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White America Needs to Atone for Its Dark Past

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America needs a cure for what amounts to a psychosis affecting a significant part of white American culture, brought on by centuries of being steeped in the blood of innocent people.

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As I have said before, unless you are quite the expert, if the bicycle you are riding comes to a sudden halt, you are likely to fall with it. Riding a bicycle is an act of deceiving the laws of physics.

The Western economic bicycle has been forced to a stop by the COVID-19 pandemic, which has exposed its inability to stand by itself. Against this backdrop, the United States is currently caught up in quite a bit of domestic turmoil. Hundreds of cities and towns, including the capital, are beset with often turbulent protests against yet another set of murders of an African American by American police officers and white vigilantes.

The particular spark was the nearly nine-minute-long police suffocation of George Floyd on a street in Minneapolis. Floyd was arrested on suspicion of a minor offence. Each gruesome minute of his death was captured on a traumatised bystander’s cellphone. The protests are of a size of that has probably not been seen since the peak of the 1960s’ urban unrest, also against racism.

Matters quickly moved beyond US President Donald Trump’s intellectual capacity to manage responsibly. Part of his handicap is that he is temperamentally and ideologically firmly on the side of the very same white supremacist nationalism for which the racist culture of American policing is an essential tool.

Let us be clear: this was a deliberate act of murder. The policeman cannot possibly claim that some kind of accident occurred. He had no less than four items of ongoing information to tell him that something bad was going to happen. The first, of course, was that it is not a normal thing for a human knee to be on a human neck, and so this was a risky holding tactic that would require brief application, if at all. The second was that George Floyd was repeatedly protesting about his fatal discomfort. The third was that, at some point, George Floyd STOPPED protesting. This meant that either he was no longer physically able to, or had become comfortable. But since the policeman had not removed his knee from Floyd’s neck, or even shifted in position (and knew that he had not), then he would have no reason to assume that his prisoner was now comfortable in the same position he had been protesting about just moments before. The last item of information was of the small gathering of onlookers also loudly informing the policeman that his prisoner was in distress. None of this stopped him. He fully intended to kill George Floyd, and fully expected that there would suffer no consequences for this.

It also is a fully visual affirmation of just how callous and inhuman American policing is in regard to, first and foremost, Africa Americans, but by implication, any resident of that country – even white ones who may find themselves targeted one day.

Which is why the presence of large numbers of white Americans, often young, often female, in the marches and demonstrations is significant, since it is White America that has benefitted the most from the American project that stands on the blood-soaked land stolen through an anti-Native genocide, so as to get rich off African American poverty by locking them in spaces where their labour, health, housing and credit can be converted into a profit margin. Is that legacy now being rejected?

By opposing police brutality, the youth are opposing a long and effective American tradition of psychological and physical violence, ideologically backed by racist justifications that began with brutal tortures during enslavement, and then evolved into an apartheid, and continue as police terrorism today.

Much as the United States of America is an autonomous empire, it remained organised like many a sub-Saharan African neocolony since acquiring independence in 1776. The white colonial settlers revolted against their British colonial masters, and took over the colony for themselves. But the basic exploitative economic structure was kept intact. The settlers‘ quarrel with the British Empire had not been over dismantling the exploitation, but for the settlers to also be able to expand and begin seriously profiting from it themselves. The idea was “Independence” for the white settlers, and nobody else. The means of keeping this perversion of politics in place ever since has produced new levels of violence, dishonesty, trickery and fascism as to create a vast population of people who are basically collectively spiritually and possibly mentally unwell, but well-armed.

By opposing police brutality, the youth are opposing a long and effective American tradition of psychological and physical violence, ideologically backed by racist justifications that began with brutal tortures during enslavement, and then evolved into an apartheid, and continue as police terrorism today.

In a sense, White America was culturally short-changed. The conquest and settlement of what is now North and South America was a wholly European idea. The tools of that process – the genocide of Native Americans and then the enslavement of Africans that have left the legacy of what has killed George Floyd and very many millions before him – were all forged in Europe.

