Connect with us

Features

THE NEW SCRAMBLE FOR EAST AFRICA: How rising debt and IMF loans have shielded kleptocrats and stunted human development in the region

Published

on

THE NEW SCRAMBLE FOR EAST AFRICA: How rising debt and IMF loans have shielded kleptocrats and stunted human development in the region

“National liberation, the struggle against colonialism, the construction of peace, progress and independence are hollow words devoid of any significance unless they can be translated into a real improvement of living conditions.”
Amilcar Cabral, African Party for the Independence of Guinea and Cape Verde

Given the disparity between Uganda’s economic growth and the increasingly precarious existence of most of her citizens, Ugandan economists need to devise a measure of economic growth that reflects the needs and aspirations of the indigenous population.

Economic growth, as measured by the International Monetary Fund (IMF) in Uganda, is not synonymous with access to life-supporting conditions. GDP is primarily used as an indicator for aid decision-making by investors. Investors – whether charter companies, venture capital funds or multinational companies – have served to create employment and to raise living standards in their countries of domicile. Debt is the means by which net outflows of wealth from developing countries is achieved.

Human development indicators stand outside GDP and may or may not be considered (and are usually not considered) in the measurement of progress. What is required is an indicator of economic growth that is linked to the health, well-being, education and general prosperity of Ugandans. To have any real use, the measure would also have to factor in the impact public debt repayments have on household access to basic requirements, such as water, food and useful education.

Insisting, as the government and international lending agencies do now, that debt repayments are sustainable as long as they remain under 50% of GDP masks the fact that even with that debt-to-GDP ratio, the prevalence of undernourishment in Uganda remains high and access to improved water and sanitation remains low. Uganda’s debt repayments stand at 38% of GDP and between 26% and 36% of the population is undernourished. Now that public debt has risen to 50% of GDP, it is misleading to paint a rosy picture of the economy.

The IMF’s World Economic Outlook of April 2018 reported Uganda’s annual economic growth rate to be 5.2%, compared to 5.5% for Kenya, 6.4% for Tanzania and 7.2% for Rwanda. The East African Community’s other members, Burundi and South Sudan, were reported to have low or negative economic growth rates (0.1% for Burundi and a negative rate of -3.8% for South Sudan), the result no doubt of the ongoing internal conflicts in these countries.

Insisting, as the government and international lending agencies do now, that debt repayments are sustainable as long as they remain under 50% of GDP masks the fact that even with that debt-to-GDP ratio, the prevalence of undernourishment in Uganda remains high and access to improved water and sanitation remains low.

However, growth statistics reported for Uganda and the East Africa region may really be a reflection of the activities of and benefits enjoyed by multinational corporations, other investors and political elites and could have little relation to the average Ugandan or East African. An East African or Ugandan Economic Statistics Review Group could usefully be set up to find more meaningful measures, including non-monetary factors, that would reflect the improvement, deterioration or stagnation of the standard of living. It is a major in-built weakness in governance to rely on external entities (whose priorities are not necessarily our priorities) to manage and report on the economy.

Against the background of inadequate human development, Roger Nord, the deputy head of the IMF, approved the findings of Uganda’s Debt Sustainability Analysis of December 2016. As is now known, that report stated erroneously that Uganda was at low risk of debt distress and that there was no risk of domestic debt undermining the country’s ability to meet debt repayments.

Adam Mugume, the executive director for research at the Bank of Uganda, thought differently. He warned that falling commodity prices and the sliding value of the shilling had the potential to worsen an already precarious debt position. More recently, the Central Bank has warned that sovereign default remains a real danger. The Auditor General weighed in with a warning that interest payments on domestic debt are pushing the country towards debt distress. However, the IMF’s opinion prevailed for reasons that go back to the 1884-1885 Berlin ‘Scramble for Africa’ Conference and all that came after it.

The IMF followed up its misleading assurances in April 2017 when Mr Nord said on KTN that although the economic outlook for Africa was generally subdued, the one bright spot was East Africa where regional integration was progressing. He cited the flow of goods, services and people without indicating how IMF policies have impacted those flows since 1986/7 when the structural adjustment programme (SAP) began. Integration in to one economic bloc, Nord said, would make East Africa an even more attractive destination for foreign investment in much needed but expensive infrastructural development – a message of encouragement to investors that took no account of human development.

Federation has clear advantages connected to economies of scale in developing infrastructure. What is argued here is that integration could also consolidate corruption and the accompanying means of repression. Loans already spent have not always yielded value for money, a fact the IMF does not acknowledge. As it is, there is a need to be hypervigilant at the national level in monitoring debt and the terms and conditions under which it is incurred. Uganda would have done better to strengthen her own governance before embarking on ever closer union with other countries.

Foreign direct investment is often financed by credit made available to investors under government schemes in their own countries for projects that they propose to the target countries. Recently, the UK launched the Export Finance (UKEF) line of credit under which the government of Uganda borrowed €270 million to build an airport. The condition is that British companies are to be used to do the work.

Federation has clear advantages connected to economies of scale in developing infrastructure. What is argued here is that integration could also consolidate corruption and the accompanying means of repression. Loans already spent have not always yielded value for money, a fact the IMF does not acknowledge.

Britain now produces 60% of her food requirements and imports 30% of the rest from the European Union. Her emergency reserve is good for five days. Britain has a perpetual balance of payments deficit which will only be made worse after Brexit when imports from the EU will become more costly. It made sense therefore to offer British companies credit and so far, in addition to an airport, from which GBP100 million worth of exports to Uganda is expected to result, the UK won contracts in Uganda worth over US$2 billion in 2017 alone.

Whether Ugandan leaders looked beyond the easy availability of the credit and considered with enough rigour the prioritisation of an airport, the strength of the technical proposals or the relative cost remain to be seen. What is almost certain is that no effort was made to ensure that Ugandan businesses and professionals participated in those development projects and that there was a transference of skills.

The history and purpose of federation

Britain’s reasonable interest is to maintain employment to enable her workers to purchase food. One MP summed up the situation up as: “We have to buy our food from outside, and in order to buy our food we have to exchange manufactured articles, but before we can exchange manufactured articles we have also to buy from outside the raw materials from which to manufacture them.”

East African federation has always been seen as a solution to Britain’s economic challenges. During the slump of the 1920s, UK’s parliament considered possible solutions. These included encouraging the three million unemployed to migrate to the Dominions and to the colonies and creating more jobs in the textile industry by creating a larger source of cheap cotton to substitute the more costly American variety. This was to be done by investing in a railway and harbour through which to export the cotton from Uganda and Kenya. The beauty of it was that it would be paid for out of cotton taxes and native poll tax paid by the growers.

Federation was first formally considered for East and Central Africa by parliament in 1925. An early triumph or regional cooperation was the co-financing of the Mombasa port and the Uganda Railway. The benefits were not evenly distributed – Kenyan customs collected and retained the duties paid for Uganda’s trade through Mombasa for the first ten years. The Uganda Railway itself began and ended in Kenya from where a steamer completed the journey.

