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HUNGER GAMES: Hard Times and Kenya’s Looming Economic Crisis

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HUNGER GAMES: Hard Times and Kenya’s Looming Economic Crisis
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Recently, I boarded a Nissan matatu on my way to Sigona Golf Club, off Nairobi-Nakuru Highway, 17km from the city centre. Once we hit the highway, the conductor started collecting his dues. Soon an argument arose between the conductor and five of the 14 passengers: was the fare Sh50 or Sh70? The conductor insisted the fare was KSh70, the five passengers said they had been told by the freelance touts at the terminus the fare was KSh50, and therefore, they were paying not a penny more.

The back and forth shouting match went on until we reached the Shell Petrol Station, one kilometre up from Gitaru bus stop. At the petrol station, that argument continued for 20 minutes – the five passengers were adamant that they were being ripped off, the conductor retorted he was not in the business of philanthropy: The conductor gave them an ultimatum: They either pay him the full amount or the driver reports them to the police at Kikuyu Police Station.

They dared him to do so whereupon the driver took us straight to the police station. Had I alighted at the petrol station, I could have walked to the 500m to Club. At the police station, the cops were gleeful they would have some “culprits” to manhandle and extort from. The five passengers were bundled out and locked in the cells. As the matatu turned to take us to our respective destinations – the end destination was Kiambaa another four kilometres from Sigona Club – a more sober debate among the remaining nine passengers dominated the talk. Was it really fair to have let the five be locked up at the police station for lacking a mere Sh20 each? The passengers were unanimous it is highly unlikely they were bluffing: nobody in his right senses would want to spend time in a Kenyan police cell, just because a matatu guy was cheating them off such a small sum.

Because I was seated in front with the driver, I asked him why they had taken the drastic step,. “Boss, business has been very bad, very bad,” he said solemnly. “The matatu owner has been breathing on our neck because we have not been meeting his targets. Because matatu crews already have a bad name, the proprietor doesn’t believe us when we tell him business is bad: he thinks we are stealing from him. There are days we have not paid ourselves, just to make sure we deposit his full day’s collection.” This was one of those days that if they did not do their math wisely, they would go home without pay. “It is those pennies collectively that take care of the larger currency notes. Can you for a moment ponder, how much money we would be losing if every trip we forewent Sh100, just because some people cannot pay the full amount?”

Discussion in the matatu turned to how life had become harder: “It is very possible the five passengers did not have the extra Sh20 and, if they did, it had been pre-budgeted,” said one passenger. “Following the recent heavy rains, sukuma wiki (kale) has become very cheap. With Sh20, you could buy enough for supper to be eaten with ugali and live for another day. Today, there is no such thing as little money. Every coin counts,” he summed the discussion. The passengers all agreed that money had taken to hiding and murmured to themselves in Kikuyu about the irony of how, even after voting for Uhuru Kenyatta twice, life had become twice as hard. “No tukeyumeria kweli na mathina niguo maingehire?” (Will we ever make it and the way our problems seem to multiply?).

Today, there is no such thing as little money. Every coin counts

The passengers talked off how people had become more and more uncaring and wicked and moaned loudly that if only Kenyans were a little more mindful of each other, life would be a lot better. I suspected they were shying away from candidly and publicly discussing the elephant in the matatu, which if they did, would lead them to pinpointing why they truly were facing economic hard times: bad political choices, propelled by a vicious ethnic entrapment that they had over time been politically socialized to believe was their fate.

The trip back after my meeting was even more revealing. I crossed the highway to catch a matatu back to the city centre. The Nissan matatu I took had two other passengers. It had come from Kiambaa. Between Kiambaa and Sigona, there is one major terminus – Zambezi. It was edging towards 2.00pm and if the matatu did not secure enough passengers at Zambezi, it would not augur well. From Kiambaa to the city centre, there are 11 major stops along the highway: Kiambaa, Zambezi, Gitaru, Muthiga, Kinoo, 87, Uthiru, Kangemi, Agriculture (adjacent to the Kenya Agricultural & Livestock Research Organization), Safaricom and Westlands. By the time we reached Agriculture stop, the matatu had not added a single passenger.

The driver was clearly agitated: “Oo niguo tukuruta wira?” he groaned. “Is this how we are going to get the job done?” The driver said the whole of this year, his matatu business had been hard hit by a lack of travellers. “Why weren’t people travelling? It is not as if they had relocated,” he mused aloud. At the Agriculture stop, a few passengers boarded, paying Sh20 to the city centre. “These people cannot even afford to pay Sh30?” lamented the driver. Usually the fare, especially at the onset of the rush hour, would be up to Sh40.

After alighting at the terminus on Kilome Road in downtown Nairobi, I looked for a freelance tout to explain to me the oscillating dynamics of matatu fares for people going to Kiambaa and Limuru. “During off-peak hours, it is normal practice for matatus, big or small, to charge Sh50,” said Davy. It is understood that off-peak hours are from 9.30 am–3.00pm and from 8.30pm–10.00pm. “The fare for peak hours ranges from Sh70 to even Sh100 when there is a downpour.” At the moment, the matatus were asking for Sh80. Davy told me an interesting story: “The passengers have learnt how to play the waiting game with matatus. Most of the menfolk would rather go home after 8.30pm, when the fares have substantially dropped, even if it’s by Sh10.”

Davy said the matatu owners have been itching to increase the fares since the beginning of the year, but they sense rebellion from the passengers. “Already they have surreptitiously increased the Kiambaa fare by KSh10 to KSh80 and the people have been grumbling quietly about the increase, which they have been made to believe is temporarily.” According to Davy, the matatu owners really want to hike the fares, but they do not know how to without raising a commotion among the people. When I asked what was necessitating this urge, he blamed operating costs and low business trends over the previous last eight months. “The business class had hoped that the [9 March] handshake between President Uhuru Kenyatta and Raila Odinga, would work magic, return the business climate back to normal, but business had stagnated,” said Davy. A freelance tout for close to 10 years, Davy told me he had worked in the matatu industry long enough to know when people had surplus money in their pockets. “People are broke, their disposable income has dwindled, so they are not travelling as frequently. The cost of living has also certainly gone up,” he said.” People today are budgeting to the last shilling.”

“The business class had hoped that the [9 March] handshake between President Uhuru Kenyatta and Raila Odinga, would work magic, return the business climate back to normal, but business had stagnated.”