Today, however, many try to present the matter as an American problem. It is not; it is a problem of white culture globally. As European colonies, the Americas were the place where Europe’s elites outsourced their exploitation. In doing so, they also outsourced the necessary brutalities, and the human beings needed to enforce them. The white European settlers were basically the front line of a system that required that they become monsters, which they most willing did. This is the cultural inheritance they have failed to dispose of.

The problem now is that white oppression is no longer delivering sufficient benefits. Even the younger white Americans are now seeing the American Dream for the sham it now is. Prosperity seems very remote for people stuck in a “gig economy”, with none of the small assurances of steady employment, health insurance, affordable housing, and affordable credit that were available to their grandparents’ and parents’ generations. And available, it must be emphasised, at the expense of African Americans, who were assured of none of these things, by and large, and yet whose labour was feeding the economy.

Now, thanks to the COVID pandemic, that economy, which had never really recovered from the financial disaster of 2008, is faced with the challenge of maintaining the illusion of forward motion.

This is a problem for the American state and its economic masters. If the present uprising creates a fundamental shift in the thinking of at least younger Americans, then racism will no longer be viable as an economically profitable ideology. The need for exploitation will remain, however, for that is how the American economy works.

So, if the money-makers cannot afford or accept to make smaller profits, then more Americans, irrespective of race, will begin to live a life with more than just a taste of the kind of poverty that currently is largely the experience disproportionally visited upon African American communities, as the poverty would then eventually be spread more evenly among the rest of the population.

That could be the basis of a new cycle of discontent. What people have not yet worked out, is the extent to which this will be a new normal. As Ferguson City’s 2014 disturbances over an earlier police shooting showed, this could still be a forerunner.

If the present uprising creates a fundamental shift in the thinking of at least younger Americans, then racism will no longer be viable as an economically profitable ideology. The need for exploitation will remain, however, for that is how the American economy works.

America needs a cure for what amounts to a psychosis affecting a significant part of white American culture, brought on by centuries of being steeped in the blood and gore of innocent people. The collective failure of White America to seek some kind of atonement has left a psychological imbalance. There is now something a part of many a white American settler’s psychological make-up that cannot function rationally when in sight of black, red or brown people. When Martin Luther King described them as “our sick white brothers”, he was describing them, not insulting them.

As an Ethiopian friend of mine, a long-term resident of the United States, put it to me, “It’s like when police are dealing with a black person something in their brain switches off and suddenly this person is no longer human in their eyes.”

In many African cultures, a person returning from any death-like experience, be it war, or exile, or prison is not expected to immediately return to the bosom of his family, or even set foot in his own house. It is accepted that what he might have suffered has a detrimental impact on the soul and psyche. He must first be rebalanced through a process of cleansing, which varies in form and method from culture to culture.

Western society seeks an approximation of this through the various post-traumatic stress disorder (PTSD) treatments for war veterans and victims of violent crime. However, these tend to be material, not spiritual, and are not culturally embedded, and so attract stigma. Further, they are often only invoked after a person has begun to display signs of mental damage.

War, murder and oppression damage even those who profit from them. But being widespread, the behaviour is taken as “normal” and therefore not seriously interrogated by the perpetrators. But as the world has seen in these recent killings, this is the behaviour of psychopaths. It is simply the collective normalisation of mental illness.

The settlers have two sets of options in dealing with this mess, one rooted in their political tradition of cheating history, and the other potentially based on new thinking.

In the first option, they could try and get the bulk of white opinion back in line by first breaking up the growing racial unity between the demonstrators.

But this may not work, because, unlike in the post-60s period, there is no shiny prosperous economy to dangle in front of non-Black Americans as an alternative to revolution. And despite a new intensity of police attacks on white protesters in Minneapolis and other cities, in an effort to make protest less attractive, this has only further opened their eyes to what African Americans have long seen alone.

