Connect with us

Ideas

Money Matters: The Financial Crises Facing Universities

11 min read.

The quality of education in African universities has been steadily declining in the face of financial instability. This is having an impact on the employment prospects of graduates.

Published

on

Money Matters: The Financial Crises Facing Universities
Download PDFPrint Article

Over the past several months, there have been numerous conferences on the state of higher education in Africa and around the world, some of which I’ve participated in and even given keynote addresses. From these conferences, and the increasingly frantic higher education media, it is clear that the spectre of financial instability and unsustainability haunts many universities in the developed and developing countries alike, from the United States to Kenya. The challenges are, of course, mediated by local contexts embedded in levels of development and socio-economic inequalities, prevailing political cultures and ideologies, institutional histories and capacities, and a confluence of other forces.

In the United States, the outlook for universities has largely been negative over the last decade. According to Moody’s, in its 2019 higher education outlook, “Increasing expenses outpace constrained revenue for most universities and colleges…owing to constrained tuition revenue growth, the main revenue stream for most universities and colleges…Colleges and universities will look to further control costs, which will lead to longer-term challenges related to programmatic and capital investment. For most colleges, rising labor costs, which are roughly 65%-75% of expenses, will remain the largest hurdle.”

Moody’s forecast for 2020: “The outlook for the US higher education sector has been changed to stable from negative,” underpinned by “revenue growth in the 3%-4% range over the next year or so, driven mainly by larger, comprehensive universities.” It continues: “Over the longer term, social risks will continue to transform the US higher education sector, with demographic changes presenting both challenges and opportunities…Governance will remain a key differentiator among higher education institutions…Those that are able to identify their strengths and weaknesses and take appropriate action where necessary will fare better than those that remain reactive.”

In 2016, a report by Ernest & Young found that 800 institutions (largely concentrated among small universities and colleges excessively dependent on tuition) were facing the most serious risks. Some experts predict up to a quarter of American colleges will become extinct within a decade. Whether such predictions come to pass or not, the rate of closures has accelerated. Equally troubling is the staggering growth in student loan debt. In 2018, it reached $1.5 trillion, encompassing 44.2 million borrowers. This was higher than credit card debt. In fact, student debt is the second biggest source of household debt after mortgages in the United States.

The growth in student debt reflected changes in the financing model of American higher education, which is fueled by the neoliberal ideology unleashed by the Reagan administration and followed by successive administrations. Increasingly regarded as a private rather than public good, state funding for education declined, and student aid support shifted from grants to loans. Cash-strapped universities resorted to several strategies, including raising tuition and diversifying their revenue streams. On the expenditure side, they embraced cost-cutting, especially on tenure-stream (permanent) faculty employment, one of the largest expenses for universities.

Between 1980 and 2018 tuition grew by 213% at public institutions and 129% at private ones. This was higher than the growth in wages or the rate of inflation. Up to 70% of American students currently graduate with debt. According to Business Insider, the average student loan debt per graduating student who took out a loan reached $29,800 in 2018. More than a hundred people owed over $1 million compared to 14 people in 2013! And more than 3 million people aged 60 and above owed over $86 billion. The crippling burden of college tuition has risen to the top of the political agenda in the Democratic Party’s primaries for the 2020 US presidential election. As can be expected in such a racialised society, black graduates have more debt than their white counterparts.

As for faculty, the proportion of tenure-track faculty declined precipitously while that of contingent faculty rose, reaching 73% of all faculty in American colleges and universities in 2016, according to data from the American Association of University Professors. The remuneration and working conditions of contingent faculty are often abysmal; they typically don’t have benefits and some make less than the minimum wage. The academic media is full of heartbreaking stories about some contingent faculty subsisting on food stamps and making less than teenagers working in fast food joints.

Up to 70% of American students currently graduate with debt. According to Business Insider, the average student loan debt per graduating student who took out a loan reached $29,800 in 2018.

The expansion of the lumpen-professoriate of contingent faculty weakens the academy as a whole. It hurts students because these faculty are often hired by the hour, not given institutional support, and tend not to participate in departmental affairs, all of which deprives students of robust faculty engagement. It also undermines all faculty by threatening the integrity of faculty work, limiting the distribution of faculty service responsibilities, creating hierarchies among faculty, and eroding academic freedom, which vulnerable contingent faculty are hardly in a position to exercise.

The case of the US underscores the fact that financial challenges and their implications for students and faculty and the entire higher education enterprise are not confined to the Global South. This should be both a source of solace and sobriety for African universities. Solace because it shows that the challenges are not peculiar to African countries and higher education institutions. Sobriety because we cannot import turnkey solutions from elsewhere. Rather, we must think strategically, smartly, and systematically and devise solutions that will ensure financial stability and sustainability for our institutions.

Kenya’s bankrupt universities

In Kenya, it is not an exaggeration to say that the majority of the country’s universities are virtually bankrupt. Many are unable to pay salaries on time, remit statutory obligations for health and pensions, or provide adequate faculty, teaching and learning facilities, as well as student accommodation and support services. The Kenyan media is replete with stories about the billions of shillings public universities, including some of the largest and oldest ones, owe in statutory obligations and to their service providers.

The financial challenges facing most African universities, including those in Kenya, arise from the fact that they are primarily dependent on tuition. There is a mismatch between the rising demand for education, which is escalating because of the continent’s youth bulge, and the ability of students to pay the full costs of a quality university education, as well as the absorptive capacity of institutions to provide student aid. As public funding per university student has generally declined, while instructional costs have increased, both the universities and students suffer, which is reflected in falling quality and standards.

It becomes a vicious cycle: poor quality education undermines graduate employability, which burdens families and undermines their capacities to recover investments already made in education and to cover any future costs. This serves to reinforce questions about the value proposition of higher education. It helps explain the extreme sensitivities about tuition increases among students and their parents or guardians.

The fact of the matter is that notwithstanding the hype about Rising Africa/Africa Rising, one of whose indicators is ostensibly the expansion of the middle classes, the majority of students in African universities are from lower middle income, working class and peasant backgrounds. Upper middle income and rich families tend to send their children abroad—to Europe, North America, and the emerging economies of Asia, such as India, Malaysia, and China—because they have little confidence in the quality of local universities. This is well articulated in a story in the Business Daily of May 6, 2019, entitled “Local universities are facing serious crisis of confidence.” Those who vote with their wallets for their children’s education abroad often includes parents who were educated at local universities, at least for their first degrees.

