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When Family Means Business

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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 writer and a social commentator based in Nairobi, Kenya.

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Cutting the Hand That Feeds: The Plight of Smallholder Farmers in Kenya

Small-scale farming accounts for roughly 75 per cent of the total agricultural output in Kenya. The future of food security in the country, therefore, lies in safeguarding small-scale farmers. However, Kenya’s agricultural policies are focused on cash crops and industrial agriculture. This has led to the food crisis we face today.

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Cutting the Hand That Feeds: The Plight of Smallholder Farmers in Kenya
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In the pre-colonial days of the early 1900s, Africans predominantly farmed finger millet, sorghum, pearl millet, amaranth, jute mallow, spider plant, and lablab, among other indigenous crops. The farms were so rich in biodiversity that food production thrived. This subsistence nature of farming saw crops being transferred from farm to plate.

In the western Nyanza belt, for instance, ugali was brown (a mixture of sorghum and millet) and often accompanied by indigenous vegetables, such as elisaka (spider flower), omurere (jute), and chimboka (amaranth). During bountiful days, farmers thronged the local food markets to sell off their surplus produce. Food was diverse, high in nutrients, locally grown, and locally available.

In contrast, most farms in Africa today have morphed into monoculture (cultivation of one type of crop) farms. In Kenya, maize is the most dominant food crop on most farms. Cash crops, such as tea, cotton, and coffee introduced by the colonial enterprise, still dominate most farms, and food markets mostly sell kales (sukuma wiki), spinach, maize, and cabbage. Consequently, meals in most households have shifted to either white processed ugali and sukuma wiki or beef and chapati or rice. Food is now processed, low in nutrients and 14% of it is imported.

The diversity present in farmers’ fields has continually declined and the threats to diversity are on the rise. Of the more than 6,000 plant species cultivated for food, fewer than 200 make substantial contributions to global food output, with only 9 accounting for 66 per cent of total crop production in 2014.

Such has been the evolution of food systems that farmers intuitively gravitate towards producing what has a ready market as opposed to what is nutritious and indigenous. Cash crops have replaced heritage foods that fed people for generations sprawling back to the dawn of human life.

Cash cropping: A profit-driven paradigm  

Mass cash cropping (popularised by industrial agriculture) has done more harm than good to smallholder farmers. Fertile lands in the Kenyan highlands are occupied by multinational tea corporations, such as James Finlays and Unilever Tea. These corporations pocket high profits at the expense of Kenyan smallholder tea farmers, who constantly grapple with low prices for this produce and remain mired in poverty. Meanwhile, tea pickers work and live under destitute conditions and some suffer from sexual harassment.

Whereas the proponents of cash crop farming might argue that this type of farming has placed farmers on the global market (thereby increasing their chances of earning an income, which could, in turn, address food insecurity) health, economic and social concerns have assumed a secondary place to profits.

Of the more than 6,000 plant species cultivated for food, fewer than 200 make substantial contributions to global food output, with only 9 accounting for 66 per cent of total crop production in 2014.

The development history of cash crops in Africa over the last few decades, however, shows that cash crops have produced minimal cash. In the previous three decades, real income from cash crops has declined. African shares in world markets of most commodities have worsened, and most African countries have been sinking deeper and deeper into debt.

The cash crop monopoly has led to the inhumane exploitation of smallholder farmers. This system has consistently oppressed farmers economically and socially through land grabbing, repressive seed laws, and dependency on multinational corporations for farm inputs. Farmers can no longer save and share seeds from the current harvest to plant the next season, as these seeds are patented by multinational seed corporations and protected by intellectual property laws. In Tanzania, farmers risk a prison sentence of at least 12 years or a fine of over €205,300, or both, if they sell and share seeds, including their own farmer-bred seeds, that are not certified. Smallholder farmers now have to buy the seeds, chemical pesticides, and fertilisers each planting season. They have increasingly found themselves at the short end of the stick in this profit-driven paradigm.

This dependency has tied farmers to crippling debt that has sunk the farmers deeper into cyclic poverty. In India, many farmers have committed suicide on account of spiralling debt. In Maharashtra’s Vidarbha region, 60,000 farmers committed suicide in 2007 because of debt, repeated crop failures, and the inability to meet the rising cost of cultivation.

