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The Investors That Stole Our Future: Uganda’s Illusory Fiscal Policies

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With Uganda’s history of poor public administration and disastrous debt management, corruption, and increasing civil unrest and repression, what was the basis of the IMF’s optimism? The organisation has a permanent office in the Ministry of Finance and its headquarters sends multiple missions every year to monitor economic progress. To solve Uganda’s perennial economic distress, citizens must first understand the IMF’s mission in Uganda.

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The Investors That Stole Our Future: Uganda’s Illusory Fiscal Policies
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There was a time when the root causes of Uganda’s economic failure were so mercurial that one could never quite locate them. The evidence sometimes suggested incompetence; other times corruption; often a combination of the two. Examining the fiscal policy at a granular level reveals the method in the madness: there is now incontrovertible proof that incompetence is an essential part of – and is often allowed to flourish in order to facilitate – grand corruption. We are not talking about small players operating out of cramped government offices but about the country’s top leadership and their foreign and domestic partners.

In an old story, President Mobutu Sese Seko is said to have approached donors for assistance with Zaïre’s out-of-control external debt. By that time, his history of raiding the treasury was widely known and the donors facetiously suggested he lend the government the money they needed out of his personal resources. He is said to have answered, “I can’t trust them to pay me back.” (This is only funny when it is not happening in your own country.)

Uganda is in a similar situation. Unsustainable debt is rising in direct proportion to the wealth of the top leaders. When payment of the over UGX 3 trillion balance on over 20 loans (Table 1 below) commences in 2020, the country’s debt-to-revenue ratio will jump from 44% to 65%. In 2015, when Uganda’s debt repayments stood at 38% of GDP, between 26% and 36% of the population was undernourished. Undernourishment has made steady progress, rising by 1% a year between 2006 and 2011 and accelerating to two percentage points plus every year from 2011 (World Bank). Nothing has happened since 2016 to ensure undernourishment does not increase; in fact, it rose from 39% in 2015 to 41% in 2016. In contrast, world undernourishment fell 14 percentage points over the same period and is on a downward trend except for a short rise in 2015-2016.

Despite trends in the increasingly unsustainable loan portfolio, on the one hand, and erratic public administration on the other, the IMF has assessed Uganda as a low risk for external debt distress. It says the risk was not increased by significant risks stemming from domestic public and/or private external debt.

As a justification for further borrowing, President Yoweri Museveni and Ministry of Finance officials claim that the debt-to -GDP ratio is within the historically safe limit of under 50%. The Auditor General has been of the contrary view, saying debt levels are “unfavourable when debt payment is compared to national revenue collected which is the highest in the region at 54%.”

That argument has been overtaken by events. Current International Monetary Fund (IMF) projections show that debt-to-GDP will hit 49.5% in 2021. Furthermore, it is guaranteed to deteriorate as the outstanding balances on the loans will increase as the shilling continues to slide against the dollar and as further non-concessional (high-interest) loans are taken in the domestic market, such as the $104 million to be spent on security cameras and loans for ad hoc investments like the revival of Uganda Airlines at $388 million.

Table 1: Uganda's Unsustainable Debt

Table 1: Uganda’s Unsustainable Debt

Despite trends in the increasingly unsustainable loan portfolio, on the one hand, and erratic public administration on the other, the IMF has assessed Uganda as a low risk for external debt distress. It says the risk was not increased by significant risks stemming from domestic public and/or private external debt. (Debt Sustainability Analysis).

They went on to claim, “Uganda’s economic performance remains strong, but has moderated in recent years.” Further, “Government finances remain on a sound footing…” The only suggestion in the Debt Sustainability Analysis (DSA) that all may not be well (inserted no doubt as a basis for claims to due diligence to be made after the economy crashes) was “… though expenditure composition can be of concern.” Expenditure composition includes items not part of the National Development Plan e.g. a national airline and a network of security cameras. In the same year, the Auditor General pointed out a serious barrier to attaining development targets: loans were performing poorly. He could not have been clearer when he warned that interest payments were becoming unsustainable (Auditor General 2016 p. 14).

“Several loans appeared to be performing poorly, with some nearing expiry; while others reached the closing date without fully disbursing. As at 30th June 2016, committed but un-disbursed debt stood at UGX 18.1 trillion [approximately US$5 billion]. Such low levels of performance undermine the attainment of planned development targets and render commitment charges of UGX20.9 billion (US$5.9 million) paid in respect of undisbursed funds nugatory [i.e. wasteful or of no value] (Auditor General 2016, p.72).” In other words, borrowed funds were not being put to use.

The problem has persisted in 2017 and 2018. This gives the lie to the IMF’s DSA 2016 finding that Uganda is scaling up infrastructure for future economic growth. The IMF admitted a risk to growth goals would be “failure to realize the envisaged growth dividend from the increased investment is a key risk”. What they did not mention was that the contingency had already materialised. A 2015 special audit of the Uganda Support to Municipal Structure Development (USMID) project (financed with a $150 million loan) showed under-utilisation of loan funds accompanied by incomplete projects requiring funds. The risk is that idle balances will eventually be diverted, as has happened in Hoima Municipal Council.

We are not far from a full admission that Uganda is in debt distress although there are still the persistent and irrelevant claims of on-target economic growth (of 6.3%). Irrelevant because it was during the past periods of alleged high economic growth that universal primary education was degraded to the point where the drop-out rate was 60%.

The current situation is that 95% of the UGX100 billion disbursed under USMID for municipal development and capacity building grants remains idle (Auditor General 2018, p. 5). Understaffing in specialised technical areas is one reason municipalities are unable to utilise infrastructural development loans. (Understaffing is a result of a cap on recruitment enforced by the IMF.) Yet for the past three years the Treasury has only been able to release UGX417 billion of the UGX800 billion required annually to maintain the feeder roads so crucial to farmers (Auditor General 2017, p. 33).

Uganda’s fiscal policy is ‘a moving target’

In 2019 the IMF is leaning towards the Auditor General’s point of view. They now say that rising interest payments reduce resources available for education and health (human development). Their latest assessment states, “The current ratio of interest payments to revenue is comparable to what countries with high risk or in debt distress typically face.”

We are not far from a full admission that Uganda is in debt distress although there are still the persistent and irrelevant claims of on-target economic growth (of 6.3%). Irrelevant because it was during the past periods of alleged high economic growth that universal primary education was degraded to the point where the drop-out rate was 60%. During high economic growth, inequality, and especially rural-urban equality, deepened. High economic growth preceded the current phase of social unrest. According to the IMF, “In each of the last three macroeconomic assessments of Uganda, the projected debt path was revised upwards. Having a clear direction for fiscal policy would help budget planning and execution.”

