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DEATH OF AN INVESTIGATOR: The Suicide of Stephen Mumbo

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On Friday, 12 October 2018, Stephen Mumbo jumped from the 17th floor of the PwC office building in Westlands, Nairobi. Piecing his last moments alive reveals a trail of work-related stress and a man who was broken long before he fell to his death. By DAVID ODONGO and MORRIS KIRUGA

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DEATH OF AN INVESTIGATOR: The Suicide of Stephen Mumbo
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Dark Friday

As he was leaving for work, Stephen Mumbo closed the door to his apartment. It was still dark outside, but he had to be at work early enough to finish a report and prepare for a meeting. In one hand he carried the lunchbox his wife, Roselyne, packed for him every night. In the other, he held his car keys.

A quiet, shy bespectacled man with a balding head and a nerdy aura, he was always polite to a fault. He was also a workaholic, rarely seen anywhere else but at his office desk. But this morning, as he left the apartment, got to the parking lot, and into his maroon Mitsubishi Lancer, registration plate KAS 843M, something else was on his mind.

He was tired, but that fatigue would have to wait. He had barely seen Roselyne and their infant daughter in the preceding two months as he had been busy undoing one of the biggest corporate messes in Kenyan history. It was his brief, but for most of the previous decade and a half, such assignments had been his life.

To anyone watching, nothing was outwardly unusual about Mumbo that cold Friday morning.

From his apartment building, the 9-storey Pangani Palace Apartments off Muthaiga roundabout, he joined the early morning rush hour traffic. Although Nairobi wakes up early to beat the city’s infamous traffic jams, it took him less than 30 minutes to reach his office in Westlands. The sun rose on the horizon and with it, the city. It would be the last time he would take that route.

As he took a gentle left turn off Waiyaki Way to the paved driveway of the twin Delta Towers, the headquarters of his employer, Stephen Mumbo was already a man on edge. But his permanent calm demeanor, which had only failed him on rare occasions, hid the turmoil beneath.

Mumbo waved at the guards as they let him through the barrier. He drove to his parking slot, reverse-parked into it, and walked to the lift. Once in, he pressed the 12 button and waited. When the doors opened, he got off and walked to his office.

Mumbo used his access card to enter the office a few seconds before 6:15 a.m. Even that early on a Friday morning, he was not the first person at the Pricewaterhouse Coopers (PwC) Kenya office. At least four of his colleagues were already at their desks, typing up reports, trying to meet deadlines and preparing for meetings.

Mumbo removed his suit jacket and draped it over his seat. On any other day, he would only wear it again if he had a meeting or if it got cold. He sat at his desk, which was a neatly arranged table with no personal items. It was where he spent days and nights working on assignments, and where, this fateful morning, he would sit one last time. On his mind was a report he had been toiling on for the previous two weeks that was due that morning. But there were many other things troubling him.

Mumbo used his access card to enter the office a few seconds before 6:15a.m. Even that early on a Friday morning, he was not the first person at the Pricewaterhouse Coopers (PwC) Kenya office. At least four of his colleagues were already at their desks, typing up reports, trying to meet deadlines and preparing for meetings.

Six weeks before that morning, UBA Bank had placed ARM Cement, a listed manufacturing company, under PwC’s management over massive debt. The company had been suspended from the Nairobi Stock Exchange (NSE) as its shareholders reeled in disclosures of hidden debts and other forms of corporate malfeasance. While for outsiders it was a story of yet another typical Kenyan company, for Stephen Mumbo it was a direct challenge.

As the Assistant Manager of Executory and Forensic Investigations, the complexities of understanding the company’s true position, and then figuring out ways to solve the mess, fell directly on his desk – and he was just the man for the job. He was not only reliable, he was also driven. In a profession that demands brilliance, he could be considered a proper nerd. Besides, he had worked for PwC for nearly a decade and a half and had proven his skills countless times. If there was a complexity you couldn’t untangle, on just about any project, Stephen Mumbo was the man to ask.

He’d spent 18-hour work days working on the ARM proposal, which was not unusual for him or anyone who worked at PwC. What was specifically different was that Mumbo was a perfectionist par excellence. Grammar was important to him; a comma out of place would unnerve him, and more than once he had chosen to file reports late rather than table them with errors. He approached his work, as one colleague put it, like the civil engineer he had been trained to be. One centimetre off, and the whole structure risks collapse. That perfectionism meant he spent hours and days labouring on not just getting the right proposals on paper, but also on making sure that the language in the reports was clear and concise. It made him irreplaceable, but at the same time, it meant that he could not be promoted.

Sometime between 7:30am and 7:40am, Mumbo asked a colleague whether there was any free meeting room on the 17th floor. There wasn’t, she told him. Despite having this information, he still went upstairs, hoping that the administrator there could find him one. He needed it for a meeting, which was scheduled for 9am, but he also had other things on his mind.

The only thing that might have caught anyone’s attention was that he wasn’t wearing his spectacles, which was rare. His eyes were red, but for a man in his profession, that was considered just another day at the office. It was also not unusual for him to go upstairs hours before a meeting. Since he had left his jacket draped on his chair, everyone assumed he was coming back.

On the 17th floor, Mumbo tried several rooms. He found someone talking on her phone in one of them. She asked him if he had booked the room. He said no, and closed the door. That woman was probably the last person to see him alive.

When he got to Kilimanjaro 2 meeting room, he found it empty. He closed the door behind him. He was physically alone, but no one will ever truly know what kind of torment he was going through.  He walked across the room’s polished floors, passing the black and yellow chairs, probably tapping his fingers on the grey top mahogany table. Then he placed his Lenovo laptop on the table, walked to the window, and climbed outside. From there, he could see the Westlands rush hour traffic below him. He could see Waiyaki Way, and even the stretch he had turned into two hours earlier to get into his office, as well as the Westlands matatu stage on the other side of the road. There was the luxury car dealership at the end of the complex, and the parking lot between it and his building. But maybe he didn’t notice any of this as he steadied himself on the ledge.

Then he jumped.

To anyone watching from outside, the fall lasted the blink of an eye. One second Stephen Mumbo was standing on the ledge of the window, and the next he was on the balcony of the 2nd floor, fifteen floors down. It must have looked macabre, the sight of a man falling to his death against the backdrop of Delta Towers’ imposing façade. To the employees at SBM Bank, on whose second-floor window ledge Mumbo died, it sounded like a sudden thud.

Many things drove his choice of the 17th floor, including the fact that it was mostly empty at that time of day, and that from that high up, he was unlikely to survive the fall. Later images from witnesses in the buildings across show four first responders around his lifeless body dressed in a light blue shirt and black suit pants. There wasn’t much anyone could do at that point, and he was pronounced dead immediately after he was taken to the hospital.

Inside PwC Kenya, the immediate members of his team were told to go home or wait if they needed to see a counsellor. Someone retrieved Mumbo’s Lenovo laptop from the meeting room, and from it the report he had spent his last two months alive working on. Everyone else was ordered back to their assignments, even while Mumbo’s body still lay on a ledge below.

***

As the news of Stephen Mumbo’s fall broke in the capital city, people speculated on whether he had jumped or he had been pushed. On Twitter, people wondered whether there had been foul play; some connected the dots from Mumbo’s sensitive work as a forensic investigator to his fall. There are no cameras in the corridors outside the boardroom, only on the staircases.  That blind spot would make it hard for investigators to determine if anyone had joined him in the room.

Others focused on the suicide angle; many wondered why a 41-year-old man with a well-paying job would choose to end his life. Some suggested domestic issues had driven Mumbo to his death; one strangely detailed tweet suggested infidelity. But the public speculation ignored the probability that only Stephen Mumbo knew what Stephen Mumbo was going through. In the absence of a suicide note in any form – none has been found – piecing back the last few years of his life is probably the only way to understand why he killed himself.