Growing cash crops for export has taken more productive land from local food production. Resources that would otherwise have utility in local food production have been channelled into producing agricultural export crops. Consequently, smallholder farmers have converted marginal land with little agricultural productivity for local consumption.

Cultivating cash crops on lands traditionally meant for food crops has a significant impact on the food security of a community or nation. Conversion from subsistence farming to market-oriented agriculture, and shifting from the cultivation of traditional food crops to cash crops through the commercialisation of agriculture have led to an increase in malnutrition and food insecurity in most African countries. In Kenya, for instance, in 2008, an estimated 1.3 million people in rural areas and between 3.5 million and 4 million in urban areas were food insecure. This is despite Kenya exporting more than 3 billion dollars in food crops in 2010.

Cultivation of cash crops has also led to the excessive use of fertilizers and agrochemicals, which have harmed our bees and soil and aquatic organisms, and left our water bodies choking with pollution. The need for more land for cash crop cultivation has led to massive deforestation, which has further degraded soils and increased water scarcity. According to the Ndung’u land report, from 1963 to 2003, 11,000 acres of forested land in Kenya was excised off to create the Nyayo Tea zones. In 1988, Transmara Forest Reserve lost 937.7 hectares to Kiptagich Tea Estates.

Monocropping issues

Agricultural commercialisation has led to monocropping. This introduction of new and similar crops into farmers’ fields has drastically altered the diversity of local varieties previously cultivated by farmers. Farm agricultural diversity has been killed under the false assumption that local varieties have low productivity. Ownership of diverse indigenous seed varieties has shifted from smallholder farmers to multinational corporations. The farmer no longer controls and owns the seeds he grows. New patented varieties, often marketed as high yielding varieties, require smallholder farmers to purchase the seeds from one supplier, in this case, the multinational corporations.

Growing monocultures on farms only advances the global agenda of globalisation, which is often controlled by global corporations. Monocultures have been proven to displace the biodiversity on farms. The UN International  Technical  Conference on Plant Genetic Resources in Leipzig Germany, 1996, noted that industrial monocultures in agriculture had replaced 75 per cent of all agro-biodiversity.

Cultivation of cash crops has also led to the excessive use of fertilizers and agrochemicals, which have harmed our bees and soil and aquatic organisms, and left our water bodies choking with pollution.

In addition, Western agricultural corporations and governments are now pushing African countries to industrialise their agriculture. Consequently, food crops, such as rice, wheat, and maize, are currently grown as cash crops. These crops currently account for more than 50 per cent of the world’s calorie intake. An indication of the loss of agricultural diversity is the fact that today we have more Kenyans consuming imported maize, wheat, and rice  as opposed to millet and sorghum so much so that the former have become the staple foods.

It is this reliance on food and agricultural imports that has seen most Kenyans go to bed on an empty stomach. What’s worse, in the wake of COVID-19, farmers are losing their produce due to lack of markets or are sell it at throwaway prices.

President Uhuru Kenyatta, in his March address, encouraged traders and farmers to continue with their agricultural activities so that Kenyans can have access to farm produce at all times – a clear indication that smallholder farmers produce the food consumed in the country.

Who feeds Kenya?

A World Bank Report shows that Kenyan agriculture covers small-, medium-, and large-scale farming. Small-scale production represents roughly 75 per cent of the total agricultural output. The report further states that small-scale production further accounts for 70 per cent of the marketed agrarian produce, as opposed to large-scale farming, which accounts for 30 per cent of traded agrarian food and mainly involves growing commercial crops, such as tea, coffee, maize, sugarcane, and wheat.

Hans Binswanger-Mkhize, in his book, Agricultural Land Redistribution: Toward Greater Consensus, makes a similar assessment. He notes that with just 37 per cent of the land, small-scale farms in Kenya produced 73 per cent of agricultural output in 2004.

It is therefore quite evident that small-scale farmers feed Kenyans as they focus on producing food for local and national markets and their own families. In contrast, large-scale farms specialising in cash crops tend to produce commodities and concentrate on export crops, many of which people can’t eat. They also focus mainly on return on investment.