Nevertheless, the IMF continues to claim that the risk of debt distress remains low, provided domestic revenue can be mobilised. The set target under the National Development Plan II and medium-term Sustainable National Development Plan is to increase the tax-to-GDP ratio from 14% to 16% by 2019/20. If this cannot be achieved through job creation, it can only translate into more taxes and austerity measures.

The question arises: With Uganda’s history of poor public administration and disastrous debt management, corruption, and increasing civil unrest and repression, what was the basis of the IMF’s optimism? The organisation has a permanent office in the Ministry of Finance and its headquarters sends multiple missions every year to monitor economic progress. To solve Uganda’s perennial economic distress, citizens must first understand the IMF’s mission in Uganda.

In any event, the grace period on over 20 loans expires in 2020 and debt is now of concern. On top of expenditure on projects in the Public Investment Plan, there is significant expenditure arising from unplanned projects, such as the revival of Uganda Airlines, requiring $380 million. Lubowa International Hospital, initially planned as a public-private partnership with Finasi (a commodities trader) it eventually became a contract for Finasi to build and operate a hospital funded 100% by the Government of Uganda.

Incompetence in industrialisation and job creation

A recent round of commissioning of factories and other infrastructure has proven that infrastructural development is a chimera. The Isimba Dam launched in March may generate but does not transmit power. Together with Karuma, to be launched later in the year, it cannot do so without further expenditure of $3.5 billion to extend the grid. The Nile Bridge had to undergo major remedial work owing to poor construction only days after commissioning. The president’s electioneering took in at least one factory many years old and employing a miniscule number of Ugandans. Nile Agro Industries Ltd has been producing soap, wheat flour, cooking oil, bottled water, lint bales, and fortification and industrial plastics since 1999. Yet it was commissioned and “launched” on 7th May 2019.

The Soroti Fruit Factory was founded in 2014 and funded by the government and a grant of $7.4 million from Korea. Last year’s audit listed the factory as un-operational after accumulated public investment of UGX 13,353,129,943. The factory was commissioned by the President on 13th April 2019. It was reportedly closed on 10th May owing to a lack of operating capital for fruit from about 1,000 farmers and salaries for the 123 Ugandan employees. The government’s investment arm, Uganda Development Corporation, has been advised annually for at least three years by the Auditor General against making investments without feasibility studies but in Soroti it was the usual case of ignoring professional advice and pandering to the president’s whims.

“The corporation incurred expenditure amounting to Shs.9,000,026,869 during the year in undertaking industrial development investments in the areas of fruits in Luwero, Soroti and processing in Kabale and Kisoro. However, the Corporation did not undertake investment strategic studies assessment prior to undertaking investments for purposes of assessing the marketability and commercial viability of the final products processed from fruits like mangoes, oranges and tea plantations. The investment may not achieve anticipated results.” (my emphasis) (Auditor General 2016 p. 519)

Apart from Soroti Fruit Factory, other warnings have related to Kampala Industrial and Business Park, Namanve, where UGX 1,000,000,000 for a feasibility study was diverted. Over UGX 131 billion is outstanding on loans for four industrial parks, including Namanve. Although National Information Technology Authority-Uganda (NITA-U) carried out a feasibility study for Commercialisation of the National Data Transmission Backbone Infrastructure (NBI) and E-government Infrastructure (EGI), it did not factor in the costs of its maintenance. “As a result, it was difficult to assess the economic sense of the project as Management lacked sufficient benchmark to assess the bid proposals on contract aspects such as the cost of maintaining the NBI, revenue sharing ratios and price of internet services.” (Auditor General, 2017, p. 53)

It is indicative of the general problem pointed out by the Auditor General, who concluded that ignoring planning procedures is a major weakness within the Ministry of Finance “and presents a risk of funding projects which are not feasible and are not aligned to the National Development Plan (NDP).”

New projects are required to undergo four stages prior to being included in the Public Investment Plan (PIP) and commencement: (i) Prepare a project concept in line with NDP, (ii) Prepare a Project Profile demonstrating key results, (iii) Undertake a pre-feasibility study, and (iv) Conduct a feasibility study. But the auditor found that “some projects obtained project codes and admission into the PIP without proper project vetting as stated in without vetting them”.

It is indicative of the general problem pointed out by the Auditor General, who concluded that ignoring planning procedures is a major weakness within the Ministry of Finance “and presents a risk of funding projects which are not feasible and are not aligned to the National Development Plan (NDP).” (Auditor General, 2017, p. 15)

Foreign direct investment

To attract foreign direct investment (FDI), many countries around the world privatised their telecommunications sectors – some voluntarily and others, like Uganda, under an IMF structural adjustment programme. In the UK in the 1990s, public awareness-raising of the move involved repeated assurances that after unbundling postal and telecoms services, 51% of shares in British Telecom would be sold to the private sector but with the proviso that 34.3% would be sold to the general public. Furthermore, in the interests of promoting share ownership, the shares were priced at £130, a price considered below their value.

Kenya sold its telecoms sector, reserving 60% of the shares for the Kenyan state, of which 30% were later sold directly to the public. The new entity, Safaricom, went on to become the most profitable private company in the East African region.

Cross the border into Uganda where income from the lucrative telecoms sector is enjoyed only by a narrow oligarchy. Although the government was to retain 49% of the shares in Uganda Telecom, it currently holds only 31%. Much has been written about how MTN went from being the second national operator to a virtual monopoly and regulator of the sector.

MTN is the biggest player, with 54% of the telecoms market. Only 5% of MTN shares are Ugandan-owned, (the Ugandan being an individual with board membership in at least two privatised entities, including the defunct Rift Valley Railway.) It is only in the past few months that the president began to press MTN to make some of its shares available to the public.

Uganda Telecom, the entity that was supposed to retain residual rights in the sector, was only created after Celtel and MTN (the first and second national operators) had been running for a while. This has meant that MTN has the technology to permit or bar new indigenous competitors from the market, which reportedly it does. Indigenous Ugandan start-up Ezeemoney, a mobile money platform designed to allow banking over different platforms (i.e. between MTN, Africell and other service providers), was awarded over two billion shillings in a suit against MTN for refusing to provide them with access to the network.

Tax evasion and illicit transfers

Returning to the objectives of privatisation and incentivising foreign direct investment, greater efficiency and cash inflows may have been achieved but the benefits have been annihilated by illicit outflows mainly facilitated through tax evasion.

