-reproductive potential circulate widely in Homa Bay: Husbands who wake up only to see their wives squatting in a corner of the room laying eggs, a huge snake that lives in Lake Victoria and vomits out all the money GD uses, mobile phones that can be charged under the armpit or find their way into the recipient’s bed if lost or thrown away (many people allegedly threw their phones away in order to cut the link to GD), money that replenishes automatically or a devilish cult of Norwegians that abducts Kenyan babies and transports them to Scandinavia where they are adopted into infertile marriages.

All of these rumors, which are epitomized in a phrase some recipients considered to be GD’s slogan, Idak maber, to idak matin – (‘You live well, but you live short’) – revolve around the same paradox: Money initially offered with no strings attached, but whose reproductive potential will soon demand blood sacrifice or lead to a fundamental change in one’s own reproductive capacities.

Local attempts to ‘conditionalize’ GD’s unconditional cash as well as rumors about tit-for-tat exchanges with the devil undermine GD’s assumption that their cash transfers are perceived by recipients as unconditional. This has two consequences. On the one hand, it questions the validity of studies trying to prove that the program was successful as an unconditional cash transfer program. On the other hand, it urges us to focus on the unintended consequences caused by GD’s intervention. While Western Kenyans who have given consent to participate in the intervention invested their hopes in an ongoing charitable relation with GD, those who have refused to participate – as well as some who did – have been haunted by fear and anxiety triggered by situating GD’s activities in a hidden sphere.

All this raises ethical and political questions about GD’s intervention in Homa Bay County. Did GD, an actor that is neither democratically elected nor constitutionally backed up, have the right to intervene in an area where almost 50 % of the population refused to participate? Did the program really reach the poorest members of society if accepting the offer depended on understanding the complex networks of NGOs that constitute the aid landscape? Should it not be considered problematic that a US-American NGO uses whole counties of an independent country as laboratories where they experimentally test the feasibility of unconditional cash transfers in order to assure their donors that recipients of unconditional cash ‘really’ do not spend donations on alcohol and prostitutes?

Apart from raising these and other ethical and political questions, the reactions of the inhabitants of Homa Bay County can be understood as mirrors reflecting a distorted but illuminating image of the development aid sector. Narratives about women laying eggs and satanic cults sacrificing children exemplify an awareness of the fact that, on a structural level, the development aid sector is shot through with inequalities and obscure hierarchical power relations between donating and receiving actors. At the same time, recipients’ anticipatory obedience to use the cash on ‘visible things’ unmasks a system that appears overwhelmed by the necessity to constantly evaluate projects in order to secure further funding.

By ‘conditionalizing’ cash transfers as long-term patronage relations or tit-for-tat exchanges with the devil, inhabitants of Homa Bay unmask GD’s ‘myth of unconditionality’ and thereby relocate GD into the wider development aid world in which they have never been equal partners.

Why we must ‘ungift’ development aid

‘I think it was because of Obama’, a former colleague of Samson who had administered the surveys of GD in Siaya County told me while we enjoyed a meal in a restaurant along Nairobi’s Moi Avenue after I had asked him why the rejection rates of GD’s program in Siaya had been so low. According to rumors that circulated widely during GD’s first years in Siaya, Barack Obama, whose father came from a village in Siaya County, had teamed up with Raila Odinga, an almost mythical Luo politician, in order to channel US-American funds ‘directly’ to Western Kenya, i.e. without passing through the Central Kenyan political elite who had – in 2007 as well as 2013 – ‘stolen’ the elections from Raila.

As a consequence, at least some recipients did not agree with interpretations of the cash transfers as market exchanges with shadowy actors or invitations into long-term relationships of patronage. Rather, they conceptualized the transfers as reparations originating in Obama’s attempt to recoup losses accumulated by the Luo community due to political injustices provoked by the actions of what many consider to be a corrupt Kikuyu elite. This conjuring of a primordial ethnic alliance between Obama and Western Kenyans might strike many as chimerical.

Be that as it may, we should acknowledge that the rumor of Obama’s intervention situates the cash transfers in a social relation between two equals who accept their mutual indebtedness and act accordingly by putting things straight. By reinterpreting GD as a clandestine operation invented by their political leaders, Barack Obama and Raila Odinga, inhabitants of Siaya portray themselves as belonging to a community of interdependent equals whose members are entitled to what the anthropologist James Ferguson has called their ‘rightful share’.

How would development aid look like if we dared to transfer this idea of a community whose members acknowledge their equality and mutual indebtedness to our global economic system? One way to redeem the fact that we all live in a highly connected capitalist economic system spanning the whole globe and depending on exploiting a huge portion of the global community would be to follow in the footsteps of the inhabitants of Siaya and rebrand cash transfers as reparations being paid for historical and structural injustices.

By way of conclusion, I want to suggest the idea of ‘ungifting’ development aid, i.e. to reframe it as a duty and to accept that recipients of cash transfers have the right to receive their share of the value produced by the global capitalist economic system. Consequently, cash transfers should be considered as debts repaid and not as gifts offered.


Names of individuals in this article have been anonymized.

This article was first published in the Review of African Political Economy.

Names of individuals in this article have been anonymized.

 

 

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