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When Family Means Business

9 min read.

Family-owned businesses are the backbone of the global economy yet many do not survive one or two generations. DARIUS OKOLLA provides a glimpse into large family-owned businesses in Kenya, and assesses their fortunes in an uncertain political and economic environment.

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When Family Means Business
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The Korean economic landscape is dominated by chaebols, Americans have conglomerates, the Japanese have Zaibatsus, Germans have Mittlestands, while Kenyans have, well, let’s call them Mamols – a cluster of faceless, powerful, family-owned enterprises whose stake in the economy is massive and diverse and which form the core to the competitiveness of the Kenyan economy. Mamols, the word derived from native Dholuo for tendril-like tentacle plants that intertwine their way into multiple nearby vegetation to form a strong mesh-like interconnected undergrowth.

Kenya’s economy, as currently constituted, represents a feudal-like family economy dominated by a few well-capitalised family-owned units at both the top and mid-tier. At a glance, the majority of the 7.4 million small and medium-size enterprises (SMEs) in Kenya are conventionally family businesses owing to their initial source of capital, ownership and day-to-day operations.

A chaebol, or in our case a mamol, is a large industrial firm that is run and controlled by a founder and his or her family. Their internal make-up is that of a large number of diversified affiliate brands, products and markets under a patriarch whose power over the business operations often exceeds legal authority.

There are significant differences between Japanese aaibatsus, Korean chaebols, Kenyan mamols, and American conglomerates, key among them being the source of capital. The aaibatsus organised around a bank, chaebols were prohibited from owning a bank, their American counterparts go to Wall Street, while Kenyan mamols rely on internal revenues and private equity for growth.

The constitutive nature of these businesses is any profit-making venture patronised by two or more family members in its workforce and the majority of ownership or control lying within that family. Traditionally, such corporate structures place the founding patriarchs and matriarchs at the helm and family members in ownership positions, allowing them to exert direct control across the board. Family-level investments are known to tap into the general social immobility of capital, which tentatively guarantees that if properly transitioned, the resources can stay within the family for anywhere between five and six generations.

Family-owned businesses are the backbone of the global economy. The Conway Centre for Family Business estimates that 35 per cent of Fortune 500 companies are family-controlled across the full spectrum of firms, from small niche outlets to major brands. In fact, family businesses account for 50 per cent of the U.S. gross domestic product, generate 60 per cent of the country’s employment, and account for 78 per cent of all new job creation.

The East Africa region has a wide array of such firms, which shrewd private-equity investors can explore in the medium to large segment with market caps of between $10 million and $100 million. The research firm Asoko’s data identified over 10,000 firms in this revenue bracket across a diverse range of markets in East and West Africa.

The Conway Centre for Family Business estimates that 35 per cent of Fortune 500 companies are family-controlled across the full spectrum of firms, from small niche outlets to major brands.

Unsurprisingly, only a handful of the thousands of family-owned firms in Kenya reach elite status or provide strong products, brands, and services across the region, thus significantly influencing the export basket. Extrapolation of local studies indicates that there are 645 family-owned firms earning between $10 million and $100 million annually in East Africa, with nearly three out of every four of these companies being Kenyan, followed by Ethiopia, at 17 per cent, Zambia, at 5 per cent, and Uganda, Rwanda and Tanzania, at 2 per cent each. Asoko’s research further identified 490 family-owned Kenyan firms earning annual revenues in excess of Sh1 billion across a wide range of industries; of the 490, 14.3 per cent, or 70 companies, earn more than Sh5 billion, 22 of which earn over Kshs 10 billion every year.

Within these hallowed halls of prime family-owned enterprises that churn premium products, there exist complexities and contradictions cutting across the family-business divide in which virtues and vices on one end diffuse to the other end with speed and ferocity. Much more intuitively, their very nature as family-owned businesses results in unique models of starting, running and decision-making, the end result of which is usually a surprising litany of dilemmas: political interference, their worries about work and sibling rivalry, inheritance squabbles, and most of all, the fears for the heirs.

Locally, the roughly 500 sprawling family-run conglomerates with at least $10 million in revenues are the understated cornerstones of Kenya’s economic, political and social landscape. Taken together, they make up the silent pillars of the nation’s versatile economy and include the likes of KenPoly, and ICEA Lion, with Ramco being among the oldest of them all. Unlike the globally renowned family-owned firms like Walton, the Korean Chaebols or Japanese corporate giants, most African Kenyan Mamols in particular, prefer to court as little publicity as possible partly because corporate culture generally abhors uncourted publicity given the landmines of publicity.

The PwC 2018 Family Business Survey indicated expected revenue growth in 82 per cent of the family-owned enterprises – a major feat in this era of fiscal constraints and declining exports in the country occasioned by high energy costs and over-taxation. The top obstacles to surmount are corruption (72 per cent), accessing the right skills and talents (52 per cent), prices of inputs (52 per cent), competition from cheap imports (52 per rcent) and the pressure to innovate (50 per cent).

Locally, the roughly 500 sprawling family-run conglomerates with at least $10 million in revenues are the understated cornerstones of Kenya’s economic, political and social landscape. Taken together, they make up the silent pillars of the nation’s versatile economy…

These massive firm’s opaque and often unexamined governance and ownership structures and oversized influence, coupled with their cosy relationship with regulators, often lends credence to fears of influence-peddling. No doubt, as the fiscal condition of the political economy under the Jubilee government tightens, it will cast an intense spotlight on these firms, just at the time when many are navigating murky generational transitions. Absent are clear models of generational transition of wealth acquired and sustained through the patriarch’s political or social patronage, which leaves the heirs ill-prepared for their inherited fortune.

Given the nature of our political economy, most of these firms rely on close cooperation with the political structures for their operations, inducing decades of political goodwill, and support. The guarantee could be in the form of subsidies, loans, and tax incentives only imagined by their rivals. That the president, cabinet secretaries, and top bureaucrats can trace their political fortune to the attendant patronage of family capitalism gives the best glimpse of these firms’ impact in our political infrastructure.

In Latin America, family capitalism is at its most efficient in the pursuit of political power and using tentacled connections to launder public and private resources. In Argentina, the family-owned firm’s goal is political conquest with presidential and gubernatorial positions as the ultimate prize.