Another 13 foreign investors have been found to have used a lacuna in the law to avoid taxes for years, a fact the IMF was in a position to know. Thirteen of the investors owe UGX 353.5 billion. Some have been beneficiaries of FDI incentives, another has been operating in Uganda since 1969 (and therefore not in need of incentives). One is in possession of the infrastructure that is the privatised Nytil textile manufacturing plant (founded in 1954). A fourteenth is a joint venture once touted as the only manufacturer of ARVs in Africa. It was founded to supply ARVs for domestic consumption and export to Burundi, the DRC, Kenya, Rwanda, South Sudan, Tanzania, Cameroon, Comoros, Namibia and Zambia. The majority shareholding is foreign-owned; the three major Ugandan shareholders own less than 10% of the shares and 18% were sold on the stock exchange in 2018. It turns out that the company may really be in the business of acquiring government tenders for a parent company in India.

In response to the discovery that opportunities to increase the tax-to-GDP ratio are being systemically undermined by tax evasion by investors, the Ministry of Finance this month tabled a proposal in Parliament to give the offenders a waiver of taxes owed on the basis that it would be unwise to drive FDI away by collecting the arrears.

Returning to the Mobutu story, it is not just African despots who have sufficient illicit funds to make a significant dent in their countries’ public debt; the taxes owed by foreign investors could clear it. MTN’s tax arrears (of UGX 2.8 trillion as extrapolated from data recovered during litigation) could clear 73.6% of the current UGX 3.4 trillion outstanding balance on the loans which Uganda will begin to repay in 2020.

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

Politics

Curfews, Lockdowns and Disintegrating National Food Supply Chains

The disruption of national food supply chains due to COVID-19 lockdowns and curfews has negatively impacted market traders, but it has also spawned localised – and more resilient – supply chains that are filling the gap in the food system.

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Curfews, Lockdowns and Disintegrating National Food Supply Chains
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Our stomachs will make themselves heard and may well take the road to the right, the road of reaction, and of peaceful coexistence…you are going to build in order to prove that you’re capable of transforming your existence and transforming the concrete conditions in which you live.” – Thomas Sankara, assassinated leader of Burkina Faso

 On July 6, 2020, Kenya’s President Uhuru Kenyatta announced phased reopening of the country as the government moved to relax COVID-19 restrictions. That day found me seated in a fishmonger’s stall in Gikomba market, located about five kilometres east of Nairobi’s Central Business District (CBD) and popularly known for the sale of second-hand (mitumba) clothes. The customer seated next to me must have received a text message on her mobile phone because she began howling at the fishmonger to tune in to the radio, which was playing Benga music at the time. It was a few minutes after 2 p.m.

“I order and direct that the cessation of movement into and out of the Nairobi Metropolitan Area, Mombasa County and Mandera County, that is currently in force, shall lapse at 4:00 a.m. on Tuesday, 7th July, 2020,” pronounced the president on Radio Jambo.

The response to this news was cathartic. The female customer, on hearing the words “cessation of movement shall lapse” ululated, and burst out in praise of her God – “Nyasaye” – so loudly it startled the fishmonger. The excited customer jumped on her feet and started dancing around the fish stalls, muttering words in Dholuo. Nyasacha, koro anyalo weyo thugrwok ma na Nairobi, adog dala pacho. Pok a neno chwora, chakre oketwa e lockdown. Nyasacha, iwinjo ywak na. Nyasacha ber.” Oh God, I can now leave the hardship of Nairobi and go back to my homeland. I have not seen my husband since the lockdown measures were enforced. Oh God, you have heard my prayers. Oh God, you are good to me.

“She, like most of us are very happy that the cessation measures have been lifted. Life was becoming very hard and unbearable,” said Rose Akinyi, the fifty-seven year old fishmonger, also known as “Cucu Manyanga” to her customers because of her savvy in relating to urban youth culture. “Since the lockdown, business has been bad. Most of my customers have stopped buying fish because they have either lost their sources of income while others have been too afraid of catching the coronavirus that they have not come to make their usual purchases,” explained Akinyi.

Gikomba market is also Nairobi’s wholesale fish market.  Hotels, restaurants, and businesses flock there to purchase fresh and smoked fish from Lake Victoria and Lake Turkana. But with the government regulations to close down eateries, fish stocks have been rotting, lamented Akinyi. She has had to reduce the supply of her fish stocks in response to the low demand in the market.

“With the re-opening of the city, I plan to travel to my home county of Kisumu and go farm. At least this way I can supplement my income because I don’t see things going back to normal anytime soon,” she explained.

Two days later, I found my way to Wakulima market, popular known as Marikiti. The stench of spoilt produce greets you as you approach the vicinity of the market, Nairobi’s most important fresh produce market. News of the president’s announcement had reached the market and the rush of activity and trade had returned.

Gikomba market is also Nairobi’s wholesale fish market.  Hotels, restaurants, and businesses flock there to purchase fresh and smoked fish from Lake Victoria and Lake Turkana. But with the government regulations to close down eateries, fish stocks have been rotting, lamented Akinyi.

“Since the lockdown, business has been dire to say the least,” complained one Robert Kharinge aka Mkuna, a greengrocer and pastor in a church based in Madiwa, Eastleigh. Robert, who sells bananas that he gets from Meru County, noted that “business has never been this bad in all my twenty years as a greengrocer. Now, I’ve been forced to supplement my income as a porter to make ends meet. Before COVID-19, I would sell at least 150 hands of bananas in a day. Today, I can barely sell five hands,” he explains.

Robert, who is also a clergyman, leans on his faith and is hopeful that things will get back to normal since the cessation of movement has been lifted. He also hopes that the county government of Nairobi will finally expand the Marikiti market to cater for the growing pressure of a city whose population is creeping towards five million.

A short distance from Robert’s stall and outside the market walls stands Morgan Muthoni, a young exuberant woman in her early twenties selling oranges on the pavement. Unable to find space in the market, she and a number of traders have opted to position themselves along Haile Selassie Avenue, where they sell produce out of handcarts.

“When President Uhuru announced the cessation of movement in April, our businesses were gravely affected,” Muthoni says as attends to customers. “I get my oranges from Tanzania and with the lockdown regulations, therefore, produce hasn’t been delivered in good time despite what the government has been saying. Before COVID-19, I would get oranges every two days but now I have to wait between four and five days for fresh produce. My customers aren’t happy because they like fresh oranges and I’m now forced to sell them produce with longer shelf life.”

COVID-19 vs the Demand and Supply of Food
With the prior government lockdowns in Nairobi and Mombasa’s Old Town, which have large populations and are key markets for various food products, the government had to ensure that people in those areas were not cut off from essential goods and services. It was also the mandate of the government to shield farmers and manufacturers of the goods from incurring heavy losses because of the restrictions. Despite good attempts by the authorities to introduce measures that allowed the flow of goods to populated areas affected by the lockdown, there were several reports of police harassment.

“Truck drivers are complaining that they are been harassed by the police for bribes at the police stops, which is gravely affecting our businesses. The police, with their usual thuggery, are using this season of corona to mistreat and extort truck drivers to pay bribes in order to give them way at police checks even if they have adhered to the stipulated regulations,” complained Muthoni.