Despite this realisation, there is little evidence of action taken to ensure that these small-scale farmers produce more during this COVID-19 pandemic. To cushion Kenyans against hunger, the Ministry of Agriculture has sought to import 4 million bags of maize to curb the shortage in the country instead of supporting the smallholder farmers who produce 70 per cent of the maize consumed in the country to produce more. This dependence on the international market for food security that prioritises the industrial agriculture paradigm (the frontier of the cash crop monopoly) is the very foundation of the food crisis we are facing today.

This lack of support has led to the reduction in the number of smallholder farmers. Dr. Vandana Shiva, in her book,  Who Really Feeds the World, notes that since the introduction of policies of globalisation of agriculture in 1991, farmers have sunk in numbers, from 110 million to 95.8 million – a loss of nearly 15 million farmers, or 2,000 farmers per day.

This reduction in the number of smallholder farmers is a direct result of the loss of their agricultural land. A large number of farming families have less than two hectares to feed themselves and humankind. The acreage available for cultivation is shrinking due to a number of factors, including population pressure, lack of access to land, and rules of corporate globalisation designed to make profits at the expense of smallholder farmers.

A World Bank report shows that between 2008 and 2010, at least 60 million hectares of productive farmland was leased out or sold to foreign investors for large-scale agricultural projects, with more than half of these in Africa. farmlandgrab.org noted that these massive new agribusiness projects were throwing a limitless number of small farmers off their territories.

As though the shrinking land size is not enough of a hurdle, farmers are even locked into debt as multinational corporations sell them costly inputs in the form of patented seeds, fertilizers, and agrochemicals while buying their produce cheaply. Multinational corporations such as Bayer, Dupont, Syngenta, Land O’Lakes, BASF, Yara, PepsiCO, Unilever, and Carrefour are ripping everything off farmers. Consequently, farming has become unviable, and most farmers are leaving their farms for meagre jobs in the urban areas.

A World Bank report shows that between 2008 and 2010, at least 60 million hectares of productive farmland was leased out or sold to foreign investors for large-scale agricultural projects, with more than half of these in Africa.

The future of food security and food safety lies in promoting and safeguarding small-scale farmers. It is time to make farming feasible for the smallholder farmer, given that high input, resource-intensive farming systems have failed to achieve sustainable food and agricultural production.

Contradictory to this, is the decision by the government not to buy maize for its Strategic Food Reserve from local farmers but instead pave way for private sector warehousing. This will lead to no stabilisation of food supply levels and prices within the country during prolonged droughts. This move is likely to exacerbate the levels of food insecurity within the country by increasing the prices of food thus reducing its availability to majority of Kenyans. This is per the Agricultural Sector Transformation and Growth Strategy 2019 -2020, which purports to boost food security in the country.

What needs to happen

Small-scale farms have already proven that they can produce more diverse foods for households and the market. The Ministry of Agriculture needs to prioritise domestic food production over international exports and increase investment in smallholder farmer-based food production.

The UN Environment Programme, the International Fund for Agricultural Development, the Food and Agricultural Organisation (FAO) and the UN special rapporteur on the right to food estimate that small farmers produce up to 80 per cent of the food in non-industrialised countries. We need to stop the allocation of land to agribusiness-led ventures and make land accessible to smallholder farmers through appropriate land reforms. Land from the cash crop plantations needs to be handed over to smallholder farmers. Women farmers who produce most of our food have no access to land. We need systems that make it legal for women to own and cultivate land.

We need policies that enable farmers to grow locally, export real surpluses, and import what is not available locally. Policy interventions include stabilising market prices and regulating import controls through taxes to avoid dumping, which threatens local agricultural production.

We need to innovative and create eco-friendly farming systems, such as ecological farming that protects and enhances the natural resource base while raising agricultural productivity. Farming systems should encourage diversity to cope with climatic shocks.

We need farming systems that protect farmers and consumers against the increasing monopoly power of vast, multinational, agro-industrial corporations. We require systems that encourage consumers to purchase food directly from farmers, systems that allow farmers to breed their seeds, save and exchange these seeds amongst each other, systems that will not make smallholder farmers dependent on the excessive use of agrochemicals and fertilisers.

We need to innovative and create eco-friendly farming systems, such as ecological farming that protects and enhances the natural resource base while raising agricultural productivity. Farming systems should encourage diversity to cope with climatic shocks.

These systems promote self-reliance and self-sufficiency, which are key to a future free of hunger, oppression, and starvation.