As the news of Stephen Mumbo’s fall broke in the capital city, people speculated on whether he had jumped or he had been pushed. On Twitter, people wondered whether there had been foul play; some connected the dots from Mumbo’s sensitive work as a forensic investigator to his fall.

By the time he died, Stephen Mumbo was one of only three employees who had been at PwC Kenya for more than 13 years. He’d only had one job outside PwC (as a design engineer between March 2003 and April 2004) before joining the accounting firm. The only other company he had worked for was a small Malawian smallholder farmer’s company where he had done a brief consultancy in 2016. PwC was, by all accounts, more home to him than his apartment was. The job fit his personality as it required a meticulous, borderline obsessive mind.

Mumbo was, by many accounts, a good boss and an effective team leader who avoided office politics. In a profession where kindness is rare, he was overly compassionate and helpful. Sometimes, according to several people who worked with him over the years, he would volunteer to help on a project and eventually take a leadership role. But he was the kind of colleague who took on team projects and then credited everyone else. According to at least one insider, the kind of work Stephen Mumbo was handling on ARM Cement was probably work that should have been handled by a team of six.

Mumbo’s perfectionism and thoroughness also made him irreplaceable. Most of the people who eventually became his bosses owed some of their success to him. He trained them, as he did many other people, but they passed him in rank because he was not assertive. In a meeting room, he would point out flaws in plans in a heartbeat, but recoil when asked how to change them. Instead, he would draft his thoughts and offer them to someone else to present.

But he enjoyed the work itself. The constant mental challenge must have been a thrill at the beginning of his career, but it slowly chipped away at his mental health.

By October 2018, he couldn’t take it anymore. “They [PwC] plied him with so much work, and he wasn’t the type to say no, so he did it anyway. He was always very well groomed, but always tired,” said a relative.

The firm

By the time Pricewaterhouse Coopers bought part of Delta Towers in late 2012 for Sh4.4 billion in a joint deal with the University of Nairobi, it was already one of the biggest auditing firms in the world. The company was founded in 1998 through a merger between Coopers & Lybrand and Price Waterhouse, and rebranded to PwC in September 2010. By then, it was present in 158 countries and 743 locations, battling it out with three other audit firms, Deloitte, EY, and KPMG. PwC had over 236,000 people in its ranks, among them a quiet Kenyan nerd called Stephen Mumbo.

The PwC Tower, one of the two towers that make up Delta Towers, became PwC’s new home from early 2013. It was a remarkable investment by a company partially owned by Indian billionaire Mukesh Ambani. PwC Kenya settled for Wing B of the 20-storey twin towers, occupying half and renting out the other half. Upper Hill, its former home, was losing its lustre as new buildings came up without the infrastructure to support them. Now, in the newest building on the corner of Waiyaki Way and Ring Road Westlands, its employees were spoilt for choice on where to live. Location was important because many of them would work long hours, driving to and from work while the city slept.

As an employer, PwC Kenya consistently ranks as one of the best places to work in Nairobi. Entry-level graduate trainees earn an average monthly salary of Sh120,000, and its partners, according to Kenya Revenue Authority (KRA), are some high-net-worth individuals with gross annual incomes of between Sh350 million and Sh1 billion.

For the ARM job, PwC charged Sh65.6 million for the first three months, in addition to Sh7.9 million for preparatory work. While the PwC partners appointed to do the job were Muniu Thoithi and George Weru, the actual legwork went to a quiet nerd on the 12th floor called Stephen Mumbo. Thoithi and Weru would earn Sh43,000 per hour, while associate directors would earn Sh37,800, senior managers Sh30,000, and project managers Sh25,000 per hour. As a manager, Mumbo’s pay most likely fell in the two lower ranks. But to earn his keep, he would have to spend hours on end poring through reports, preparing his own recommendations, and presenting them to his bosses and the client.

By the time Mumbo got to his desk at 6:15am on Friday, 12th October, he had had less than three hours of sleep. He had gone home at 1am the previous night. He fell asleep fast, but he was clearly distressed, according to several close family members. He kept tossing and turning and woke up before daylight to get back on the grind.

Multiple conversations with past and current employees of PwC Kenya paint the picture of a firm with little space for work-life balance. Long hours and mind-breaking work are the norm, and most employees, like Stephen Mumbo, tend to live close to Delta Towers to ease the commute to work. The employee turnover rate is understandably high, as the work environment becomes more unbearable as one ages and begins seeking a better work-life balance.

Describing his experience at PwC, one employee said, “Deadlines have to be met and bonuses have to be earned. Your health is your problem. If you can’t handle the pressure, quit.” Another termed PwC’s work culture as “ruthless”, adding that even “having a baby is frowned upon.” Lunch breaks, several employees said, are not exactly an option: “Nobody goes for a long leisurely lunch at PwC. Many people eat at their desks.” The average work day, said several employees, is 14 hours. If you are on a project, it’s not unusual to work 18-hour days.

Under Kenyan law, normal working hours are between 45 hours and 52 hours a week for day employees and 60 hours for night employees. The law also provides for at least one rest day a week. At 14-18 hours a day, Stephen Mumbo and his colleagues were clocking between 84 hours to 126 hours a week, twice the legal limit. While the law also provides for overtime, the overriding element is that it be properly compensated, and not result in overworking, which impairs sleep patterns and increases the risk of stress, depression, and lower immunity. Overwork has been associated with heart problems, and among low-income workers, with an increased risk of type 2 diabetes. People who overwork tend to lead unhealthy lifestyles, having less time to exercise, eat. They also tend to smoke or drink more.

Describing his experience at PwC, one employee said, “Deadlines have to be met and bonuses have to be earned. Your health is your problem. If you can’t handle the pressure, quit.” Another termed PwC’s work culture as “ruthless”, adding that even “having a baby is frowned upon.”

Stephen Mumbo seemed to have navigated many of the physical challenges of overworking for almost a decade and a half. He was in good health, didn’t smoke, and barely drank alcohol. But the mental strain was showing.

All the interviewees for this story did not want to be named for fear of retribution for breaking company policy. In more than one case, there were also descriptions of the kind of retribution they might face, down to being put on track to be fired. More often than not, the interviewees still within PwC Tower outlined their basic exit plans and described Mumbo’s death as the latest in a series of wake-up calls.

For those who choose to stay, like Stephen Mumbo, the back-breaking work eventually leads to burnout. There was at least one other breakdown at the office in 2017, and several employees whispered about people self-harming or using drugs to cope with the pressure. For Stephen Mumbo, years of such pressure had finally taken their toll.

***

Mumbo’s distress on that last night was not the only time he had shown signs of work-related stress and depression. In the years before his death, he had had at least three visible episodes of burnout and mental distress at work. In 2015, he had a breakdown in the office and walked out on his boss. He was away from the office for a month. Meanwhile, work was still piling up; Shah Karuturi, the Kenyan subsidiary of the world’s biggest producer of cut roses, was placed under administration sometime during his break. This project was on his desk when he got back.

Then, in mid-2017, a colleague recalls, Mumbo fell asleep in the middle of a presentation with a client. “He was totally burned out, but his bosses simply told him to go to another boardroom and sleep for 45 minutes and then get back to work,” remembered the colleague. Such was life for him, going from one burnout to the next.

The third instance was perhaps the most significant in piecing together Stephen Mumbo’s last years alive. It happened years before he finally took his life, and linked back to the pillars in his adult life.