I had gone to Sigona to meet a petroleum products’ magnate who asked not to be named. “Business is tough my friend,” said the tycoon. “The first half of this year, we’ve have not done any meaningful business and so, the profit margins have been dwindling. The increase in the fuel levy in the budget was not helpful: Business has become even harder – and the profit margins have become slimmer. This is a volume business; if you don’t move volumes, you’re not doing any good business.” He said that bureaucrats at the Ministry of Energy were not making life for oil businessmen any easier when they went to renew their import licenses, among other things. “They’ve been unrelenting and squeezing us for even heftier bribes which, as you know, run into in the millions.” Life for the ordinary mwananchi was about to get even tougher as they passed on the costs, he hinted.

Already, he could tell the people were experiencing hard economic times. “The vehicular movement in Nairobi has certainly reduced. There are less traffic jams, because many people are leaving their vehicles behind, parked in their compounds, only using them when it is very necessary. I have been long enough in this oil business and understand the patterns of fuel consumption vis-à-vis motor vehicle movements.” The businessman, apart from distributing petroleum products in bulk across the East and Central African region, also owns, in partnership with others, several petrol stations across the country and in neighboring Uganda. “Fuel usage in Kenya is at its lowest. People are facing economic hard times.”

To fully comprehend the impact of what the oil tycoon was saying, I looked for my matatu crew friends to explain how the fuel increase would affect their businesses and customers. “Diesel was increased by six shillings per litre, from Sh98 to Sh104,” said my tout friend. “For sure, as night follows day, we will increase the fares – all the matatus Saccos in Nairobi have met and agreed. It is just a matter of time. We’ve have no choice but to do that. Whether people resist or not, will they walk to work?”

The matatu crew friends said, business had become tougher: “It is as if people have migrated. Since the beginning of the year, people have not been moving around as much, so we had to find a way of increasing the fares, but quietly. If, say, we used to charge Sh30 off peak hours, we increased it to Sh50. Likewise, if during peak hours the fare was Sh70, we increased it to Sh80. We knew people would be up in arms, if we just raised the fares formally and directly and publicly.” The clarification somehow explained the tiff between the conductor and the unrelenting passengers, who could not part with their Sh20.

“For sure, as night follows day, we will increase the fares – all the matatus Saccos in Nairobi have met and agreed. It is just a matter of time. We’ve have no choice but to do that. Whether people resist or not, will they walk to work?”

Budgeting to the shilling, as Davy the tout told me, were the key words. Because it is not only the folks who use matatus and live in less privileged neighbourhoods that are currently feeling the pinch, in money matters. A Runda housewife who buys all her green groceries at City Park Market, opposite the Aga Khan Hospital in Parklands area, told me how for the first time she had to write down her shopping list of all the vegetables she needed. “When I unleashed list the next time I went to the market, carefully picking what I wanted and not just throwing things in the basket, my fruits and vegetables vendors asked me: “Nikii thiku ici mutaragura indo? Mwaga kugura, murenda tucitware ku?” (Why are you people not spending as much? If you don’t buy these goods, where do you expect us to take them?)

Her husband, a real estate magnate, had told her she needed to curb her free spending mania. “So, I have also taken to writing a list when I’m shopping at my favourite supermarket; Chandarana. Do you remember how I used to just shop, throwing anything and everything in the trolley? My budget has now been drastically trimmed and I must account for every penny spent. Kweli (truly) times are hard, that it is me, daughter of Mwaniki, who has taken to writing a shopping list.” She said her hubby had told her, money had become scarce and the country had yet to achieve political equilibrium. “I think he has decided to hoard the money, until such a time, there will be money in the economy.”

Nikii thiku ici mutaragura indo? Mwaga kugura, murenda tucitware ku?” (Why are you people not spending as much? If you don’t buy these goods, where do you expect us to take them?)

If the posh people, like my friend from Runda estate, were scaling down on their spending, what about the rank and file? I decided to pay a visit to Githurai Market, one of the busiest markets in Nairobi. Githurai Market is 10km from Nairobi’s central business district, off the Thika Superhighway. It has one of the widest catchment areas that goes all the way to Thika town (30km from Githurai) and its environs, apart from its Nairobi area shoppers.

The market, which is completely controlled by the Githurai chapter of the Nairobi Business community aka Mungiki, receives truckloads of fresh produce from as far as Tanzania and eastern Uganda. I was going to meet Susan Mweru, a fruit seller, who has been transporting oranges and tangerines from Michugwani and Mwanza in Tanzania to Githurai Market for the last five years. “We are reeling from very tough economic hard times, there is no business…‘aahh wira we thi muno’ (business is really low),” she moaned.

“In the best of times, I would offload a 12-ton truck of top-class oranges from Tanga, home of sweetest oranges in East Africa, in two days flat and I would be on my way back to Tanga to bring more oranges.” She told me the oranges would be snapped up by retail fruit sellers from as far as Makongeni in Thika town, and as near as Kasarani, Mwiki, Roysambu, and Ngara market, which is just 7km from Githurai, in Nairobi.

She would alternative her travels between Tanga and Ukerewe, the largest island on Lake Victoria, where the juicy fruits much loved by Nairobi’s well-to-do are grown.“Itonga cia Garden Estate, Kahawa Sukari, Kahawa Wendani na Juja mokaga kugura matunda na waru guku Githurai thoko.” (The rich people of Garden Estate, Roysambu, Kahawa Sukari, Kahawa Wendani and Juja, come to buy their fruits and potatoes at Githurai Market.)

However, when I went to see her, she had not travelled for the third consecutive week. “Even these rich people, they are not spending: The consignment I brought in three weeks ago is still with me – the fruits have been moving at a snail’s pace. Nikii kiuru? Ndiramenya kurathie atia.” (What’s wrong? I don’t understand what’s going on.)

Mweru introduced me to her colleague, Muthoni, in the market, who majorly deals in potatoes, some of which come from as far as Moshi, whose rich and fertile red soil is akin to that of Kiambu County. She is one of the biggest potatoes sellers in the market. “Before things become bad, I’d move up to six sacks of potatoes daily, and you know how they pack those sacks – nearly half of the potatoes are packed outside the sack itself,” said Muthoni, sitting on one the potato sacks. “Today if I sell two sacks in a day, I count myself lucky…nikuru muno” (the situation is very bad).

The women told me they had hoped the national budget read in June would somehow alleviate the situation – it was hard for me to understand their ubiquitous optimism – but said their hopes had been dampened by the tax increases on petroleum and paraffin products. “You know if the government increases fuel, it negatively affects everything else.”