Later there was a movement in colonial Kenya to break away from Britain and form an autonomous state similar to the Union of South Africa. Kenyan settlers who dominated the Legislative Council proposed that Kenya be allowed to spend GBP80,000 (roughly the equivalent to the annual budget of the Colonial Office) to build the East African High Commission as the future administrative building for an expanded Kenya.

The anticipated self-governing federal state was to incorporate Uganda and Tanganyika. There was talk of uniting a future East African Federation with the Central African Union (of Rhodesia and Nyasaland). From Uganda’s point of view, this was undesirable because European settlers in Kenya had already planted the seeds of apartheid-style economic domination; they were exempt from income tax; they had exclusive rights to the cultivation of profitable crops like maize and coffee granted by British government ordinances (thereafter claiming entitlement to privileges because they carried the economy); they were entitled to use forced labour and the pay scales were lower for Africans than for Europeans and Asians. Salaries were usually calculated on the basis of a single man living in a hostel near a mine or a farm. In this way, poverty became entrenched as families left behind on Native Reserves tried to eke out a living on the increasingly over-populated Reserves.

The cost of Kenya’s colonial administration was much higher than anywhere else in the region because, as explained at Whitehall, the administration had to be predominantly European to service the settler community. An example given was that a European suspect could not be expected to submit to arrest by an African policeman, therefore expatriate policemen paid on an expatriate pay scale were needed.

Some high-cost social services for use by the Kenyan settler population were paid for with ‘loans’ from the Ugandan treasury. Examples include Hill School, Eldoret, a boarding school for European pupils from the region and the Mombasa Municipality water supply financed in 1959 by a 15-18 year loan to Kenya of GBP1 million. In Uganda there were already segregated educational, medical and recreational facilities for Europeans, Indians and Goans.

To attract more settlers to Kenya, especially from among the unemployed, the Imperial government offered them an existence in which their interests took precedence over those of the indigenous population. Collateral damage to Africans included involuntary population transfers as commercial farms were established, compulsory labour, child labour, flogging, exploitation of women and abandonment of their children and venereal disease.

In 1932 the parliamentary Joint Select Committee on Closer Union in East Africa was set up to examine the issue. The opposition argued that settlers could not be entrusted with the welfare of the Africans and that Britain should continue to play their self-arrogated role of trustee. As in 1925, the committee recommended that the prevailing model in the region be maintained i.e. that the British government through the Colonial Secretary maintain the authority to intervene directly in the affairs of the East African colonies.

Post-independence African leaders entrusted with the welfare of the indigenous population act as middle-men, receiving support for their elections and monetary benefits in return for serving external economic interests. Investors need only secure physical access to leaders or their relatives before emerging with tax-holidays, waivers of environmental law, hectares of free land and permission to displace any local communities in their way.

How different is the subjugation of the interests of the general population by those pre-independence elites from the current situation in which potential investors are offered incentives that are ruinous to the local economy? The only difference between pre- and post-independence multinational corporations is that instead of dealing with colonial administrators they now deal with African kleptocrats.

The East African Legislative Assembly will be able to approve loans. East African federation makes the region more attractive to investors because larger collateral spanning the entire region can be extracted. Having failed to reign in a national parliament that consistently fails to keep public debt at manageable levels and on reasonable terms, there is little reason to expect the East African Legislative Assembly to act any more prudently.

How different is the subjugation of the interests of the general population by those pre-independence elites from the current situation in which potential investors are offered incentives that are ruinous to the local economy? The only difference between pre- and post-independence multinational corporations is that instead of dealing with colonial administrators they now deal with African kleptocrats.

In pushing for regional integration to boost foreign direct investment without paying at least as much attention to raising living standards, the IMF is carrying on from where the Imperial government left off.

The evidence of deepening regional cooperation cited by Mr Nord was “growth remaining quite high and investment proceeding” and regional integration evidenced in the launch of the single passport for East African citizens. Regarding the criteria countries are required to meet before joining the Union, Mr Nord said, “Debt levels are all within – uh – limits. Fiscal deficits remain still on the high side but in most countries are heading down.” He expects a monetary union by 2024. Meanwhile, Uganda’s fiscal deficit is growing.

What the IMF omits from its glowing investment portfolio for East Africa is the fact that all debts incurred by corrupt leaders are likely to be audited. Wherever it is found that they led to abuse of civil rights or that they yielded insufficient value for money, they are liable to be repudiated. Non-ethical investment no longer makes financial sense.

Mr Nord’s condescendingly vague remarks offer little justification for his optimism. (He is often referred to as the ‘Super Minister of Finance of Uganda’.) Civil unrest is constantly simmering in Uganda, Kenya, Rwanda and Burundi. Sudan reverted to all-out war after a hiatus of only two years. The fact is that post-independence East Africa is being set up for exploitation on a new level by foreign corporations and vampire investors aided and abetted by its leaders.

Civil unrest and state brutality

As in colonial times, the current social unrest is symptomatic of underlying problems, chief among which is the lack of economic advancement of the vast majority of East Africa’s population. Civil unrest and state violence are critical economic indicators. This was understood in the past by some British MPs, two of whom are quoted below:

Why is it that the Colonial Office still permits in new ordinances, restrictions on the civil and industrial rights of the peoples of the Colonial Empire? In Sierra Leone, there has been a new spate of legislation designed to increase the powers of the Government in regard to the literature that may be read, in respect to deportation orders and trade union organisation. Recently, there was a new Sedition Law in Trinidad. If these Colonies have been able to get on for scores of years without this legislation being necessary, what new factors are there in the situation which require that these new ordinances of a repressive and restrictive kind should now be passed? Is it that at last the people are demanding that justice should be done, and therefore, it is necessary to put further checks on their powers of expression?

Arthur Creech Jones MP, contributing to the Colonial Office debate in the House of Commons on 7 June 1939

 

I ask any hon. Member opposite if he thinks millions of people engaged under conditions like that, having to work for miserably low wages like that, including sometimes some amount of food, can be expected to be in a state of contentment with affairs as they are? Does any hon. Member opposite blame them if occasionally they are inclined to break the law to try to make things better? If the Colonial Secretary tried to look at those problems in that way, instead of bringing down on these people, with all his might and main, every possible policeman, he would be a success.

–Wilfred Paling, MP during the Affairs in Africa debate, 16 December 1953

 

Sixty years later, failure to gain access to the most basic requirements of decent living, while others live in fear of losing the access they enjoy, it is no wonder there is disaffection among the population. Where there is disaffection, repression is to be expected because Kenya and Uganda retained repressive colonial laws enacted as a response to agitation for independence.

That the IMF deems this state of affairs ‘progress’ is sad but not surprising. Illicit transfers of wealth on the current scale can only be continued by force. From the point of view of an organisation whose primary aim is to secure the signatures of African leaders on contracts committing the region to debt regardless of its sustainability, East Africa is a success. The five strongmen leaders and President Nkurunziza of Burundi are kept in power by foreign aid, which is used to provide the services for which the government should be responsible.