Increasing numbers of white youth are basically disillusioned, fed up with the system and the ways it has failed them already. White privilege does not pay the thousands in education loans they are lumbered with, and neither do low-wage jobs. If anything, they may now carry this new understanding forward to their own homes, communities, places of work and educational institutions, and challenge the built-in racism there.

War, murder and oppression damage even those who profit from them. But being widespread, the behaviour is taken as “normal” and therefore not seriously interrogated by the perpetrators. But as the world has seen in these recent killings, this is the behaviour of psychopaths.

This second set of options would be based on serious reform. However, new laws and regulations can only achieve so much. African Americans have been revolting against their condition from the moment they were brought to what is now the United States. What all the changes the revolts has brought have also shown that as long as the intent to exploit, and therefore oppress, remains, then reforms can always be undermined.

So what is really needed first is for White America to cleanse itself of the mental silt deposited by the flow of centuries of profit-making blood, tears and pain. We have a belief that it is unwise to allow a young dog to become familiar with the taste of raw meat, blood and bone, as it will grow to want to kill chickens and even pets.

Judging by their conduct while in uniform, for many white people, especially the men, this is now beyond political policy. Like the badly-raised dogs, the scent of black blood abnormally agitates their senses and this defect gets passed on down the generations. There is clearly a need to literally undergo rituals of atonement, in which they exorcise the centuries of innocent blood still haunting their ancestral lines.

But to do that, they will first have to acknowledge their collective illness.

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Kalundi Serumaga is a social and political commentator based in Kampala.

Politics

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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Politics

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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Politics

The Battle Within: Uhuru’s War Against His Deputy

After joining forces with William Ruto to win the 2013 and 2017 elections, President Uhuru Kenyatta now seems determined to ensure that his deputy does not ascend to the presidency in 2022. The breakdown of their alliance has all the hallmarks of betrayal, brinkmanship, deception, fraud and subterfuge.

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The Battle Within: Uhuru’s War Against His Deputy
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“Lord, protect me from my friends; I can take care of my enemies.”

The above quote by Voltaire is one that Deputy President William Ruto could well be spending lots of time brooding over, especially in these times of coronavirus. Since official recognition of the pandemic’s arrival in Kenya over just three months ago, Ruto’s political battles – not with his enemies, but with people he had counted as friends – have intensified. The battles that are being fought in the Jubilee Party, the party of President Uhuru Muigai Kenyatta, are internal and among erstwhile friends.

Coming barely 30 months after the forceful UhuRuto duo won a controversial fresh presidential election on October 26, 2017, the two political brothers looked set to finish their second term the way they started the first: as a formidable team of like-minded captains, with the lead captain passing the baton to his comrade once his term expires. But that today is a dream: the waters have been poisoned and the former buddies are no longer swimming in the same direction, leave alone swimming in the same waters. The breakdown of the alliance has all the hallmarks of betrayal, brinkmanship, deception, fraud and subterfuge.

Jubilee Party mandarins did not see the break-up coming; if they did, they all pretended they were not aware of the imploding scenario. The ruling party is now a house of two diametrically opposed camps led by their respective protagonists: President Uhuru Kenyatta, who coalesces around the Kieleweke (it shall soon be evident) camp and William Ruto, who is spearheading the Tanga Tanga (roaming) team.

“We can no longer pretend that the current war being waged against William Ruto is not from within and therefore not from friends, or people he had presumed were his political friends,” said a Ruto confidante I spoke to. “To think otherwise now would, like the proverbial ostrich, be burying our heads in the sand. It is better to be fought by your enemies, who you have fought several times before and therefore you already know to deal with them, rather than be fought by friends, who have turned the tables against you, all the while posing as your compatriots.”