In keeping with the largely conservative investment decisions of these investors, 60 per cent of them populate the agricultural, industrial and manufacturing sectors of the economy. A survey by consultancy firm Knight Frank shows that these clusters have allocated 25 per cent of their investment portfolios to equities, 22 per cent to property and 22 per cent to cash or cash equivalents, with only 3 per cent in private equity and another 3 per cent in luxuries stuff such as art, wine and luxury cars.

Given the nature of our political economy, most of these firms rely on close cooperation with the political structures for their operations, inducing decades of political goodwill, and support. The guarantee could be in the form of subsidies, loans, and tax incentives only imagined by their rivals.

Curiously, Kenya’s leading family-owned enterprises are still within the first three generations of ownership, a fact tied to the barely 60 year-old independence in this 100 year-old plantation. Large industrial firms like Ramco, which traces its roots back to precolonial 1940s, signals a growing sustenance and entrenchment of these Mamols into the heart of the nation’s political economy. Ranci is currently chaired by one of the sons of the original patriarch who is subordinated by members of the third generation, a feat replicated by only one other company, which is on its third generation of leadership from within the family.

Lots of other mamols are still being ruled by first- and second-generation leadership and often silently face precarious generational transitions. Surprisingly, about 17 per cent of the top family-owned conglomerates have a succession plan ahead of the global 14 per cent average. The generational divide, coupled with increasing complexity and diversity of skills that the firm needs as it grows, predisposes the second or third generations who take over the reins of family businesses to be more open to outside investors, and hiring of experts. Globally, just 30 per cent of family businesses make it through the second generation, with only 13 per cent passing three generations, which is the context within which lots of these huge Kenyan firms exist.

What’s their story?

As the founders phase out, there’s the compelling case of having fantastically wealthy heirs dealing with wealth that is inherited rather than earned, which may predispose them to hubris. The perpetuation of the firm is not a great deal more fulfilling to them as it was to the founders. Despite being vibrant contributors to the economy, family-owned businesses face corporate governance issues, political wheeler-dealing and flaky succession plans whose overall impact limits the company’s lifespan. In total, just over half of Kenya’s family businesses reported having a succession plan in place, with two-thirds indicating that the next generation was already part of the business.

The litany of generational differences, fraying and differing visions of the future and emerging challenges and gaps compel the patriarchs to invoke external talents to increase the talent pool available for operations. Consequently, a more recent survey has revealed that family businesses in Kenya are in robust health, with revenues expected to continue growing in four out of every five firms.

According to the Finnish Family Firm Association 2009 report there are three prime ownership models in these family-owned firms: first, the owner, active in governance with three overlapping roles as manager, family member, and owner; second, the owner, non-active in governance, is a family member and owner; and third, non-owning, active in governance family member has two roles as owner and as manager. A non-family member active in governance can be a member of the board or management; also a non-family member can be owner as a capital investor or as a managing director who owns shares of the family firm.

Then there are the family members, who have no role as owners or managers and who are typically spouses (in-laws), trustees and next of kin. Relatives of most of Kenya’s stock market billionaires prefer to stay out of the public limelight, avoiding governance roles, such as directorships, in the portfolio companies where their families control major shareholding.

The Family Business Survey 2018 shows that the Nairobi Securities Exchange (NSE)’s main value proposition to mamols – visibility, access to financing and a divestment platform – appeal to the 46 polled companies whose turnovers range from Sh500 million to more than Sh10 billion. Eighty-five per cent of the Mamols rely on internal cash and 83 per cent on bank lending/credit lines, while 59 per cent prefer private equity at a higher percentage than the global average of 39 per cent.

What complicates analysis of these behemoths is that Kenya is known to have a large group of politically-connected superrich families who have hidden their wealth in trusts and a labyrinth of companies to evade taxes. In 2015, a list of 191 individuals and 25 offshore companies linked to Kenya was leaked from the Mossack Fonseca legal firm and published in what came to be known as the Panama papers. The companies and individuals held the cash equivalent of over Sh15 trillion laundered and transferred from Kenya. 

The dark side of family businesses

During the United Nations International Day of the Family in Nairobi, Justice Aggrey Muchelule said that the Family Division has resorted to alternative dispute resolution mechanisms in the quest to resolve the over 13, 000 succession cases over family-owned assets left behind by parents, spouses or other benefactors. Court and political battles over large firms and other properties left to heirs of prime family-owned firms in Kenya pop up regularly even where there is a will. Few of these cases arrive at amicable solutions.

The properties in dispute range from shares to money stashed in banks and tax havens abroad and businesses and other assets, but land still remains the most contested asset; some of these cases have been unresolved since the 1980s. Mbiyu Koinange, James Kanyotu, Gershom Kirima, Jenga Karume, and JM Kariuki’s families are among the affected as the Unclaimed Financial Assets Authority (UFAA) has had to seize their dividends and shares following family feuds over ownership and succession.

Despite their tenacity, the family business model often tends to undermine its own longevity, profitability and efficiency through political favouritism, succession by unfit heirs, endless feuds, and sleaze, including excessive and unnecessary luxury spending on the company’s tab. Examples of drastic declines in family fortunes can be found in Russia and the Middle East.

Locally, while addressing the family of the late Murang’a-born oil tycoon Thayu Kabugi during his burial, President Uhuru Kenyatta, whose family has a major controlling stake in the Kenyan economy, reflected that assembling an estate worth billions of shillings was not a simple task as it takes a lot of struggle, toil and back-breaking work. “But we are seeing a situation whereby families of these icons of our economy go after each other’s throats days after the demise of their economic fortune heroes. That is not the way to go and I would urge all families to desist from such tussles,” he said.

The looming political and economic crises simultaneously plaguing the country has exhausted the country’s political-economy’s capacity to self-correct. A major hit to the economy, the population bulge, massive corruption, and the upcoming elections and referendum will reorient the list of families that control the national pie by raising a few while sinking others. It shouldn’t be lost to us that those who’ve stashed Sh15 trillion abroad stand a better chance of surviving the storm and snapping up the auctioned assets at dirt-poor prices and entrenching their family capitalism for another generation.