The movement of goods is further complicated by the disjointed health protocols. “We also hear that because Magufuli’s Tanzania has a different policy towards COVID-19, trucks drivers are taking longer at the border because they need to be tested for coronavirus before they are allowed to pass. But we don’t know how true these reports are. For now, we believe that things will get better since the cessation has been lifted. If God is for us, who can be against us?” Muthoni concludes.

Divine intervention is a recurring plea in these distressed economic times, but unlike Muthoni and Robert, who remain hopeful, this is not the case for Esther Waithera, a farmer and miller based in Mwandus, Kiambu, about 15 kilometres from Nairobi. Kiambu, with its fertile rich soils, adequate rainfall, cool climate, and plenty of food produce, is a busy and bustling administrative centre in the heart of Kikuyuland.

After the president’s announcement of the quasi-lockdown and curfew, Waithera has been spending her afternoons selling fresh produce from her car that is parked opposite Kiambu mall on the weekends and in Thindigwa, a splashy middle-class residential area off the busy Kiambu Road, on weekdays.

“Before COVID-19, I used to supply fresh farm produce to hotels and restaurants across the city. But now I have been forced to sell my produce from my car boot because if I don’t, my produce will rot in the farm. My husband runs the family mill and even that has been doing badly since the coronavirus came to plague us. We have had to decrease our milling capacity and the cost of maize flour to adjust to new market prices as demand reduces.”

After the president’s announcement of the quasi-lockdown and curfew, Waithera has been spending her afternoons selling fresh produce from her car that is parked opposite Kiambu mall on the weekends and in Thindigwa, a splashy middle-class residential area off the busy Kiambu Road, on weekdays.

Maize is Kenya’s staple food and Kenyans rely on maize and maize products for subsistence but, “Kenyans are going hungry and many households are skipping meals to cope with these harsh times,” explains Waithera.

Waithera, who is a mother of three children, doesn’t seem hopeful about the future. “This government that we voted for thrice has let us down. They have squandered the lockdown and have caused economic harm without containing COVID-19. Now we are staring at an economic meltdown, a food crisis and a bleak future for our children.”

A devout Christian of the evangelical persuasion, Waithera deeply believes that “God is punishing the country and its leaders for its transgressions because they have turned away from God and taken to idol worship and the love for mammon”. And like the biblical plagues, “the recent flooding, the infestation of desert locusts and the corona pandemic are all signs from God that he has unleashed his wrath on his people unless we repent our wrongdoings and turn back to God”, laments a bitter Waithera.

For Joyce Nduku, a small-scale farmer and teacher based in Ruiru, this new reality has provided her with opportunities for growth. She acknowledged that her sales have increased during the COVID-19 pandemic, saying, “I now have more customers because there are not enough vegetables available in the market from upcountry”.

Localised and more resilient food systems

At a time when regular food supply chains have not been assured, some food markets have closed, mama mbogas (women vegetable vendors) are out of business, and the cessation of movement is deterring travel, Nduku attributes her increased food production to meet the growing demand to a business model that lays emphasis on a localised food system and short food supply chains.

Approaching food production through a localised food system, she says, “gives me local access to farm inputs”.

She adds, “I get my manure from livestock keepers within my locale and my seeds from local agrovets. I have direct access to my consumers, removing middlemen who expose my produce to unsafe and unhygienic handling and high logistical and transport costs. Hence I’m able to increase the access to safe and affordable food.”

Agriculture, forestry and fishing’s contribution to GDP in 2019 was 34.1 per cent, according to the Kenya National Bureau of Statistics’ Economic Survey 2020. Another 27 percent of GDP is contributed indirectly through linkages with other sectors of Kenya’s economy. The sector, the survey revealed, employs more than 56 percent of the total labour force employed in agriculture in 2019. It also provides a livelihood (employment, income and food security needs) to more than 80 percent of the Kenyan population and contributes to improving nutrition through the production of safe, diverse and nutrient dense foods, notes a World Bank report.

Yet, in a matter of weeks, Nduku tells me, “COVID-19 has laid bare the underlying risks, inequities, and fragilities in our food and agricultural systems, and pushed them close to breaking point.”

These systems, the people underpinning them, and the public goods they deliver have been under-protected and under-valued for decades. Farmers have been exposed to corporate interests that give them little return for their yield; politicians have passed neoliberal food policies and legislation at the peril of citizens; indigenous farming knowledge has been buried by capitalist modes of production that focus mainly on high yields and profit; and families have been one meal away from hunger due to untenable food prices, toxic and unhealthy farm produce and volatile food ecosystems.

Nduku firmly believes that the pandemic has, however, “offered a glimpse to new, robust and more resilient food systems, as some local authorities have implemented measures to safeguard the provision and production of food and local communities and organisations have come together to plug gaps in the food systems.”

Food justice

Many young Kenyans have also emerged to offer leadership with more intimate knowledge of their contexts and responded to societal needs in more direct and appropriate ways. If anything, Nduku tells me, “we must learn from this crisis and ensure that the measures taken to curb the food crisis in these corona times are the starting point for a food system transformation”.

The sector, the survey revealed, employs more than 56 per cent of the total labour force employed in agriculture in 2019. It also provides a livelihood (employment, income and food security needs) to more than 80 per cent of the Kenyan population…

To achieve the kind of systematic transformation Kenya needs, we must “borrow a leaf from Burkina Faso’s revolutionary leader Thomas Sankara”, Nduku adds. Sankara emphasised national food sovereignty and food justice, advocated against over-dependence on foreign food aid, and implemented ecological programmes that fostered long-term agro-ecological balance, power-dispersing, communal food cultivation, and the regeneration of the environment, which remain powerful foundations for food justice today.

Indeed, we must also not rely on discrete technological advances or conservative and incremental policy change. We must radically develop a new system that can adapt and evolve to new innovations, build resilient local food systems, strengthen our local food supply chains, reconnect people with food production, provide fair wages and secure conditions to food and farm workers, and ensure more equitable and nutritious food access for all Kenyans.

Importantly, Nduku emphasises, “We must start thinking about the transformation of our food systems from the point of view of the poorest and those who suffer the greatest injustice within the current framework of our food systems.” This will provide a much more just, resilient and holistic approach to food systems transformation.

This article is part of The Elephant Food Edition Series done in collaboration with Route to Food Initiative (RTFI). Views expressed in the article are not necessarily those of the RTFI.

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Politics

Food Protectionism and Nationalism in the Age of COVID-19

The coronavirus pandemic has disrupted the global farm-to-plate conveyor belt, including related value chain and support industries. This has led to the overhaul of certain sectors and the expansion of others. On the upside, the disruption has also encouraged citizens to audit the resilience of their local food systems and their capacity to feed people over the long haul.