“Life is about to become even harder for the ordinary folk,” says Joy Ndubai, a tax expert with Oxfam. “The Finance Bill 2018, which proposes to hike fuel and kerosene will impact on other mwananchi necessities such as electricity, food and transport. The Bill intends to do away with indirect taxes, that is zero-rated and excise duty taxes. Take it from me, if that happens, the price of unga Kenyan (staple food), will shoot up and matatu fares will increase manifold and life will become really hard for Kenyans. Perhaps the Unga Revolution squad should start regrouping for foodstuff protests in the coming days,” said Ndubai tongue-in-cheek. The Unga Revolution was a civil society initiative basically driven by Bunge la Mwananchi (People’s Parliament) members, who, in 2017, loudly agitated for reduction of price of maize flour, which had skyrocketed and was out of reach of the ordinary Kenyan.

Ndubai says the government wants to get rid of Value Added Tax (VAT) rebates or refunds that it gives manufacturers. Indirect taxes such as VAT on consumable goods such as, bread, milk and sugar, are hidden in the prices and in order for the government to cushion manufacturers, it encouraged them to reclaim the 16 per cent tax rebates from its exchequer. This is what is referred to as zero-rating. “What it will mean now is that the government will remove the zero-rating and the manufacturers will be exempt from claiming any tax relief. Sounds good on paper? What this means is that the consumer will have to bear the burden of increased taxes on everyday commodities.”

One of the most common expenditure by wananchi that will be hard hit is electric power. “The cost of electricity is certain to go up, because of the intended increase of fuel levy. This is because we still rely on diesel engines,” said Ndubai. “Manufacturers had been given a 30 per cent allowance on electricity. Electricity was among the expenditures that manufacturers count, at 100 per cent, when deducting their profits [for tax purposes]. So now, what this means is that the manufacturers will add 30 per cent over and above, to their respective expenditures. Guess who the added 30 per cent will be pushed to? The mwananchi.” It was as if the national budget was written by the Kenya Association of Manufacturers mandarins, observed Ndubai. “There isn’t anything pro-poor in that budget, the budget favours the manufacturers and the big boys all the way. Majority of Kenyans are too bamboozled by real big, impossible numbers, trillions of shillings, to really take time to understand” the implications of the budget.

“What it will mean now is that the government will remove the zero-rating and the manufacturers will be exempt from claiming any tax relief. Sounds good on paper? What this means is that the consumer will have to bear the burden of increased taxes on everyday commodities.”

The tax expert said the Kenyan people need to wake up to the realization that their lives will soon be very difficult to manage and they should come out to protest to safeguard their social interests because that is the only way they will be heard. She gave me the example of Jordan and how Jordanians had forced their Prime Minister out of his office, through mass street protests and camping out at his office.

A conservative society, Jordanians rocked the capital, Amman, with a wave of mass protests, culminating in the resignation of Prime Minister Hani Mulki. They were protesting austerity measures imposed by the International Monetary Fund on the Kingdom. Unemployment and stiff price hikes occasioned by high inflation had become unbearable and on June 3, 2018, 5,000 Jordanians camped at Mulki’s office. Perhaps, unsurprisingly, the critical price hikes were in electricity and fuel. In 2012, the same Jordanians had also gone onto the streets to protest against increasing economic hard times, after the government bowed to IMF’s stiff conditions by cutting off fuel subsidies, all in an attempt to secure an IMF loan to lower the public debt. Jordan’s national debt, which runs into hundreds of billions of shillings, just like Kenya, is equivalent to 95 percent of the country’s Gross Domestic Product.

The mere mention of IMF for some Kenyans old enough to remember the 1980s, sends cold shivers down their spine. The Washington-based financial institution, once described by Mwalimu Julius Nyerere as The International Ministry of Finance, introduced what came to be known as Structural Adjustment Programmes (SAPs) in many of the Africa countries heavily indebted to western nations, beginning 1980. Prof Said Adejumobi, a political economist who has written numerously on SAP wrote in his paper in 1997; The Structural Adjustment Programme and Democratic Transition in Africa: “For Africa, the 1980s could be better described as the ‘adjustment decade’ as most African countries, in response to their ailing economic conditions, introduced one form of adjustment reform or the other.” Other political scientists, such as Adebayo Olukoshi, called the 1980s the “lost decade” for Africa.

Kenya first became an IMF patient in 1980; that is when the first SAP was introduced in the country. To fully comprehend what SAP meant and did to Kenyans, I will quote Adejumobi: “But what is the political import of SAP? SAP is a class project which seeks to create a ‘stable’ economic environment for the accumulation of capital by local and foreign bourgeoisie, while suppressing labour through wage freeze, insistence on strict work sector, reduction in workforce, (retrenchment), especially in the public sector. It also seeks to contract the provision of social services and infrastructure, like health, education and transportation.”

During the just ended G7 meeting in Quebec, Canada, President Uhuru Kenyatta was spotted engaging Christian Lagard, the IMF’s Managing Director, on the sidelines. In his article – One Week in March: Was the Handshake Triggered by the IMF? for the E-Review – John Githongo, wrote: “On the 6th of March, the Minister of Finance, Henry Rotich, made the surprise announcement that the government was ‘broke’. He would deny this a day later in rather incongruous fashion. On the same day he and the Central Bank Governor Patrick Njoroge essentially signed on to an IMF austerity programme. It wasn’t the traditional IMF programme circa 1980/90s, but it nevertheless was an acknowledgment that we were complying with a range of ‘confidence building’ measures ‘agreed’ with the IMF as we renegotiated our expired precautionary facility with them.” David Ndii, reiterated in another E-Review article, A Quest of Power – Why Ethiopia’s Economic Transformation is a Cautionary African Tale, the fact that “Kenya is surviving on speculative capital inflows and juggling debt as it negotiates an IMF bailout.”

To add salt to injury, Ndubai told me that the cost of M-Pesa transactions had gone up as a result of a 2 per cent increase in excise duty imposed by the government. M-Pesa is today the most transacted money transfer channel in the country. “The biggest population that uses M-Pesa is the ordinary man and woman, especially the rural folk and urban poor, because these people do not have bank accounts. When M-Pesa came, it was relief, but now it may end up being a burden. Think of the rural elderly who receive pensions. With the increased tariff, which Safaricom is going to push to the consumer, it is going to be difficult for the poor people of Kenya to effectively use mobile transfer platforms.”

“Kenya is surviving on speculative capital inflows and juggling debt as it negotiates an IMF bailout.”