Despite their tenacity, the family business model often tends to undermine its own longevity, profitability and efficiency through political favouritism, succession by unfit heirs, endless feuds, and sleaze, including excessive and unnecessary luxury spending on the company’s tab.

An annual study was released ahead of the 2019 World Economic Forum that shows that globally wealth is consolidating back into the hands of a few, with 26 billionaires owning as much as the lower 3.6 billion people in the world. Combined with declining social safety nets, the family business model remains the short-term cushion and guarantor of social mobility for large swathes of the population.

Family businesses range in size, turnover, ownership structures and profitability, from small roadside stalls to behemoths straddling national boundaries. Despite all the squabbles and relational upheavals, family businesses remain a critical means of wealth transfer and generational transition of wealth, opportunity and income.

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Darius Okolla is a researcher based in Nairobi.

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We Need A New Humanity

What matters now is not a question of profitability, not a question of productivity, not a question of production rates. And no, it is not a question of back to nature. We must invent a new future.

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We Need a New Humanity
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In the early weeks of the Covid-19 pandemic in 2020, the government announced, with great fanfare, that Kenyatta University students had invented a ventilator that could help with patient treatment. The Trade and Industrialisation Cabinet Secretary, Betty Maina, and Health Cabinet Secretary, Mutahi Kagwe, visited the students and lauded the local innovation in response to the pandemic.​

A year later, the media announced that the ventilators were not yet ready for use because the machines had not gone through the necessary approvals. ​The CSs, whose job is to facilitate innovations such as these, had little to say. Betty Maina pleaded that she was “also concerned that the process had taken us that long”, as if she did not have the authority as the Cabinet Secretary to find out where the bureaucracy had stalled. And as if to console Kenyans, she cited Personal Protective Equipment (PPEs) and masks as some of the locally manufactured items being used by medical workers.

The theatre was annoying, yet so familiar. For every innovation made by Kenyans, one obstacle constantly stands in the way: government bureaucracy. The popular explanation is that government officials are so corrupt that they will block local innovation unless it allows the officials to siphon money through avenues such as bribes and tenders. Another common narrative is that the government is shooting itself in the foot in its efforts to industrialise Kenya.

I want to suggest here that these responses miss the root of the problem. The fate of the ventilators is just a snippet of what has been happening in Africa for the last four centuries. The truth is simply this: global capitalism has always intended that Africa never industrialises. For the last four centuries, Europe has put in place infrastructure to ensure that industrialisation never happens. Furthermore, I want to suggest that industrialisation is NOT progress, and therefore, we should not aspire to it in the first place.

As Walter Rodney told us in How Europe Underdeveloped Africa, Europe began this underdevelopment of Africa through the transatlantic slave trade, which extracted the skills and energy of Africans to build the Americas and Europe. During colonial rule a few centuries later, European governments collected and exported diverse forms of African knowledge, artefacts, archives and biodiversity, thus suppressing the growth of African technologies and knowledges in areas like smelting, dye making, fabric weaving, architecture and medicine. Intellectual innovations, such as in theology, were shut down by criminalising people like Elijah Masinde and Simon Kibangu or declaring them mentally insane. In Kenya, independent schools started by Africans were shut down. In Cameroon, colonial authorities suppressed African orthographies, such as the one commissioned by King Ibrahim Njoya of the Bamum.

The truth is simply this: global capitalism has always intended that Africa never industrialises.

The message was simple: innovation was never to come out of Africa. As the colonialists paid lip service to development and civilisation, their actions demonstrated a determination to keep Africa confined to being a source of raw materials. The African minds and hands which could have been engaged in industrialisation were sent to endure brutality in the mines of southern Africa and the plantations of the Congo, and the few Africans who went to school were subjected to a mind-numbing education that turned them into bureaucrats to facilitate the extraction of African resources. The contradiction was maintained by a racist ideology which depicted Africa’s stagnation as a problem with Africans themselves, and which preached that ideas and creativity were not profitable or relevant to African life.

This suffocating system was unsustainable, because maintaining violence ate into the profits which the European bourgeoisie extracted from the colonies. The brutality of the colonies was also becoming politically problematic in the metropole, where the European public was now receiving news of what their governments were up to in the colonies.

But more importantly, as Frantz Fanon explains in The Wretched of the Earth, Europe was now saturated with manufactured goods and the European bourgeoisie, true to its voracious character, was desperately seeking new markets. European bureaucrats of the state therefore reluctantly relinquished control of the colonial governments. And conveniently for them, colonial schools had raised a small enough African bourgeoisie who could defend the continued extraction by European capital but also open up Africa as a market for European goods.

So, as the white faces disappeared from the colonial institutions, imperialism left behind two pillars for ensuring that Africa never industrialised.

One was the economic weapons of sanctions and debt traps. As Fanon reminds us, the beginning of decolonisation signaled to Europeans in Africa to withdraw the capital which they had built on the backs of Africans. The retreating Europeans also destroyed the facilities they had constructed, and after that, they used economic coercion to ensure that Africa remained stuck where the colonialists had left her.

The second weapon against Africa’s industrialisation was the African bourgeoisie itself. Due to the education system they had gone through, accompanied by the political compromises which reduced freedom to simply Africans replacing Europeans while the colonial state remained intact, the African professionals and politicians were incapable of creativity, production or work. Fanon argues that this reality, compounded by the economic stagnation imposed by the West, made the African bourgeoisie accept the role of being “the conveyor belt of capitalism”, mired in mimicking the “negative and decadent aspects” of the Western bourgeoisie.

The decadence of the bourgeoisie includes a notoriously voracious greed which consumes everything in its wake, especially that which has not fully developed or matured. The bourgeoisie capitalises on ideas for their public relations value and prevents the maturing of those ideas, or treats the raw innovation of Africa’s youth as materials for extraction by foreign venture capitalists. These days, this suppression of African innovation goes under the banner of approvals, licenses, or as “quality” and “standards” norms drafted elsewhere.

That is the fate to which the poor young Kenyans at Kenyatta University were subjected. And they are not alone. A more horrifying illustration of the Kenyan bourgeoisie’s hatred for innovation comes from a story I heard a few years ago at one of the few locally owned innovation hubs. According to this account, one of the members of the hub produced a prototype. Shortly afterwards, he received two hostile guests. One was the Kenya Revenue Authority demanding taxes, and the other was his area MP threatening him with death should he develop and publicise the prototype.