As in colonial times, the current social unrest is symptomatic of underlying problems, chief among which is the lack of economic advancement of the vast majority of East Africa’s population.

The IMF’s campaign of disinformation provides the façade of ethical investment while foreign corporations siphon out the wealth of the African continent.

Beyond austerity to destitution

The latest available figures show that, on average, one third of the population of East Africa is undernourished. (This figure excludes Burundi and South Sudan for which no figures are available but reliable refugee sources have spoken about feeding stations in the towns in both countries.) Despite having the highest economic growth rate in East Africa, nearly half of Rwanda’s population is undernourished. (Rwanda succeeded Uganda as the exemplar of the rightness of structural adjustment.)

The prevalence of undernourishment in Uganda rose by 13% to the current 39% of the population between 2006 and 2015. In addition, Uganda has pockets of prevalent stunting, a high primary school drop-out rate, and low access to improved sanitation facilities (19% for Uganda, 30% for Kenya, and 15% for Tanzania. These three countries, the original East African Community, have been applying IMF-prescribed economic policies for much longer than Rwanda and Burundi where access to improved water and sanitation stands at 61% and 41%, respectively.)

Prevalence of undernourishment (% of population)

Fig. 1

Source: World Bank Health Nutrition and Population Statistics. No undernourishment data on Burundi. Last Updated: 12/18/2017

The prevalence of undernourishment in Uganda rose by 13% to the current 39% of the population between 2006 and 2015. In addition, Uganda has pockets of prevalent stunting, a high primary school drop-out rate, and low access to improved sanitation facilities (19% for Uganda, 30% for Kenya, and 15% for Tanzania.)

Hunger is endemic in parts of the East and Karamoja and the population there is fed and watered by the World Food Programme. Periodic influxes of refugees from South Sudan only serve to exacerbate the problem. At the current growth rate, coupled with the downward spiral in commodity prices and the fall of the shilling to half its 1990s value, it is unlikely that the level of undernourishment or the lack of access to safe water will be significantly reduced.

Comments

Mary Serumaga is a Ugandan essayist, graduated in Law from King's College, London, and attained an Msc in Intelligent Management Systems from the Southbank. Her work in civil service reform in East Africa lead to an interest in the nature of public service in Africa and the political influences under which it is delivered.

Features

THE 21st CENTURY ECONOMY: In God We Trust, Everyone Else Bring Data

Blockchain technology has the necessary framework to address the challenge of accounting for human capital and allowing for democracy and the creation of knowledge in order to grow the economy. Argues BETTY WAITHERERO

Published

on

THE 21st CENTURY ECONOMY: In God We Trust, Everyone Else Bring Data

In a well-written article, economist David Ndii finally went on record with a counter-proposal to the Jubilee economic platform: “If knowledge and human capital are the engines of economic growth, what is the role of the foreign investment and infrastructure edifices that our governments are obsessed with?” he asked.

Dr. Ndii proposes a more realistic approach for a developing nation such as Kenya: Grow the economy by investing in both knowledge and human capital, rather than by mimicking growth seen in already developed nations that focus investments on infrastructure.

In developing countries like Kenya, the returns on government investments in infrastructure and inventory to create capital will always lag behind the initial amount invested i.e. there will be diminishing returns to scale. Ultimately, it will take Kenya a long time to recoup its investment in the standard gauge railway (SGR), for instance. As we can see currently with this particular infrastructural investment, the level of profits or benefits gained through the building of the SGR is significantly lower than the amount of money invested and will remain so for a long time. This is unhealthy growth, but expedient in the short term, in that it is convenient for the government to make such investments even when it is not necessarily wise or morally right to do so.

However, forming capital in an economy by investing in innovation and acquiring human capital – getting people to be productive and to work – will always lead or be at par in proportion to the initial amount of money or resources invested, creating constant returns to scale. Basically, an increase in investments in knowledge and human capital will cause an increase in economic productivity. This is healthy growth because knowledge is wealth, economic growth is learning, and the individual in conditions of economic and political liberty is the resource. These are uncomfortable notions that governments and people must accept before investing in knowledge; democracy must become an enabling means to ones’ productivity and livelihood, going beyond mere politics and electoral cycles.

Dr. Ndii’s explanatory narrative of how both Robert Lucas’s and Paul Romer’s models work together to generate endogenous growth allows us to understand that economic growth, for developing nations especially, is rooted in being able to account for human capital and innovation. In a nutshell, Paul Romer’s endogenous growth theory holds that it is the creation and investment in knowledge, human capital and innovation that is the more substantial contributor to economic growth.

Investing in people

For emerging economies like Kenya, endogenous growth theory and its possible application allows us to correct nearly 150 years of chasing the consequences of other nations’ economic decisions and interests. Put simply, Kenya, just like many other previously colonised African nations, has an economy that is designed to primarily serve the interests of its former coloniser. And despite the intentions of successive governments, a lack of human capital accounting (identifying, reporting and measuring the value of human resources in a country) has ensured that this economic model works to the detriment of the majority of the population.

Of all the devices created by human beings, the government is the most formidable and consequential. The government is responsible for all the best and all the worst happenings in humanity’s history, as well as for everything in between. This device has evolved over generations, taking on different forms and purposes consistent with the prevailing paradigms and needs of its wielders.

The aspirations of the Jubilee government, as expressed in its Big 4 agenda, are to spur and ignite Kenya’s economic growth by ensuring food security and universal healthcare, building affordable housing and increasing manufacturing. However, motivating an entire nation of more than 40 million people to achieve these goals demands a paradigm shift. Investing in human potential, knowledge, skills and creativity ought to be the drivers of economic growth, rather than the seemingly strict investment in state and capital assets, as is the current government’s approach.

Investing in people is not restricted to education; it includes funding for research and innovation, and also investing in information platforms, healthcare and provision of sustenance. In other words, if indeed the Jubilee government wishes to create one million jobs every year, it ought to invest in the people who will do these jobs.

The aspirations of the Jubilee government, as expressed in its Big 4 agenda, are to spur and ignite Kenya’s economic growth by ensuring food security and universal healthcare, building affordable housing and increasing manufacturing. However, motivating an entire nation of more than 40 million people to achieve these goals demands a paradigm shift.

Automation and the productivity gap

The reality is that technology and automation are putting people out of jobs already. In August this year, the Daily Nation reported that 2,792 banking staff had been laid off due to increasing automation and declining profitability – the effect of unintended consequences of the move to mobile financial applications to reach the unbanked, eliminating the need for intermediaries in the banking hall, coupled with the effects of government policies seeking to cap interest rates. This is an ironic outcome given the government’s goal of financial inclusion and greater employment.

Automation in other economies is creating a productivity gap. Increasingly, jobs that were previously done by people are being taken over by more efficient and more accurate machines and robots. This cuts across industries ranging from manufacturing to food production, leaving behind a population of people who do not have the requisite skills for jobs outside their industries. These people fall through the gaps, and remain unemployable for months or even years.