Then, in mid-2017, a colleague recalls, Mumbo fell asleep in the middle of a presentation with a client. “He was totally burned out, but his bosses simply told him to go to another board room and sleep for 45 minutes and then get back to work,” remembered the colleague. Such was life for him, going from one burnout to the next.

Run to the finish

Mumbo’s village in Kisumu, Nyamasaria, is a hot, dry, humid area. The land is infertile because its black cotton soil sucks the life out of any cash crop. Only weeds, euphorbia, and coarse grass are stubborn enough to grow on the land.

It was in this unforgiving terrain that Stephen Henry Mumbo was born to Arthur Waore Mumbo, an administrator at KEMRI, and Abigael Waore, a teacher at Nyamasaria Primary School in 1977. Mumbo was the last-born in a family of five.

Arthur Waore died in 1992, the year before Stephen joined St. Paul’s Amukura. The young teen moved to Alupe, Busia, to live under the care of his uncle, Mzee Obura, a doctor who still works for KEMRI. All accounts of Stephen Mumbo then match the man he would become: quiet, studious, and driven. According to his cousin, Fred Obura, Mumbo was more than just a brother. They were best friends and even went to the same high school.

In the 1990s, St. Paul’s Amukura, founded by Catholic priest Father Louis Okidoi in 1962, was an academic giant in what is now Busia County. The school motto, Cursum Consumavi, is Latin for “Run to the Finish.” When Stephen Mumbo was a student there, between 1993 and 1996, he lived in Nehru dormitory, named after the charismatic Indian leader.

In his teens, Stephen Mumbo walked awkwardly and avoided conversation. Several fellow alumni of St. Paul’s describe Mumbo’s shyness with fascination. Mumbo was, one says, the guy who wanted the key to the library when everyone else was chasing girls and dates. Odeo Sirari, a KTN news editor, was in Form One when Mumbo was in his final year. “As a new student, it was easy for me to notice Mumbo because he looked so serious, a total book worm,” recalls Sirari.

Another schoolmate, Caleb Etyang, who was a year ahead of Mumbo, says Mumbo would never be found on the school Isuzu bus, christened Kisisiata 3, which served the school between 1990 and 1999, and was driven by a gentle old man the boys fondly called Boyo. “He wasn’t a guy to go for sports or drama outings, he was much more at home in the school and in the library.” In his first two years at the school, he was the class prefect. In his last two years, he was the library prefect.

Mumbo topped the class of 1996 at the school, his only disappointment being that he hadn’t beaten the record of Adiema Aura, a renowned educationist who attended the school in the 80s. He’d only failed to overthrow Aura because he didn’t do well in Kiswahili; he scored an A-minus in the subject.

From St. Paul’s, he made his way to JKUAT, where he would spend the next few years training to become a civil engineer. Engineering offered the challenges a nerd like him yearned for, with its tenets of approaching problems and challenges with a tenacity that combined knowledge, skills and experience. After graduating, he did an accounting course and then took a brief engineering gig. Then he joined PwC Kenya, where he would spend the rest of his life, save for two unpaid sabbaticals.

Throughout this life, Mumbo relied mostly on his mother, Abigael, for emotional support. He had his siblings as well, as well as his adopted ones who were in fact, his cousins. But it was Abigael who represented the most profound influence on her shy young son’s life before and after school.

Then, on 3rd June 2008, Abigael Waore died.

Figure 1: Kenya Gazette notice of 31 October 2008

 

Multiple accounts point to a marked change in Mumbo’s life, work, and demeanor after his mum died. He simply couldn’t work anymore; he took a one-year unpaid sabbatical before going back to work. At some point, either then or after, Mumbo also mounted a massive portrait of his mother in his bedroom. Her face was the last thing he saw before he slept and the first thing he saw when he woke up.

 

Colleagues say that whenever he was not shy, he would talk about his mum a lot. After she died, he mostly talked about his wife Roselyne. They had been married for seven years but had spent a considerable time apart as Roselyne focused on a project in Kisumu and Mumbo toiled at PwC Tower. On days when they were together, his lunch box was the source of envy, as colleagues listened to him go on and on about his wife’s cooking. On any day, even when out of the country on assignment, he would speak to her on the phone for at least an hour.

In the three months before his tragic fall, he also talked about his daughter. The couple had tried to have a baby for several years before finally settling on adoption to grow their family. The toddler was a new addition, and a happy one at that. Mumbo often talked about his daughter, but also said how he didn’t get enough time to be with her.

The patterns

Mumbo’s suicide was not the first time a PwC employee had died after jumping from a floor in a PwC office. In April 2016, a 23-year-old employee of the PwC headquarters in London had jumped to his death from PwC’s ten-storey office building. His decision was attributed to a secret gambling habit, which he had begged his parents not to inform PwC about. He died on a walkway outside the office.

In another case, in May 2012, a 46-year old man jumped off the eighth floor of the PwC building in Largo, the third largest city in Pinellas County, Florida. In 2015, a director at PwC in the UAE, Jumana, was found dead in an apparent suicide pact with her sister, Soraya Saiti, at the base of a building under construction in Amman, Jordan. Then in August 2017, a PwC director named Werner Haupfleisch died by suicide in his home in Royldene, South Africa.

While none of these deaths were directly linked to PwC’s organisational culture, there have been other related deaths. In 2011, for example, Angela Pan, an auditor at the Shanghai PwC office, died ten days after first showing flu-like symptoms. Although her death was attributed to viral encephalitis, social media users of Sina Weibo speculated that she had been “worked to death”, Sometime before her death, Pan sent an update on Sina Weibo that said, “I can accept overtime. I can also accept out-of-town business trips. But on learning a young worker died from fatigue at KP (KPMG), I feel something has broken my bottom line to endure.” She had only worked for the company for six months, after graduating from Shanghai Jiao Tong University.

Faith Atsango, a psychologist, says that work-related stress should be classified as a safety hazard. “People in high pressure jobs are prone to have mental breakdowns,” she adds, “and such incidents should be treated as physical health and safety issues at work.” Atsango says that similar to how factories provide safety gear, stressful work environments should find ways to help employees cope, and ease burnout. Many of these are included in the Occupational Safety and Health Act, which also safeguards employees from “mental strain”.

Faith Atsango, a psychologist, says that work-related stress should be classified as a safety hazard. “People in high pressure jobs are prone to have mental breakdowns,” she adds, “and such incidents should be treated as physical health and safety issues at work.”

Despite these safeguards, high unemployment and weak enforcement of labour laws mean that work-related stress is not properly addressed. Mental health is still largely a taboo topic, despite an increasing number of deaths directly connected to it.

Part of the stigma attached to mental health is gender-related; statistics show that more than 70 per cent of the suicide-related deaths in 2017 were of males.  Two days after Mumbo’s death, another man jumped into a borehole in Matisi Estate, Kitale. Five months before that, another man had jumped off the 8th floor of the 15-storey NSSF building in Mombasa.

There are numerous reasons for the gender disparity, most of them revolving around the social silence on depression and other mental health issues among men. Even worse, the stresses of living and working in a fast-paced urban centre pile up.  The stresses include underemployment, overwork, length of the commute to work, and stagnant pay levels in a struggling economy.

A 1982 study on the subject showed that while the population in Nairobi grew by 7.5 per cent between 1975 and 1979, the rate of suicides grew by 300 per cent. The study also found a pattern in the months with the highest suicide rates; suicides tend to occur in the months of January to March, April to June, and October to December. There have been other studies focusing on at-risk groups, such as university students, but there is barely any substantive research on work-related stress and depression.

Then there’s the law. Instead of the law taking a pragmatic approach to the reasons why people take their own lives, it treats suicide as a crime. Attempted suicide is a misdemeanour punishable by two years’ imprisonment or fines, or both. This means that if Stephen Mumbo had survived his fall, which was unlikely, he would have promptly been arrested and thrown before a judge. That legal perspective and the social stigma also mean that suicide goes largely unacknowledged as the social issue it is.