Another example comes from the education sector with which I am most familiar. Teaching staff are subjected to stifling control and surveillance by the central government in the name of “international” benchmarking and competitive graduates. In pre-tertiary education, teachers are blocked from adopting innovative pedagogy or curriculum through drastic system replacements and the constant surveillance of examinations and performance management.

These tools have now multiplied with the Competency Based Curriculum, where children will be subjected to increased nationwide assessments, and where the curriculum includes even instructions on daily learning activities. In tertiary education, institutions are subjected to inspections, examination procedures are policed from Gigiri, and curriculum requires government approval for as little as introducing new units. This system of control is based on Euro-American models but is camouflaged under the banner of “quality assurance”, which is a term adopted from industrial manufacturing.

Evidently, Western capital is assured of support from the African bourgeoisie in suppressing innovation on the continent. To hide this truth, the Kenyan elite calm our nerves with performances like that of Betty Maina and Mutahi Kagwe at Kenyatta University, singing about industrialisation from the hymnals provided by the UN, the World Bank and their bevy of consultants who make money lying to Africa that it can industrialise. This reality is propped up by a racist narrative which implies that Africa must always follow in the path of the West because we don’t know better.

And yet, the trajectory of Europe and America shows that the gospel of industrialisation being preached to poor countries is not followed in Euro-America itself. The West, especially the United States, has de-industrialised to undermine its own citizens who had successfully fought for better working conditions through their unions. From the time of Reagan, followed by agreements such as NAFTA, American industries broke up their factories and scattered the pieces among various poor countries, to as to avoid the labour and environmental regulations of the US and to take advantage of poor countries where such regulations were weak. Today, major American brands do not own factories. Rather, they rent their brand names and logos to factories in poorer countries, an absurdity which has been explained in detail by Naomi Klein in her work No Logo.

The capitalist priests of industrialisation have themselves never intrinsically cared for manufacturing. Their main goal is, and has always been, cheap profits at the people’s expense, whether the people are cultivating on plantations, running factory machines or being exploited in the colonies. As Eric Williams famously told us in Capitalism and Slavery, plantation slavery in the New World did not end due to the moralism of abolition and the weapons of the American Civil War; rather, the Euro-American capital had no use for slave labour after it had developed machinery that produced goods faster than slavery.

The exploitation of human beings did not end with the abolition of slavery; it simply migrated to the cities. Factories lined the pockets of the American and British wealthy through terrible working conditions, the poverty of depression and the humiliation of living in quasi-prisons called workhouses. Moreover, the African labour that produced the raw materials was no longer in the Americas but now in the motherland itself, thanks to colonisation.

The West, especially the United States, has de-industrialised to undermine its own citizens who had successfully fought for better working conditions through their unions.

By the same token, the rebellions of the plantations transferred to the factories. The end of the 19th and the beginning of the early twentieth centuries were characterised by some of the bravest and costliest fights for unionisation and labour rights in the US and the UK. While we are told about the industrialists to whose philanthropic foundations we must write for grants for research and cultural work, we are not told about the Haymarket Strike, or the rise of Jim Crow laws, race riots and lynchings to prevent the solidarity of workers across race, and to constantly subvert black American economic prosperity.

But just like a spoiled brat, Anglo-American capital soon became disinterested in industrialisation. With the neoliberal turn, Reagan and Thatcher famously crushed the unions with a brutality that is barely discussed publically. In the decades that followed, Euro-American capitalists threw their white working classes under the bus, excited them with false narratives blaming their misfortunes on immigrants, and increased the amount of bureaucracy and military surveillance, thus creating the rabid armies that would sweep Trump and Boris Johnson into power.

In Kenya, public sermons on the need to industrialise are notoriously silent on this parallel history of industrialisation. The Kenyan youth naively celebrate prospects of industrialisation as possibility for employment, having not been exposed to the reality of backbreaking work and precarious employment (popularly known as kibarua – contract labour).

Africa must grapple with the human cost of industrialisation over the centuries. We must not be seduced into avoiding the question of whether industrialisation is really the path to progress, even though China is willing to help Africa industrialise rather than behave like Euro-America which constantly places booby traps in the path of African innovation and industrialisation.

With industrialisation preached as religion, questioning it is literal blasphemy. But a number of reasons lead me to commit this blasphemy.

As a middle class, urban Kenyan, I am often amazed when I am in the kitchen and I see how much packaging I throw away. Everything from spices to salt is packaged in some paper or plastic container. We drink tea with milk from cows we do not see, brewed with tea leaves which we do not grow.

On our shelves are books and papers we have accumulated over the years. Many are government documents, receipts and certificates that are supposed to prove that we have done what we have done. Many of these documents and reports would be better off in a library where they can be catalogued and we can consult if we need to.

In Kenya, public sermons on the need to industrialise are notoriously silent on this parallel history of industrialisation.

Our phones are built to deteriorate quite fast, and the new models do not significantly improve our lives. They simply give us more cameras, games and apps to play with.

With all this “progress”, we are bombarded with more information as we become less knowledgeable. We are becoming physically less healthy because of relying on food that is not locally produced. We are now sitting in traffic longer while our government borrows loans to build roads in the air, instead of building infrastructure to make cycling and walking easier, or building tramways for travel over longer distances.

More annoying is the fact that many times products are marketed to us as essential, only for them to gather dust after a short period of use.

All this packaging, junk and isolation is produced by industrialisation.

The foundation of industrialisation, therefore, is not technology, as we’re taught to believe. It is alienation. Alienation from ourselves, from each other, from our environment and from reality. Industrialisation requires amnesia and detachment from the being human, to the extent that we accept the lie that to be dehumanised and to ruin the planet is “progress”.

So what is the alternative to industrialisation?

We need a society that ends alienation, alienation from what we consume, who produces it, and from each other. We should be able to buy food from farmers we know. We should be able to go to a producers’ market or a farm on a regular basis to buy food in season, and grow a few regulars at home. We should shop with containers which will be refilled every time we go to the market, rather than always throw away yet more unnecessary packaging.