“Uhuru is employing political terrorism against his number two and to be honest, it is something we had not anticipated,” said Ruto’s friend of many years. “Yes, it has taken us by surprise, the intensity and all, but we must stay and fight back, even as we devise a strategy to stem the political bloodbath. It is all about the politics of succession in 2022 and there is no hiding the fact that Ruto obviously wants the seat. If you have been a deputy president for seven years, what else would you want as a politician in that position? It is also true that once Uhuru and Ruto were sworn in for the second and final term, we started popularising our candidate immediately – it was the natural thing to do – hitting the ground running. This was misconstrued to be a campaign, but even if it were, we weren’t doing anything outside of the constitution.”

Ruto’s loyal friend said that the popularisation strategy had a context: “Prior to the presidential election in December 2002, we all were in Kanu – Uhuru, Ruto and me. We would go to [President] Moi and tell him, ‘Mzee tell us who will be our candidate so that we can start preparing the grounds early.’ And he countered by saying: ‘Nyinyi vijana wacheni mbio, siku ikifika nitawambia. Mimi nimekuwa kwa siasa miaka mingi…nataka mwendelee kuwa wafuasi kamili wa Kanu.’ (You young men, why are you in a hurry? When the day comes, I’ll let you know. I’ve been in politics for many years, I know what I’m doing. For now I want you to be steadfast in your support for Kanu.) By the time he was proposing Uhuru as the party’s candidate, it was already too late and there wasn’t enough time to campaign for our candidate.”

The Ruto ally, who also counts President Uhuru as a first-name-basis friend, believes Uhuru lost the election in 2002 to Mwai Kibaki and the opposition, because Moi took too long to name the party’s flagbearer. “We could have won that election but for Moi’s delaying tactics, which backfired and we lived to regret that bad decision. Eighteen years later, with lessons learned, we’re not about to repeat the same mistake. You cannot win a presidential election if you start campaigning six months to the election date. That is what Uhuru is doing with our candidate and in Jubilee, and we won’t let him do that.”

The coronavirus appeared just in time to help President Uhuru fight his political battles, reasoned the DP’s bosom buddy. “He is now using the pandemic to wage war against his deputy. The semi-lockdown and the curfew are strictly not about COVID-19, but about clamping down on Ruto’s forces in the party and in government.” The pandemic, he observed, has acted like godsend: It has given Uhuru space to mount a sustained onslaught on Ruto, but it has also helped the DP to ward off (at least for the time being), the “nobody-can-stop-the-reggae” force, which was also threatening to overwhelm him.

“Uhuru is maximising on the COVID-19 pandemic as much as possible because he knows his antagonist, the DP, cannot organise and mobilise for his counter-attack, which he is good at. The people have been locked down, they are restricted, they cannot move, they are scared and are caught up with survival. President Uhuru can therefore wreak havoc in Ruto’s camp with as little distraction as possible,” he added.

The coronavirus appeared just in time to help President Uhuru fight his political battles, reasoned the DP’s bosom buddy. “He is now using the pandemic to wage war against his deputy. The semi-lockdown and the curfew are strictly not about COVID-19, but about clamping down on Ruto’s forces in the party and in government.”

Uhuru is not alone; since the onset of COVID-19, some world leaders have been using the pandemic as an excuse to amass more presidential powers, extend their presidential terms indefinitely, resort to dictatorial tendencies, and quash opponents.

But unlike the last election, the president does not have the unflinching support of his own people. “Uhuru’s biggest problem is that the Kikuyus have turned their back on him,” said a friend of Uhuru who also counts Ruto as his friend. “He thought he owned them and he could do whatever he wanted with them. He also thought they would always go back to him and do his bidding. Now, they seem dead set in ignoring him completely and the fact of the matter is, as a political leader, you can do little if you cannot galvanise the support of your people. You cannot claim legitimacy, you can only impose yourself on them and that is always counter-productive.”