In the words of Thomas Sankara, “He who feeds you, controls you.” Because food is fundamental for the development of society, and serves the purpose of nourishment alongside enlivening our culture, its producers must be protected and supported.

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

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Let’s Keep Universities but Do Away With Degrees

If we divorce training for the workplace from university education, universities can return to being sites of knowledge that are open to the public and that benefit society.

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After two decades of the neoliberal gutting down of Kenyan universities, Kenya’s president has now gone for universities’ jugular. He has cut off the university as as a route for social advancement among the non-elite class. The slicing of the jugular came with the recent university admissions when the government announced that more than a half of them would be turned into technical programmes and institutions. At first, the government announced this move as a choice of the students themselves, but later on, it became evident that many students were caught by surprise.

Kenyan universities have maintained a semblance of independence from direct patronage by Kenya’s aristocracy. As long as universities have existed in Kenya, and especially after the expansion of university education by Kenya’s second president, Daniel arap Moi, a child from a village had a shot in the Kenyan imagination of becoming next in line to the presidency. (For the moment, the integrity of the process is not considered here.) Now that President Uhuru Kenyatta has ditched his deputy, he has got his bureaucratic robots to slice the jugular of Kenya’s schooling system and let it bleed to death.

As is to be expected, the Kenyan media has celebrated the event, thus becoming the conduit for fairly unbelievable stories that clothed Kenya’s feudal politics in the parlance of employment and The Market (as opposed to the regular markets that we all love). Like clockwork, the media published headlines such as “Are degrees no longer hot?”, wrote op-eds justifying technical and vocational education and training (TVET) as a better alternative to a regular university degree, or held town hall meetings that gave a semblance of public participation by fielding questions from youth who had clearly not understood that they are pawns in a system that just does not care about them. This move will not surprise anyone with knowledge of the aristocratic class system in Kenya and the neoliberal turn of the 1980s. It has been a long time coming.

Missionaries, colonial settlers and the colonial state

Since colonial times, the Kenyan state has been hostile to Africans receiving any type of formal education that does not bend to imperial interests. At the start of colonialism, this hostility came through the missionary condemnation of African rituals, professions and apprenticeships as evil, dubbing, for example, herbal medicine as “witchcraft,” and all the while shipping indigenous knowledge and crafts to London.

When formal British education was introduced to Kenya, there was tension between the competing interests of the missionaries, the colonial settlers and the colonial state. The missionaries were primarily interested in converts, and so reading was essential to their education. The settlers, however, were interested only in manual labour, and were frustrated that the colonial government was not forcing Africans to work on the huge tracts of land that had been dispossessed from Africans. They were therefore hostile to schooling beyond trade schools, and accepted formal education for Africans only on the promise that the inclusion of Christian religious education would ensure that Africans remained compliant with the colonial interests.

Since colonial times, the Kenyan state has been hostile to Africans receiving any type of formal education that does not bend to imperial interests. At the start of colonialism, this hostility came through the missionary condemnation of African rituals, professions and apprenticeships as evil…

It is from the colonial settlers that Kenya inherited the narrative that education would make Africans unable to do manual work (or what today is called “useful” or “relevant to the market”), because all the African would acquire from education is big ideas and a desire for the status of the Europeans. And, from a certain perspective, the settlers were not wrong. In a stratified system such as colonial society, being at the bottom of the hierarchy, as Africans were, meant a cruel life of dispossession, forced labour and taxes. Africans could not be enticed to go to school if there was no carrot in the form of exemption from this oppressive life. And once that door was opened, it would only be a matter of time before Africans demanded, as Frantz Fanon famously said in The Wretched of the Earth, “to sit at the settler’s table, to sleep in the settler’s bed, with his wife if possible.”

There was a second element of truth to the settlers’ fears. The settlers were familiar with the fact that even in the belly of the empire, aristocratic education had the effect of paralysing one’s thoughts and sense of reality. In Victorian England, the industrialists complained that aristocratic education from prestigious public schools and Oxbridge had rendered their children incapable of running the companies their parents expected the children to inherit.