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Food Protectionism and Nationalism in the Age of COVID-19
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In June 2018, Kenya’s food and beverage import bill crossed the psychological 100 billion mark, underscoring the country’s overreliance on food imports for sustenance. This isn’t news to those in the agriculture sector who recently witnessed our diplomatic kerfuffle with Tanzania degenerate into a blockade that dented food imports and spiked the price of produce in the local market. Kenya imports onions and oranges from Tanzania; eggs, tomatoes, and pineapples from Uganda; poultry products from the United States; as well as fish and garlic from China.

This kind of skewed dependency on imports strains an already dysfunctional agricultural supply chain that has atrophied and shrunk over the decades, thanks to mismanagement, theft and a lax policy environment. The agriculture sector, despite its potential, has been the victim of legislative failures, beginning with the decimation of parastatals in the Ministry of Agriculture in the 1990s, and the consolidation of state functions in ways that were incongruent with the needs of the respective agriculture sub-sectors.

The litany of social and economic ills that result from this laxity stretches long – from local farmers to reduced earnings in state coffers, disadvantaged agro-processors, heightened pressure on the shilling and import shock risks.

Kenya’s agriculture sector employs more than 50 per cent of the labour force, accounts for 34.1 per cent of Gross Domestic Product (GDP) and yet only contributes Sh23.3 billion to state coffers. The growing of crops and animal production combined account for 31.8 per cent of GDP, while support activities account for 0.5 per cent.

However, a weak regulatory environment, lax enforcement, brazen importers who gang up with state operatives to bring in cheap agro-imports, and depressed prices that have precipitated a significant decline in acreage under farming have negatively impacted the sector. The resulting drop in local supply, coupled with low yields and erratic rain models, have since produced critical shortages such as the ones that hit maize supplies in 2018.

Hence, while competing countries have been regulating their agro-industries, modernising their agro-supply chains, firming up the value chain, and managing the market to control prices, Kenya’s unofficial policy has been one of irascible cartelism, fueled by a few powerful industry players both on the regulatory and market side, who seek to cash in on their connections to state powers.

It also hasn’t also been helpful that in recent years, cash crop farming has monopolised acreage at the expense of other crops. Additionally, the top foods consumed in Kenya constitute milk, maize, wheat, vegetables, potatoes and bananas, which are easier to produce under mechanised farms controlled by a few oligopolies. The end result is loss of agency by the consumer and a patent inability to determine what ends up on a typical Kenyan dinner table.

Kenya’s agriculture sector employs more than 50 per cent of the labour force, accounts for 34.1 per cent of GDP and yet only contributes Sh23.3 billion to state coffers. The growing of crops and animal production combined account for 31.8 per cent of GDP, while support activities account for 0.5 per cent.

This marks the genesis of the cycle that has ensured that Kenyans are vulnerable to the certain kind of food protectionism and nationalism, such as the recent border shutdown by Uganda to truckers and Tanzanians due to a diplomatic tussle that saw food prices spike in the country. While Kenyans made fun of Mexican maize imports, Ugandan ginger, and tomato shortages, underneath that satire lay the profound vulnerability of Kenya’s 50 million tummies to the whims and impulses of random policy makers in countries hundreds of miles from our borders.

If the current food protectionism has taught us anything, it is that food has to become a national security issue and should be accorded the respective policy and structural and supply chain securitisation needed to forestall potential starvation.

The global picture

In March 2020, Vietnam and China stopped rice exports. Russia and Kazakhstan followed suit and briefly banned wheat exports. Around the world, two dozen nations took the cue and started hoarding their primary food exports in false anticipation of global shortages amidst the unrelenting COVID-19 pandemic. In total, seventeen major food supply nations placed some form of constraint on agricultural exports in the early weeks of the pandemic. Luckily, speculative behavior in agricultural commodity markets and imposing unnecessary trade restrictions, didn’t trigger food price spikes similar to those in 2007-8. The respective states almost immediately rescinded on the move amidst piling pressure and global economy concerns since the protectionism didn’t bode well for global supply chains and consumers around the world.

In recent years, we’ve increasingly gotten accustomed to the geography and ethnicity of food: that tea is British, coffee is Kenyan; tomatoes and onions are Tanzanian; ginger and bananas are Ugandan; strawberries are South African and Egyptian; fish and garlic are Chinese, poultry is from the United States; maize is from Mexico; and butter comes from South Africa. While this may portend well for global culinary multiculturalism, in times of pandemics such as this, the nationalistic fervour and export disruption exposes us to the vagaries of shortages on the shelves, potential hoarding, and hiked prices.

In recent years, the international food system has been built around the capacity of certain countries to specialise in the production of some foods to feed demand in other countries, while importing food items that could not be efficiently produced locally. This has produced a complex cog of farmers, transporters, financiers, and distributors spread across all corners of the globe. In this system, the world has become highly dependent on a globalised production chain in which dozens of countries straddle the middle of this chain, each adding a new component to the final agro-product. Take the US for example, whose imports account for half of the fresh fruits, a third of the vegetables, and 90 per cent of the seafood consumed in the country.

Food nationalism sometimes gets politicised around origins, such as whether falafel originated in the Mediterranean or in the Middle East, or whether rice from Vietnam is better than rice from Pakistan. In some jurisdictions, this has taken the form of policy protectionism, such as the European Union (EU)’s Protected Geographical Status framework that limits the production of certain potato, tequila, vinegar and cheese varieties to certain regions under specified conditions.

In recent years, the international food system has been built around the capacity of certain countries to specialise in the production of some foods to feed demand in other countries, while importing food items that could not be efficiently produced locally. This has produced a complex cog of farmers, transporters, financiers, and distributors spread across all corners of the globe.

Luckily it isn’t only the exoticism of certain foods that drive food nationalisms; even the working classes in recent years have expressed their concerns through political dissent driven by food: Sudan’s 2018 Bread Revolution, Kenya’s 2011 Unga Revolution, Egypt’s 2017 Wheat Revolution, the French Milk Farmers’ Revolution, among a host of other displeasures with the volatility of the national food basket.

Food sub-nationalism

Within gastro-nationalism there exists local nuance that drives certain protectionisms too. Nyandarua produces 35 per cent of our national potato output. Cashewnuts come from Kilifi. Mwea and Ahero produce rice. Flowers are grown in Naivasha. Vegetables come from the Kisii highlands. Maize is from Kitale. Freshwater fish is from Kisumu. Sisal is from Taveta. Milk comes from Githunguri. Tea comes from the Nandi region.