Despite the legal and social hurdles, there have been some attempts to provide psychological wellness for several at-risk groups. In October, the same month Stephen Mumbo died, the National Police Service created a new department to assess the psychological wellness of officers. There had been at least five reported suicides of police officers in the preceding months. A few months later, the education ministry raised the alarm on an increasing number of death by suicide among university students.

In corporate workplaces such as PwC Kenya, the inclusion of psychological wellness has been at best abstract. PwC Global has made several public commitments to facilitate mental health awareness within its ranks. PwC UK, for example, has a “Green Light to Talk Day” and hired Beth Taylor as its new mental health leader in January 2016. PwC Malaysia has a “FitPwC” programme that combines physical and mental wellbeing. PwC Kenya does not have any such programme, and several employees described recent events, such as a meeting where management sought ideas on how to improve the work environment, as window-dressing.

As a consulting firm, PwC has published several reports on workplace stress. In 2017, PwC UK published a report on tackling workplace stress with technology. Three years before that, PwC Australia published a report titled “Creating a mentally healthy workplace.” The irony of such reports, according to a former long-term employee of PwC, is that they were most likely prepared by people who were themselves working in a mentally unhealthy environment. 

The aftermath

A few hours after Mumbo’s death, Peter Ngahu, PwC’s regional and country senior partner, held a press conference where he said, “It’s difficult to keep track of what each and every person is doing.” He refused to answer the question about whether Mumbo had been alone in the meeting room before he fell to his death. His response was: “He may have had a meeting, but he’s not here to answer the question.”

After that, Ngahu and Mumbo’s bosses, Muniu Thoithi and George Weru, declined any more media interviews into the death. Both Ngahu and Thoithi didn’t pick calls or answer text messages about the company’s work culture and measures they would institute to help employees deal with work-related stress. Reached for comment, George Weru declined, saying “No, no, no, I would not wish to say anything about this issue. The boss, Ngahu, issued a press statement and held a press conference on the matter last Friday.”

 

PwC Press Release

PwC Press Release

At PwC Tower, life continued almost as if nothing significant had happened there on October 12th. If Mumbo’s death had been “a big blow” to PwC Kenya, as Ngahu termed it in his press release, then it didn’t show. There was counselling for a few of the staff members in Mumbo’s team, but then everyone went back to work even before his body was removed from the scene.

The ARM project, his last, continued unabated, as did the entire firm. Eleven days after he stepped off the ledge of the 17th floor meeting room, ARM’s creditors approved an extension of PwC’s mandate to September 2019. It will be going on to this next phase without one of its ablest minds. In a meeting on October 22nd, the creditors also gave PwC permission to implement several options to revive the company. These, most likely sourced from Mumbo’s work, include getting a strategic investor and selling off some of the company’s key assets. It is unclear whether he had been the one who discovered that for years, ARM Cement had been treating a loan to its Tanzanian subsidiary as a performing loan while Maweni had been defaulting for years.

At PwC Tower, life continued almost as if nothing significant had happened there on October 12th. If Mumbo’s death had been “a big blow” to PwC Kenya, as Ngahu termed it in his press release, then it didn’t show. There was counselling for a few of the staff members in Mumbo’s team, but then everyone went back to work even before his body was removed from the scene.

***

Even before the shock of his sudden death waned, Mumbo’s friends and family organised meetings and fundraisers. At Tumaini Meeting Chambers behind Kencom House, they planned a farewell to a man who had seemed like he had it all. Many of his colleagues could not make it to the meetings because they were working. Instead, they sent cash donations and condolences.

On Friday, 26th October 2018, exactly two weeks after Mumbo had ended his life, they left in a convoy from Montezuma Funeral Home and drove to Mumbo’s home in Nyamasaria. The next day, at 9 am, they sat as the priest prayed, and then watched in grief as the casket bearing Mumbo’s body was slowly lowered into the grave. It was heartbreaking, a tragedy by any measure. A man who, after living off his brilliance, had ended up back in the unforgiving soil where he had first seen the world. For Roselyne and their daughter, it was the beginning of a life without Mumbo, who was at the time the sole breadwinner in the household.

On the 2nd floor ledge at Delta Towers, where Mumbo breathed his last, the dent his body left is still prominent, a stark reminder of his tragic end. In the parking lot, his Mitsubishi Lancer sat untouched for months, parked in the same spot where he left it.

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David Odongo (@DavidOdongo) is a journalist and writer while Maurice Kiruga (@MorrisKiruga) is a blogger and writer, both based in Nairobi, Kenya.

Politics

Has COVID-19 Sparked Another Revolution in Zanzibar?

The novel coronavirus pandemic has had one unexpected effect in Tanzania: it has emboldened Zanzibaris’ relentless struggle for self-determination.

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Has COVID-19 Sparked Another Revolution in Zanzibar?
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The union between Tanganyika and Zanzibar – the contentious two-tier government system that Tanzania adopted – has been riddled with a number of complaints (commonly referred to in Kiswahili as kero za muungano or grievances of the union) right from its formation on April 22, 1964. None of these complaints, however, have been nearly as controversial as Zanzibar’s de facto inability to enter into international agreements. (Zanzibar’s failed attempt in late 1992, for instance, to unilaterally join the Organisation of Islamic Cooperation (OIC) almost broke the union.) However, the desire among Zanzibaris to have this arrangement overturned across the political spectrum has never wavered and nothing could have demonstrated the arrangement’s detriments to Zanzibar’s development as much as the COVID-19 pandemic.

There is no shortage of literature on the history of the union between Tanganyika and Zanzibar, especially on its motivations. Various people, including journalists, historians, and social scientists, have tried to document the historical development regarded by some as one of the most enduring legacies of Mwalimu Julius Nyerere, the co-founding father of the modern Tanzanian state.

I’m too young to claim any expertise on the subject of the union (which, really, is older than my father), but as I write this I can vividly picture my high school history teacher, a blackboard behind his back, haranguing the class on how the union was conceived for the Zanzibaris’ own benefit, mainly security, and especially in preventing the return of the “Arab Sultanate” that had been overthrown in 1964. Only later would I come to learn other motivations behind the union: first, an attempt by Mwalimu to realise the Pan-Africanist dream, and second, a deliberate effort by the world’s only superpower, the United States, in the midst of Cold War politics, to prevent the emergence of “another Cuba” in the region.

How the union came about 

People who are not familiar with Tanzania’s political system should understand that Tanzania’s union is a two-tier government system where there’s the semi-autonomous government of Zanzibar, known as the Revolutionary Government of Zanzibar, currently under President Ali Mohamed Shein, which handles all non-union matters, and the union government, known as the Government of the United Republic of Tanzania, currently under President John Magufuli, which, contentiously, handles both union and non-union matters.

The uniting of two distinctly divergent people, both culturally (predominantly Muslim Zanzibar versus largely Christian Tanganyika) and ideologically (progressive Zanzibar versus conservative Tanganyika) took place at breakneck speed, hardly three months after the controversial Zanzibar Revolution of January 12, 1964.  This denied the people from both sides of the union any chance to express their views on the decisions made by their leaders, leaving some sceptical observers doubtful of the union’s true intentions and thus laying a fertile ground for the disagreements that were to follow.

In the rush to realise the union, the Articles of the Union – the treaty that effected the union of Tanganyika and Zanzibar – ended up being ratified only by Tanganyika’s Parliament on April 26, 1964, contrary to the initial agreement that the union also had to be ratified by the Zanzibar Revolutionary Council that was formed immediately after the revolution and which functioned both as a legislative and executive arm of the state.