I found out this to be true, when I went to meet Mweru at Githurai Market. She asked me whether M-Pesa charges had been increased. “I do all my payment through M-Pesa and I have noticed these people are taking a lot more of my money. This is very unfair,” she lamented. Going to Githurai Market had also revealed something else: during off-peak hours, Githurai residents pay Sh20 as matatu fare to the city centre and vice versa. “But some matatus were being adventurous by charging Sh30,” said Mweru. “If they push the fares further up, they are going to annoy the people. I think they are testing the waters to see how the people are going to react.”

I now understood what Sh20 meant to the five matatu travellers on their way to Kiambaa: in Githurai, it covers your entire fare back home. When I returned to Kiambaa stage at Kilome Road terminus after talking to Ndubai, the fares had been pegged at KSh100, irrespective of the weather. Hard times indeed.

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Mr Kahura is a senior writer for The Elephant.

Politics

A Dictator’s Guide: How Museveni Wins Elections and Reproduces Power in Uganda

Caricatures aside, how do President Yoweri Museveni and the National Revolutionary Movement state reproduce power? It’s been 31 years.

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Recent weeks have seen increased global media attention to Uganda following the incidents surrounding the arrest of popular musician and legislator, Bobi Wine; emblematic events that have marked the shrinking democratic space in Uganda and the growing popular struggles for political change in the country.

The spotlight is also informed by wider trends across the continent over the past few years—particularly the unanticipated fall of veteran autocrats Muammar Gaddafi in Libya, Hosni Mubarak in Egypt, Yaya Jammeh in Gambia, and most recently Robert Mugabe in Zimbabwe—which led to speculation about whether Yoweri Museveni, in power in Uganda since 1986, might be the next to exit this shrinking club of Africa’s strongmen.

Yet the Museveni state, and the immense presidential power that is its defining characteristic, has received far less attention, thus obscuring some of the issues at hand. Comprehending its dynamics requires paying attention to at-least three turning points in the National Resistance Movement’s history, which resulted in a gradual weeding-out of Museveni’s contemporaries and potential opponents from the NRM, then the mobilisation of military conflict to shore up regime legitimacy, and the policing of urban spaces to contain the increasingly frequent signals of potential revolution. Together, these dynamics crystallised presidential power in Uganda, run down key state institutions, and set the stage for the recent tensions and likely many more to come.

The purge

From the late 1990s, there has been a gradual weeding out the old guard in the NRM, which through an informal “succession queue,” had posed an internal challenge to the continuity of Museveni’s rule. It all started amidst the heated debates in the late 1990s over the reform of the then decaying Movement system; debates that pitted a younger club of reformists against an older group. The resultant split led to the exit of many critical voices from the NRM’s ranks, and began to bolster Museveni’s grip on power in a manner that was unprecedented. It also opened the lid on official corruption and the abuse of public offices.

Over the years, the purge also got rid of many political and military elites—the so-called “historicals”—many of whom shared Museveni’s sense of entitlement to political office rooted in their contribution to the 1980-1985 liberation war, and some of whom probably had an eye on his seat.

By 2005 the purge was at its peak; that year the constitutional amendment that removed presidential term limits—passed after a bribe to every legislator—saw almost all insiders that were opposed to it, summarily dismissed. As many of them joined the ranks of the opposition, Museveni’s inner circle was left with mainly sycophants whose loyalty was more hinged on patronage than anything else. Questioning the president or harboring presidential ambitions within the NRM had become tantamount to a crime.

By 2011 the process was almost complete, with the dismissal of Vice President Gilbert Bukenya, whose growing popularity among rural farmers was interpreted as a nascent presidential bid, resulting in his firing.

One man remained standing, Museveni’s long-time friend Amama Mbabazi. His friendship with Museveni had long fueled rumors that he would succeed “the big man” at some point. In 2015, however, his attempt to run against Museveni in the ruling party primaries also earned him an expulsion from both the secretary general position of the ruling party as well as the prime ministerial office.

The departure of Mbabazi marked the end of any pretensions to a succession plan within the NRM. He was unpopular, with a record tainted by corruption scandals and complicity in Museveni’s authoritarianism, but his status as a “president-in-waiting” had given the NRM at least the semblance of an institution that could survive beyond Museveni’s tenure, which his firing effectively ended.

What is left now is perhaps only the “Muhoozi project,” a supposed plan by Museveni to have his son Muhoozi Kainerugaba succeed him. Lately it has been given credence by the son’s rapid rise to commanding positions in elite sections of the Ugandan military. But with an increasingly insecure Museveni heavily reliant on familial relationships and patronage networks, even the Muhoozi project appears very unlikely. What is clear, though, is that the over time, the presidency has essentially become Museveni’s property.

Exporting peace?

Fundamental to Museveni’s personalisation of power also has been the role of military conflict, both local and regional. First was the rebellion by Joseph Kony’s Lord’s Resistance Army in northern Uganda, which over its two-decade span enabled a continuation of the military ethos of the NRM. The war’s dynamics were indeed complex, and rooted in a longer history that predated even the NRM government, but undoubtedly it provided a ready excuse for the various shades of authoritarianism that came to define Museveni’s rule.

With war ongoing in the north, any challenge to Museveni’s rule was easily constructed as a threat to the peace already secured in the rest of the country, providing an absurd logic for clamping down on political opposition. More importantly, the emergency state born of it, frequently provided a justification for the president to side-step democratic institutions and processes, while at the same time rationalising the government’s disproportionate expenditure on the military. It also fed into Museveni’s self-perception as a “freedom fighter,” buttressed the personality cult around him, and empowered him to further undermine any checks on his power.

By the late 2000s the LRA war was coming to an end—but another war had taken over its function just in time. From the early 2000s, Uganda’s participation in a regional security project in the context of the War on Terror, particularly in the Somalian conflict, rehabilitated the regime’s international image and provided cover for the narrowing political space at home, as well as facilitating a further entrenchment of Museveni’s rule.

As post-9/11 Western foreign policy began to prioritise stability over political reform, Museveni increasingly postured as the regional peacemaker, endearing himself to donors while further sweeping the calls for democratic change at home under the carpet—and earning big from it.

It is easy to overlook the impact of these military engagements, but the point is that together they accentuated the role of the military in Ugandan politics and further entrenched Museveni’s power to degrees that perhaps even the NRM’s own roots in a guerrilla movement could never have reached.

Policing protest

The expulsion of powerful elites from the ruling circles and the politicisation of military conflict had just started to cement Musevenism, when a new threat emerged on the horizon. It involved not the usual antagonists—gun-toting rebels or ruling party elites—but ordinary protesters. And they were challenging the NRM on an unfamiliar battleground—not in the jungles, but on the streets: the 2011 “Walk-to-Work” protests, rejecting the rising fuel and food prices, were unprecedented.