The March 26th shutdown of Nairobi, Mombasa, Kilifi and Kwale counties disrupted huge markets that are the purveyors and outlets for these agriproducts. Because of claims of corruption at police barriers along these counties’ borders, rural farmers effectively reduced their supply of farm products, sending the prices of food sky high in urban neighbourhoods.

Barriers erected to contain in-country COVID infection rates have, in turn, created logistical bottlenecks that reduce the supply of basic food commodities, creating an overcapacity in the producing counties while precipitating shortages in urban agricultural markets, such as Kondele and Kibuye in Kisumu, Mwembe Tayari and Kongowea in Mombasa, Soko Mjinga in Kitale, Marikiti in Nairobi, Daraja Mbili in Kisii county, Kagio in Kirinyaga and similar large food markets spread across Kenyan urban centres.

This chokes a critical cog of an already disadvantaged food infrastructure, given that there is an annual demand for 4.5 million tonnes of maize, 2 million tonnes of wheat, 1.3 million tonnes of sugar and 0.7 million tonnes of rice, which is barely met by local production. This deficit is often filled by the import of 1.3 million tonnes of maize, 1.8 million tonnes of wheat and 625,000 tonnes of rice. The overall outlay of Kenya’s food system, therefore, is a combination of disempowered (mostly urban) eaters, powerful agro-cartels who chase higher margins through unregulated food imports, and traders who, as a result of overreliance on imports, have reoriented their supply chains.

Food capitalism

Ironically, hoarding and food nationalism hit amidst a global sufficiency and oversupply mainly driven by China’s and India’s massive investment in grain production, and investments in agriculture in Brazil, Argentina, the United States, Canada, Russia, Kazakhstan, and Ukraine. Overall, less than 25 countries in the world are global net exporters though many in South America, Eastern Europe and South East Asia range between food sufficient and stable exporters.

The world’s poor are bearing the brunt of this, thanks to their poor storage capacities as well as the fact that they often merely make up the unskilled labour needed within the global food supply systems. Britain, a key importer and exporter, had to rely on the importation of labour as a deficit of 90,000 workers had left fruit farms unattended, thus heightening the possibility of farm losses. Britain was forced to seek nearly 10,000 workers from EU and non-EU countries, which remained closed during the height of the pandemic.

Cross-border supply chains and the free movement of consumer goods have increasingly been subjected to unfair trade subsidies, consumer protectionism, and border logistical bottlenecks that reduce the flow of consumer foodstuffs. Surprisingly the hoarding happens just when, unlike previous periods of rampant food inflation, global inventories of staple crops like corn, wheat, soybeans and rice are plentiful.

Food nationalism feeds a strain of food capitalism that sees approximately 1.5 billion tonnes of food wasted globally even as the COVID pandemic impacts food production and supply and guts distribution. Meanwhile, 2020 estimates are that due to the pandemic, a billion people face starvation globally and suffer from some form of hunger brought about by war, climate change, or simply a lack of means, especially in the Global South, while 300 million are at a crisis point.

It’s a testament to the global architecture of hunger that the majority of those in need are in the Global South, partly due to conflicts and climate disasters, but also predominantly due to economic instability that hampers both physical and economic access to food. Resource-rich nations in Africa, Latin America and Asia get stunted by unfair global practices, disastrous political systems propped up by and from the West, and predatory firms from both the East and the West who loot these countries through tax havens and illicit financial flows.

Hence, the food systems across the Global South are impoverished through laxity and political interference, while critical capital that could boost agri-production gets siphoned to the Global North. The resultant losses and deficit are what precipitate the vulnerability and susceptibility to shocks, such as that which has been wrought by the current pandemic.

Culinary identities

While food nationalism entrenches a protectionist model that compromises the legal and political rules of global trade espoused by many treaties and pacts, culinary nationalism simply raises the pride in a country’s culinary history. Large swathes of societies are having to rediscover their comparative advantages as the imports from farmers halfway around the world grind to a halt.

The coronavirus strain and its disruption of supply and value chains has simply fed into a hand- wringing method of protectionism quietly accepted and sometimes loudly proclaimed by belligerents like Donald Trump. This localisation inadvertently provides a perfect cover for those who have long embraced the idea of nationalism.

Food nationalism feeds a strain of food capitalism that sees approximately 1.5 billion tonnes of food wasted globally even as the COVID pandemic impacts food production and supply and guts distribution. Meanwhile, 2020 estimates are that due to the pandemic, a billion people face starvation globally and suffer from some form of hunger…

Even so, the pandemic has also necessitated the closure of some plants, resulted in bankruptcy among some agro-producers, and slowed down processing plants in India, in parts of China, in the United States and Canada, across Brazil, and in Western Europe. On the upside, this has helped citizens to audit the resilience of their local food systems and their capacity to feed people over the long haul.

Grounding of flights and border restrictions have limited the flow of migrant workers to farms that rely on hired labour during the growing and harvest seasons. Meanwhile, wars have decimated grain research centres in Syria, Lebanon and Yemen, while coercive legislation is being pushed in certain African countries even as there is criticism of the “NGO-isation” of agriculture in Africa and the push for legislated monopoly on seeds in countries like Kenya and India.

The global food infrastructure in the entire farm-to-plate conveyor belt and the related value chain industries and their support industries are staring at a significant disruption that will overhaul certain sectors, expand others, neuter many, and rejig the wider global reserves, primary producers and suppliers.

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Politics

Market Shutdowns, Policy Failures and the Mishandling of Food Logistics

COVID-19 has had a huge and immediate negative economic impact on low-income households, especially in urban areas. The Kenyan government’s mediocre response to this economic shock has not only increased people’s vulnerability, but has also laid bare the government’s inability to provide basic services.

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Market Shutdowns, Policy Failures and the Mishandling of Food Logistics
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Way before Kenya officially reported its first case of COVID 19, it was an open secret that the country was woefully unprepared to deal with the pandemic. The public health system was deplorable and ill-equipped to handle the country’s ongoing health concerns even without the added strain of managing the pandemic. Lack of piped water in informal settlements in urban areas presented an infrastructural headache, which was compounded by the high population densities in these areas. About sixty per cent of Nairobi’s population, Kenya’s capital, is said to be living in informal settlements, which occupy just 5 per cent of the city’s land.

Between the crowded living arrangements, lack of running water to guarantee constant and proper handwashing and a poorly managed health system;, the lack of preparedness made for a grim situation. By the time the first case of COVID 19 was officially reported on Friday, the 13th of March 2020 (the more superstitious amongst us were quick to connect the date with the event), there were concerns that low-income urban households, due to the nature of their design (or lack thereof), were more prone to infections. Experts also warned of the economic effects of the pandemic mainly taking the form of reduction or loss of income and reduced supply and access to basic utilities.