What’s worse, nobody has ever seen the original copy of the Articles of the Union that carries the signatures of the founding fathers Mwalimu Julius Nyerere and Sheikh Abeid Aman Karume, the first president of Zanzibar. This is one of the thorniest issues in the whole discourse on the union between Tanganyika and Zanzibar.

In the rush to realise the union, the Articles of the Union – the treaty that effected the union of Tanganyika and Zanzibar – ended up being ratified only by Tanganyika’s Parliament on April 26, 1964, contrary to the initial agreement that the union also had to be ratified by the Zanzibar Revolutionary Council…

But that’s not the only thorny issue; the other is the arbitrary increase in the number of issues handled by the union, something that makes Zanzibar progressively less autonomous while increasing the powers of its partner, Tanganyika (which, to the Zanzibaris’ chagrin, now functions as Tanzania). This enables the government to meddle in Zanzibar’s local affairs, the most notorious form of meddling being deciding which political party will lead in the isles. This complicates the archipelago’s efforts in defining its developmental path as well as dealing with issues of immense significance to its people, as the COVID-19 experience has demonstrated.

While Zanzibar is expected to handle the health of its people on its own, in the process of doing so it cannot ask for regional or international support.  This is because, according to the Constitution, health is a non-union matter but regional and international cooperation is a union one. This unfortunate arrangement has naturally meant that were Zanzibar in need of any support from, say, the World Health Organization (WHO), or from any other potential donor in its efforts to fight against the COVID-19 pandemic, or to carry out any development initiative, it has to request it through the union government, which reserves the sole right to decide whether the request can go forward. Nothing makes Zanzibaris as disillusioned about the union as this arrangement does, and it is against this background that several demands for the restructuring of the union have been made.

Two very different approaches 

Regarding COVID-19, right from the beginning, Zanzibar, a country of about 1.3 million people, and characterised by a strong communal spirit, took what seemed to be a completely different approach from that of the government of John Magufuli in its efforts to deal with the pandemic. It first reported cases on the isles on March 19, a time when the union government was still trying to figure out how to confront the public about the deadly virus, choosing instead to deny the people important information. As soon as it started to confirm its first coronavirus case, Zanzibar issued an update to its citizens and the world in general on the status of the pandemic there, earning it some admiration from some of Tanzania’s health experts.

On March 21, the Zanzibar government suspended all international flights entering the isles, a decision followed almost three weeks later, on April 13, by its union counterpart. Zanzibar even went one step further in an attempt to contain the spread of the pandemic by shutting down all 478 tourist hotels on the isles. This significantly affected its tourism sector, the lifeblood of the archipelago’s economy, which accounts for almost 80 per cent of its annual foreign income.

Almost a week after the union government announced, on April 28, that only 16 people had died of COVID-19, Zanzibar released an update showing that 32 people had died of the disease, something that made critics question the union government’s figures.

The difference in the approaches to dealing with the COVID-19 pandemic has more to do with the attitude of their respective leaders. While President Shein appreciated the magnitude of the pandemic right from the beginning, and thus took strong measures to contain it, his union counterpart, President Magufuli, on the other hand, did not view the pandemic as a threat. He even advised Tanzanians to go on with their business. While Shein’s government was postponing a major religious event to contain the spread of the fatal virus, the union government organised one. While Shein used every opportunity to urge people to protect themselves against COVID-19 by regularly washing their hands, using sanitisers and wearing masks (even making the latter directive mandatory, with he himself wearing it to set an example to his people), his union counterpart never wore one and was busy advising people to use steam inhalation therapy, saying it cures the disease in spite of health experts advising otherwise. In other words, while Zanzibar’s approach to COVID-19 was informed by the archipelago’s authorities’ willingness to trust science, Magufuli’s approach was informed by something quite the opposite: superstition and quackery.

These steps notwithstanding, there are limits to Zanzibar’s efforts to dealing with the priorities of its people, as highlighted above, thanks to both the current structure of the union as well as clientelism that characterises Zanzibar’s ruling elites, which tend to see their union counterparts (who happen to belong in the same party, the ruling Chama cha Mapinduzi [CCM]) as their patrons and thus are only free to pursue a particular path only to the extent that their patrons on the mainland can allow them. For example, Zanzibar stopped issuing updates on the COVID-19 trend shortly after the union government did so in the wake of the temporal closure of the national laboratory where COVID-19 tests used to be conducted to pave way for an investigation following allegations, among many others, that the lab’s technicians were conspiring with “imperialists” to portray Tanzania negatively by releasing more positive COVID-19 cases.

In other words, while Zanzibar’s approach to COVID-19 was informed by the archipelago’s authorities’ willingness to trust science, Magufuli’s approach was informed by something quite the opposite: superstition and quackery.

To understand this complexity, one must understand how political leadership has always been obtained in Zanzibar, or, to put it differently, how CCM has always ended “winning” elections in the archipelago: it’s through a sponsorship from the union government and its security apparatus.  Following pressure from the union government, for example, Zanzibar’s electoral body was forced to annul the 2015 election results for the president of Zanzibar and members of the House of Representatives, the archipelago’s legislative body, after initial results had shown that CCM, which has ruled both Zanzibar and the mainland since independence, had lost to the isles’ main opposition party, the Civic United Front (CUF). This has forced the Zanzibar government, which the opposition in Tanzania deems to be “illegitimate”, to feel like it has a debt to pay to the union government. (Jecha Salim Jecha, the then chair of the Zanzibar electoral body who was responsible for the 2015 annulment of the isles’ election, surprised many in Tanzania and beyond when he became one of more than a dozen CCM members who have declared their intention to run for the isles’ presidency on the party’s ticket.)

Zanzibar’s relatively better performance in fighting COVID-19 earned it some praise in the court of public opinion, with some even organising online fundraising to support the country in its war against the deadly virus. The seriousness shown by Zanzibar’s political leadership during the pandemic also made the archipelago a potential beneficiary of a number of international rescue aid packages available for needy countries, such as the International Monetary Fund (IMF)’s COVID-19 Emergency Financial Assistance. But that never happened, thanks to the current structure of the union. Apparently, the union government applied for the IMF’s rescue package but it was denied on several grounds, including the government’s decision to give inaccurate statistics on the budget it claimed to have spent in dealing with the COVID-19. The IMF’s Tanzania representative, Jens Reinke, told African Business that “the government doesn’t see the crisis as that big an issue” (Tanzania was ultimately able to secure about $14.3 million debt relief from the IMF’s Catastrophe Containment and Relief Trust to cover the country’s debt service from June 10 to October 13.)

The Black Lives Matter movement might have popularised the phrase “I can’t breathe”, but it did not coin it. Neither did George Floyd, the unarmed black man who said these words when his neck was under the knee of a white police officer. Zanzibaris used the phrase long before it became a global rallying cry for racial justice. The only difference is that they have been using it in the plural form, “We can’t breathe”, or “Hatupumui” in Kiswahili.

Zanzibaris have for years been demanding for the restructuring of the union. They want a three-tier government system (that is, the government of Zanzibar, of Tanganyika and that of the United Republic) so that they can have more room than they have now to decide their own affairs and direct their own development path. The union government has deployed every available weapon in its arsenal to quash these demands, even arresting the movement’s leaders, and detaining them over trumped-up terrorism charges. Tanzania’s resolve to not let Zanzibaris “breathe” has turned it into a de facto occupying force in the archipelago that imposes its will on the people of Zanzibar and interferes in every aspect of the people’s lives. As shown above, it even decides which political party can govern the isles.