In an article published in Fortune,This is the Future of Artificial Intelligence”,

the wealthy entrepreneur and Xerion CEO, Daniel Arbess, highlighted the profound manner in which Artificial Intelligence (AI) algorithms are eating up human jobs. “Our political leaders don’t seem up to the policy challenges of job displacement — at least not yet, but the application of Big Data software algorithms is elevating decision-making precision to a whole new level, creating efficiencies, saving costs or delivering new solutions to important problems.” he wrote. “The Bank of England estimates that 48% of human workers will eventually be replaced by robotics and software automation.”

Kenya’s unemployment rate is estimated to be 11.4 per cent. This unemployment rate translates to a further 30 per cent of the population living in extreme poverty. There are many harmful social and psychological effects of short- and long-term unemployment, including alcoholism, homelessness, and rising crime, especially crimes that target more vulnerable people such as women and children.

The situation is compounded by nearly three decades of missed growth opportunities brought about by the fact that there was a lack of human capital accounting. Even at its most prosperous, Kenya’s economic policies simply assumed that jobs would be created via investment in infrastructure rather than in people. Consequently, we have a debt culture that affects the entire nation.

Furthermore, having nearly 83 per cent of the working population in the informal sector means that capital is not accessible through tax revenues – a situation that the government opted to address through new taxation aimed at mobile transactions and data. Emerging economies like Kenya need small business to thrive, but work is not forthcoming. Business opportunities are declining, incomes are diminishing and purchasing power is diminishing.

The situation is compounded by nearly three decades of missed growth opportunities brought about by the fact that there was a lack of human capital accounting. Even at its most prosperous, Kenya’s economic policies simply assumed that jobs would be created via investment in infrastructure rather than in people. Consequently, we have a debt culture that affects the entire nation.

And because the government is hoarding tenders (in July, Uhuru Kenyatta ordered a freeze on new government projects), business is hoarding opportunities and banks are hoarding finance. As productivity is constrained, banks and non-bank financial institutions (NBFIs) are distributing through debt the purchasing power that businesses are not distributing through salaries.

China is doing the same on an international scale by distributing purchasing power through debt as a substitute for national economic growth. It is building infrastructure, such as highways and railways, using loans that are then spent on Chinese companies that serve China’s interests, even though the infrastructure will, hopefully, eventually benefit the debtor nation.

Human capital accounting

A lack of accounting for human capital exacerbates the situation. An economic model that seeks great investment in infrastructure in order to boost the economy but does not account for people engaging in economic activity will result in a mismatch, most graphically seen in an absence of skilled and qualified professionals adept at doing the new jobs that are created. So, without the necessary skills, the locals fall through the employment gaps, and unfortunately, foreigners, with the requisite skills, are hired.

Governments advance the welfare of citizens by establishing and executing public policy for net positive outcomes. This is conventionally done through the creation of rules and regulations, and enforcing their compliance. If viewed in technology terms, the government can be described as a protocol stack (a set of rules) that responds to any input in a prescribed manner consistent with underlying statutes. Indeed, failures in government can be spectacularly linked to the ignoring, circumvention or subversion of the procedures set forth to guide healthy operability among various constituencies and concerns among the citizenry.

Smart-law is the idea that a legal statute can be implemented as a digital computational protocol to which users can connect, execute and return results exactly according to the purpose and design of the underlying legal architecture. There are benefits to a smart-law paradigm, including the fact that it can be censorship-resistant, in that transactions cannot be altered and anyone, without restriction, can enter into those transactions; it is trustless, meaning that trust (knowing and trusting the other party to fulfil their obligations) is not necessary or required, and it does not discriminate in the manner or order of its operations.

The Kenyan government has taken action to advance citizen-centred public service delivery through a variety of channels, including deploying digital technology and establishing citizen service centres across the country. Smart-laws that can provide compliant, straightforward and predictable interactions between citizens and the bureaucracy would have a big and important role to play in this endeavour.

The world in the 21st century is one of advancement through technology. Everything has made a leap forward in one way or another through the impact of technology. It is also true that among all entities, the government remains the most obstinately slow in embracing technology and innovation.

The Kenyan government has taken action to advance citizen-centred public service delivery through a variety of channels, including deploying digital technology and establishing citizen service centres across the country. Smart-laws that can provide compliant, straightforward and predictable interactions between citizens and the bureaucracy would have a big and important role to play in this endeavour.

The time is right for the government to undergo a technology-driven transformation that it so yearns and that will bring it up to par with the industries and sectors it intends to effect. By doing so, it can unleash the potential of the 21st-century citizen.

Blockchain technology

Kenya’s recognition of blockchain technology via its Blockchain Task Force headed by Dr. Bitange Ndemo allows for a little optimism. I will provide a simple explanation for this technology. Blockchain is very often conflated with bitcoin and cryptocurrency trading. However, blockchain is an incorruptible digital ledger where transactions are recorded and cannot be altered. In securing these transactions, computer processors complete complex mathematical equations which when solved are rewarded with a token. The token can bitcoin, or ethereum, all depending on which blockchain platform is being utilised.

The trading and investing of these coins by laypeople in Kenya (sometimes leading to loss of funds) is what leads both Dr. Patrick Njoroge and Dr. David Ndii to call cryptocurrency a scam. I am inclined to agree with them on the matter of how the trading is conducted in Kenya – some traders entice investors with a multi-level marketing or Ponzi-style scheme. But I disagree with a blanket declaration writing off this technology and its potential utilisation in governance and its products, the cryptocurrencies. I recently had a robust discussion with Dr. Ndii on twitter on the same matter.

It is my firm belief that blockchain technology has the necessary framework to address the challenge of accounting for human capital and allowing for democracy and the creation of knowledge in order to grow the economy.

Together with two of my colleagues, Andrew Amadi, who is a sustainable energy engineer, and Chris Daniels, who is an economist and programmer, we created the Freework Society in 2017 with the aim of achieving this particular goal through a programmable economic model built on ethereum blockchain. (Ethereum is an open-source, public, blockchain-based and distributed computing platform and operating system featuring smart contract functionality.)

It is my firm belief that blockchain technology has the necessary framework to address the challenge of accounting for human capital and allowing for democracy and the creation of knowledge in order to grow the economy.

In developing a public computing infrastructure that can implement smart-laws, and which can also account for anyone’s work and effort, and can allow for investment in innovation, we were compelled to improve the very platform we would utilise by creating a standard. This standard is called an Ethereum Improvement Proposal (EIP), which describes core protocol specifications, client application programming interface (API) and contract standards. In a nutshell, an EIP describes how the platform will function if the proposal is implemented.

In developing countries like Kenya, the returns on government investments in infrastructure and inventory to create capital will always lag behind the initial amount invested i.e. there will be diminishing returns to scale.

Our proposal is to utilise the opportunities presented on ethereum blockchain technology by creating a human capital accounting framework that provides a merit-based system of indexing human resources, knowledge and talent, and subsequently reducing market search costs and challenges to price discovery and increasing the desirability to share value, work, and assets within the economy. This proposal has been accepted and assigned Ethereum Improvement Proposal EIP1491.