On 25 March, with a total number of 28 positive cases nationally and over 400,000 cases globally, the President of Kenya announced a raft of measures to contain the pandemic. Movement in and out of the country was heavily curtailed as borders with neighbouring countries were closed, passenger flights were suspended, schools were closed, large gatherings were banned and a countrywide dusk-to-dawn curfew was announced. Many have argued that the move to put in place a curfew rather than a total lockdown was seen as a compromise, a political economy calculation that took into consideration the socio-economic structure of Nairobi whilst endeavouring to reduce the spread of infection.

Nairobi is a city where the majority of the labour force comprises casual workers and informal petty traders who survive on daily earned wages and income. A total lockdown would have denied these citizens access to money for food, rent and basic utilities, which could potentially pose a political threat of social unrest. Others have speculated that the night curfew was intended to forestall criminal activities to supplement lost incomes.

On 6th April 2020, the president announced further containment measures, including a 21-day ban on all movement in and out of Nairobi, Mombasa, Kwale and Kilifi counties except for movement of food supplies and other cargo. By this time, 158 infections and 4 fatalities had been reported.

On 22nd April, Mandera County was added to the list of counties with restricted movement. On April 25th, the nationwide curfew and the cessation of movement in the four counties was extended for another 21 days until May 16th. Another extension was announced for 21 days until 6th June. On 6th June, the cessation of movement in and out of Kwale and Kilifi counties and Eastleigh (Nairobi County) and Old Town (Mombasa County) neighbourhoods was lifted, and the nationwide curfew hours reduced to 9 p.m. to 4 a.m.

Movement in and out of Nairobi, Mombasa and Mandera counties remained restricted until 6th July 2020. (At the time this article was being written, the restrictions in and out of all counties had been lifted and there was a scheduled roadmap to allow for intra-country travel and the resumption of domestic and international flights. Places of worship had been reopened on condition of adherence to social distancing precautions along with a limit to 100 faithful and gatherings not lasting more than an hour. It was announced that schools would reopen in January 2021.

Taking cues on precautionary measures from the national government, county governments also put in place containment measures that mainly targeted market places. In March 2020, Kwale, Kiambu and Kajiado county governments ordered all their open-air markets closed. Kisumu County closed the famous Kibuye market and Nyandarua County closed all Sunday markets. In June 2020, Machakos County closed 8 markets in Kangundo and Mwala sub-counties, where it was reported 3 people who had tested positive for COVID-19 had interacted with local residents.

The economic impact of COVID-19

As earlier speculated, the economy has taken a beating due to the COVID-19 pandemic. In March, the Central Bank of Kenya revised its 2020 economic growth forecast from the original 6.2 per cent to 3.4 per cent.

More ominously, in late May, the Central Bank indicated that up to 75 per cent of small and medium enterprises (SMEs) were at risk of collapsing by the end of June 2020 due to the hostile COVID-19 business environment. The International Monetary Fund (IMF) has forecast a 0.3 per cent economic contraction, the result of disrupting livelihoods across the country.

Findings from household surveys on the effect on COVID-19 seem to reflect this gloomy macroeconomic prognosis. They all indicate loss of jobs, decline in incomes, rising cost of living and hunger as key concerns for those interviewed. A survey by the Kenya National Bureau of Statistics released in mid-May 2020 revealed that 30 per cent of households sampled were unable to pay rent. In addition, 21.5 per cent of households that met their rent obligations on time were unable to do so and had to renegotiate with their landlords on repayment. This goes to show the extent to which the COVID-19 economic shock has affected households’ ability to pay recurrent bills.

On 30th June 2020, TIFA Research, a market research company, released a report focusing on the impact of the global pandemic on low-income neighbourhoods in Nairobi. The study, which sampled respondents from Huruma, Kibera, Mathare, Korogocho, Mukuru kwa Njenga, and Kawangware, had several key findings. Over 90 per cent of those interviewed said the COVID- 19 pandemic had had a huge and immediate impact on their lives, with 54 per cent of the respondents reporting having lost their jobs and attributing this to COVID-19. Ninety-four per cent of the respondents reported having to cut down expenditure on food and drinks.

More worrying was the 42 per cent whose immediate concern was hunger. The seriousness of this is reflected in the subsequent finding that only 6 per cent of those interviewed had been able to save during the pandemic, which exposed the economic vulnerability of most households. Most of those interviewed had supplemented lost income by selling off assets and cutting down on their expenditure on food and drink.

Over 90 per cent of those interviewed said the COVID- 19 pandemic had had a huge and immediate impact on their lives, with 54 per cent of the respondents reporting having lost their jobs and attributing this to COVID-19. Ninety-four per cent of the respondents reported having to cut down expenditure on food and drinks.

Another survey conducted between 28 May and 2 June this year by Infotrak Research Consultancy had similar findings. The survey showed that more than 80 per cent of those interviewed struggled to feed their families. More than 60 per cent of Kenyans were unable to pay rent in full, with an almost similar proportion who were struggling to pay rent on time. In urban areas, almost 4 out of 5 of those interviewed who used to send remittances to rural homes were unable to do so.

The government containment measures, whilst reducing the spread of infections, have also had a domino effect on other parts of social and economic systems, particularly in urban areas where the effect of these restrictions has been felt the most. They have had direct and indirect effects on food security in urban centres and on their linkages with food production areas and distribution networks.

Hybrid food systems and systems of care

Most African urban centres tend to have complex hybrid food systems characterised by a delicately balanced co-existence of informal and formal food systems. Nairobi, Mombasa and other big towns in Kenya are no exception. The restrictions on movement and closure of markets have had three immediate effects on informal food systems in the areas the markets are located. First, the income of the traders operating in these markets is lost. Depending on their business size, traders could be wholesalers getting produce from outside counties to retailers selling their wares to customers. Second, informal retail traders, such as hawkers, who normally source their food supplies from these markets are unable to do so. Closure of markets means there is a reduced supply of food produce in urban areas, leading to an increase in food prices. Third, the curfew was already eating into the operating hours of informal traders to get supplies from the markets in the morning and the hours they would have used to sell their wares in the evening. These hawkers have to work within reduced hours and still ensure they sell enough wares to make ends meet. They face another challenge in their potential customers having less money to spend, thus reducing the hawkers’ returns.

Most African urban centres tend to have complex hybrid food systems characterised by a delicately balanced co-existence of informal and formal food systems. Nairobi, Mombasa and other big towns in Kenya are no exception.

Another secondary effect on the food supply chain is the transport of food produce from the source county to the destination county. While the government announced that food supplies were essential services and movement would not be curtailed by the imposed restrictions, implementing that is not a clear-cut intervention. Whereas formally registered transport businesses can get the documentation and clearance to supply food without restriction, smallholder farmers use other forms of transport to get their produce to markets, such as passenger vehicles or motorcycles. Since these have been restricted from moving during the curfew hours, a key element of the food supply chain has been disrupted.