It becomes a double jeopardy for Kenyan universities: they are unable to attract students from their own countries and foreign students with the ability to pay for the full costs of high quality university education. African universities are not serious players in the lucrative international student market. Out of the 5.09 million internationally mobile students in 2018, Africa accounted for a mere 4.39% per cent of inbound students, but 10.26% of outbound students. The financial situation of universities in Kenya has been compounded by student demographics in terms of the number of students qualifying for university entry. For the past four years, the pool of Kenya Certificate of Secondary Education (KCSE) students qualifying for university entrance has been historically low.

In 2018, out of the 660,204 candidates who sat for KCSE examinations, only 90,755 (13.74%) scored C+ and above, the minimum grade for university entry. In 2019, out of the 697,222 candidates, 125,746 (18.05%) got C+ and above. The available capacity in the country’s 74 universities in 2019 was 145,338, and in 2020 it is 193,878. Thus, the proportion of qualified students from the 2018 and 2019 KCSE results was 62.44% and 64.86%, respectively, of available capacity. As late as 2015, before the clampdown on cheating and other fraudulent behaviour in national exams, out of the 521,240 candidates who sat for the KCSE examinations, 32.52% or 169,492 got C+ and above. This has resulted in fierce competition among the country’s universities for the limited pool of qualified candidates, which affects their financial bottom line.

Financial constraints affect the ability of Kenyan universities to train, attract and retain qualified faculty. The core business of universities is teaching and learning, research and scholarship, and public engagement and service. Recruitment and retention of top-rate academics is, therefore, imperative. Kenya suffers from acute shortages of faculty and the graduate student pipeline is severely limited. The yearly production in Kenya of PhDs is about 700, below the government target of 1,000. Not surprisingly, only 34% of faculty in Kenyan universities have terminal degrees (my university, USIUAfrica, is an outlier with 73%). The Cabinet Secretary of Education was quoted in the Daily Nation on May 8, 2019 saying that “less than 10 per cent of PhD holders are qualified”. This was attributed to the prevalence of academic fraud, in which contract cheating is rampant. In fact, Kenya reportedly enjoys the dubious distinction of being a leading global centre of contract cheating.

In 2018, out of the 660,204 candidates who sat for KCSE examinations, only 90,755 (13.74%) scored C+ and above, the minimum grade for university entry. In 2019, out of the 697,222 candidates, 125,746 (18.05%) got C+ and above.

Even more critical is the growing discrepancy between the growth in student enrolments and faculty. Between 2011 and 2018, while student enrolments increased fivefold, the number of academics teaching in Kenyan public universities only grew by 13%. Consequently, faculty-student ratios have risen, which in some public universities are close to 1:70. This has severely affected the quality of education and research productivity. In most universities, many of the often overworked and poorly paid faculty are forced into adjuncting, and they rely on outmoded pedagogical practices and curricula. Moreover, student learning is frequently interrupted by employee strikes and student demonstrations.

Higher education is critical to the development of high-level human capital essential for economic growth and sustainable development. Two measures of the contribution of higher education are especially important. One is the employability of university graduates, and the other is research productivity and impact. In African Economic Outlook 2020, the African Development Bank provides a sobering reading on Africa’s unpreparedness for the jobs of the future because of the low quality of its educational systems. The problem cuts across the educational ladder. According to the report, “Many African countries have yet to catch up with the rest of the world in basic skills and education…African students have lower average test scores than students in other world regions. Against global harmonized test scores ranging from 300 to 625, the average African student scored only 374 in 2017.” It is universally acknowledged, that human capital is a key driver of economic growth, but “Human capital contributes less to labor productivity and economic growth in Africa than in other developing regions. This is due partly to the low quality of education, lack of complementary physical capital, and widespread skill and education mismatches.”

The report urges African governments (advice that applies to universities as well) to make strategic choices to build the workforce of the future. “African countries will need to anticipate and build a flexible and productive workforce to meet future challenges. To strengthen worker employability, firm productivity, and inclusive growth, African countries need a national strategy for education and skill development.” The report notes, “A poorly skilled and educated labor force is typically the top constraint mentioned by global executives when considering manufacturing investments in Africa.”

Furthermore, “Because ‘soft skills’ are likely to become increasingly important, education and training institutions should be encouraged to inculcate and reinforce positive values, starting with young children. These attributes include a strong work ethic, honesty, tolerance, respect for authority, punctuality, and pursuit of excellence. These are the intangible characteristics of a high-quality workforce.” Massive investments are required for building educational infrastructure, and in addition to soft skills, the development of critical future skills includes job-specific digital skills, job-neutral digital skills, and ancillary skills related to manufacturing.

Reports on graduate employability in Kenya, as elsewhere across East Africa and the continent, show that there are glaring mismatches between what universities are producing and what the economies need, resulting in graduates spending years “tarmacking” ( a term used in Kenya to refer to the unemployed and underemployed). In fact, in much of Africa, graduate unemployment and underemployment tends to be higher than for secondary school and vocational college graduates. According to one report, a survey by the Federation of Kenya Employers laments, “at least 70 per cent of entry-level recruits require a refresher course in order to start to deliver in their new jobs.” Further, it notes a study by the Inter-University Council for East Africa that “shows that Uganda has the worst record, with at least 63 per cent of graduates found to lack job market skills. It is followed closely by Tanzania, where 61 per cent of graduates were ill prepared. In Burundi and Rwanda, 55 per cent and 52 per cent of graduates respectively were perceived to not be competent. In Kenya, 51 per cent of graduates were believed to be unfit for jobs.”

The conundrum African countries face is that they have low levels of tertiary enrollments, yet their graduates have limited employability opportunities. In 2017, the gross enrollment ratio of Kenya stood at 11.7%, which was below the African average of about 14%, but above the sub-Saharan average of 9%. North Africa accounted for 45% of all African students in tertiary institutions, giving the region an enrolment ratio of 34%, just below the world average ratio of 38%. The enrolment ratio of high income countries was 77%, for middle income countries 52%, and lower middle income countries 24.4%. The enrolment ratios for South Korea and Singapore were a staggering 93.8% and 83.9%, respectively. Kenya hopes to reach a gross enrolment ratio of 15% by 2030. Essential employability qualities (EEQ) go beyond subject knowledge and technical competence.