We should have libraries so that we don’t have to keep buying more and more books. We should have spaces for concerts, festivals and regular occasions to meet and know each other. As a teacher who loves sewing and knitting, I should be able to earn a living while splitting my time between having conversations with young people in my house and making clothes to sell. My creativity and knowledge should not be policed by people in the lush suburbs of Gigiri who do not care who I am and whom I teach.

And without industrialisation, there would be no need for surveillance to control our bodies and minds, which means no meaningless bureaucratic jobs, less paper waste on bureaucratic documents, less corruption, and less misery of sitting at a desk from eight to five.  We would not need to make children spend the whole day in school because parents would be free to pick them up.

A de-industrialised world would give us less illnesses, would make us pollute the planet less, and would give us time to be with ourselves, our families and our communities. It would make us more creative and hopefully, happier. We would experience travel not as the harassment we now know, but as a series of adventures like the ones reflected in our folk tales, of meeting new people and either settling as new communities or returning home.

The foundation of industrialisation is not technology. It is alienation.

By contrast, all that industrialisation does is to voraciously consume the planet and our humanity in useless and brutal pursuits. Industrialisation packs people in cages called plantations, factories, mines, offices, schools and prisons. Initially, the zombie owners of the cages harvested whatever the caged human beings produced. Now they have added a new layer to their greed: they collect rents on money, patents, buildings and risk. This system is justified culturally by a media that celebrates the owners of the cages and disparages the caged. To maintain this madness, the US and the UK dedicate their resources to manufacturing weapons and occupying human talent with surveillance. The US notoriously holds a quarter of the world’s prison population behind bars for profit and the post-Brexit UK is now beefing up its nuclear arsenal.

Unfortunately, this madness is being mimicked by African leaders with no sense of irony. Ghana, a major site of export of kidnapped Africans during the Middle Passage, is considering a repeat performance of the evils of the prison industrial complex. Kenya’s president has just commissioned a weapons factory to profit from African wars, even as the aforementioned ventilators are yet to receive approval and as the lack of ICU beds and oxygen cylinders is killing Kenyans.

And this is not an invitation for escape to rural life. Rural life may give us a reprieve from the toxicity of urban life, but it remains embedded in the colonial logic of extraction and exploitation. In any case, the vulture capitalists are coming for rural areas too, under banners such as conservation, protecting wildlife from Africans and seed and food colonisation.

Euro-America is miserable. To echo Fanon, it has never stopped talking of humanity, while it increases and securitises its industrialisation of humanity. Africans should not thoughtlessly follow the path of industrialisation when industrialisation is not working in the West and has always dehumanised Africans. The West has constantly sabotaged industrialisation in Africa anyway. As Fanon, and later Thomas Sankara said, we must invent a new future. Fanon’s final words in his last book (with my modifications) are very much worth repeating:

We now know the price of suffering humanity has paid for every one of Europe’s spiritual victories. Come, comrades, the European game is finally over, we must look for something else. We can do anything provided that we do not ape Europe, provided that we are not obsessed with catching up with Europe. Europe has gained such a mad and reckless momentum that it has lost control and reason and is heading at dizzying speed towards the brink from which we would be advised to remove ourselves as quickly as possible.

​Let us decide not to imitate Europe; let us tense our muscles and brains in a new direction. Let us endeavour to invent humanity in full, something which Europe has been incapable of achieving. What matters now is not a question of profitability, not a question of productivity, not a question of production rates. No, it is not a question of back to nature. It is the very basic question of not dragging humanity in directions which humiliate humanity. If we want to respond to the expectations of our peoples, we must look elsewhere besides Europe. We must make a new start, develop a new way of thinking, and endeavour to create a new humanity.

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The Moral Economy of Elections in Africa

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In recent months it has felt like election rigging has run riot.

Citizens killed, beaten and intimidated and election results falsified in Uganda. Ballot boxes illegally thrown out of windows so their votes for the opposition can be dumped in the bin in Belarus. Widespread censorship and intimidation of opposition candidates and supporters in Tanzania.

So what do ordinary citizens make of these abuses?

If you follow the Twitter feed of opposition leaders like Uganda’s Bobi Wine, it would be easy to assume that all voters are up in arms about electoral malpractice – and that it has made them distrust the government and feel alienated from the state. But the literature on patrimonialism and “vote buying” suggests something very different: that individuals are willing to accept manipulation – and may even demand it – if it benefits them and the candidates that they support.

Our new book, “The Moral Economy of Elections in Africa” tries to answer this question. We looked at elections in Ghana, Kenya and Uganda over 4 years, conducting over 300 interviews, 3 nationally representative surveys and reviewing thousands of pages of archival records.

Based on this evidence we argue that popular engagement with democracy is motivated by two beliefs: the first is civic, and emphasises meritocracy and following the official rules of the democratic game, while the second is patrimonial, and emphasises the distinctive bond between an individual and their own – often ethnic – community.

This means that elections are shaped by – and pulled between – competing visions of what it means to do the right thing. The ability of leaders to justify running dodgy elections therefore depends on whether their actions can be framed as being virtuous on one – or more – counts.

We show that whether leaders can get away with malpractice – and hence undermining democracy – depends on whether they can justify their actions as being virtuous on one – or more effective – of these very different value systems.

Why morality?

We argue that all elections are embedded in a moral economy of competing visions of what it means to be a good leader, citizen or official. In the three countries we study, this moral economy is characterised by a tension between two broad registers of virtue: one patrimonial and the other civic.

The patrimonial register stresses the importance of an engagement between patron and client that is reciprocal, even if very hierarchical and inequitable. It is rooted in a sense of common identity such as ethnicity and kinship.

This is epitomised in the kind of “Big Man” rule seen in Kenya. The pattern that’s developed is that ethnic leaders set out to mobilise their communities as a “bloc vote”. But the only guarantee that these communities will vote as expected is if the leader is seen to have protected and promoted their interests.

In contrast, civic virtue asserts the importance of a national community that is shaped by the state and valorises meritocracy and the provision of public goods. These are the kinds of values that are constantly being pushed – though not always successfully – by international election observers and civil society organisations that run voter education programmes.

In contrast to some of the existing literature, we do not argue that one of these registers is inherently “African”. Both are in evidence. We found that electoral officials, observers and voter educators were more likely to speak in terms of civic virtue. For their part, voters and politicians tended to speak in terms of patrimonial virtue. But they all had one thing in common – all feel the pull of both registers.