EIP1491 is a proposal that intends to contribute to the development of a human capital accounting standard on blockchain. EIP1491 allows for the implementation of standard APIs for human cost accounting tokens within smart contracts. This standard provides basic functionality to discover, track and transfer the motivational hierarchy of human resources.

Whereas blockchain architecture has succeeded in the financialising of integrity by way of transparency, correspondingly real-world outcomes will be proportional to the degree of individualisation of capital by way of knowledge.

What this means in an entrepreneurial economy is that where you have employers and workers looking to exchange value (work for money) there is now a proposed standard of how to go about this, and these standard assigns unit value to the labour/work that is done, and creates a meritocracy for those who will do the work i.e. a standard unit of labour with a coefficient that assigns value via points to education, years of experience, talent, and interests.

Suppose there is an employer who wishes to have job X done by a university graduate with three years’ experience, for which he is willing to pay Y amount of money. Utilising our standard API, the employer is able to compute how many labour hours he will be required to pay for, and what exact merit the employee will have, meeting the challenge of price discovery. The employer will also reduce his market search cost because he is able to track and locate the right candidate for the job. Both employer and employee are happy with the work because both are correctly directed to the right smart contract.

For millions of people in emerging economies around the world, the potential of EIP1491 will allow for individualised agency, rather than that agency being rooted in government. As we can all agree, despite the best of intentions, governments cannot be trusted to act in the interest of citizens. The best example for this is the debt-based culture that currently runs economies.

This means that an individual’s human resource, talent, interest and work has a value that can be exchanged at will because the individual has control over his agency. He is able to turn his different trades into capital that can be exchanged directly for purchasing power.

The ability to factor in growth in a knowledge-based economy ultimately should mean that not only is unemployment impeded, but that with increased utilisation, time becomes money, waste is reduced and the incidences of unrealised potential and missed opportunities are eliminated. Total factor productivity can be achieved in a shared agency ecosystem where millions engage willingly in exchanging value propositions using their own human capital.

We invite robust engagement and discussion on this standard and its applicability, and comments on the same.

Continue Reading

Features

DEPOLITICISING DEVELOPMENT: Jubilee and the Politics of Spin

The tissue that connects the depoliticisation of development, the blind deployment of technology, and the professionalisation of the cabinet is Jubilee’s shamelessness. No political party is without faults and foibles, but in Jubileeland, shamelessness has taken an insidious form. By ABDULLAHI BORU HALAKHE

Published

on

DEPOLITICISING DEVELOPMENT: Jubilee and the Politics of Spin

In the Jubilee universe, it is almost an article of faith that politics is “bad” and development is “good”. It’s not uncommon to hear President Uhuru Kenyatta, Deputy President William Ruto, and high-level administration officials and their supporters’ constant put-downs directed at their opponents: “We don’t have time for politics, we are only interested in development.” They believe that the depoliticisation of development is necessary in order for them to deliver on their campaign promises.

While such a rhetorical sleight of hand is occasionally designed to silence opponents – who are supposedly opposed to development – in practice, it also reveals the Jubilee government’s limited understanding of politics. For them development is a cold, apolitical, technical exercise that is not only immune to politics, but transcends it.

More broadly, Jubilee’s politics-development dichotomy is an insidious attempt at redefining politics as criticising Jubilee, whether fairly or unfairly, and development as praising the administration, whether they are delivering or not. The net aim is to induce self-censorship among critical voices.

Techno-fallacy

Building a rhetorical firewall between development and politics is not a new idea; President Daniel arap Moi’s favourite retort when placed under pressure was “Siasa mbaya, maisha mbaya” (bad politics, bad life), never mind that under him, Kenya was firmly in mbaya zone. Maisha was so mbaya under Moi that economy growth was a mere 0.6 per cent when his successor Mwai Kibaki took over in 2002. Dissent was penalised and the country felt like a band that was dedicated to singing his praises. It is rather ironic that Jubilee, which would like to be remembered for good economic stewardship, would look to Moi for inspiration.

Building a rhetorical firewall between development and politics is not a new idea; President Daniel arap Moi’s favourite retort when placed under pressure was “Siasa mbaya, maisha mbaya”

The Jubilee government has also coupled the depoliticisation of development with a similar rhetoric on technology, in the process completely eviscerating nuances, complexities or grey areas when discussing public policy. You are either part of the cult of technology or you are not interested in progress.

In his book, To Save Everything, Click Here: The Folly of Technological Solutionism, Evgeny Morozov captures Jubilee’s approach to development: “Recasting all complex social situations either as neat problems with definite, computable solutions or as transparent and self-evident processes that can be easily optimised — if only the right algorithms are in place! — this quest is likely to have unexpected consequences that could eventually cause more damage than the problems they seek to address.”

For instance, one of Jubilee’s bright ideas of fixing the education system is to provide every child with a laptop, in line with their emphasis on learning science, technology, engineering, and mathematics as opposed to the humanities, which they see as not “marketable”. Never mind that only slightly over half of Kenya has access to electricity, that the teachers have not yet been trained or hired for the switch to using laptops, and most schools do not have computer labs. Jubilee is, after all, led by the dynamic digital duo that needs everyone to be wired.

Along with a blind faith in technology, Jubilee also regards corporate experience as a most prized asset in public appointments – as exemplified by the Harvard-educated former Barclays CEO, Adan Mohamed, who is the Cabinet Secretary for Industrialisation. For Kenyatta and his ilk, corporate experience, when coupled with technology, will fix pesky inefficiency and sloth in the public service.

This is not new; under pressure domestically from opposition groups, and externally from the Bretton Woods institutions, Moi appointed a “Dream Team” to key public offices. The officials were drawn from the private sector, international finance and development organisations. The group was led by Richard Leakey (the famous paleoanthropologist and former head of the Kenya Wildlife Service who had even formed a political party to oppose Moi in 1990s), who was appointed as the Secretary to the Cabinet and Head of the Civil Service. Martin Oduor-Otieno, a former director of finance and planning at Barclays Bank, was appointed as the Permanent Secretary in the Ministry of Finance and Planning and Mwangazi Mwachofi, the resident representative of the South Africa-based International Finance Corporation, became the Finance Secretary.

Along with a blind faith in technology, Jubilee also regards corporate experience as a most prized asset in public appointments – as exemplified by the Harvard-educated former Barclays CEO, Adan Mohamed, who is the Cabinet Secretary for Industrialisation. For Kenyatta and his ilk, corporate experience, when coupled with technology, will fix pesky inefficiency and sloth in the public service.

While Moi was boxed into a corner and had no option but to cater to donors’ wishes, Jubilee’s appointment of well-credentialed public officials from the private sector is an attempt to demonstrate that the government is using corporate best practice principles to manage the public sector. However, the appointment of individuals with private sector or international expertise is rooted in a lack of appreciation for received bureaucratic wisdom; it is a system of faceless, unelected officials keeping the state’s institutions humming along and ensuring continuity from one administration to another.