The settlers did not need to point to London to see the truth of this: the bulk of the colonial administration was made up of graduates of elite British schools, and even the settlers called their own colonial administration stifling and suffocating. The list of complaints by the British settlers are depressingly similar to the complaints that a Kenyan today would make: the government borrowing loans at high interest rates, failing to address the economic depression, moribund, “dependent on an uninstructed electorate situated 6000 miles away, and characterised by a continuous epidemic of public meetings, which produce much eloquence, heady talk and little practical benefit to the [white settler] community as a whole”.

The Kenyan state needs to minimise the number of contenders for elite status that has been the goal of university education for almost three centuries. The idea, therefore, that we do not need Kenyans to go to university because there is no employment is a fantasy at best, and propaganda at worst.

The aristocratic values which the settlers were wary of would return to Kenya in the 1980s when the World Bank proposed to African Vice-Chancellors to eliminate universities, since African countries needed basic education, not higher education. The audacity of the proposal notwithstanding, it is hardly surprising that the university administrators would not comply and phase themselves out of a job. But later, as Ayesha Imam and Amina Mama report in their book chapter, “The role of intellectuals in limiting and expanding academic freedom”, the World Bank got their wish by starving African universities of money and going to the extreme of demanding that purchases of books and journals be first approved by the Bank.

The undermining of African higher education was motivated by the desire to elevate top-ranking American and British universities to luxury services afforded by the world’s elite by pushing for a global commodification of university education through the World Trade Organization (WTO).

To see that the complaint of “useless” and elitist graduates has not changed a century later gives us food for thought. But it is not as disturbing as the fact that Kenyan citizens today are strange bedfellows with colonial settlers and British industrialists, sharing the same complaints about the Kenyan ex-colonial state and its aristocratic schooling system. When communities of different geographies, cultures and political inclinations have the same complaint about university graduates, it is time for academics to abandon the old strategy of accusing society of not understanding what university education is for. We need to either concede that society is right, or we explain the truth.

I choose the latter.

Justifying why Kenyans don’t need university education

To explain the mess of the system that is now receiving its last kick from the president, I will address three justifications for the bizarre turn of events in university education:

  1. People shouldn’t get degrees because there is no employment.
  2. Degrees make graduates become employment seekers rather than employers.
  3. Degrees do not give Kenyans skills which are “useful” or “relevant” to The Market, such as entrepreneurial skills for business or technical skills for building infrastructure.

The lack of employment justification

This justification should be fairly easy to explain by pointing out that the availability of employment is an economic, rather than an educational, function. In Kenya, however, this argument routinely falls on deaf ears for psychological and ideological reasons.

Psychologically, tackling the economy is too daunting for simple minds fed on the Anglo-American logic of easy and instant solutions to complex and long-term problems. It would require addressing the political economy, being an active citizen and making certain demands politically.

The undermining of African higher education was motivated by the desire to elevate top-ranking American and British universities to luxury services afforded by the world’s elite by pushing for a global commodification of university education through the World Trade Organization (WTO).

In contrast, blaming schools for unemployment is comforting. The majority of the school population is made up of minors who cannot speak back, and of teachers who are fairly powerless in terms of employment conditions and even the syllabus, especially in these neoliberal times when teaching has been transformed into slavery by managerial and regulatory regimes of accountability.

Blaming the education system has an added ideological benefit – it justifies employers exploiting labour in the name of graduates not being adequately prepared for The Market. Unfortunately, the trade union movement has been too paralysed to come up with an effective counter-argument, and those who are still in permanent employment have failed to establish worker solidarity with their colleagues suffering on gig terms.

In any case, there is an argument to be made against using educational accomplishment for employment. The reliance of employers on academic certificates is a form of discrimination, since those who are employed will always be those with the resources to get an education. Reliance on academic achievement also makes the school system subsidise employers by sparing them the cost of equipping their employees with the requisite skills.

Any country that has a backbone should tell businesses to shut up and train their own employees at their own cost. But in this era of state capture, that is unlikely to happen.

The education for employment justification

It is important to clarify that employment was never the immediate goal of the British-oriented university education system that Kenya inherited. In Victorian England, university education and admission through the examination system were primarily a tool of assimilation for the rising middle classes into the aristocracy. It was through the university system that members of the middle class gained access to the social and symbolic power of European aristocracy, which remains the source of cultural legitimation in today’s world. In turn, the middle classes were offered an opportunity to become part of the burgeoning British Empire. As a consequence, most of the colonial administrators were graduates of public schools and Oxbridge, and even now, the rising inequality in Britain has been attributed to the fact that this same cohort still dominates British politics and institutions.