Because of this, said the Jubilee Party mandarin, President Uhuru’s current headache is how to de-Rutoise central Kenya and the larger Mt Kenya region. “He’s been trying to tell the Kikuyus that Ruto has been disloyal to him, that he wants to grab their power, that he’s not fit to ascend to the presidential seat because he’s corrupt and power hungry. But they have refused to listen to him. With each passing day, he’s getting furious with the Kikuyus’ recalcitrant stand against him. Now, he has turned to appointing Kikuyus in prominent positions, including the recent reshuffles in Parliament to appease his Kikuyu base.”

The duo’s friend told me that President Uhuru’s allegations about his deputy’s insubordination was a red herring. “What disloyalty is Uhuru is talking about? When he was busy drinking, we held fort by taking care of government business, even as we covered his social vices. Now he has the temerity to talk about disloyalty. We’re not afraid of him. The Jubilee Party/Kanu coalition agreement is illegal as per our Jubilee Party constitution and it was cobbled up to stop Ruto from vying for the presidency”.

All the president’s men

To fight Ruto, President Uhuru Kenyatta formed an advisory team that meets at State House. Part of the team comprises David Murathe, Kinuthia Mbugua, Mutahi Ngunyi and Nancy Gitau.

Murathe has for the longest time been President Uhuru’s sidekick. His father, William Gatuhi Murathe, was one of the wealthiest Kikuyus, courtesy of Uhuru’s father and the country’s first president, Jomo Kenyatta, During Jomo’s time, the senior Murathe was the sole distributor of wines and spirits countrywide.

When David Murathe was routed out as the MP for Gatanga constituency by Peter Kenneth in 2002, his fortunes dwindled and he was even declared bankrupt at one stage. From that time, he has not left Uhuru’s side. The Tanga Tanga team describes Murathe as “Uhuru’s attack dog”. They believe that when Uhuru wants to communicate an important message, he uses Murathe. And they’ve learned to decipher his messages. Murathe is the man who has been put in charge of the advisory team’s budget.

On 6 January 2019, Murathe suddenly resigned from his post as the Jubilee Party’s vice chairman, citing conflict of interest. He said he wanted to fight Ruto and stop him from being the Jubilee Party’s sole candidate for the 2022 presidential election. On 2 March 2020, Murathe recollected his thoughts on his supposed resignation and claimed he had not really resigned because his resignation had not been accepted by President Uhuru Kenyatta, who is the chairman of the party.

Kinuthia Mbugua is the State House Comptroller; he keeps President Uhuru’s diary. He served as Nakuru County governor for one term. Eagerly looking to serve for a second term, he nonetheless lost the Jubilee Party nomination to Lee Kinyanjui. He was furious, and even looked to run as an independent, but was persuaded by Uhuru to join the presidential campaign team, with a promise of a bountiful reward once the campaign was over.

The Tanga Tanga team describes Murathe as “Uhuru’s attack dog”. They believe that when Uhuru wants to communicate an important message, he uses Murathe. And they’ve learned to decipher his messages.

Mbugua, a career civil servant, hails from Nyandarua. When he was the commandant of the Administration Police (AP), he employed many youth from Nyandarua and the adjoining areas. He equipped the force with personnel and machinery and soon there were murmurs from the regular police service, which felt that the AP was being favoured and was becoming extra powerful. After the 2007/2008 post-election violence, President Mwai Kibaki and his cohorts did not trust the regular police. Mbugua’s not-so-loudly spoken brief was to reorganise a force that had always played second fiddle to the boys in blue.

Mbugua to date believes William Ruto rigged him out of a nomination when he was left to man the Jubilee Party headquarters at Pangani during the chaotic and hectic nominations. He carries the grudge like an ace up his sleeve.

Mutahi Ngunyi is a private citizen who has immersed himself in state (house) politics and has distinguished himself as a maverick, a person who can swing like a pendulum and still remain standing, without falling. In the lead-up to the 2017 election, he made Raila Odinga, the opposition coalition leader of the National Super Alliance (NASA), his punching bag, terming him a “punctured politician”, an epithet that his detractors used to describe Raila’s father Jaramogi Oginga Odinga in the 1970s.