This is perfectly demonstrated by the press conferences of election coalitions in Kenya. At these events, the “Big Men” of different ethnic groups line up to endorse the party, while simultaneously stressing their national outlook and commitment to inclusive democracy and development.

Over simplification

It is often assumed that patrimonial beliefs fuel electoral malpractice whereas civic ones challenge it. But this is an oversimplification.

Take the illegal act of an individual voting multiple times for the same candidate. This may be justified on the basis of loyalty to a specific leader and the need to defend community interests – a patrimonial rationale. But in some cases voters sought to justify this behaviour on the basis that it was a necessary precaution to protect the public good because rival parties were known to break the rules.

In some cases, malpractice may therefore look like the “right” thing to do. What practices can be justified depends on the political context – and how well leaders are at making an argument. This matters, because candidates who are not seen to be “good” on either register rapidly lose support.

Nothing demonstrates this better than the practice of handing out money around election times. Our surveys and interviews demonstrated that voters were fairly supportive of candidates handing out “something small” as part of a broader set of activities designed to assist the community. In this context, the gift was seen as a legitimate part of an ongoing patrimonial relationship.

But when a leader who had not already proved their moral worth turned up in a constituency and started handing out money, they were likely to be seen as using handouts to make up for past neglect and accused of illegitimate “vote buying..”

This happened to Alan Kwadwo Kyeremanten in Ghana, a political leader so associated with handing out money that he became popularly known as Alan Cash. But Cash has consistently failed to become the presidential flagbearer for his National Patriotic Party. We argue that this is because he failed to imbue gifts with moral authority. As one newspaper noted at the time:

Alan Cash did not cultivate loyal and trusted supporters; he only used money to buy his way into their minds not their hearts.

The problem of patrimonialism

A great deal of research about Africa suggests – either implicitly or explicitly – that democratisation will only take place when patrimonialism is eradicated. On this view, democratic norms and values can only come to the fore when ethnic politics and the practices it gives rise to are eliminated.

Against this, our analysis suggests that this could do as much harm as good.

Patrimonial ideals may exist in tension with civic ones, but it is also true that the claims voters and candidates make on one another in this register is an important source of popular engagement with formal political processes. For example, voters turnout both due to a sense of civic duty and to support those candidates who they believe will directly assist them and their communities.

This means that in reality ending patrimonial politics would weaken the complex set of ties that bind many voters to the political system. One consequence of this would be to undermine people’s belief in their ability to hold politicians to account, which might engender political apathy – and result in lower voter turnout. In the 2000s, as many as 85% of voters went to the polls, far exceeding the typical figure in established Western democracies.

The same thing is likely to happen if the systematic manipulation of elections robs them of their moral importance – signs of which were already visible in the Ugandan elections of the last few months.The Conversation

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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Doing Democracy Without Party Politics

Our various peoples had clear democratic practices in their pre-colonial political formations without the inconvenience of political parties. It is high time we learned from our indigenous heritages.

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Doing Democracy Without Party Politics
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The formation of factions is part of group dynamics, and is therefore to be found in every society. However, it was 18th century Western Europe and its North American corollary that invented the idea of institutionalising factions into political parties — groups formally constituted by people who share some aspirations and who aim to capture state power in order to use it to put those aspirations into practice. Britain’s Conservative Party and the Democratic Party in the US were the earliest such formations. Thus party politics are an integral part of representative democracy as understood by the Western liberal democratic tradition. Nevertheless, Marxist regimes such as those in China, Cuba, the former Soviet Union and the former East Germany also adopted the idea of political parties, but in those countries single party rule was the norm.

The idea of political parties gained traction in the various colonial territories in Africa beginning with the formation of the African National Congress (ANC) in South Africa in 1912. The founders of the ANC were influenced by African American political thinkers with whom they associated in their visits to the US.

Political organisations during the colonial period in Kenya

Kenya’s first indigenous political organisation, the East African Association (EAA), formed in 1919, had a leadership comprising different ethnic groups – Kikuyu, Luo, Kamba, the various communities later subsumed under “Luhya”, and some Ugandans, then the dominant ethnic groups in Nairobi. Its political programme entailed protests against the hut-tax, forced labour, and the kipande (passbook). However, following the EAA-led Nairobi mass action of 1922 and the subsequent arrest and deportation of three of EAA’s leaders, Harry Thuku, Waiganjo Ndotono and George Mugekenyi, the colonial government seemed to have resolved not to encourage countrywide African political activity, but rather ethnic associations. The subsequent period thus saw the proliferation of such ethnic bodies as the Kikuyu Central Association, Kikuyu Provincial Association, Kavirondo Tax-payers Association, North Kavirondo Tax-payers Association, Taita Hills Association, and the Ukamba Members Association.

In 1944, the colonial government appointed Eliud Mathu as the African representative to the Legislative Council (LegCo). On the advice of the governor, the Kenya African Study Union (KASU) was formed as a colonywide African body with which the lone African member could consult. However, the Africans changed its name to the Kenya African Union (KAU), insisting that their grievances did not need study but rather organisation.

In 1947, James Gichuru stepped down as chairman of KAU in favour of Jomo Kenyatta whose mandate was to establish it as a countrywide political forum. However, there were serious disparities in political awareness, and the colonial government continued to encourage the masses to think of the welfare of their own ethnic groups rather than that of the country as a whole. Besides, KAU’s links with other communities were often strained because of what was perceived as Kikuyu domination of the organisation. By 1950, KAU was largely moribund because, through the Mau Mau Uprising, Africans challenged the entire basis of colonial rule instead of seeking piecemeal reforms. In June 1953, the colonial government banned KAU after it concluded that radicalisation was inevitable in any countrywide African political organisation.

From 1953 to 1956, the colonial government imposed a total ban on African political organisation. However, with the Lyttelton Constitution — which provided for increased African representation — in the offing, the colonial government decided to permit the formation of district political associations (except in the Central Province which was still under the state of Emergency and where the government would permit nothing more than an advisory council of loyalists). Argwings-Kodhek had formed the Kenya African National Congress to cut across district and ethnic lines, but the government would not register it, so its name was changed to the Nairobi District African Congress.