But there is another reason the protests constituted a new threat. For long the NRM had mastered the art of winning elections. The majority constituencies were rural, and allegedly strongholds of the regime. The electoral commission itself was largely answerable to Museveni. With rural constituencies in one hand and the electoral body in the other, the NRM could safely ignore the minority opposition-dominated urban constituencies. Electoral defeat thus never constituted a threat to the NRM, at least at parliamentary and presidential levels.

But now the protesters had turned the tables, and were challenging the regime immediately after one of its landslide victories. The streets could not be rigged. In a moment, they had shifted the locus of Ugandan politics from the rural to the urban, and from institutional to informal spaces. And they were picking lessons from a strange source: North Africa. There, where Museveni’s old friend Gaddafi, among others, was facing a sudden exit under pressure from similar struggles. Things could quickly get out of hand. A strategic response was urgent.

The regime went into overdrive. The 2011 protests were snuffed out, and from then, the policing of urban spaces became central to the logic and working of the Museveni state. Draconian laws on public assembly and free speech came into effect, enacted by a rubber-stamp parliament that was already firmly in Museveni’s hands. Police partnered with criminal gangs, notably the Boda Boda 2010, to curb what was called “public disorder”—really the official name for peaceful protest. As police’s mandate expanded to include the pursuit of regime critics, its budget ballooned, and its chief, General Kale Kayihura, became the most powerful person after Museveni—before his recent dismissal.

For a while, the regime seemed triumphant. Organising and protest became virtually impossible, as urban areas came under 24/7 surveillance. Moreover, key state institutions—the parliament, electoral commission, judiciary, military and now the police—were all in the service of the NRM, and all voices of dissent had been effectively silenced. In time, the constitution would be amended again, by the NRM-dominated house, this time to remove the presidential age limit—the last obstacle to Museveni’s life presidency—followed by a new tax on social media, to curb “gossip.” Museveni was now truly invincible. Or so it seemed.

But the dreams of “walk-to-work”—the nightmare for the Museveni state—had never really disappeared, and behind the tightly-patrolled streets always lay the simmering quest for change. That is how we arrived at the present moment, with a popstar representing the widespread aspiration for better government, and a seemingly all-powerful president suddenly struggling for legitimacy. Whatever direction the current popular struggles ultimately take, what is certain is that they are learning well from history, and are a harbinger of many more to come.

This post is from a new partnership between Africa Is a Country and The Elephant. We will be publishing a series of posts from their site once a week.

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Politics

The Enduring Blind Spots of America’s Africa Policy

America should move way from making the military the face of its engagement with Africa and instead invest in deepening democracy as a principled approach rather than a convenient choice.

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The Enduring Blind Spots of America's Africa Policy
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While Donald Trump’s administration completely neglected America-Africa relations, the blind spots bedeviling America’s Africa policy preceded his 2016 election. Correcting the systemic flaws of the past 30 years will require a complete rethink after the controversial President’s departure.

To remedy America’s Africa policy, President Joseph Biden’s administration should pivot away from counterterrorism to supporting democratic governance as a principal rather than as mere convenience, and cooperate with China on climate change, peace, and security on the continent.

America’s Africa policy 

America’s post-Cold War Africa policy has had three distinct and discernible phases. The first phase was an expansionist outlook undergirded by humanitarian intervention. The second was nonintervention, a stance triggered by the experience of the first phase. The third is the use of “smart” military interventions using military allies.  

The turning point for the first phase was in 1989 when a victorious America pursued an expansive foreign policy approach predicated on humanitarian intervention. Somalia became the first African test case of this policy when, in 1992, America sent almost 30,000 troops to support Operation Restore Hope’s humanitarian mission which took place against the background of the collapse of the Somalia government in 1991.

On 3-4 October 1993, during the Battle of Mogadishu, 18 US servicemen were killed in a fight with warlords who controlled Mogadishu then, and the bodies of the marines dragged through the streets of Mogadishu. The media coverage increased pressure on the politicians and six months later America withdrew from Somalia — a case of the New World Order meeting the harsh reality of civil conflict.

The chastening experience resulted in America scaling back its involvement in internal conflicts in far-flung places. The result was the emergence of the second phase — non-engagement when Rwanda’s Genocide erupted in 1994 and almost a million people died in 100 days revealed the limitations of over-correcting the Somalia experience. This “non-interference” phase lasted until the twin Nairobi and Dar es Salaam US embassy bombings by Al Qaeda in 1998.

This gave way to the third phase with the realisation that the new threat to America was no longer primarily from state actors, but from transnational non-state actors using failing states as safe havens. The 2002 National Security Strategy states: “the events of September 11, 2001, taught us that weak states . . . can pose as a great danger to our national interests as strong states.”

Counterterrorism training and equipping of African militaries is the central plank of this new security policy. As a result, counterterrorism funding has skyrocketed as has America’s military footprint in Africa. As a result, Africa has become the theatre in which the Global forever War on Terror is fought.

The counterterrorism traps 

The reflexive reaction to the events of September 11 2001 spawned an interlocking web of covert and overt military and non-military operations. These efforts, initially deemed necessary and temporary, have since morphed into a self-sustaining system complete with agencies, institutions and a specialised lingo that pervades every realm of America’s engagement with Africa.

The United States Africa Command (Africom) is the vehicle of America’s engagement with the continent. Counterterrorism blurred the line between security, development, and humanitarian assistance with a host of implications including unrelenting militarisation which America’s policy establishment embraced uncritically as the sine qua non of America’s diplomacy, their obvious flaws notwithstanding. The securitisation of problems became self-fulfilling and self-sustaining.

The embrace of counterterrorism could not have come at a worse time for Africa’s efforts at democratization. In many African countries, political and military elites have now developed a predictable rule-based compact governing accession to power via elections rather than the coups of the past.

“Smart” African leaders exploited the securitised approach in two main ways: closing the political space and criminalising dissent as “terrorism” and as a source of free money. In Ethiopia, Yonatan Tesfaye, a former spokesman of the Semayawi (Blue) Party, was detained in December 2015 on charges under Article 4 of Ethiopia’s Anti-Terrorism Proclamation ((EATP), arguably one of the the country’s most severe pieces of legislation. But Ethiopia has received millions of dollars from the United States.

The Department of Defense hardly says anything in public but gives out plenty of money without asking questions about human rights and good governance. Being a counterterrorism hub has become insurance policy against any form of criticism regardless of state malfeasance.