Reports on graduate employability in Kenya, as elsewhere across East Africa and the continent, show that there are glaring mismatches between what universities are producing and what the economies need, resulting in graduates spending years “tarmacking”…

Acquisition of soft skills is paramount. Graduates with EEQ are good communicators, critical thinkers and problem solvers, inquirers and researchers, collaborators, adaptable, principled and ethical, responsible and professional, and continuous learners. Cultivation of employability skills raises questions about curriculum design, assessment, and teaching methods. It entails the intersection of the classroom, campus, and community as learning spaces for a holistic educational experience.

The classroom requires a transforming pedagogy, adequate learning resources, curricular relevance, balance between theory and practice, passionate and enthusiastic teachers with high expectations, and motivated students. The campus needs robust career services, extra-curricular activities, student engagement, employer involvement, and innovation incubators. And the community contributes through the provision of internships and service learning opportunities.

Low R&D levels

The second mission of universities, through which they make invaluable contributions to the economy and society, is knowledge production through research and scholarship. The low levels of research and development (R&D) among African countries are well known. On average African countries spend 0.5% of their GDP on R&D, compared to a world average of 1.7%, and account for less than 1.5% of global R&D expenditures. Unlike other world regions, much of the R&D in Africa comes from foreign agencies and foundations, not national governments and the local private sector.

Other research indicators are no less disconcerting. According to UNESCO’s Science Report: Towards 2030, in 2014 Africa accounted for 2.4% of the world’s researchers (compared to 42.8% for Asia, the world’s highest), and 2.6% of research publications (compared to 39.5% for Asia, also the world’s highest). The other glaring challenge of research in African countries and universities is its external orientation in terms of focus and outlets. While the world average of publication with external authors was 24.9%, for Africa it was 64.6%

(compared to 26.1% for Asia). Thus, like our dependent economies, African scholarship suffers from what I call epistemic extraversion. No wonder the rankings of African universities are the lowest in the world.

Kenya spends about 0.8% of its GDP on R&D, which is among the highest on the continent. The country’s research output is also relatively high compared to other African countries. In 2018, citable documents per one million inhabitants was 565.1, higher than Ghana’s 565.1, and Nigeria’s 366.2, but far below South Africa’s 4,233.5. Much of this research comes from the numerous research agencies and networks located in Kenya and a few universities.

According to UNESCO’s Science Report: Towards 2030, in 2014 Africa accounted for 2.4% of the world’s researchers (compared to 42.8% for Asia, the world’s highest), and 2.6% of research publications (compared to 39.5% for Asia, also the world’s highest).

It is critical for African countries and universities to develop effective research policies, and support and reward systems. Also critical is promoting modalities of research collaboration that are transformative in terms of interdisciplinarity, interprofessionalism, and internationalization. No less important is ensuring a productive balance between pure and applied research, and addressing theoretical and analytical issues, as well as pressing challenges as identified in national, regional, and global agendas, such as Kenya’s Vision

2030, East Africa’s Vision 2050, the African Union’s Agenda 2063, and the United Nations’ Sustainable Development Goals.

In many of the developed and leading emerging economies, research grants constitute an important source of revenue for universities. It is also quite common for such institutions to have endowed professorships held by some of their most distinguished research faculty, which further brings additional resources and relieves the operational budget of significant employee costs. As far as I’m aware, endowed professorships or chairs do not exist in most African universities. Also, research grants that not only bring administrative overheads, but also supplement faculty income, do not constitute a major source of institutional revenues.

Clearly, Kenyan and universities in other African countries need to develop more reliable and robust revenue streams.

In the second part of this article, I will discuss the various revenue-generating options that African universities are or should be adopting.

Avatar
By

Paul Tiyambe Zeleza is a Malawian historian, academic, literary critic, novelist, short-story writer and blogger.

Ideas

Why Indeed Scholars are the Heirs of Prophets

All through history prophets have oscillated between one extreme end, the highest level of political leadership — what Plato called “the Philosopher King”, the ruler of his utopian city Kallipolis who possesses wisdom and simplicity — and the other extreme end, the highest level of political activism — what the 19th century termed as Radical Activism, individuals who called for total societal change, engineering complete upheaval of the status quo. Both the Philosopher King and the Radical are enabled by one thing—Knowledge.

Published

on

Why Indeed Scholars are the Heirs of Prophets
Download PDFPrint Article

“Scholars are inheritors of Prophethood”
Prophet Muhammad PBUH

To fully contextualise and grasp the gravity of this saying of the Prophet Muhammad PBUH requires knowledge of not just the role of prophethood in society but also of the nature of society. At both the level of Max Weber’s Gemeinschaft and Gesellschaft, society consists of large groups underpinned by a set of beliefs that organise the membership’s affairs. This is irrespective of the fact that one is organic and the other legal-rational.

This underpinning corpus of beliefs that serves as the groups’ existential truth, criterion of measure and all-encompassing narrative of and about existence, is the lens through which the internal and external universe at both individual and group level is perceived and therefore ordered. It is this story that is articulated by prophets and oracles of yore, and the scholars and intellectuals of the present day.

It is by this measure that the scholars are inheritors of prophethood. From this saying, by analysis of the function of prophets, we can extract the role of scholars in society.

All through history prophets have oscillated between one extreme end, the highest level of political leadership — what Plato called “the Philosopher King”, the ruler of his utopian city Kallipolis who possesses wisdom and simplicity — and the other extreme end, the highest level of political activism — what the 19th century termed as Radical Activism, individuals who called for total societal change, engineering complete upheaval of the status quo.

Both the Philosopher King and the Radical are enabled by one thing — Knowledge.

What knowledge?

Knowledge of truth.

What truth? Which truth?

Empirical? The truth about the inner workings of nature? No.

The truth about the existential, teleological and relational nature of man. In short, a coherent set of beliefs that tell us where we came from and where we are going, why we are here and how we should relate to one another.

The most cogent and convincing story told, that comprehensively answers this question, will calibrate all social interaction, order and direct us all.

It is for this reason that British colonialism of the African continent began with a story. A Story about the salvation of souls, a promise of a beautiful place of endless bliss and, over and above that, complete absolution. Successful “Christianisation” was a sine qua non for absolute subjugation and slavery of the natives. The advance guard of imperialism was the Church Missionary Society.