Consequently, the period leading up to independence in 1963 saw a proliferation of regional, ethnic and even clan-based political organisations: Mombasa African Democratic Union (MADU), Taita African Democratic Union (TADU), Abagussi Association of South Nyanza District (AASND), Maasai United Front Alliance (MA), Kalenjin Peoples Alliance (KPA), Baluhya Political Union (BPU), Rift Valley Peoples Congress (RVPC), Tom Mboya’s Nairobi People Convention (NPC), Argwings-Kodhek’s Nairobi African District Council (NADC), Masinde Muliro’s Kenya Peoples Party (KPP), Paul Ngei’s Akamba Peoples Party (APP) later named African Peoples Party (APP) and others.

However, between 1955 and 1963, there developed a countrywide movement led by non-Mau Mau African politicians who appealed to a vision of Kenya as a single people striving to free themselves from the shackles of colonialism. Nevertheless, it was a fragmented movement, partly because the different peoples of Kenya had an uneven political development, becoming politically active at different times. The difficulties of communication and discouragement from the colonial government also contributed to the weakness of the movement.

Nevertheless, on the eve of Kenya’s independence in 1963, the numerous ethnically-based political parties coalesced into two blocks that became the Kenya African National Union (KANU), whose membership mainly came from the Kikuyu and the Luo, and the Kenya African Democratic Union (KADU) which mainly had support from the pastoralist communities such as the Kalenjin, Maasai, Samburu, and Turkana, as well as the Giriama of the Coast and sections of the Luhya of Western Kenya. During the 1963 elections, on the eve of independence, KADU only secured control over two out of the eight regions, namely, the Rift Valley and the Coast.

KANU under Jomo Kenyatta

Although at his release from detention in 1961 Jomo Kenyatta was not keen to join KANU, he ended up as its leader through the machinations of its operatives. He ascended to state power on its ticket at Kenya’s independence, first as Prime Minister, then as President. As Prime Minister, Kenyatta was directly answerable to Parliament, and it is this accountability that he systematically undermined.

First, the KANU government initiated a series of constitutional amendments and subsidiary legislation that concentrated power in the hands of the central government at the expense of the regional governments entrenched in the Independence Constitution. This KANU easily achieved because KADU was greatly disadvantaged numerically in Parliament. Thus within the first year of independence, KANU undermined the regional governments by withholding funds due to them, passing legislation to circumvent their powers, and forcing major changes to the constitution by threatening and preparing to hold a referendum if the Senate – in which KADU could block the proposals – did not accede to the changes.

It was clear to KADU that it was outnumbered and outmanoeuvred, and that the prospects for enforcing the compromise federalist Independence Constitution were grim. It was also clear to KADU that it was highly unlikely that it would win power through subsequent elections. Consequently, KADU dissolved and joined KANU, resulting in Kenya becoming a de facto single-party state at the beginning of 1964. These amendments produced a strong provincial administration which became an instrument of central control.

Second, with the restraining power of the opposition party KADU out of the way, KANU initiated amendments that produced a hybrid constitution, replacing the parliamentary system of governance in the Independence Constitution with a strong executive presidency without the checks and balances entailed in the separation of powers. Thus KANU quickly created a highly centralised, authoritarian system in the fashion of the colonial state.

In 1966, Oginga Odinga, the Luo leader at the time, who had hitherto been the Vice President of both the country and KANU, lost both posts due to a series of political manoeuvres aimed at his political marginalisation. Odinga responded by forming a political party — the Kenya Peoples Union (KPU) — in April of the same year. KPU was a loose coalition of KANU-B “radicals” and trade-union leaders. Although a fifth of the sitting MPs initially supported it, KPU was widely perceived as a Luo party. This was mainly due to the fact that Kenyatta and his cohorts, using the hegemonic state-owned mass media, waged a highly effective propaganda war against it.

Kenyatta took every opportunity to promote the belief that all his political opponents came from Oginga Odinga’s Luo community. Through a series of state-sponsored machinations, KPU performed dismally in the so-called little elections of 1966 occasioned by the new rule, expediently put in place by KANU, that all MPs who joined KPU had to seek a fresh mandate from the electorate.

During the 1969 General Election, KANU was for the first time unopposed. Those who were nominated by the party in the party primaries — where they were held — were declared automatically elected as MPs, and in the case of Kenyatta, President. Thus during the 1969 general election, Kenyatta also established the practice where only he would be the presidential candidate, and where members of his inner circle would also be unopposed in their bids to recapture parliamentary seats.

During Kenyatta’s visit to Kisumu in October 1969, just three months after the assassination of Thomas Joseph Mboya (Tom Mboya), a large Luo crowd reportedly threatened Kenyatta’s security, and was fired on by the presidential security guards in what later came to be known as the “Kisumu massacre”, resulting in the death of forty-three people. In an explanatory statement, the government accused KPU of being subversive, intentionally stirring up inter-ethnic strife, and of accepting foreign money to promote “anti-national” activities. Soon after this incident, the Attorney-General, Charles Njonjo, banned KPU under Legal Notice No.239 of 30th October 1969, and Kenya again became a de facto one-party state. Several KPU leaders and MPs were immediately apprehended and detained.

In 1973, the Gikuyu, Embu and Meru Association (GEMA) was formed with Kenyatta’s consent. In a chapter in Ethnicity and Democracy in Africa, the immediate former Attorney-General Prof. Githu Muigai, explains that GEMA had a two-pronged mission: to strengthen the immediate ethnic base of the Kenyatta state by incorporating the Embu and Meru into a union with the Kikuyu, and to circumvent KANU’s party apparatus in the mobilisation of political support among these groups. While posing as a cultural organisation, GEMA virtually replaced KANU as the vehicle for political activity for most of the Kikuyu power elite. Consequently, many other ethnic groups formed “cultural groups” of their own such as the Luo Union and the New Akamba Union. As Prof. Muigai further observes, with the formation of GEMA, the façade of “nationalism” within KANU had broken down irretrievably.