Egypt is one such hub. According to the Congressional Research Service, for the 2021 financial year, the Trump Administration has requested a total of US$1.4 billion in bilateral assistance for Egypt, which Congress approved in 2018 and 2019. Nearly all US funding for Egypt comes from the Foreign Military Finance (FMF) account and is in turn used to purchase military equipment of US origin, spare parts, training, and maintenance from US firms.

Another country that is a counterterrorism hub in the Horn of Africa is Ethiopia. For the few months they were in charge, the Union of Islamic Courts (ICU) brought order and stability to the country.  Although they were linked to only a few of Mogadishu’s local courts, on 24 December 2006, Ethiopia’s military intervened in Somalia to contain the rise of Al Shabaab’s political and military influence.

The ouster of the ICU by Ethiopia aggravated the deep historical enmity between Somalia and Ethiopia, something Al Shabaab — initially the youth wing of the ICU — subsequently exploited through a mix of Somali nationalism, Islamist ideology, and Western anti-imperialism. Al Shabaab presented themselves as the vanguard against Ethiopia and other external aggressors, providing the group with an opportunity to translate their rhetoric into action.

Ethiopia’s intervention in Somalia could not have taken place without America’s blessing. The intervention took place three weeks after General John Abizaid, the commander of US forces from the Middle East to Afghanistan, met with the then Ethiopian Prime Minister Meles Zenawi.  The intervention generated a vicious self-sustaining loop. Ethiopians are in Somalia because of Al Shabaab, and Al Shabaab says they will continue fighting as long as foreign troops are inside Somalia.

America has rewarded Ethiopia handsomely for its role as the Horn of Africa’s policeman. In both Ethiopia’s and Egypt’s case, on the score of human rights and good governance, the net losers are the citizens.

Drone attacks 

In keeping with the War on Terror being for forever, and despite departing Somalia in 1993, America outsourced a massive chunk of the fight against Al Shabaab to Ethiopia primarily, and later, to AMISOM. America is still engaged in Somalia where it has approximately 800 troops, including special forces that help train Somalia’s army to fight against Al Shabaab.

America carried out its first drone strike in Somalia in 2011 during President Barack Obama’s tenure. Under the Trump administration, however, the US has dramatically increased the frequency of drone attacks and loosened the oversight required to approve strike targets in Somalia. In March 2017, President Trump secretly designated parts of Somalia “areas of active hostilities”, meaning that the high-level inter-agency vetting of proposed strikes and the need to demonstrate with near certainty that civilians would not be injured or killed no longer applied. Last year, the US acknowledged conducting 63 airstrikes in the country, and in late August last year, the US admitted that it had carried out 46 strikes in 2020.

A lack of transparency regarding civilian casualties and the absence of empirical evidence that the strikes lead to a reduction in terrorism in Somalia suggest that expanding to Kenya would be ill-advised. The US has only acknowledged having caused civilian casualties in Somalia three times. Between 2016 and 2019, AFRICOM failed to conduct a single interview with civilian witnesses of its airstrikes in Somalia.

Despite this level of engagement, defeating Al Shabaab remains a remote possibility.

Containing the Chinese takeover 

The Trump Administration did not have an Africa policy. The closest approximation of a policy during Trump’s tenure was stated in a speech delivered by John Bolton at a Conservative think tank decrying  China’s nefarious activities in Africa.  Even with a policy, where the counterterrorism framework views Africa as a problem to be solved by military means, the containing China policy views African countries as lacking the agency to act in their own interests. The problem with this argument is that it is patronising; Africans cannot decide what is right for them.

Over the last decades, while America was busy creating the interlocking counterterrorism infrastructure in Africa, China was building large-scale infrastructure across the continent. Where America sees Africa as a problem to be solved, China sees Africa as an opportunity to be seized.

Almost two years into the Trump administration, there were no US ambassadors deployed in 20 of Africa’s 54 countries even while America was maintaining a network of 29 military bases.  By comparison China, has 50 embassies spread across Africa.

For three consecutive years America’s administration has proposed deep and disproportionate cuts to diplomacy and development while China has doubled its foreign affairs budget since 2011. In 2018, China increased its funding for diplomacy by nearly 16 per cent and its funding for foreign aid by almost 7 per cent.

As a show of how engagement with Africa is low on the list of US priorities, Trump appointed a luxury handbag designer as America’s ambassador to South Africa on 14 November 2018. Kenya’s ambassador is a political appointee who, when he is not sparring with Kenyans on Twitter, is supporting a discredited coal mining project.

The US anti-China arguments emphasize that China does not believe in human rights and good governance, and that China’s funding of large infrastructure projects is essentially debt-trap diplomacy. The anti-China rhetoric coming from American officials is not driven by altruism but by the realisation that they have fallen behind China in Africa.

By the middle of this century Africa’s population is expected to double to roughly two billion. Nigeria will become the second most populous country globally by 2100, behind only India. The 24-country African Continental Free Trade Agreement (AfCFTA) entered into force on 30 May 2019. AfCFTA will ultimately bring together all 55 member states of the African Union covering a market of more than 1.2 billion people — including a growing middle class — and a combined gross domestic product (GDP) of more than US$3.4 trillion.

While Chinese infrastructure projects grab the headlines, China has moved into diversifying its engagement with Africa. The country has increased its investments in Africa by more than 520 per cent over the last 15 years, surpassing the US as the largest trading partner for Africa in 2009 and becoming the top exporter to 19 out of 48 countries in sub-Saharan Africa.

Some of the legacy Chinese investments have come at a steep environmental price and with an unsustainable debt. Kenya’s Standard Gauge Railway is bleeding money and is economically unviable.

A fresh start

Supporting democratic governance and learning to cooperate with China are two areas that will make America part of Africa’s future rather than its past.

America should pivot way from making the military the most visible face of its engagement with Africa and instead invest in deepening democracy as a principled approach rather than a convenient choice.

Despite the elegy about its retreat in Africa, democracy enjoys tremendous support. According to an Afro barometer poll, almost 70 per cent of Africans say democracy is their preferred form of government. Large majorities also reject alternative authoritarian regimes such as presidential dictatorships, military rule, and one-party governments. Democracy, while still fledgling, remains a positive trend; since 2015, there have been 34 peaceful transfers of power.