For Jubilee, bureaucracy is a dirty word. Both under Moi and under Jubilee, the credentialed senior public officials failed to deliver, although on balance, Moi’s cabinet, which had more court poets than individuals with diplomas from good schools abroad, did better.

Grievances and greed

Jubilee’s weaponisation of optics and breathless spin was honed when Uhuru Kenyatta and William Ruto – the two principals in the Jubilee coalition – were indicted by the International Criminal Court (ICC) for their alleged role in 2007-2008 violence.

Ruto and Kenyatta make an unlikely political team. The latter is a prince of Kenya’s politics and the former is a self-declared “hustler”. Even when considering Kenya’s shape-shifting political landscape and allegiances, the two couldn’t be more different.

But they were brought together by grievance and greed. They regarded their prosecution at the International Criminal Court as a witch-hunt; they argued that the two top presidential candidates during the 2007 election that led to violence and displacement were former President Mwai Kibaki and former Prime Minister Raila Odinga.

During the course of their indictments, the duo skillfully used social media and established themselves as bona fide underdogs. As a result, they refined their enduring ability to generate sometimes pugnacious, if not altogether needless, spin, which had tremendous traction with their base. Ruto and Kenyatta cast the ICC as an imperial project bent on getting them, effectively framing themselves – not those killed, maimed or displaced – as the victims of the post-election violence. Their spin was so effective that even some of the victims of the violence held “prayer rallies” for them.

In fairness, some of the reputational damage experienced by the ICC was self-inflicted. When I visited a IDP camp in Nakuru in 2011, one of the IDPs told me that the ICC’s Chief Prosecutor, Moreno Ocampo, had no time to visit them, and was busy doing safaris in Nairobi National Park.

During the course of their indictments, the duo skillfully used social media and established themselves as bona fide underdogs. As a result, they refined their enduring ability to generate sometimes pugnacious, if not altogether needless, spin, which had tremendous traction with their base. Ruto and Kenyatta cast the ICC as an imperial project bent on getting them, effectively framing themselves – not those killed, maimed or displaced – as the victims of the post-election violence.

The ICC was not the only victim of Jubilee’s rage; Raila Odinga, the cottage industry of upstart politicians, felt the full weight of Jubilee’s relentless propaganda blitzkrieg, part of it also emanating from his support for the ICC process, which Ruto, his lieutenant in 2007, interpreted as throwing him under the bus. (Ruto was a leading member of Odinga’s team during the 2007 election.)

After claiming some big domestic and foreign scalps, Jubilee started believing is own hype. While many dismissed Jubilee’s breathless social media campaigns during the elections as a passing fad once the cold reality of governing sets in, for Jubilee social media was the system. Beyond the hype, any critical assessment of Jubilee’s grand ideas, such as a 24-hour economy, 9 international standard stadia, and 21st century public transport, would show that they are all sizzle and no steak. The large-scale infrastructure projects were mostly designed as a gravy train, as the Standard Gauge Railway amply demonstrated.

Politics of shamelessness

The tissue that connects the depoliticisation of development, the blind deployment of technology, and the professionalisation of the cabinet is Jubilee’s shamelessness. No political party is without faults and foibles, but in Jubileeland, shamelessness has taken an insidious form. The shamelessness here is not the kind citizens have come to almost expect from the politicians; in Jubilee’s case, it is its modus operandi, a blunt object to hit opponents with. The lack of shame has not only been adopted by Kenyatta and Ruto, but also by their close lieutenants.

When the presidential results were announced two days after the annulled August 8, 2017 election, demonstrators and the police engaged in a running a battle in the Mathare slum in Nairobi. Police used live bullets and killed both demonstrators and bystanders. I spoke to some of the families of the victims and corroborated their stories with medical records and family witnesses.

The tissue that connects the depoliticisation of development, the blind deployment of technology, and the professionalisation of the cabinet is Jubilee’s shamelessness. No political party is without faults and foibles, but in Jubileeland, shamelessness has taken an insidious form.

But on August 12, at a press conference, the then Acting Internal Affairs Cabinet Secretary, Fred Matiangi’ denied that police had shot and killed people. He stated, “I am not aware of anyone who has been killed by live bullets in this country. Those are rumours. People who loot, break into people’s homes, burn buses are not peaceful protesters.” Yet it is not that Matiangi’ did not have access to the details of the people killed, some of whose deaths have been recorded in government hospitals and by the media and human rights groups.

Jubilee learnt some of this shameless spin from Moi’s Kanu party. In 2000, when drought was ravaging parts of Northern Kenya, the then government minister, Shariff Nassir, denied there was drought when pressed in Parliament by one of the area MPs. A few days later, the government declared a famine in Kenya.

President Kenyatta says that fighting corruption will be a key pillar of his legacy. The Auditor General’s Office has done more than any other state organ to reveal the level of corruption in government agencies through audit reports. In an ideal world, you’d think that the president would consider the Auditor General’s Office as a key ally. But the president scoffed at the Auditor General’s plan to investigate the activities of the Federal Reserve Bank of New York in relation to the alleged misuse of $2 billion Eurobond cash that Kenya raised in 2014. The president was quoted telling the Auditor General, “When you say that the Eurobond money was stolen and stashed in the Federal Reserve Bank of New York, are you telling me that the Kenyan government and United States have colluded?” The president then insinuated that the Auditor General, Edward Ouko, was stupid. Never mind that the president’s remarks came during a State House anti-corruption summit. It is also likely that the story of the missing Eurobond money will be the story of Jubilee’s corruption.

Lack of shame is dangerous when it comes from a place of entitlement – the #Mtado? phenomenon. Which naturally breads impunity.

David Ndii wrote, “Jomo Kenyatta’s regime was corrupt, illiberal and competent. Moi’s was corrupt, illiberal and mediocre. Kibaki’s was corrupt, liberal and competent. So, Moi scores zero out of three. Jomo scores one out of three. Kibaki scores two out of three.”

The original sin after 2010 constitution was promulgated was when a court ruled that Kenyatta and Ruto could contest the 2013 elections despite being indicted by the ICC. This officially killed Chapter Six on leadership and integrity of the Katiba, which effectively set Kenya down the path of “anything goes”.

Lack of shame is dangerous when it comes from a place of entitlement – the #Mtado? phenomenon. Which naturally breads impunity.

Kanu and Jubilee have ruled Kenya longer than any other party, and in the process have created the Kenyatta and Moi family and business dynasties. When under pressure, it is not uncommon to see Kenyatta and Jubilee seek Moi’s eternal wisdom. The visits to Moi’s home are done at the exclusion of William Ruto, which sets up 2022 neatly as the battle between the princes and the hustler.

Raila was a key player in the 2002 elections, and in 2013, Ruto was a key player in defeating Raila. In 2022, Ruto could face Raila’s fate. While Ruto’s defeat could delight many, the techno-dignified political opportunism that is Jubilee, which is illiberal, incompetent and corrupt, will endure.