In October 1975, Martin Shikuku, then MP for Butere, declared on the floor of Parliament that “anyone trying to lower the dignity of Parliament is trying to kill it the way KANU has been killed”. When Clement Lubembe, then Assistant Minister for Tourism and Wildlife, demanded that Shikuku substantiate his claim that KANU had been killed, the then Deputy Speaker, Jean-Marie Seroney, stated: “According to Parliamentary procedures, there is no need to substantiate what is obvious.” Consequently, Shikuku and Seroney were detained without trial, and were only released after Kenyatta’s death in 1978.

KANU under Daniel arap Moi

Two years before Kenyatta’s death, more than twenty MPs sought to amend the section of Kenya’s constitution which stipulated that the vice president would become the interim president should the incumbent become incapacitated or die. Although the “Change the Constitution Movement” involved MPs from across the country, members of GEMA were among the most vociferous in seeking to block Daniel arap Moi’s succession in this way. Thus, upon assuming the Presidency, Moi set about reducing the influence of GEMA, especially its leaders who had been closest to his predecessor. Whereas Kenyatta had by-passed KANU, Moi revitalised and mainstreamed it, using it as the institution through which his networks would be built. By so doing, he undercut the power of established ethno-regional political leaders, and made the party an instrument of personal control.

Besides, Moi persecuted advocates of reform among university lecturers, university students, lawyers and religious leaders, many of whom were arrested, tortured, detained without trial, or arraigned in court to answer to tramped up charges and subsequently face long prison sentences, and all this forced some of them into exile.

Furthermore, Moi co-opted into KANU the Central Organisation of Trade Unions (COTU), Maendeleo ya Wanawake (the countrywide women’s organisation), and any other organisation that he viewed as a potential alternative locus of political power. At one point during Moi’s reign, the provincial administration even harassed people who did not have KANU membership cards in their possessions in markets, bus stops and other public places. I remember my father purchasing these cards to give to all his grown-up children in a bid to help them avoid such harassment. MPs lived under the fear of being expelled from KANU — which would mean automatic loss of their parliamentary seats — and so outdid one another in singing Moi’s and KANU’s dubious praises inside and outside Parliament. On the Voice of Kenya (VOK), the state-run radio station which enjoyed a monopoly, songs in praise of Moi and KANU and others castigating dissenters were played after every news broadcast.

Moi only conceded to restore multi-party politics at the end of 1991 due to the effects of his mismanagement of the economy coupled with the end of the Cold War, both of which increased internal and external pressure for reform. Nevertheless, he declared that people would understand that he was a “professor of politics”, and went on to emphasise that he would encourage the formation of as many parties as possible — a clear indication that he was determined to fragment the opposition in order to hang on to power for as long as possible. Indeed, the opposition unity that had influenced the change was not to last, as ethnically-based parties sprang up all over the country, enabling Moi to win both the 1992 and 1997 elections. Furthermore, the Moi regime was reluctant to put in place the legal infrastructure for a truly multiparty democracy, and the same was later to prove true of the Kibaki regime that took over power on 30th December 2002.

Parties as obstacles to democratisation

In a chapter in A Companion to African Philosophy, Makerere University philosophy professor Edward Wamala outlines three shortcomings of the multi-party system of government in Ganda society in particular, and in Africa in general.

First, the party system destroys consensus by de-emphasising the role of the individual in political action. Put simply, the party replaces “the people”. Consequently, a politician holding public office does not really have loyalty to the people whom he or she purportedly represents, but rather to the sponsoring party. The same being true of politicians in opposing parties, no room is left for consensus building. We have often witnessed parties disagreeing for no other reason than that they must appear to hold opposing views, thereby promoting confrontation rather than consensus.

Second, in order to acquire power or retain it, political parties act on the notorious Machiavellian principle that the end justifies the means, thereby draining political practice of ethical considerations that had been a key feature of traditional political practice. We are thus left with materialistic considerations that foster the welfare not of the society at large, but rather of certain suitably aligned individuals and groups.

Third, as only a few members at the top of a party wield power, even the parties that command the majority and therefore form the government are in reality ruled by a handful of persons. As such, personal rule, after seeming to have been eliminated by putting aside monarchs and chiefs, makes a return to the political arena of the Western-type state. Thus the KANU-NDP “co-operation” and ultimate “merger” was the result of the rapprochement between Daniel arap Moi and Raila Odinga; the Grand Coalition Government was formed as a result of the decision of Mwai Kibaki and Raila Odinga; The Handshake and the Building Bridges Initiative was the result of private consultations between Raila Odinga and Uhuru Kenyatta. In all these cases, party organs were only convened to ratify what the party leaders had already decided, and dissenters threatened with disciplinary action. We have very recently seen the same approach in the debate on the allocation of revenue, where what was supposed to be the opposition party acquiesced to the ruling party’s view simply because of the Handshake and the Building Bridges Initiative.

In my youth, I was convinced that if only multi-party rule would be restored in Kenya, autocracy would be a thing of the past. With hindsight, however, it is now clear to me that just as middlemen enjoy the bulk of the fruit of the sweat of our small-scale farmers, so party leaders enjoy the massive political capital generated by the people. In short, party politics, whether with one, two or many parties in place, hinder true democratisation by perpetuating political elitism and autocracy.

Towards a no-party system of governance

In Cultural Universals and Particulars, the Ghanaian philosopher Kwasi Wiredu advances the view that the no-party system has evident advantages over the multi-party system:

When representatives are not constrained by considerations regarding the fortunes of power-driven parties they will be more inclined in council to reason more objectively and listen more open-mindedly. And in any deliberative body in which sensitivity to the merits of ideas is a driving force, circumstances are unlikely to select any one group for consistent marginalisation in the process of decision-making. Apart from anything else, such marginalisation would be an affront to the fundamental human rights of decisional representation.

However, Yoweri Museveni’s “no-party system” which he instituted when he took power in Uganda in 1986 was simply a one-party system in disguise. Indeed, in his Sowing the Mustard Seed, Museveni unintentionally reveals a party orientation in his analysis of his electoral victory in 1996: “Although I was campaigning as an individual, I had been leading the movement for 26 years. Therefore, the success of the NRM and my success were intertwined.”

Our various peoples had clear democratic practices in their pre-colonial political formations without the inconvenience of political parties. For example, Prof. Wamala, in the chapter already cited, informs us that the Kabaka of the Baganda could not go against the decision of the Elders. It is high time we learned from our indigenous heritages.

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