The COVID-19 pandemic has taught us numerous unforgettable lessons. However, the most important of these lessons for Zanzibaris is that they can be better off without the union as it is currently constituted. It is not an overstatement, therefore, to conclude that the disease has strengthened their resolve to achieve the right to self-determination.

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The Mushrooming of Car Boot Sales in These Corona Times

Many middle class Kenyans are converting their car boots into mini fruit and vegetable markets. In these times of coronavirus, car boot sales have become an adaptation mechanism: they give people an opportunity to earn some hard cash and maintain their sanity.

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The Mushrooming of Car Boot Sales in These Corona Times
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Amos Waweru is your typical consultant: he always carries his laptop and speaks the language of consultancy – strategic objectives, writing proposals, project management, conducting feasibility studies, etc. An enterprise development consultant for the last 15 years, Waweru’s consultancy portfolio includes consulting for international NGOs, both in Kenya and abroad “but that is when the going was good”. Now, thanks to COVID-19, things are different. “It is really tough now and I have had to make adjustments,” said the consultant.

With three teenage children, all in high school, dwindling consultancy work in the last two years, and now the lockdown, which has halted his work to a near standstill for the last three months, Waweru had to make some tough decisions. One of them was converting his Japanese-made vehicle into a car boot sales market. “I stayed at home for one full month the whole of April, without work, with a lot of time on my hands, and simply immobile – three things that I was not used to having in plenty”.

Waweru, a resident of Ruiru, conducted preliminary research among the women who sell vegetables at Ruiru’s open-air market. “Where do they get their vegetables, what types of vegetables do people prefer, how are they priced, so that with this information, I could work out the logistics of starting my own little vegetable market from the boot of my car,” said the consultant. The coronavirus has taken everyone by surprise and upturned many people’s sources of income, throwing people completely off-balance, observed Waweru.

Waweru had cultivated the high-flier image of a successful consultant who occasionally travels abroad. So he was initially bothered by what his peers would think of him selling vegetables from his car off a busy thoroughfare. “I’m very well-known in my church community and in my residential area of Membley, to be truthful, I was a tad worried of my image and whether it wasn’t going to suffer. I was afraid my esteem among my community would diminish”, said the consultant.

When deciding which types of vegetables he should be selling, Waweru found that leafy green vegetables were most in demand. So the next thing he did was to look for a strategic location to park his vehicle and start his business. “I did a little feasibility study around my location and found a bustling stage where the Eastern bypass and Kamiti Road intersect. Already, there were other people selling foodstuff off their vehicles and I decided to join them.” (This intersection is popularly known as the “OJ Connection” – people drop off as others board boda bodas or matatus to their various destinations.)

Waweru had cultivated the high-flier image of a successful consultant who occasionally travels abroad. So he was initially bothered by what his peers would think of him selling vegetables from his car off a busy thoroughfare.

The leafy vegetables Waweru started with included indigenous vegetables like kahurura, kunde, managu, terere, thoroko and osuga. “The market women told me they buy the vegetables from some Ruiru farmers who farm along the Ruiru River. I didn’t know there’s a lot of vegetable farming specialising in indigenous vegetables going on around Ruiru town.” After his interest in vegetable farming was aroused, Waweru also discovered that on the fringes of Tatu City, the mega real estate project coming up on the outskirts of Ruiru town, “there are huge farms where some people have been growing tomatoes on a large scale”.

Waweru set up camp at OJ Connection, but not for long. “I was always looking for better strategic selling areas, because, somehow, I wasn’t persuaded OJ was the best location for me.” He found one at Kimbo, next to the General Service Unit (GSU) Recce Squad command post, on Kiganjo Road, off the Thika superhighway. (The Recce squad is a paramilitary force that is specially trained in dealing with terrorism and other security-related emergencies.) The consultant’s gut feelings on change of location paid off: “I’d been doing brisk business at OJ, but I began doing even brisker business at Kimbo.” Waweru’s image worries have dissipated; he is making some money “to basically pay my bills and fuel the car”.

The car boot sales allowed Waweru to deal with two things: “earn some little money, to be honest it’s really nothing – it is from car boot to mouth”, and even more critical, deal with the problem of staying idle at home. “It was driving me crazy and I found myself picking quarrels with everyone. I cannot remember the last time I was marooned in the house for this long. I needed to get out, meet my friends, have a drink and just be out there.” As he was accustomed to, he carries his laptop with him and keeps himself busy, working on business proposals to potential clients as he waits for his customers.

The Kimbo-Recce Squad junction has become a beehive of activity: We counted more than 20 car boot sales vehicles. “A new vehicle has been pitching camp every week since I came here,” explained Waweru. “Somehow, it has become a magnet for people with cars to experiment with selling a variety of foodstuff from the boots of their cars.” The consultant said that at first the paramilitary personnel were apprehensive about people bringing their cars so close to their camp, but they became more relaxed about it, but warned the car boot sellers not to encroach too near the camp’s gate.

“This coronavirus pandemic has driven people to try out different and several possibilities of finding coping mechanisms of staying economically afloat as they strive to deal with the bad times”, said Waweru. “Yet the crux of the matter is that the coronavirus has just been the catalyst: the economic downturn began with President Uhuru’s second term. I’ll be open with you – President Uhuru’s years have been the worst for my consultancy. I’ve suffered greatly because I cannot even begin to compare his tenure with President Kibaki’s. During Kibaki’s time, I made good money and built myself.”

Some of the additional 20 or so cars that have since followed Waweru to Kimbo belong to teachers, a travel consultant and two matatu owners. At Kimbo they have created a car boot sales mini-market, selling everything from arrowroots, cabbages, eggs, onions, rice (of the pishori type) and tomatoes.

High school teacher Njenga teaches at a school in Kalimoni. After staying at home for a month and after realising there might be no prospect of returning to school sooner, he started thinking of what to do with the extra time that had been created for him. “We are still getting our pay, so compared to other professionals who may have lost their jobs or face a pay cut, we teachers have so far been spared both,” commented the teacher.

“But not used to being idle and immobile, the coronavirus lockdown was driving me nuts – I’ve never stayed at home from morning till evening, day-in day-out, weeks on end. I felt I was beginning to lose my marbles and I needed to be active and breathe out.” As a day school teacher, he and his wife, who is also is a secondary school teacher, had started a side hustle (a popular Kenyan cliché to mean an income-generating project for extra cash). They had invested in a 1000-chicken hatchery. “Instead of waiting for customers to come and collect their eggs at home, we used our car to market the eggs and even attract new customers,” explained the couple.

For some people, the coronavirus pandemic could as well be a blessing in disguise. “From our car boot sale at Kimbo, we’ve been doing good business. In a just a short time, we’ve been pushing between 10 to 20 trays of eggs in a day,” said the teachers. “I mean, before coronavirus, we only depended on our traditional customary clients. Now we’ve created a new market and hope to expand it. A tray of eggs consists of 30 eggs, so, even on a bad day, the Njengas can sell upwards of 300 eggs from their vehicle. At between Sh280 and Sh300 per tray, the teachers can make up to between Sh2,800 and Sh3,000 a day. “If you remove our expenses, we can’t complain too much.”

The other teacher, a lady who also teaches in a high school, has also been selling eggs. “There are enough customers to share, so it’s not a problem that I and my fellow teachers are selling the same thing in the same place. It’s a market of varieties. Let the customers have their say”. She also keeps a poultry farm where she rears chickens for eggs. The pandemic, opined the teacher, had opened her eyes to pursuing an infinite possibility: of selling her eggs from her car. “Even after the crisis is over, I’ll not stop my car boot sale. I’ve already seen the future and I like what I’ve seen: the car boot sale is a niche I had not contemplated. I’m not letting it go”.