In fact, the need for this “story” and its power over peoples was common imperialist knowledge. Penelope Carson’s book The East India Company and Religion 1698-1858, records an incident in which 17th century churchman and orientalist Humphrey Prideaux, who was later to become Dean of Norwich, castigated The East India Company for neglecting the propagation of Christianity in India, pointing to the success of the Dutch East India Company, arguing that their Dutch counterparts thrived due to proselytisation of Christianity where they expanded.

Where native elites intervened to bar the entry of missionaries in places such as Japan, the peoples of these lands remained free of European colonisation for centuries.

The answer to the question of existence, manifested in the instinctive questions we all ask — Where did we came from? Where we are going? Why are we here? How we should relate to one another? — has all-encompassing power over a community and society, and herein lies the power of the scholar.

Knowledge has only one purpose: to elevate the human condition, to drive away barbarism and raise us to civilisation. For knowledge is the only attribute that differentiates us from the rest of creation.

Why not make the case for free will here too? For free will is a factor of knowledge. Free will and self-awareness are implied and are necessary predicators for knowledge.

There was never any need for a tree of knowledge in the heavens where angels reside, as angels have no free will. Neither was there any need for one in the realm of beasts, for beasts have no intellect. Only man has the unique ability to value knowledge, for only he has both intellect and free will.

Given that the purpose of knowledge is to lead us to our Xanadu, it follows that those amongst us with the wherewithal for knowledge have a teleological duty to the knowledge and an essential duty to their kind to take the mantle of intellectual leadership together with all the risks and rewards it portends.

This knowledge of purpose enables the scholar to direct the society from its empirical state towards its normative ideal. This direction is not frictionless. It ensures a never-ending struggle between the interests anchored in the status quo and those rising from the promise of change. American scholar and activist Noam Chomsky captures this function well in this quote from his essay The Responsibility of Intellectuals: “With respect to the responsibility of intellectuals, there are still other, equally disturbing questions. Intellectuals are in a position to expose the lies of governments, to analyse actions according to their causes and motives and often hidden intentions.”

Failure to rise to this duty can be legitimately termed betrayal of calling, betrayal of self.

In the past, where humanity was organised at village and tribal level, it would have been sufficient to speak to individual scholarly duty, but in today’s complex social order, we must communicate the same argument to the organisations in our society that consist of knowledge workers and whose purpose is knowledge or a derivative of knowledge.

This would consist of universities and religious organisations and their affiliate unions and associates. To this end we will cite the most well-known or stereotypical examples of individuals and organisations that have endeavoured to live up to the demands of this vital function, or calling.

The unity of individual scholarship and activism is perfectly epitomised by the world-renowned Scholar Noam Chomsky mentioned earlier, as this summarised excerpt from Who is Noam Chomsky?” perfectly illustrates:

Chomsky joined protests against U.S. involvement in the Vietnam War in 1962, speaking on the subject at small gatherings in churches and homes.

He also became involved in left-wing activism. Chomsky refused to pay half his taxes, publicly supported students who refused the draft, and was arrested while participating in an anti-war teach-in outside the Pentagon. During this time, Chomsky co-founded the anti-war collective RESIST with Mitchell Goodman, Denise Levertov, William Sloane Coffin, and Dwight Macdonald. Although he questioned the objectives of the 1968 student protests, Chomsky gave many lectures to student activist groups and, with his colleague Louis Kampf, ran undergraduate courses on politics at MIT independently of the conservative-dominated political science department.

Because of his anti-war activism, Chomsky was arrested on multiple occasions and included on President Richard Nixon’s master list of political opponents. Chomsky was aware of the potential repercussions of his civil disobedience and his wife began studying for her own doctorate in linguistics to support the family in the event of Chomsky’s imprisonment or joblessness.

Locally Dr David Ndii has struggled immensely and very successfully to live up to Noam Chomsky’s The Responsibility of Intellectuals, explaining the economic reality and the Government of Kenya’s policies/plans to the public in terms understandable by all. He began in the most widely read newspaper Daily Nation and now writes economic analyses and open letters to the rulers on the popular online political journal The Elephant, often successfully compelling the government to respond, albeit with more propaganda and red herring.

His sister-in-arms Dr Wandia Njoya has waged an equivalent struggle in the domain of education and culture. Patrick Gathara and Rasna Warah, whose timely pieces questioned the reasons for the Kenya government incursion into Somalia as part of America’s global imperialist Wars of Terror, triggered a vital conversation at the most appropriate time and place, where the powers that be would have preferred none.

Two critical parts remain for our native scholars and intellectuals (“native” continentally-speaking). First is crystallising their ideas into philosophies that can animate the public and move it to action, “action” being the work of bringing the ideas to life in social order and government policy.

Second is inculcating in a group of their students their philosophy, and organising them to carry it to the public space. The scholar or intellectual is a social actor just as is the politician, only at a different stage of the work of social organising. The scholar or intellectual produces the ideas that the politician or activist organises the public around. If a politician is “Philosophy in Action”, the scholar then is the “Action of Philosophy”. That the group for the politician is termed a political party is moot; the currency for both actors is public opinion and neither scholars nor politicians can be effective without the support of groups. We may term the group around a scholar as followers or disciples for purposes of differentiation.

It is hard to imagine, but Noam Chomsky was once a student. Chomsky began his studies at the University of Pennsylvania. Chomsky states in many interviews that he found little use for his classes until he met Zellig S. Harris, an American scholar touted for discovering structural linguistics (breaking language down into distinct parts or levels). Chomsky was moved by what he felt language could reveal about society. Harris was moved by Chomsky’s great potential and did much to advance the young man’s undergraduate studies, with Chomsky receiving his B.A. and M.A. in non-traditional modes of study.

Noam Chomsky is categorical that, outside of his father, Zellig S. Harris is most responsible for his intellectual direction, political thought and activism.

From scholar-activists to organisation activism

For examples of organisations that have transcended the limited group interests of their membership to actively engage social issues that affect all, we may look to the teacher’s unions in Latin America which are actually social movements that have played critical roles at national and sub-national levels.

The paper Promoting education quality: the role of teachers’ unions in Latin America from the UNESCO Digital Library reports that in Brazil, during the 1988 constitution-writing process, teachers’ unions worked with academic, student and national trade confederations to advocate minimum funding for education. They succeeded in obtaining a constitutional provision establishing that 18 per cent of federal and 25 per cent of state and municipal taxes must go toward education.