Similarly, university education in Kenya was an opportunity to be assimilated into the colonial state. The first university graduates were the children of Chief Koinange, a colonial collaborator. One of his children, Mbiyu, received education from elite schools in three continents: Alliance High School in Kenya, London School of Economics in the UK and Columbia University in the US. He was also a Rhodes scholar at the University of Cambridge. He later became the brother-in-law of the first president, Jomo Kenyatta, and was in the president’s core cabinet for most of his life in independent Kenya.

Blaming the education system has an added ideological benefit – it justifies employers exploiting labour in the name of graduates not being adequately prepared for The Market.

With the outbreak of the Mau Mau war in the 1950s, and with the rise of the United States as a global power, the British government jacked up the availability of university education to raise a Kikuyu middle class that would provide the civil servants for the colonial state. After independence, the first president saw the university as fulfilling precisely the same role, and as Mwenda Kithinji argues in his brilliant book, The State and the University Experience in East Africa: Colonial Foundations and Postcolonial Transformations in Kenya, the first president had no intention to expand university education since he had the Kikuyu elites that he needed. The second president, a member of a minority ethnic group, then expanded university education in order to widen the Kenyan middle class to include people from other ethnic groups. It is therefore wishful thinking, if not delusion, for Kenyans to believe that the government schooling system was ever about employment. The schools have always been about class status and power.

However, the popular belief in education for employment is understandable, because the expansion of the control of the (ex)colonial state and global capital by the British and Kenyan elite was experienced by ordinary Kenyans as employment.

But almost 60 years after independence, there is no longer a need for the Kenyan elite to provide Kenyans with university education. In the 1960s, when there were not enough British-educated Kenyans to run the civil service, the Kenyan elites were the first generation in their families to go to British schools. . Today, however, there are enough British-educated Kenyans to run the ex-colonial state. The children of the elite are in power, and they also have children and grandchildren whom they want to ascend to power. Moreover, the inequality in Kenya’s education system necessarily means that those who perform well are children of middle-class parents who can afford private school education and can take over the bureaucracy and civil service through patronage, rather than through academic achievement.

The elites of Kenya, whom the current education system serves, have enough of their children and relatives to work in government, and enough of second-generation middle-class children to do their work. With families of a minimum of four wives and dozens of children, the elites have enough personnel.

Moreover, the elites cannot afford an educated Kenyan population outside of government. The Kenyan state needs to minimise the number of contenders for elite status that has been the goal of university education for almost three centuries. The idea, therefore, that we do not need Kenyans to go to university because there is no employment is a fantasy at best, and propaganda at worst. The goal of the government education system in Kenya has never been employment. Employment was simply a side effect. And employment seekers were not supposed to be ordinary Kenyans; they were supposed to be the elites entering top government posts through family ties and club networks.

The “useful” and “relevant” skills justification

Given this history of the imperial education system, it is almost laughable that university scholars have sought to justify themselves as providing skills that are useful for graduates in The Market. That said, it is a lie to which I dedicated a significant part of my career, until I realised that studying the arts can never be “marketable” in an anti-human economic and political system.

That aside, the fantasy of making university education appear “relevant” has been a public relations exercise in which even the British academy was engaged in the 19th century after industrialists complained that universities were not training their sons to take over the family industries from their fathers. In fact, John Brown argued in 1970 that the British elite university could not find a strong enough argument to defend the imperial education based on the Roman and Greek classics. However, it won over the industrialists by what he calls “the parlance of advertising” and an “imaginative sales effort”. Rather than argue for university education on its own merit, the universities assimilated the critique about their lack of “practical skills”, and claimed that elite class manners were a skill in and of themselves.

To put it simply, the universities told the business elite that they needed knowledge and habits of aristocrats for them to be “successful”. It was not enough to make money; one had to be sophisticated and convincing, able to talk across cultures and social class.

Before my road to Damascus conversion, I made this same laughable argument myself. Now when I think of it, this defence of university education belongs to the same whatsapp group as the products of business coaches and motivational speakers who promise “soft skills”, like how to speak convincingly, how to make an elevator pitch, how to dress to look presentable, and all other forms of self-improvement for The Market. We academics making those arguments are no different from those who give tutorials on how to have English “afternoon tea the correct way”.