For some people, the coronavirus pandemic could as well be a blessing in disguise. “From our car boot sale at Kimbo, we’ve been doing good business. In a just a short time, we’ve been pushing between 10 to 20 trays of eggs in a day,” said the teachers.

Two things have worked in favour of the teachers: The fact that they teach in day schools, which means they don’t have to stay in school all day, and they have not been paying cess to Kiambu County Government. Depending on the nature of business and what you are selling, the county government levies between Sh25 and Sh100 per trader per day.

A county official told me that for now, during the pandemic, they had decided not to charge the car boot sales traders. “We’ve understood the prevailing extraordinary situation to mean that the people are trying make ends meet.”

Just further afield, from where Waweru’s car was, Ben Kungu’s Toyota Hiace, complete with the tracking aerial aloft, was full of fruits and vegetables. Kungu had plucked off the seats of the vehicle to free space for his new venture. A travel and tours consultant, Kungu was hit hard. “Everything ground to a halt and I couldn’t get jobs for my ‘Shark’ [what the Toyota Hiace is popularly called].” His van then was essentially grounded and Kungu was out of a job. What to do in the prevailing circumstances? He decided to go to Ruiru’s open-air market, buy foodstuffs in bulk and in wholesale for resale. “It was both to make some money to fuel the vehicle and for my sanity. I felt like I was going crazy staying at home all day with nothing to do.”

Next to Kungu’s “Shark” were two other vans: the long-distance matatu shuttles known as “Box” because of their shape. When President Uhuru pronounced the cessation of movement in April, many long-distance shuttles that travelled outside of Nairobi County found themselves locked out of work. The owners of these two shuttles said that instead of parking them, like some of their compatriots had done, they decided to convert them into car boot sales markets and sell mostly cabbages from south Kinangop. “Once the cessation ceases, we shall resume our shuttle travel work. For now, let us make use of the vehicles in the most practical way we know how.”

“It was both to make some money to fuel the vehicle and for my sanity. I felt like I was going crazy staying at home all day with nothing to do.”

In Uthiru, an old trading centre off Nairobi-Nakuru highway, I met John Ndung’u. Ndung’u was donning a blue coat, and dusting off sweet potatoes that were spread in the boot of his car. “These sweet potatoes are the best in the market because they are from Kisii – sweet potatoes from this region are good because they remain dry and tough and are not watery,” said the former taxi driver. “They are fresher because I catch them from my supplier before he deposits the load at Marigiti Market in the city centre.” Trucks full of farm suppliers from north and central Rift Valley and western region pass outside Uthiru.

People nowadays prefer sweet potatoes to bread in the morning, said Ndung’u. “Bread has become expensive, but more fundamentally, the sweet potato is nutritious, very fulfilling and is good for school-going children. And there are more than one ways of preparing the sweet potato: you can roast it, you can boil it, you can even fry it, more like potato chips, all to create different tastes of this tasty African tuber crop.”

Ndung’u is the chairman of the Muthiga taxi drivers association. Muthiga, which is seven kilometres from Uthiru, is a popular meat-eating and beer-drinking joint. It has become so popular that it is referred to as Nairobi’s Kikopey. Kikopey is the famous mouth-watering, meat-eating stop on the same highway, but 120km away in Gilgil, Nakuru County. Ndung’u told me the coronavirus crisis had caught his members completely off-guard. Patronised by the moneyed wannabe who live around Muthiga and the adjoining areas of Kinoo, Kikuyu, Magina, Muthure, Sigona and Uthiru, Muthiga is busiest in the evenings and at night, making taxi-driving a profitable venture.

With the president’s announcement of the quasi-lockdown and curfew, taxi drivers in Muthiga became redundant. They had to quickly think of what to do next, what with families to cater for. “We decided, for those who were interested, to temporarily convert our cabs into car boot markets, as we study the effects of this coronavirus and what those effects portended for our business in the coming days,” explained Ndung’u.

If you take a quick tour of the highway from Uthiru, all the way to Regen and Rungiri, you will see saloon vehicles parked besides the highway, with open boots selling all manner of foodstuffs. “Beginning from Corporation, 87, Kinoo, Muthiga, Regen, Rungiri, all the way to Kikuyu town, most of the vehicles you will see are taxi drivers of our association,” said Ndung’u. The cab driver said if the lockdown and the curfew are lifted tomorrow, he would immediately go back to what he knows best: taxi driving.

But Monica Wangari – who I found selling bananas, avocadoes, pineapples and pumpkins in Thindigwa, a splashy middle-class residential area off the busy Kiambu Road – was not sure whether she would go back to her old job. “I was an insurance agent, working for one of the biggest insurance companies in Nairobi. Then coronavirus happened. Heads of department were asked by the MD to select which people should be laid off. I happened to be one of the people who were picked,” said Wangari.

Her family type car is a Vox Noah. Now, she wakes up in the morning, goes to Marigiti Market in downtown Nairobi, buys her foodstuff and parks her Noah on the dusty road that cuts across Thindigwa. “I couldn’t stay in the house. I tried in the first few weeks. I thought I was going to run mad.” At first, she had sought to sell off her wares on the Eastern bypass on the way to Windsor Hotel, “but I found there were too many vehicles and the competition was very stiff, so I opted to park in my hood,” said Wangari.

If you take a quick tour of the highway from Uthiru, all the way to Regen and Rungiri, you will see saloon vehicles parked besides the highway, with open boots selling all manner of foodstuffs.

Not far from where Wangari was parked, I met Catherine Nyawira. A professional cateress, her outside catering business was doing fine until coronavirus come knocking. “My vehicle was for delivering supplies. Little did I know I would convert it to car boot market.” Like Wangari, she opted to sell fruits, but with a bias towards pumpkins. “My pumpkins are from Meru, they are best: they are sweet and dry. Good for mothers weaning their babies off breast milk and for babies generally.” The coronavirus had hit her business hard, said Nyawira. “This is the new reality and it’s survival of the fittest.”

For Kennedy Kiarie from Kiambu town, this new reality is very real. He had been working in the hospitality industry as a sales and marketing executive for a leading hotel in Nairobi. Then coronavirus came. Hotels and restaurants were forced to close down. It was only a matter of time before the workers were asked to go home. He was one of the many employees who was asked to leace. His teacher wife’s salary couldn’t take care of the family and so he decided to convert their family car into a car boot sale market. Unlike Wangari, he does not fear the competition on the Eastern bypass: he has been selling fruits and vegetables just after the roundabout on the road heading to Windsor Hotel since April.

As a full-time Uber cab driver, Kimondo had to contend with the ever-increasing competition from traditional taxi cabs as well from other taxi apps. Yet he was not prepared for coronavirus. When it landed in Kenya, it hit him real hard. He found that he could not cope anymore: his clients had dwindled to zero. “With people not travelling, many cab drivers were rendered jobless, I being one of them,” said Kimondo. Kimondo is now growing vegetables like sukuma wiki and spinach in his small plot in the Mushrooms area, just behind Thindigwa. “I didn’t need to think twice. Once my cab business tumbled, I turned to my car and went off to sell my wares on the Eastern bypass on your way to Windsor Hotel”.

In these times of coronavirus, car boot sales have become an adaptation mechanism: they give people an opportunity to earn some hard cash and maintain their sanity. One could also surmise that the car boot market has in the short-term become an integral part of the food distribution network, ensuring that people living under COVID-19 and curfew still get their food supplies.

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It’s Our Turn to Eat: Cousin of Kenya’s President Has Stake in Sportpesa Betting Firm

The Kenyatta family business, managed by one the president’s brothers, has sprawling interests across the Kenyan economy, and as Faull and Wafula reveal, the presidency has increased their stake in the economy.