Given the crisis we face today is fundamentally a crisis of ideas — or more specifically the lack thereof — to galvanize society, we need our scholars to tell us a new story, or to tell us an old story in a new way.

The Canadian scholar and psychologist, Dr Jordan B. Peterson, serves as an apt example of telling “an old story in a new way”. He reframed the Christian story for an atheistic age, infusing new life into the West’s Cultural Right. After years of losing ground to the liberal social values of the Left, conservatism has found its footing.

Sheikh Taqiuddin An-Nabhani, the Palestinian jurist and founder of political party Hizb ut-Tahrir, reframed Islam as a System for “the Age of Systems”, giving Muslims a way to perceive the complex new global order through the lens of their beliefs. And in so doing, giving Muslims new faith in their way of life and re-energising them to work to find their way forward to re-establishing the Islamic order they had lost.

This spark is what we need. As individuals, and as humanity.

For us in Africa, the 1885 Berlin Conference order is in the terminal stages of decay, just like its Sykes-Picot equivalent in the Middle East. Talk of secession is everywhere in Africa. Even the presumably stable territories like Kenya have not been exempt. Secession, which is the fracture of states, suffers conditions similar to “entropy”, which is the dissipation and dispersion of particles within an entity. Secession creates new problems beyond the potential for an infinite recurrence of further secession. Darfur’s struggle to secede from South Sudan, after South Sudan seceded from Sudan on 9 July 2011, after Sudan seceded from Egypt on 1 January 1956, is a perfect modern example in Africa. Somalia need not be elaborated.

Superficial measures such as renaming countries are no different from adopting some costume as a national dress in search of a new post-colonial identity. They are named in top-down tyrannical initiatives and “un-named” after the death of the baptising despot.

Convergence of nations into new blocks has failed to resolve any of the problems humanity faces, even at the highest level of political awareness, with the blocks beginning to BrExit and GrExit even before they are fully formed.

Democracy is imploding as the multiple centres of thought — democracy’s vaunted raison d’être, “Pluralism” — mature into the centres of gravity of powerful hurricanes of political movements, many currently spinning across America leaving death and destruction in their wake, and threatening to tear America, the paragon of Democracy, into a thousand pieces.

Yet we cannot dial the clock back to our tribal ways as Mungiki the Kikuyu tribal cult that rose in the central highlands of Kenya proved. Our tribal enclaves have been completely shattered by imperialism’s modern-day manifestation — liberalism — never to exist again. There is no tribal safe haven to return to for any of us.

Never in the history of humanity has there been such plenty sitting side-by-side with such great need. Capitalism promised humanity that the free market would solve all its problems. Freedom as a doctrine would lead all of humanity to happiness, plenty and fulfilment. This paradise would follow absolute “freedom of markets”, “freedom of capital”, “freedom of thought and speech”.

But as the Bible famously says, “as it was in the beginning so is it in the end.” Freedom of ownership was first enshrined in the Magna Carta, the 1215 AD agreement between King John of England and his Barons, the land owning aristocracy. Freedom of religion, was promulgated in 1648 from the Treaty of Westphalia, as the right of the Kings and Princes of Europe to choose the religions for their nations and therefore their subjects. The now sacrosanct “Universal Suffrage” born of the French Revolutions of 1789 and 1848 was a “right to vote” for “white men”. Universal Suffrage being for white men had the net effect of establishing a “political universe” in which only white men are the only legitimate citizens.

That summarised the beginning of “our cherished freedoms”.

History shouts loud and clear that freedom, in all its configurations, from the beginning was and is only for the powerful ruling elites, yesterday the Barons and Princes, today the capitalists and selected politicians, or as Marx termed them, the Bourgeoisie. As for the working class, the poor masses, in the words of Marx, freedom for them was, is and continues to be, the freedom to choose “to work” or “to starve”.

Yet the story the “angry genius” Karl Marx himself told, that promised equality by negation of our most basic human instincts — our instinct to possess, our instinctive need to believe and to be, and that has gained great resurgence powered by the dramatic failure of Capitalism in recent times — also failed humanity epically.

It is incumbent upon those gifted with ability and knowledge, and those vested with the leadership of organisations that consist of agents of knowledge, to transcend their group interests and work for society’s overall well-being.

The need has never been greater.

An outcome of the homogeneity imperialism imposed upon us all is that we are all immersed in the same operating system, secular capitalism. For this reason, we find ourselves in the same predicament of crisis, literally globally.

We need a powerful new story, or an old story told in a powerful new way.

A story that will remind us of our common humanity, harmonise our relations with each other and the rest of creation and reveal to us a common destiny, that can unify our sense of purpose.

We need scholars at the universal and local level, to crystallise a story, an idea into an isotope that will fuse with our imaginations and trigger a chain reaction that will galvanize radical change.

The situation is critical, the need urgent.

Continue Reading

Ideas

The Death of LAPSSET and Kenya’s Poverty of Imagination

The Kenyan government’s misguided and costly investments in big infrastructure projects are compromising the nation’s socio-economic transformation. Meanwhile, elite-driven opportunism has suffocated intellectual debate that once characterised the flow of ideas in this part of the world. The time is ripe for a Big Conversation.

Published

on

The Death of LAPSSET and Kenya's Poverty of Imagination
Download PDFPrint Article

The Lamu Port South Sudan Ethiopia Transport (LAPSSET) corridor project was officially launched at Magogoni, the site of the new Lamu port, in 2012. The two heads of the coalition government attended.

At the launch, President Mwai Kibaki told the people of Lamu that they had a new constitution and that they should familiarise themselves with its provisions to protect their land rights. Prime Minister Raila Odinga said something to the effect that the train is now leaving the station and either you Swahili can get on board and go forward with the rest of us, or you can remain behind as is your usual custom.

After the launch, LAPSSET progressed in fits and starts. A modern building to house the secretariat was built in Mokowe, an official website came online, and construction of three of the 32 planned berths began.