Most urban Kenyan households have ties to their rural homes and get care packages of food supplies from relatives in rural areas to supplement their urban food sources. These systems of care – what some would categorise as informal social protection – also offer a sanctuary to urban families, a space they can retreat to and reconfigure their livelihoods when urban life is too expensive. A recent article in the Daily Nation revealed an increase in these care package to families in urban areas in the last three months as urban households struggle to get food. Food sent includes cereals, bananas, Irish and sweet potatoes, dried fish, among others. So lucrative is this business that previous passenger shuttle businesses are repurposing their vehicles and obtaining permits to transport food to urban centres.

Rural-urban support systems also allow parents to send their children upcountry to stay with relatives over school holidays. During these dire circumstances, families can relocate to the countryside where the cost of living is much lower than in urban centres. The restriction of movement in and out of the major urban centres in Kenya has disrupted these systems of care as families are unable to exercise the option of easing the economic burden of their urban households by moving to their rural homes. In a past Infotrak survey, up to 40 per cent of Nairobi residents were willing to move to rural areas the moment the government lifted the movement restrictions.

Food security during this pandemic is also compromised by challenges faced by counties that grow food. Where production is going on as normal, restriction in movement has seen source counties facing a glut in food. This has led to reduced prices of food and increased wastage as food producers lack the storage capacity for their supplies.

So, depending on which county one looks at, there are rural food-producing households that have a lot of food, no market and reduced income from food sales. Meanwhile, low-income food-consuming households in urban areas are experiencing a scarcity of food, high food prices and reduced household income.

The restriction of movement during the pandemic also affects access to farm inputs at two levels. One, import supply chains have been disrupted and slowed down, hence it may be more difficult and expensive to buy imported inputs, such as fertilizer and pesticides, which are crucial to maximising yields. Two, where these inputs find their way into the country, they are typically found in urban areas and require to be transported to rural areas. Restrictions in the transport of good and services will affect the transport of these inputs to rural areas. Furthermore, the financial costs of importation as well as urban–rural transport are likely to be passed onto the farmer in the form of increased prices, thus disincentivising the farmer from accessing the inputs.

So, depending on which county one looks at, there are rural food-producing households that have a lot of food, no market and reduced income from food sales. Meanwhile, low-income food-consuming households in urban areas are experiencing a scarcity of food, high food prices and reduced household income.

The locust invasion across the Horn of Africa has compounded Kenya’s food insecurity. The country experienced the first wave of locust attacks from late 2019 to early 2020, with swarms moving through the country from arid and semi-arid areas hosting pastoralist communities to the food-producing counties. The Food and Agricultural organisation (FAO) issued a warning in late June 2020 about the second wave of locusts, with some estimating it to be 400 times bigger than the first wave. According to FAO, Turkana and Marsabit counties’ crops and pastures are likely to be affected in this wave as the swarms of locusts migrate northwards into South Sudan and Ethiopia. This would reduce the amount of pasture available for livestock in these areas, resulting in loss of incomes and increased health concerns, such as hunger, particularly childhood malnutrition. The food security outlook is grim to say the least, with forecasts of a food shortage in East Africa caused by the locust invasion, low food reserves and the disrupted supply chain of food and inputs.

Mediocre mitigation measures

Pandemic mitigation responses by the government have mostly favoured corporates and individuals in formal employment. The government offered VAT and corporate tax reprieves, financial support for businesses and creatives, and wage tax subsidies for those in formal employment. None of these measures directly targeted the majority low-income earners in urban areas whose employment situation has been worsened by COVID-19.

The Treasury has been criticised for the recommendations it made in the 2020/2021 budget, which included proposals for the removal of zero-rated status on liquefied petroleum gas (LPG) as well as flour whilst fully aware of the economic impact of COVID-19, especially on urban low- income communities. Members of the National Assembly vetoed these proposals when they were discussing the Finance Bill.

The government reduced its budgetary allocation to agriculture by 18 per cent, from Sh59.6 billion in FY 2019/2020 to Sh48.7 billion in FY 2020-21. The agriculture sector in Kenya plays a significant role in employment, job creation and food supply. Its importance during this pandemic cannot be overstated as it covers issues of production, supply and even access of food, linking producers and consumers.

Government mitigation measures targeting the urban poor have been lacklustre at best. Even as the government moves to reopen the economy, there are no mass testing measures in place, hence there is no credible way of ascertaining the spread of the pandemic within communities. The distribution of personal protective equipment (PPE) has been minimal and uncoordinated, putting many residents at risk as the move around in their communities.

Questions have also been raised about the targeting of potential beneficiaries for relief support measures, such as cash transfers and food package distribution. There are claims of government agencies misappropriating funds intended to contain the negative impact of the pandemic at the community level.

Pandemic mitigation responses by the government have mostly favoured corporates and individuals in formal employment. The government offered VAT and corporate tax reprieves, financial support for businesses and creatives, and wage tax subsidies for those in formal employment. None of these measures directly targeted the majority low-income earners in urban areas whose employment situation has been worsened by COVID-19.

As a society we have been forced to reckon with the consequences of long-term underinvestment by the government in public services. Informal settlements, where the majority of urban residents live, still do not have piped running water and residents have to buy their water at exorbitantly high prices from water vendors. The lack of piped water and the high cost of purchasing water in a time of reduced incomes reduces handwashing campaigns into a classist privileged initiative that only a few residents can comply with. According to Nahashon Muguna, the Acting Head of the Nairobi Water and Sewerage Company, the daily demand for water in Nairobi is 810,000 cubic metres whereas the company, at its most efficient, is only able to supply 526,000 cubic metres.

Poor investment in housing and health offer little consolation to those who become infected with the virus. The hospitals are not equipped to handle the pandemic, and with the current state of housing in informal settlements, it is impossible to implement the self-isolation homecare guidelines issued by the Ministry of Health. Moreover, it is one thing to tell people to stay at home and avoid going outdoors. Assuming that they can afford to stay indoors, one has to ask what kind of dwelling spaces do they reside in.

COVID-19 has laid bare the inability of the government to provide basic services to the country’s people, services that are enshrined in our constitution under the Bill of Rights. It ultimately boils down to a breakdown of trust and a weakening of the social contract between the government and people it is mandated to serve.

This yawning disconnect between leaders and citizens has to be bridged. It is not enough to guarantee life; the government, in its dealings with citizens, should make sure that people lead a good life, a life of dignity, productivity and happiness. It is time for the Government of Kenya to ask itself what it has done for its citizens and what it should do for them going forward.

This article is part of The Elephant Food Edition Series done in collaboration with Route to Food Initiative (RTFI). Views expressed in the article are not necessarily those of the RTFI.

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