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It’s Our Turn to Eat: Cousin of Kenya’s President Has Stake in Sportpesa Betting Firm
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A cousin of President Uhuru Kenyatta has quietly accumulated a financial stake in SportPesa’s controversial gambling empire, Finance Uncovered can reveal.

The finding — discovered in details buried in corporate filings in Kenya, the UK and the Isle of Man — came as the president signed a law to axe a 20% excise duty on bets staked, a levy that contributed to SportPesa’s withdrawal from its lucrative Kenyan market last year.

The proposal to drop the duty was included as an amendment to the Finance Bill, which had been passed by the National Assembly last week. The final hurdle to it becoming law was the president’s assent on Tuesday night.

A cousin of President Uhuru Kenyatta has quietly accumulated a financial stake in SportPesa’s controversial gambling empire, Finance Uncovered can reveal.

The president’s crucial decision is being analysed closely now it has been established that Peter Kihanya Muiruri, his second cousin, has over the past 14 months acquired stakes in three companies which are part of  SportPesa’s international gambling empire.

SportPesa is the shirt sponsor of English Premier League side, Everton FC. After the government introduced taxes on bets placed by punters, and aggressively pursued gambling firms for its payment, it prompted a number of leading gambling firms to close their businesses in Kenya.

The president’s crucial decision is being analysed closely now it has been established that Peter Kihanya Muiruri, his second cousin, has over the past 14 months acquired stakes in three companies which are part of SportPesa’s international gambling empire.

The taxes were brought in to both stem rampant gambling addiction in Kenya and also raise revenue from what has rapidly become a highly lucrative business.

Now it has been axed, it could see SportPesa, whose biggest shareholder and founder is Bulgarian national Guerassim Nikolov, re-enter the Kenya sport betting market and revive the wider gambling industry.

A SportPesa revival in Kenya would also benefit a member of Kenyatta’s own family.

A presidential spokesperson did not return calls or respond to a detailed text message asking whether Kenyatta knew about his cousin’s shareholding before he signed the bill into law.

A SportPesa revival in Kenya would also benefit a member of Kenyatta’s own family

The Kenyatta family business, managed by one the president’s brothers, has sprawling interests across the Kenyan economy, and individual family members also invest widely.

Shareholdings

Finance Uncovered, working with the Daily Nation in Kenya, accessed documents filed by SportPesa companies in Kenya, the UK and the Isle of Man.

The documents show Peter Kihanya Muiruri is a shareholder in three companies linked to SportPesa:

  • The first is a 1% stake in Pevans East Africa, the company which owns SportPesa in Kenya. Muiruri appeared on the shareholder register for the first time in May 2019, shortly before a government clampdown on the betting industry began. Muiruri is now also a director of Pevans. Pevans has previously disclosed that it amassed Sh20 billion in revenues and generated gross profits of Sh9 billion (£70m) in Kenya in 2018.
  • The second stake is a 0.5% shareholding in SportPesa Global Holdings Limited (UK) – a  company that owns SportPesa’s non-Kenyan betting companies in Tanzania, South Africa, Italy and Russia. It also owns a highly profitable UK business SPS Sportsoft Ltd, which provides IT services to SportPesa sister companies, including Pevans in Kenya. Muiruri acquired the stake last November. SportPesa Global Holdings made a profit after tax of almost £12m in 2018, according to its financial statements.
  • The third is a 3% stake in SportPesa Holdings Limited (Isle of Man). This is an offshore company which receives SportPesa’s revenues from bets staked in the UK. Companies based in the Isle of Man, a small British Crown dependency and tax haven in the Irish Sea, do not have to publicly disclose their accounts so no financial information is available. Muiruri acquired the stake last December.

The value of Muiruri’s shares in the three companies is unclear, because up-to-date financial information for these companies is not available. It is also unknown at this stage how much, if anything, Muiruri paid for the shares.

SportPesa did not respond to the Daily Nation’s emailed questions.

The company was asked whether it had  lobbied the President either directly or indirectly for the reinstatement of its betting licence or any tax reductions.

The firm was also asked to disclose how much the president’s cousin paid for his shares in each of the three companies, and when he became a director in Pevans.

There is no suggestion of wrongdoing either by Muiruri or SportPesa.

Family connection

Muiruri himself is a low-key businessman. Little is publicly known about him. Muiruri’s mother is Uhuru Kenyatta’s first cousin, while his grandfather was the younger half brother of Jomo Kenyatta, Kenya’s first president.

In November 2016, President Kenyatta attended the funeral service of Muiruri’s father, the late Mzee Josphat Muiruri Kihanya, at the Holy Family Basilica in Nairobi and gave a short address. The presidency also issued a formal press statement paying tribute to the former civil servant, although it made no mention of the family connection.

SportPesa lost its betting license last July. The company announced it was withdrawing from  Kenya last September in response to what it called “the hostile taxation and operating environment in the country”. Their withdrawal led to 400 job losses and the sudden cancellation of its local sports sponsorships.

In February this year SportPesa also withdrew from its international sponsorship commitments, including a reported £9.6 million a year shirt sponsorship with Everton.

The 20% duty was only introduced last November, according to the Kenya Revenue Authority.

Tax about-turn

Reversing any betting tax was not on the cards two months ago, when the Departmental Committee on Finance and National Planning chaired by Joseph Limo published the Finance Bill for public comment on 8 May. At that stage, the bill contained no plans to tinker with any betting taxes.

Committee meeting minutes show that an obscure stakeholder group — identified only by a non-existent URL as shade.co.ke — wrote to the committee on 15 May proposing the scrapping of the 20% excise duty on bets placed. “It has made many betting firms cash strapped hence cutting down on their sponsorships to local sports clubs,” they said.

The committee agreed, noting that “the high level of taxation had led to punters placing bets on foreign platforms that are not subject to tax and thereby denying the Government revenue”.

In its justification for approving the amendment, the committee explained to the National Assembly that it would “reverse the negative effects of this tax on the industry which has led to closure of betting companies in Kenya, yet international players continue to operate”.

The committee turned down other proposals by the unidentified stakeholder group to amend other tax laws affecting betting, which included a reduction in withholding tax on players’ winnings from 20% to 10% and exempting the betting industry from digital services tax.

A gambling nation

As the committee was still considering the excise tax proposals in May, Finance Uncovered working with the Daily Nation published leaked betting revenue declaration figures from the industry for May 2019.

The data showed that punters had wagered more than Shs30bn (£234m) in just one month. SportPesa alone accounted for two-thirds of these betting revenues, according to the data which all betting firms submitted to the Betting Control and Licencing Board (BCLB).

Such huge revenues for a single month showed what is at stake for the gambling companies in Kenya.

The controversial 20% excise duty would have been levied directly on these revenues, and could — on the basis of the leaked revenue data — have been worth up to Shs72bn (£562m) in annual taxes for the Kenya Revenue Authority (KRA).

SportPesa alone accounted for two-thirds of these betting revenues, according to the data which all betting firms submitted to the Betting Control and Licencing Board

However, this was when the industry was at its peak, and before the government began its tax and regulatory clampdown last July, including suspending  the betting licences of gambling firms including SportPesa and its next biggest rival Betin.

Two other associates of the president already hold a significant chunk of equity in SportPesa both locally and internationally.

They are Paul Wanderi Ndung’u, a key fundraiser for Kenyatta’s Jubilee political party during the 2017 election (17%); and Asenath Wachera Maina (21%), whose late husband Dick Wathika is a former Nairobi mayor whom Kenyatta has described as a long-time friend.

In addition to these links, SportPesa’s Nairobi headquarters share the same office complex that also houses the Kenyatta family-owned investment holding company.

This article was first published by Finance uncovered. An investigative journalism training and reporting project.

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