LAPSSET is by far Africa’s most ambitious project. Its description on the website is a testament to Kenya’s central planners’ imagination:

This mega project consists of seven key infrastructure projects starting with a new 32 Berth port at Lamu (Kenya); Interregional Highways from Lamu to Isiolo, Isiolo to Juba (South Sudan), Isiolo to Addis Ababa (Ethiopia), and Lamu to Garsen (Kenya), Crude Oil Pipeline from Lamu to Isiolo, Isiolo to Juba; Product Oil Pipeline from Lamu to Isiolo, Isiolo to Addis Ababa; Interregional Standard Gauge Railway lines from Lamu to Isiolo, Isiolo to Juba, Isiolo to Addis Ababa, and Nairobi to Isiolo; 3 International Airports: one each at Lamu, Isiolo, and Lake Turkana; 3 Resort Cities: one each at Lamu, Isiolo and Lake Turkana; and The multipurpose High Grand Falls Dam along the Tana River.

During the interim, the local community fought back through Save Lamu, a coalition of community organisations. Their objective was to make the Kenyan government hear their voices and to facilitate local participation.

Save Lamu was ignored, harassed, and accused of opposing the region’s development. The organisation constantly repeated they were not against the project, but rather, they were fighting for the right of the local community to be consulted over its impact on the environment and local livelihoods. At one point, the office holders were summoned to Nairobi by the Criminal Investigations Department (CID). For two days, CID officers interrogated them about their imputed involvement in the horrific Al Shabaab attack in Mpeketoni. They returned safe but frazzled by the experience.

Several months later, the coalition extended its advocacy to the Lamu power plant, a 1,050 Mw coal-fired electricity project to be built next to the port at enormous cost and protected by Treasury-sapping guarantees for payment of the power whether the electricity was used or not. Although some people in Lamu supported the new port for the prospects of the jobs it would create, the community in no uncertain terms did oppose the coal-fired plant.

Compared to the PR invested in the LAPSSET during the previous years, the announcement several months ago that two of the berths at the Magogoni port were completed came with no fanfare and limited media attention. The lack of acclamation reflects the simple fact that the tide has been going out on LAPSSET for several years.

Kenya left holding the baby

In 2016, the Ugandan government announced plans to build a railroad that would connect Juba to another planned rail line from Kampala to the port of Tanga in Tanzania. Kampala explained that although the Tanzanian route was longer, the lower cost of construction justified the decision to withdraw from the planned link-up with the LAPSSET route through Kenya. In September, Ethiopia set in motion plans to build a 1500-kilometre railway to Khartoum and Port Sudan. The planned rail line effectively removing Ethiopia from the LAPSSET equation added another nail in the project’s coffin.

In 2009, major Western and Asian governments were queuing up to finance the diverse components of LAPSSET. South Sudan, or more correctly, the oil in South Sudan, was the main prize. At the time of LAPSSET’s initial conceptualisation, the country was forced to export its oil through Port Sudan. Newly independent South Sudan was exporting over 350,000 barrels a day in 2012. Although the supply was expected to decline over the decade, exploration held out the promise that much more crude oil would be coming, complementing the even larger deposits found in northern Uganda and eastern Congo.

Compared to the PR invested in the LAPSSET during the previous years, the announcement several months ago that two of the berths at the Magogoni port were completed came with no fanfare and limited media attention.

The sea of oil reportedly floating underneath the long neglected region made the grandiose infrastructural investment appear sensible at the time. The peak oil theory was making waves. But a matrix of factors, including climate change, the discovery of new oil reserves across the planet, and the falling cost of renewable energy, shifted the calculus. The financiers slowly melted away, leaving the Government of Kenya holding the baby.

This was also due to the other usual suspects: unreliable state partners, the fickle nature of investment capital, and the multiple problems that come with big projects in this and most parts of the world – all of which was compounded by the fact that exporting the thick crude required building the supporting superstructure from scratch, including heated pipelines to prevent coagulation en route. The pipeline to Lamu was estimated to cost US$ 8 billion circa 2012. China, the primary purchaser of Sudan’s oil, told Salva Kiir they would loan him the money for the pipeline but would not pay for it as many local stakeholders had assumed.

LAPSSET was already losing its shine at that juncture, and even before the pandemic, Kenya’s investment in big infrastructure (epitomised by the financially challenged Standard Gauge Railway project) was proving to be a debt spinning mirage. If this is not a concern for those playing the front-end game, the Big Project mentality should be a concern for everyone else.

Colonial conquest and economies of scale

The expanding powers of Europe invaded the continent when the age of industrial capitalism was taking off. Material progress and the conquest of nature became the measure of man and nations. During the first half of the 19th century, world trade doubled; between 1850 and 1870 it expanded by 260 per cent.

Coal and iron fueled industrial commerce. Steamships and railways provided the sinews. The length of European railway tracks increased from 1,700 miles in 1840 to 63,000 miles in 1870, and passed 100,000 miles ten years later. Progress in other infrastructural domains followed a similar trajectory.

The unification of countries, new constitutions, and an increase in civil liberties preceded these developments in Europe. The illumination of the Enlightenment had created an ecosphere of brightness and shadows, unchaining rationality from its religious and superstitious fetters in Europe but shrouding Africa in relative darkness.

The contrast accounts for why the British colonial administrator, Charles Eliot, found little to recommend in the socio-economic domain during his tour of the East African Protectorate. The country’s future, he opined, “lay in the vegetative kingdom”, but it was infrastructure that led the way. Eliot’s comment, “It is not uncommon for a country to create a railway, but it is uncommon for a railway to create a country”, conveyed not only the inverted logic of colonialism, but also the outsized impact of the Uganda railroad.

The establishment of industrial capitalism redirected the pathway to include investment in public goods like education and scientific research. The knowledge creation enabling the imperial surge came from a different mindset. The work of Charles Babbage in informatics, the engineering audacity of Isambard Kingdom Brunel, and Alexander von Humbolt’s quest to map the planet’s geographical features all stemmed from an outsized imagination.

The illumination of the Enlightenment had created an ecosphere of brightness and shadows, unchaining rationality from its religious and superstitious fetters in Europe but shrouding Africa in relative darkness.

The process supported a complicated system dedicated to the maintenance of growing armies of labourers and soldiers while erecting monuments, heroic statuary, and grandiose houses of worship. For generations, communities bought into the idea because it improved their security and facilitated trade.

The scale of such intellectual agendas is different than the Thinking Big model of development. Expanding vistas of science and the imagination is not the same as building a gigantic dam or assembling the King of Bahrain’s new robot bodyguard. Such toys and vanity projects, like Dubai’s artificial islands, represent one endpoint set in motion by the capture of surplus, the rise of elites, and the formation of states.