After Uhuru and Ruto romped back to State House, Mutahi quickly (perhaps too quickly) identified with Ruto’s camp and decreed that Ruto will be the next president come 2022. A crafty mythmaker, he even came up with the Hustler vs Dynasty narrative to define the rivalry between Ruto and the sons of prominent Kenyan leaders, including Uhuru Kenyatta, Raila Odinga and Gideon Moi. He wildly claimed in a May 2019 tweet that the only person who could liberate Kikuyus was Ruto. (Mutahi has since deleted all his tweets that were singing Ruto’s praises.) Then, beginning this year, Mutahi flipped, disavowed his hustler narrative and claimed that Uhuru Kenyatta was ordained to rule Kenya.

“Mutahi Ngunyi is a gun for hire,” said a Ruto aide. “For nearly two years he worked for us. He’s a mercenary, he’s a fugitive of justice.” When I contacted Mutahi and asked him if what was being said about him was true, he responded: “Tell them it is true, whatever that means. Tell them they can also hire me!”

The aide claimed that Mutahi was presented with the National Youth Service (NYS) file by the National Intelligence Service and was asked to cooperate…or else.

The NYS file he was referring to contains details of a huge scam that was perpetrated between 2014 and 2016 when Anne Waiguru Kamotho, the current governor of Kirinyaga County, was the powerful Devolution and Planning Cabinet Secretary. Mutahi was one of her advisers on the youth programme that was being implemented by NYS. The scam involved the misappropriation of billions of shillings of taxpayers’ money in which Mutahi was heavily implicated. At one time, he even purported to clear his name by claiming to have returned Sh12 million to the government coffers. Appearing before the Parliamentary Accounts Committee on September 20, 2016, Mutahi said he had rewired the money back to the Central Bank of Kenya. He said that the money had been “wrongly” credited to his company, The Consulting House. He further stated that he believed the money had come from an organisation that he had consulted for, not the Devolution Ministry.

Mutahi is now operating from State House and The Chancery building on Valley Road in Nairobi. The Chancery is owned by the Kenyatta family. Part of his brief is to spin favourable Kieleweke group narratives while conjuring up propaganda and disinformation on his former employer, William Ruto.

Nancy Gitau has been the resident State House adviser from the time of Mwai Kibaki. Before becoming a state aficionado, she worked for the United States Agency for International Development (USAID). While at USAID in the 1990s, she was involved in the democracy and governance sector, which was being heavily funded by the United States and other donors. The last big project that she oversaw was a partnership between Kenya’s Parliament and the State University of New York (SUNY, Albany)’s Centre for International Development (CID), which Sam Mwale and Fred Matiangí managed. Both Mwale and Matiangí would later become civil servant bureaucrats, serving as Permanent Secretary and Cabinet Secretary, respectively.

Mutahi is now operating from State House and The Chancery building on Valley Road. The Chancery is owned by the Kenyatta family. Part of his brief is to spin favourable Kieleweke group narratives while conjuring up propaganda and disinformation on his former employer, William Ruto.

Gitau was very well-known within the civil society and the NGO sector and interacted with many of them. “Gitau was one of the architects of a report implicating Ruto in the post-election violence and so there is no love lost between her and Ruto,” said Ruto’s aide. The deputy president is still upset about Gitau singling him out. During the days when Ruto and Uhuru were facing charges related to the post-election violence of 2007/2008 at the International Criminal Court (ICC) in The Hague, one of Ruto’s team members said to me: “Ruto never forgives and never forgets a wrong done to him.”

Expunging Ruto’s men

The Gitau-led advisory team ostensibly meets every Sunday morning at State House and during weekdays at La Mada Hotel located in the New Muthaiga residential area in Nairobi. La Mada is the hotel that Ruto claimed in 2019 where a plot to assassinate him was being hatched by people known to President Uhuru.