We should do away with universities – as they are now

If universities, as they currently stand, are useful only to the elites, it should come as no surprise that the elites are now destroying them. After all, the universities are theirs.

But rather than fight for universities to remain public institutions in their current form, we the people need to fight for them to become truly public by removing degree programmes and turning them into a space for knowledge and culture. We should break down the walls of admissions and examinations. We should diversify and increase opportunities for people to learn through cultural centres, festivals and public libraries. We should make public engagement, like dialogues under a tree, and visits to what Odero Oruka called “sage philosophers” a part of formal education. For skills training, we could resort to apprenticeships as a way to enter a profession and facilitate peer review as a way to improve services.

Two things must definitely be removed from the university as an institution: 1) certification; and 2) the interference and regulation in university education by the state. Both have reduced university education to a cynical process of gaining papers to access elite status and titles, and of measuring outcomes and indicators like a balance sheet.

Most of all, we must remove the institution of the imperial elite, which is made up of people who gain wealth and power through their manipulation and control of the commons – land, natural resources, labour and knowledge.

​Africa may not always have offered degrees, but it has had universities for millennia. We can do away with degrees and retain universities. If we divorce training for the workplace from university education, universities can return to being sites of knowledge that are open to the public and that benefit society. Right now, universities are hardly different from members-only clubs for those who survive the hazing ritual of examinations and gain the right to become snobs who undermine democracy and social justice for the rest of their lives.

​But to scuttle such fundamental and dynamic reforms to education, the economy and politics, the president has now sacrificed the dreams of an entire generation of Kenyan youth – however contradictory those dreams may be – in order to sustain the exploitative social status of his family and the ruling elite. This situation is not only unjust; it is also untenable.

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Reimagining Home in a Time of COVID

COVID-19 has compelled us to think about the home as an enclosed political economy. The pandemic has placed an additional strain on the caregiving role and labour of women, who have been disproportionally affected by domestic and other forms of violence. What might a just home in a post-COVID future look like?

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Reimagining Home in a Time of COVID
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One of the contradictions of the past few weeks is that while we have become isolated within our own borders, neighbourhoods and homes, we have also become joined globally in the incantation of new words: social distancing; lockdown; quarantine; curfew; shielding. To this list of what the Welsh Marxist theorist Raymond Williams might call our COVID keywords, we must also insist on adding evictions, demolitions, and forced internal migrations, all of which have unfolded before our eyes in the first pandemic to occur in the age of social media.

At a recent webinar on Africa and the Pandemic, ROAPE’s Heike Becker described African governments as being more intent on flattening houses than on flattening the curve. I was provoked by this to revisit the literature on domicide, a word used to describe the deliberate destruction of homes and the suffering of those who dwell in them. In this pandemic, there has been an under-theorisation of the meaning of home. Instrumentally, instructions to stay at home were not made on the basis of careful knowledge of how homes function as what Kathleen Lynch, John Baker and Maureen Lyons have described as enclosed places or political economies.

Feminists have long argued that affective relations and the conditions under which reproductive labour is provided are neglected and under-researched. This failure risks making the attempt to prevent the spread of COVID-19 not just instrumentally unworkable but also unjust.

Olu Timehin Adegbeye has written that the World Health Organization (WHO) is “promoting social distancing as an essential response to this pandemic, forgetting that there are many parts of the world where this single solution is contextually inadequate or even dangerous”. As Tshepo Mdlingozi pointed out when he wrote in relation to South Africa, “spatial colonialism makes it impossible and inhumane to enforce a lockdown in shack settlements”.

COVID has also thrown up critical existential questions about what we talk about when we talk about home. David Ndii has written that the Kenya authorities have an assumption that everyone has a true rural home. This has meant that working people and the urban poor are treated as temporary residents of the city who have no rights to the city – an assumption with deep colonial roots. In India, the authorities announced a lockdown that Arundhati Roy has described as “towns and megacities…extrud[ing] their working-class citizens — their migrant workers — like so much unwanted accrual”. (In contrast, India’s repatriation by air of its overseas citizens has been meticulously organised.)