Once upon a time the rise of the state offered a pathway out of a world of fear, superstition, conquest by neighbours, and punishments ordained by the gods. Half a millennium later, the Leviathan became the new god of economic rationality that substituted hierarchy for cooperation, replaced the commons with capitalist extraction, and generally raised the quality of life in exchange for the mega-accumulation benefitting a small group of individuals. All this was done in the name of efficiency and progress.

For five hundred years, the state expanded, culminating in big government experiments, such as the Soviet Union and Chairman Mao’s China. Its post-1989 retreat left us with Big Oil, Big Pharma, Big Water, Big Data, Big Finance, Big Retail, and even Big Foreign Policy in the guise of Xi Ping’s Belt and Road Initiative (BRI). The skewed rewards of stardom has made competition a Winners Take All game across the board, from corporate salaries, sports, to social media.

The Big State was colonialism’s parting gift to Africa and the neoliberal economy now incentivises its agents to transact resources and to cash in on their geopolitical location.

Mentalities of scale

The United Kingdom’s Whitehall model replicated itself across the Empire’s colonies. Everything from the formal school system, the conventional assumptions of developmental policies, and the inability of the colonial-designed African nation-state to remake itself following the unsuccessful post-independence alternatives championed by the likes of Kwame Nkrumah, Sekou Toure, and Julius Nyerere reinforces this state of mind.

Historically, infrastructural development takes care of itself once the factors of production, exchange, security, and basic rights are in place. No one planned or financed the Great Silk Road but it sustained Central Asia’s contribution to world civilization from the pre-Christian era until about two hundred years ago. Even the succession of invasions, conquests, and dynasties that swept over the region did little to disrupt the underlying system that supported the trade network until Russia’s colonial ambitions instigated the 19th century imperial great game in that region.

Now China is seeking to build a grander Great Silk Road spanning the Eurasian Steppe as part of the Communist government’s Belt and Road Initiative. It remains to be seen if the outcome will work the way XI Ping’s planners anticipate. In the meantime, the mega cities built on the country’s margins remain uninhabited and many of the centrally-planned BRI projects are experiencing cost overruns and other problems. The New Silk Road may yet set in motion a revival of the complicated oppositions and conflicts characterising the region’s history.

Back in this part of the world, where the historical template is totally different, it is still mind-boggling that big failures, from the Tanganyika Groundnut Scheme to LAPSSET, the Galana-Kulalu Irrigation scheme and the Jubilee government’s faltering Big Four agenda, continue to propagate themselves. The terms of repayment behind the Jubilee government’s Standard Gauge Railway gambit may even reverse Eliot’s observation: for the first time, building a railway has unmade a country.

There is a difference between tapping economies of scale and scalability. This also applies to the world of ideas. We live in a world where the critique and testing of concepts and beliefs that long underpinned human processes is being reduced to the circulation of memes. This is reducing political discourse in the democratic West to the capture of single-issue constituencies and battle lines based on memetic tribes.

In Kenya, the political arena has long been dominated by a dynamic based on the control of the monolithic state. In these conditions, the problem of scale is not a function of small-to-large, even though the educated elite have been conditioned to think in these terms. Politics in these conditions descended into a monetised exercise based on ephemeral ethno-linguistic coalitions.

The terms of repayment behind the Jubilee government’s Standard Gauge Railway gambit may even reverse Eliot’s observation: for the first time, building a railway has unmade a country.

This approach has proven to be poorly suited to the challenge of fitting together multiple units of different sizes into a synergetic economic configuration. The history of the pre-colonial era provides an alternative political economy template. Kenya’s constitutional reform marked a step in this direction, but replicating the dynamics patterned on regional initial conditions will remain a work in progress as long as the power concentrated in the centre works to break creative devolution and participatory development.

We are witnessing shifts in workplace and settlement patterns that make it possible to envision the process reaching an equilibrium point where entities based on the old clan and new tribe continuum may reemerge as an asset. But who is thinking about the future in terms that question the conventional assumptions about organisation, or that tap into the co-evolutionary potential inherent in Kenya’s cultural mosaic?

Kenya’s superstructural poverty

In social science, superstructure refers to the ideational domain – the world of concepts, languages, myths, ideologies, science, religion, superstitions, beliefs, and shared assumptions that define the societal mind. Culture is an overlapping concept that is typically defined in terms of a population’s superstructural orientations and the behavioural patterns they generate.

The influence of superstructure and the cultural domain occupies a secondary role in materialist and evolutionary analysis. For example, the use of tools and fire resulted in the reduction in the size of early human beings’ jaws because they no longer had to use their mouths to rip and chew meat. This in turn led to the rise of language, a primary enabler of cultural development.

Things were simpler during the Paleolithic. Today societies are complex systems where prediction based on infrastructure variables, such as the development of roads and communications, is confounded by the influence of non-linear dynamics and unpredictable forces. This is because superstructure is a mutable domain. It acts as both a critical source of both system maintaining and system changing feedback. This is a key element of societal transitions that allows us to translate our collective experience into resilience. Once deemed an epiphenomenon, evolutionary ecology studies now document the role of culture in accelerating the slow process of biological evolution.

The colonial model superstructure worked to stabilise Kenya’s development during the first decades after independence. When the rigid organisational order began changing due to a release phase during the Moi era, the ground began to shift under the received paradigms of development. Before that the socialism versus capitalism dichotomy contributed to the intellectual debate about Kenya’s and the developing world’s progress in general. Both sides of the discourse acted as mechanisms selecting for the regional ideological convergence we now take for granted. Promoting integration is a good idea but the utility of the current top-down approach is debatable.

A recent journal article examining LAPSSET and three other similar infrastructure corridors described the political economy of corridors as “contests over the framing of development interventions influenced by a range of social and technical imaginaries”. Kenya’s politicians’ and policy makers’ embrace of large-scale centralised planning comes with high costs; the benefits of Kenya serving as Eastern Africa’s hub are slipping away. Kenya’s reputation of maintaining an even-handed regional foreign policy has also been marred.