One of the team’s main jobs is the expunging of Ruto’s men in the Senate, with Kithure Kindiki, the Senator of Tharaka Nithi County, being the latest casualty. Until 22 May 2020, Kindiki was the Senate’s Deputy Speaker. The first two casualties were Kipchumba Murkomen and Susan Kihika, the former Majority Leader and Chief Whip, respectively. Murkomen’s job was given to Samuel Poghisio, a politician from West Pokot, while Kihika’s went to Irungu Kangáta, the Senator of Murangá County.

“The two were removed because the president and his men didn’t have the majority in the Jubilee Party’s National Executive Committee (NEC),” said a “renegade” senator, who accused President Uhuru of “using strong-arm tactics to coerce senators to vote according to his whims”.

During the days when Ruto and Uhuru were facing charges related to the post-election violence of 2007/2008 at the International Criminal Court (ICC) in The Hague, one of Ruto’s team members said to me: “Ruto never forgives and never forgets a wrong done to him.”

The senator said that the Speaker of the Senate, Ken Lusaka, was allegedly approached and reminded of the “small matter” of the wheelbarrows when he was the Governor of Bungoma County.

When Lusaka was the governor of Bungoma County between 2013 and 2017, the county bought 10 wheelbarrows worth Sh1.09 million (approximately $10,000 or $1,000 per wheelbarrow) – the most expensive wheelbarrows ever sold in Kenya, where an ordinary wheelbarrow goes for around Sh5,000 ($50). When he was asked by the Parliamentary Accounts Committee what was so special about the wheelbarrows, he claimed that they were made from “stainless, non-carcinogenic material”. Some of the county officials were jailed for the scam.

Everybody knows it was illegal for the speaker to acquiesce to President Uhuru’s demand that the Senate Parliament Group meet at State House, said the senator. “The reason why nominated senators are being intimidated and threatened is simply because Uhuru doesn’t have enough senators on his side to fight his deputy.”

Senators were allegedly paid Sh2 million to vote to remove Murkomen and Kihika. “On the day the senators were summoned to State House, President Uhuru didn’t have enough senators to push his motion,” said the senator. “The Jubilee Party had only 11 senators, Kanu, three and one independently-elected senator, Charles Kibiru. If you count Raphael Tuju and President Uhuru they made 17 votes. Tuju is the secretary general of Jubilee Party. So, they were way short of the required majority of 20 votes.” The senator claimed that the president had to send helicopters to pick senators from their far-flung regions.

“Uhuru can send choppers to senators who are supposed to be in lockdown and in quarantine, but he will not send planes to rescue and send food to flood victims. That’s how much he cares for the unity of this nation,” complained the senator.

It is just a matter of time before these elite squabbles are replicated on the ground. On 20 May 2020, two charged groups in Kikuyu town faced each other: one group supported President Uhuru Kenyatta and the other supported Deputy President Ruto along with the area MP Kimani Ichung’wa. So far Kimani has been an unswerving supporter of Ruto. They yelled and shouted at each other and exchanged invectives. It was a prelude to Ruto’s visit to the constituency on that day.

“Uhuru can send choppers to senators who are supposed to be in lockdown and in quarantine, but he will not send planes to rescue and send food to flood victims. That’s how much he cares for the unity of this nation,” complained the senator.

It is hard to tell whether the two groups had been paid by their masters to grandstand. But that is neither here nor there. The Jubilee Party honchos have indicated that Ruto’s presence in the Mt Kenya region cannot just be wished away – hence the Kieleweke group’s project to defang Ruto.

I asked a Ruto confidante why his boss had gone quiet. Was the heat becoming unbearable? “This is not the time to speak. We actually advised him not to open his mouth. There’s a time that he will speak, but not now.”

The confidante also reminded me of another saying: The man who speaks little makes mistakes, but what about the man who talks a lot? He makes big mistakes.

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