However, such positive metrics go hand in hand with a worrying inclination by presidents to change constitutions to extend their terms in office. Since 2015, leaders of 13 countries have evaded or overseen the weakening of term limit restrictions that had been in place. Democracy might be less sexy, but ignoring it is perilous. There are no apps or switches to flip to arrest this slide. It requires hard work that America is well equipped to support but has chosen not to in a range of countries in recent years There is a difference between interfering in the internal affairs of a country and complete abdication or (in some cases) supporting leaders who engage in activities that are inimical to deepening democracy.

The damage wrought by the Trump presidency and neo-liberal counterterrorism policies will take time to undo, but symbolic efforts can go a long way to bridging the gap.

America must also contend with China being an indispensable player in Africa and learn to cooperate rather than compete in order to achieve optimal outcomes.

China has 2,458 military and police personnel serving in eight missions around the globe, far more than the combined contribution of personnel by the other four permanent members of the UN Security Council, Russia, the US, France and Britain. China had more than 2,400 Chinese troops take part in seven UN peacekeeping missions across the continent — most notably in Mali and South Sudan. Of the 14 current UN peacekeeping missions, seven are in Africa, consuming two-thirds of the budget.

Climate change and conflict resolution provide opportunities for cooperation. Disproportionate reliance on rain-fed agriculture and low adaptation to the adverse impact of climate change make Africa vulnerable to the damaging effects of climate change, the consequences of which will transcend Africa. Through a combination of research, development, technological transfer and multilateral investment, America and China could stave off the impact of climate change in Africa.

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Hijacking Kenya’s Health Spending: Companies Linked to Powerful MP Received Suspicious Procurement Contracts

Two obscure companies linked to Kitui South MP Rachael Kaki Nyamai were paid at least KSh24.2 million to deliver medical supplies under single-source agreements at the time the MP was chair of the National Assembly’s Health Committee.

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Hijacking Kenya’s Health Spending: Companies Linked to Powerful MP Received Suspicious Procurement Contracts
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Two obscure companies linked to Kitui South MP Rachael Kaki Nyamai were paid at least KSh24.2 million to deliver medical supplies under single-source agreements at the time the MP was chair of the National Assembly’s Health Committee, an investigation by Africa Uncensored and The Elephant has uncovered.

One of the companies was also awarded a mysterious Ksh 4.3 billion agreement to supply 8 million bottles of hand sanitizer, according to the government’s procurement system.

The contracts were awarded in 2015 as authorities moved to contain the threat from the Ebola outbreak that was ravaging West Africa and threatening to spread across the continent as well as from flooding related to the El-Nino weather phenomenon.

The investigation found that between 2014 and 2016, the Ministry of Health handed out hundreds of questionable non-compete tenders related to impending disasters, with a total value of KSh176 billion including three no-bid contracts to two firms, Tira Southshore Holdings Limited and Ameken Minewest Company Limited, linked to Mrs Nyamai, whose committee oversaw the ministry’s funding – a clear conflict of interest.

Number of Suppliers Allocated BPAAlthough authorities have since scrutinized some of the suspicious contracts and misappropriated health funds, the investigation revealed a handful of contracts that were not made public, nor questioned by the health committee.

Mrs Nyamai declined to comment for the story.

Nyamai has been accused by fellow members of parliament of thwarting an investigation of a separate alleged fraud. In 2016, a leaked internal audit report accused the Ministry of Health — colloquially referred to for its location at Afya House — of misappropriating funds in excess of nearly $60 million during the 2015/2016 financial year. Media stories described unauthorized suppliers, fraudulent transactions, and duplicate payments, citing the leaked document.

Members of the National Assembly’s Health Committee threatened to investigate by bringing the suppliers in for questioning, and then accused Nyamai, the committee chairperson, of blocking their probe. Members of the committee signed a petition calling for the removal of Nyamai and her deputy, but the petition reportedly went missing. Nyamai now heads the National Assembly’s Committee on Lands.

Transactions for companies owned by Mrs Nyamai’s relatives were among 25,727 leaked procurement records reviewed by reporters from Africa Uncensored, Finance Uncovered, The Elephant, and OCCRP. The data includes transactions by eight government agencies between August 2014 and January 2018, and reveals both questionable contracts as well as problems that continue to plague the government’s accounting tool, IFMIS.

The Integrated Financial Management Information System was adopted to improve efficiency and accountability. Instead, it has been used to fast-track corruption.

Hand sanitizer was an important tool in fighting transmission of Ebola, according to a WHO health expert. In one transaction, the Ministry of Health paid Sh5.4 million for “the supply of Ebola reagents for hand sanitizer” to a company owned by a niece of the MP who chaired the parliamentary health committee. However, it’s unclear what Ebola reagents, which are meant for Ebola testing, have to do with hand sanitizer. Kenya’s Ministry of Health made 84 other transactions to various vendors during this period, earmarked specifically for Ebola-related spending. These included:

  • Public awareness campaigns and adverts paid to print, radio and tv media platforms, totalling at least KSh122 million.
  • Printed materials totalling at least KSh214 million for Ebola prevention and information posters, contact tracing forms, technical guideline and point-of-entry forms, brochures and decision charts, etc. Most of the payments were made to six obscure companies.
  • Ebola-related pharmaceutical and non-pharmaceutical supplies, including hand sanitizer
  • Ebola-related conferences, catering, and travel expenses
  • At least KSh15 millions paid to a single vendor for isolation beds

Hacking the System

Tira Southshore Holdings Limited and Ameken Minewest Company Limited, appear to have no history of dealing in hygiene or medical supplies. Yet they were awarded three blanket purchase agreements, which are usually reserved for trusted vendors who provide recurring supplies such as newspapers and tea, or services such as office cleaning.

“A blanket agreement is something which should be exceptional, in my view,” says former Auditor-General, Edward Ouko.

But the leaked data show more than 2,000 such agreements, marked as approved by the heads of procurement in various ministries. About KSh176 billion (about $1.7 billion) was committed under such contracts over 42 months.

“Any other method of procurement, there must be competition. And in this one there is no competition,” explained a procurement officer, who spoke generally about blanket purchase agreements on background. “You have avoided sourcing.”

The Ministry of Health did not respond to detailed questions, while Mrs Nyamai declined to comment on the contracts in question.

Procurement experts say blanket purchase agreements are used in Kenya to short-circuit the competitive process. A ministry’s head of procurement can request authority from the National Treasury to create blanket agreements for certain vendors. Those companies can then be asked by procurement employees to deliver supplies and services without competing for a tender.

Once in the system, these single-source contracts are prone to corruption, as orders and payments can simply be made without the detailed documentation required under standard procurements. With limited time and resources, government auditors say they struggle especially with reconciling purchases made under blanket agreements.