Feminists have long argued that affective relations and the conditions under which reproductive labour is provided are neglected and under-researched. This failure risks making the attempt to prevent the spread of COVID-19 not just instrumentally unworkable but also unjust.

When the stay-at-home orders were made, little thought was given to what it means to ask poor families to educate children from home in overcrowded conditions at a time when care work is itself risky, disproportionately exposing women to greater risks of the disease.

Our failure to imagine the homes of others is all the more striking because for those with access to technology, we are able to look into the homes of others for the first time. Virtual meetings challenge the notion of home as enclosed, private spaces.

Similarly, some of us have spoken frankly and sometimes for the first time about our family commitments and how our jobs are built on an unencumbered male breadwinner model now thrown into disarray. The instruction by our employers to “work from home” was striking: what do we imagine has been going on in homes other than work?

The pandemic has made responsibilities for care work more visible while increasing its quantity as women try to do their jobs whilst simultaneously looking after those in their home. The under-theorisation of what takes place in the home was evident in other ways, from the neglect of a shadow pandemic of domestic violence to the lack of awareness about the ways of life of multigenerational homes where shielding the elderly is not practical or where older people have long established roles in relation to care, quarantine and the dying.

Our failure to imagine the homes of others is all the more striking because for those with access to technology, we are able to look into the homes of others for the first time. Virtual meetings challenge the notion of home as enclosed, private spaces.

The pandemic should compel us to think more clearly about the home as a political economy. It has made visible and at the same time put under additional strain the work of social reproduction, that is, the socially necessary labour expended to provide food, clothing, and shelter. That little value is attached to this caregiving role is not natural but the outcome of political choices.

Caregiving and emotional labour are unequally distributed. They fall disproportionately on women and most of all on minority women, the poorly paid and the precarious. They subordinate women in society.

Women have, of course, struggled against that subordination. This is, for instance, richly evoked in Luise White’s study of early Nairobi, The Comforts of Home: Prostitution in Colonial Nairobi, which showed how women provided care labour for men in return for pay “in imitation of marriage” and then went on to use the proceeds of that labour to become independent property owners in a growing city. As one woman quoted in the book stated, “I built this house on my back.”

The gulf between the homes of the rich and the poor in the cities of the Global South has meant that whilst many cocoon at home in safety, with adequate food and access to plentiful resources, (purchases of luxury cars in Kenya have shot up since the beginning of the pandemic: the car too functions as enclosed space), in other parts of the city, women are caring for people without pay, taking care of loved ones, “provisioning supplies, and finding ways to offset the enormous economic and social burdens of this time’”.

At the same time, women have borne the brunt of the violence directed towards their homes. The pandemic has confirmed Patrick McAuslan assertion that the bulldozer is often “the principal tool of planning’”. Evictions in Kenya have taken place in defiance of court orders.

The militarisation of cities such as Nairobi and Johannesburg has led to an increase in rape and sexual violence. Women are safe neither from intimate partners nor from strangers in the form of police prowling the streets during curfews.

Central to a just response to COVID must be the work of reimagining what is needed to sustain a just home. Foremost amongst these is an economy that recognises, redistributes and compensates the labour that is essential to sustaining us. A better understanding of the labour needed to reproduce a home and ensure its survival during a pandemic must be carried forward into the future to ensure that the home thrives. A starting point is to recognise the differential impact of violence, repression, precarity, sickness and domicide on women in a time of COVID.

Central to a just response to COVID must be the work of reimagining what is needed to sustain a just home. Foremost amongst these is an economy that recognises, redistributes and compensates the labour that is essential to sustaining us.

Recovery should not mean a return to normal but should entail thinking about the ways in which the normal of others has been invisible to us, as Hannah Cross and Leo Zeilig remind us by asking: “Is not the experience of life with the Covid-19 outbreak, now being felt for the first time in many generations in the Global North, the common experience of life and death in the South?”

The Hawai’i state commission on the status of women, presenting its proposals for a feminist economic recovery from COVID-19, argues that we must speak “not only about response and recovery, but also of repair and revival: repair of historic harms and intergenerational trauma playing out as male domination, gender-based violence, economic insecurity, poor health and mass incarceration”.

What might a just home in a post-COVID future look like?

This article was first published in the Review of African Political Economy journal

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