Continue Reading

Features

TERRORISM: Officialdom’s baffling silence in the wake of Sylvia Romano’s abduction

The potential significance of the abduction of Ms Sylvia Romano has already been pushed into the background but will this be yet another wake-up call to be ignored by the Government of Kenya. By ANDREW FRANKLIN

Published

on

TERRORISM: Officialdom’s baffling silence in the wake of Sylvia Romano’s abduction

Ms Sylvia Constanca Romano, a twenty-three year-old Italian NGO worker, was abducted on Tuesday, November 20, 2018 at 8 pm from her lodging in the remote trading centre of Chakama, located 80 km west of the Kenyan Indian Ocean resort town of Malindi in Kilifi County. Ms Romano was managing a children’s home for the Italian NGO, African Milele Onlus, and the armed men who took her were identified as being of Somali origin.

Weeks later, this Italian woman is still missing and while not immediately dismissing the involvement of Al Shabaab, the Government of Kenya is still resisting suggestions that the kidnappers were terrorists rather than ordinary thugs carrying AK-47s. Although initial reports in the Italian media were quick to blame Al Shabaab, the Italian Government just as rapidly asserted that the kidnappers were “armed herders” although, as quoted in the local media, fears were expressed that Ms Romano might have been sold on to Al Shabaab elements inside Somalia.

Italy was the preeminent colonial power in the Horn of Africa, especially in what is today effectively the Federal Government of Somalia (FGS) territory, which is currently being contested by jihadists. Italy contributes paramilitary police advisors to the nine-nation European Union Mission to FGS and has trained the Somalia Government police at its base in Djibouti; Italian Navy elements have participated in anti-piracy patrols off Somalia since 2008.

In October 2018, Al Shabaab in Mogadishu targeted a convoy of Italian security personnel returning to their base with a vehicle-borne improvised explosive device (IED). Although there were no Italian casualties, this attack on foreigners is not Shabaab’s modus operandi; the main targets of the terrorist organisation’s operations within Somalia have mainly been Somalis, although neighbouring Kenya has been a target since Operation Linda Nchi – the Kenyan Defence Forces (KDF) incursion into Somalia in October 2011. Some of the most deadly Al Shabaab attacks on Kenyan soil include the Westgate mall attack in Nairobi in September 2013 in which 67 people lost their lives and the Garissa University College massacre in April 2015, in which 147 students were brutally gunned down.

Elsewhere in the region, the Kenya Police recently took delivery of four Italian-made utility helicopters for use in its operations domestically against terrorists. Italy’s continuing role in the war on terror within the region remains low key and its government prefers to keep it that way.

It has been confirmed that at least three of the attackers had arrived in Chakama several days earlier and had rented lodgings and apparently observed village routines, including Ms Romano’s activities. Initial reports were that five heavily armed assailants had shot wildly during the Tuesday evening attack, wounding five Kenyans before seizing the Italian; there has yet to be an explanation for the origin of AK-47s or when they were smuggled into the trading centre. According to the police, the attackers fled with their hostage using two subsequently abandoned motorbikes before crossing a major river and disappearing into a rather thick bush.

It has been confirmed that at least three of the attackers had arrived in Chakama several days earlier and had rented lodgings and apparently observed village routines, including Ms Romano’s activities. Initial reports were that five heavily armed assailants had shot wildly during the Tuesday evening attack, wounding five Kenyans before seizing the Italian…

There is no permanent police presence in Chakama, which is located in a remote area of Kilifi County. It seems that there was no organised security forces’ response during the first 24 hours following the abduction. The security forces’ operating capabilities during the hours of darkness cannot be evaluated except for certain elite units (i.e. General Service Unit [GSU] Recon and KDF Rangers and Special Forces). Regular police and Administration Police (AP) units, regardless of designation, are not trained, organised or equipped for extensive patrolling. Although police helicopters were deployed to the area, it’s unlikely that the hastily cobbled together rescue force, comprising Kenya Wildlife Service (KWS) Game Rangers, KDF troops, GSU, APs and regular police, had the ability to coordinate ground forces with air support.

In fact, in the event that this was an Al Shabaab operation, the seeming reticence on the part of the security forces is understandable as it would be expected that Al Shabaab would plant IEDs and organise ambushes to slow down pursuit and inflict maximum damage on the rescuers. This is standard procedure and characteristic of all guerrillas fighting road-bound conventional forces; since 2016 Al Shabaab has been regularly ambushing KDF and/or police patrols across all five frontline counties in Kenya. Another foreseeable risk is that Al Shabaab will attempt to shoot down a police helicopter, as was reported on 2 September in the vicinity of Boni Forest in Lamu County.

Although remaining somewhat tight-lipped about the actual affiliation of the attackers, the expansion of search activities outside Kilifi County into neighbouring Lamu, specifically into Boni Forest, which straddles the Kenya-Somalia border, and the issuance of “WANTED” posters for three men of ethnic Somali origin – albeit without specific background details – point to officials believing this to have been an Al Shabaab terrorist operation. Since the kidnapping, the Kenya Police have taken more than twenty civilians in and around Chakamba into custody for questioning; the wife and brother-in-law of one of the three named suspects were arrested in Garsen in Tana River County when a telephone call was intercepted and traced back. As with the previously noted lack of explanation regarding the presence of AK-47s in Chakamba, there was no information provided as to whether the security forces were able to trace the GPS signatures of the suspects; Al Shabaab operatives would no doubt discard their phones to avoid detection. Perhaps these men are part-time insurgents or even freelancers?

Although remaining somewhat tight-lipped about the actual affiliation of the attackers, the expansion of search activities outside Kilifi County into neighbouring Lamu, specifically into Boni Forest, which straddles the Kenya-Somalia border, and the issuance of “WANTED” posters for three men of ethnic Somali origin – albeit without specific background details – point to officials believing this to have been an Al Shabaab terrorist operation.

Operation Linda Nchi and its after-effects

Operation Linda Nchi, a cross-border punitive expedition by 1,800 KDF troops, was launched on 15 October 2011 ostensibly in retaliation for alleged Al Shabaab kidnappings of Spanish MSF workers from the Dadaab refugee camp and tourists from Manda Island in Lamu, The latter attacks were eventually found to be the work of common criminals based in Ras Kamboni where pro-FGS forces hold sway. Al Shabaab’s involvement in the kidnapping of the Spanish volunteers was neither confirmed nor denied. Anecdotal evidence, however, indicates that the kidnappings within Somalia of locals has been used to raise funds not only by criminals but also by Al Shabaab, which has long made money from participating in transnational organised criminal activities, including charcoal smuggling, arms dealing, human trafficking and trade in illicit narcotics.