The agreements were almost always followed by standard purchase orders that indicated the same vendor and the same amount which is unusual and raises fears of duplication. Some of these transactions were generated days or weeks after the blanket agreements, many with missing or mismatched explanations. It’s unclear whether any of these actually constituted duplicate payments.

For example, the leaked data show two transactions for Ameken Minewest for Sh6.9 million each — a blanket purchase order for El Nino mitigation supplies and a standard order for the supply of chlorine tablets eight days later. Tira Southshore also had two transactions of Sh12 million each — a blanket purchase for the “supply of lab reagents for cholera,” and six days later a standard order for the supply of chlorine powder.

Auditors say both the amounts and the timing of such payments are suspicious because blanket agreements should be paid in installments.

“It could well be a duplicate, using the same information, to get through the process. Because you make a blanket [agreement], then the intention is to do duplicates, so that it can pass through the cash payee phase several times without delivering more,” said Ouko upon reviewing some of the transactions for Tira Southshore. This weakness makes the IFMIS system prone to abuse, he added.

In addition, a KSh4 billion contract for hand sanitizer between the Health Ministry’s Preventive and Promotive Health Department and Tira Southshore was approved as a blanket purchase agreement in April 2015. The following month, a standard purchase order was generated for the same amount but without a description of services — this transaction is marked in the system as incomplete. A third transaction — this one for 0 shillings — was generated 10 days later by the same procurement employee, using the original order description: “please supply hand sanitizers 5oomls as per contract Moh/dpphs/dsru/008/14-15-MTC/17/14-15(min.no.6).

Reporters were unable to confirm whether KSh4 billion was paid by the ministry. The leaked data doesn’t include payment disbursement details, and the MOH has not responded to requests for information.

“I can assure you there’s no 4 billion, not even 1 billion. Not even 10 million that I have ever done, that has ever gone through Tira’s account, through that bank account,” said the co-owner of the company, Abigael Mukeli. She insisted that Tira Southshore never had a contract to deliver hand sanitizer, but declined to answer specific questions. It is unclear how a company without a contract would appear as a vendor in IFMIS, alongside contract details.

It is possible that payments could end up in bank accounts other than the ones associated with the supplier. That is because IFMIS also allowed for the creation of duplicate suppliers, according to a 2016 audit of the procurement system. That audit found almost 50 cases of duplication of the same vendor.

“Presence of active duplicate supplier master records increases the possibility of potential duplicate payments, misuse of bank account information, [and] reconciliation issues,” the auditors warned.

They also found such blatant security vulnerabilities as ghost and duplicate login IDs, deactivated requirements for password resets, and remote access for some procurement employees.

Credit: Edin Pasovic/OCCRP

Credit: Edin Pasovic/OCCRP

IFMIS was promoted as a solution for a faster procurement process and more transparent management of public funds. But the way the system was installed and used in Kenya compromised its extolled safeguards, according to auditors.

“There is a human element in the system,” said Ouko. “So if the human element is also not working as expected then the system cannot be perfect.”

The former head of the internal audit unit at the health ministry, Bernard Muchere, confirmed in an interview that IFMIS can be manipulated.

Masking the Setup

Ms Mukeli, the co-owner of Tira Southshore and Ameken Minewest, is the niece of Mrs Nyamai, according to local sources and social media investigation, although she denied the relationship to reporters. According to her LinkedIn profile, Ms Mukeli works at Kenya Medical Supplies Agency, a medical logistics agency under the Ministry of Health, now embroiled in a COVID procurement scandal.

Ms Mukeli’s mother, who is the MP’s elder sister, co-owns Icpher Consultants Company Ltd., which shares a post office box with Tira Southshore and Mematira Holdings Limited, which was opened in 2018, is co-owned by Mrs Nyamai’s husband and daughter, and is currently the majority shareholder of Ameken Minewest. Documents also show that a company called Icpher Consultants was originally registered to the MP, who was listed as the beneficial owner.

Co-owner of Tira Southshore Holdings Limited, Abigael Mukeli, described the company to reporters as a health consulting firm. However Tira Southshore also holds an active exploration license for the industrial mining in a 27-square-kilometer area in Kitui County, including in the restricted South Kitui National Reserve. According to government records, the application for mining limestone in Mutomo sub-county — Nyamai’s hometown — was initiated in 2015 and granted in 2018.

Mukeli is also a minority owner of Ameken Minewest Company Limited, which also holds an active mining license in Mutomo sub-county of Kitui, in an area covering 135.5 square kilometers. Government records show that the application for the mining of limestone, magnesite, and manganese was initiated in 2015 and granted in 2018. Two weeks after the license was granted, Mematira Holdings Limited was incorporated, with Nyamai’s husband and daughter as directors. Today, Mematira Holdings is the majority shareholder of Ameken Minewest, which is now in the process of obtaining another mining license in Kitui County.

According to public documents, Ameken also dabbles in road works and the transport of liquefied petroleum gas. And it’s been named by the Directorate of Criminal Investigations in a fuel fraud scheme.

Yet another company, Wet Blue Proprietors Logistics Ltd., shares a phone number with Tira Southshore and another post office box with Icpher Consultants Company Ltd., according to a Kenya National Highway Authority list of pre-qualified vendors.

Family LinksMrs Nyamai and her husband co-own Wet Blue. The consulting company was opened in 2010, the same year that the lawmaker completed her PhD work in HIV/AIDS education in Denmark.

Wet Blue was licenced in 2014 as a dam contractor and supplier of water, sewerage, irrigation and electromechanical works. It’s also listed by KENHA as a vetted consultant for HIV/AIDS mitigation services, together with Icpher Consultants.

It is unclear why these companies are qualified to deliver all these services simultaneously.

“Shell companies receiving contracts in the public sector in Kenya have enabled corruption, fraud and tax evasion in the country. They are literally special purpose vehicles to conduct ‘heists’ and with no track record to deliver the public goods, works or services procured,” said Sheila Masinde, executive director of Transparency International-Kenya.

Both MOH and Ms Mukeli refused to confirm whether the ordered supplies were delivered.

Mrs Nyamai also co-owns Ameken Petroleum Limited together with Alfred Agoi Masadia and Allan Sila Kithome.

Mr Agoi is an ANC Party MP for Sabatia Constituency in Vihiga County, and was on the same Health Committee as Mrs Nyamai, a Jubilee Party legislator. Mr Sila is a philanthropist who is campaigning for the Kitui County senate seat in the 2022 election.

Juliet Atellah at The Elephant and Finance Uncovered in the UK contributed reporting.

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