Al Shabaab attacks have taken place fairly regularly across the five Kenyan counties bordering Somalia, whose populations are overwhelmingly Muslim and predominately of ethnic Somali origin. Although Al Shabaab has eschewed headline-grabbing terror attacks, such as that on the Westgate mall in September 2013, its fighters regularly target police and KDF patrols, permanent security force bases, mobile telephone masts and power stations. Occasionally they also take control of villages and harangue inhabitants at night with little or no government interference. In June 2016, for instance, Al Shabaab took control of the villages of Mpeketoni and Poromoko in Lamu County and killed 60 men. The security response to this attack was dismal; there were stories of police stations in Mpeketoni being abandoned prior to the attack and villagers being left to their own devices to deal with the terrorists.

Since 2016, most professional security analysts agree that the Al Shabaab attacks have derailed devolution in the frontline counties of Mandera, Wajir, Garissa, Lamu and Tana River by severing the people from administrative functions. The attacks have throttled formal economic activities and disrupted delivery of education and social and health services. Civil servants, teachers, traders and students from outside these counties fear returning there after an attack. Most of the students who survived the Garissa University College attack, for example, were relocated to campuses in other parts of the country. Many teachers have also refused to be sent to these counties for fear of being attacked by Al Shabaab. These attacks have effectively normalised a state of endemic insecurity within which police elements and KDF units are alienated from the local citizens, many of whom are not convinced that they are truly citizens of the Republic of Kenya as their regions have been systematically marginalised and neglected since independence in 1963.

Despite attempts by all parties in Nairobi to portray events in Garissa, Tana River, Mandera, Wajir and Lamu counties as merely episodic terrorism that can happen anywhere in the world, the reality is that Al Shabaab insurgents are conducting a reasonably successful, low-intensity conflict that complements its operations to defeat the Western-backed FGS based in Mogadishu. In fact, the KDF invasion of Somalia and its subsequent incorporation into the African Union Mission in Somalia (AMISOM) inadvertently provided Al Shabaab opportunities to subvert the Kenyan government’s influences across the restive predominantly ethnic Somali counties, to expand recruitment, to increase revenue from transnational crime and to undermine the morale of a major troop-contributing country. Kenya, out of all the states adjacent to Somalia or involved in AMISOM, has been shown to have the most fragile domestic security architecture amidst a fractious political environment in which little or no attention is paid to matters of national insecurity.

Despite attempts by all parties in Nairobi to portray events in Garissa, Tana River, Mandera, Wajir and Lamu counties as merely episodic terrorism that can happen anywhere in the world, the reality is that Al Shabaab insurgents are conducting a reasonably successful, low-intensity conflict that complements its operations to defeat the Western-backed FGS based in Mogadishu.

The abduction of an Italian NGO worker from a remote market centre in Kilifi County, which is outside of Al Shabaab’s normal area of operations, had to have been well-researched and carefully planned. Nearly all Western states have prohibited their officials from working within the five frontline counties and tourists have been actively discouraged from visiting even popular resorts on Lamu Island. Travel advisories issued since 2012 have crippled Kenya’s tourism sectors, especially along the Coast in Malindi, Watamu, Kilifi and the beaches north of Mombasa; however foreigners like Sylvia Romano would not really have been warned off by their governments and are now the best targets available to Al Shabaab and/or disparate armed groups, including livestock raiders and poachers.

Western governments have pretty much placed most of the five frontline counties off limits to their employees and strongly discouraged their citizens from visiting them for any purposes. Al Shabaab has been very active in mainland Lamu County, which resulted in foreigners being discouraged from visiting popular locations on Lamu Island and adjoining islands. Although the UK lifted its travel advisory in May 2017, the position of the US Government and others remains oddly ambiguous.

However, Al Shabaab is considered one of the most dangerous of Al Qaeda’s global franchises; Al Qaeda cells blew up US Embassies in Nairobi and Dar es Salaam on 7 August 1998 and the terrorist organisation launched a suicide bomber against the Israeli owned Paradise Hotel in Kikambala in 2002. Simultaneously, Al Qaeda operatives unsuccessfully attempted to shoot down an El Al charter flight taking off from Mombasa. Al Qaeda has never backed away from threats to retaliate against citizens of enemy nations wherever they are located and it seems likely that Al Shabaab will expand activities wherever targets can be found.

The Italian connection

There are nearly 15,000 Italian citizens living in Malindi, Watamu and elsewhere on the Kenyan coast. The Italian government operates an official satellite tracking/space research facility just north of Malindi. During the pending festive season, hundreds more Italians will descend on an otherwise depressed holiday destination. In my view, Al Shabaab is implicitly threatening the safety of these people in order to leverage the Italian government to reduce its footprint in Mogadishu.

As with the kidnappings of foreigners in 2011, whether Al Shabaab fails to take responsibility or is ultimately found not to be culpable is less important than popular perception. The longer Sylvia Constanca Romano remains unfound, the greater the possibility that media attention, particularly in Italy, will speculate on whether Al Shabaab is involved and whether there is a link between the Italian government’s counterterrorism activities against Al Qaeda/Al Shabaab and her abduction.

Although the Chakamba market centre is several kilometres away from major Indian Ocean tourist towns, it is located in an area traversed by foreigners visiting Kenya for luxury safaris – the very same bush into which the Italian woman’s abductors fled. Whether this incident is the start of a high season offensive intended by Al Shabaab to further undermine the economy of Kilifi County cannot be ruled out. Doing so would further undermine support by the Kenyan public, especially at the coast, for KDF’s continued deployment to AMISOM, particularly if Italian security assistance to FGS is seen to falter.

So far, Nairobi’s Western allies have not extended stringent travel advisories outside of the five frontline counties but it can be expected that an unhappy outcome of yet another botched Government of Kenya anti-terrorist operation will impact negatively on economies of already shell-shocked coastal counties where there are strong undercurrents of opinion favouring self-determination and even secession.

Regardless of how this unfortunate incident plays out, the fact of its occurrence indicates that expert advice concerning best practices to respond to cross-border and even domestic attacks of this type have been ignored for more than seven years. The initial reaction to the news of the kidnapping followed the same old script in which personnel from different security forces were thrown together without appropriate training and organisation to track a small gang through unfamiliar terrain during the hours of darkness. Reports that police were detaining witnesses may mask employment by security personnel of heavy-handed and counterproductive methods, which have been the trademark of government forces since before independence in 1963.

It is notable, however, that the Kenyan government has successfully controlled the flow of information although it has to date set the narrative by avoiding any narrative. In this, the authorities have been aided by a seemingly disinterested and largely uninformed domestic media. Kenya’s mainstream press has avoided anything suggesting that the government’s war on terror, whether at home or in the near abroad, is less than a reasonable success under the circumstances. Local and international media have excluded security professionals who can document how officialdom has perversely ignored practical, common sense solutions to the myriad security issues that have evolved into a comprehensive existential threat to national security.

It is notable, however, that the Kenyan government has successfully controlled the flow of information although it has to date set the narrative by avoiding any narrative. In this the authorities have been aided by a seemingly disinterested and largely uninformed domestic media.

The potential significance of this kidnapping has already been pushed into the background; will this be yet another wake-up call to be ignored?

Continue Reading

Trending