The passage of the 2010 constitution set the stage for a new phase of transformational reorganisation, allowing Kenyans greater scope in defining their future. But the critical thinking required to guide the transition has lagged far behind. Preachers, social media, and identity politics expanded into the vacated superstructural space. The influence of the Chinese model contributed to passive acceptance of the techno-infrastructural developmental pathway. Behind-the- curtain dealings have generated the funding.

As a result, Kenya’s public-private cartels continue to benefit from a succession of revenue-draining projects and a succession of massively overpriced feasibility studies that render local stakeholders invisible. The Infrastructural Master Plan for the LAPSSET Corridor and Lamu Port, for example, is a thousand-page document that does not mention the regional population and communities affected. The attempt to build a technologically obsolete pollution-belching coal plant next to one of the planet’s most unique near zero-carbon urban settlements and a UNESCO World Heritage Site is proof of what can happen in the absence of a countervailing developmental narrative.

The passage of the 2010 constitution set the stage for a new phase of transformational reorganisation, allowing Kenyans greater scope in defining their future. But the critical thinking required to guide the transition has lagged far behind.

This is not to say the objectives of projects like LAPSSET will not be realised. The issue is not so much thinking big but the actors and incentives behind it. The corporate-empowered developmental state many African governments aspire to be should not be conflated with the moonshot mentality behind so many of humanity’s greatest achievements. The regional links will coalesce over time, Old Silk Road style.

In the meantime, Kenya’s superstructural deficit is compromising the nation’s socio-economic transformation. Elite-driven opportunism has suffocated intellectual debate and multicultural vibrancy that once characterised the flow of ideas in this part of the world. Unlike infrastructure, investment in the exchange of ideas is not costly. The time is ripe for a Big Conversation.

We will discuss the some of the concepts and practices framing the new developmental narrative emerging across the world in the second part of this epistle—which will also locate Kenya as an important player in our collective transition to the Anthropocene.

Continue Reading

Ideas

Is Universal Basic Income the Answer to Alleviating Poverty?

Poverty is the main factor in the transmission of coronavirus. What we need is a “vaccine” against the disruption of livelihoods, and a model might just be staring us in the face.

Published

on

Is Universal Basic Income the Answer to Alleviating Poverty?
Download PDFPrint Article

At the height of the coronavirus pandemic, Kenya’s Cabinet Secretary for Health, Mutahi Kagwe, made a statement that has become the butt of social media jokes. He said, “If we continue to behave normally, this disease will treat us abnormally. Behaving normal under these circumstances is akin to having a death wish.”

The man in charge of the health docket as the nation is in the throes of a global pandemic moaning and lamenting the public’s apparent refusal to comply with the official prevention strategy sounds defeatist.

The government had curtailed movement into and out of the capital city, Nairobi, and Mombasa and Kilifi counties. A national dusk-to-dawn curfew had been imposed, and a health advisory required that all Kenyans wear masks, avoid social gatherings and other crowded places, including places of worship, and practice handwashing with soap and running water, preferably every half hour.

“Stay at home. Work from home,” was the official line.

“What work? Which home”? Kayole resident Albert Otieno, a 32-year-old father of two who lost his job when the economy was shut down by the virus and is battling a chronic health condition, puts the stay-at-home order in perspective:

Sasa ku-stay at home na isolation, pande yangu ilinifinya. Ilinifinya proper. Kwa sababu, for my family to eat . . . na mimi napata hand to mouth, yangu siwezi sema hata nita-save, yangu nikikuja nayo hivi, ni kuiweka kwa meza. Kesho unaenda tena kwenye umetoka. Unatoka kwa nyumba tena bure, bila hata bob, ya kuenda hata utasema eti nitaenda kula lunch huko kwenye ninaenda, ama utakula breakfast. So hiyo social distance iliniua. Hiyo working at home, mimi sina ati kazi nitaifanya kwa nyumba. Sasa kazi gani nitafanya na mimi kazi yangu ni ya mikono yangu? Now to stay and home and the matter of isolation to me was oppressive, properly oppressive. This is because for my family to eat, and I only get hand-to-mouth, for me I cannot even think of saving, what I earn lands on the table that day. Tomorrow you have to go back where you earned the previous day, you leave the house without even a shilling, nothing that you can say you will use to eat lunch or breakfast. For me when I put my earnings on the table it is all gone. So that social distancing is a death sentence, that working from home too. I do not have any work that I can engage in at home. What work will I do when I survive from the work of my hands?

The question that lingers is whether the government took into account what “normal” means for a majority of Kenyans before suggesting that behaving normally is akin to a death wish.

The Cabinet Secretary was addressing himself only to a small proportion of the Kenyan population, those with the wherewithal to host parties and deliberately disregard health advisories, and certainly not the majority of Kenyans whose existence is defined by poverty.

The coronavirus disrupted the livelihoods of a majority of Kenyans, and the only way that they could survive was to continue their usual, normal life struggles. The 17th edition of the Kenya Economic updates 2018, places 36.1 per cent of Kenyans below the poverty line, whereas a SIDA report indicates that almost 80 per cent of Kenyans are either income poor, or near the poverty line. This means that a majority of Kenyans are tottering on the precipice and risk losing their means of livelihood at the drop of a hat. The report paints a gloomy picture of the Kenyan economic situation. It states,

As much as 78% of Kenyan workers are employed in the informal sector, many of whom lack security of employment, have few labour rights, lack trade union organization, and suffer from low access to social protection. Women, youth and persons with disabilities are even less likely than other groups to receive benefits, including health benefits, when engaged in the informal sector.

The informal sector is made up of small-scale business people, typically, casual or domestic workers, mama mboga (vegetable sellers), mama fua (washerwomen), street hawkers, jua kali artisans, boda-boda (motor-bike and bicycle taxis), kamjesh (transport sector crew) and mjengo crew (builders). Seventy-two per cent of the households which earn their livelihoods in the informal sector do not have a stable income and live mainly from hand-to-mouth. In the 2019 census, Nairobi recorded a population of 4,397,073 of whom 60 per cent — about 2.6 million people — live in informal settlements. Of these city residents, 30 per cent or 1,446,549 are severely food insecure with only 25,000 having a semblance of food security.

According to a rapid food security assessment conducted in April 2020 by The Kenya Red Cross Society, a majority are experiencing severe hunger. Only one out of every four households in Nairobi’s informal settlements has a stable income. Only 20 per cent of the thousands of households in Mukuru and Korogocho are able to support 80 per cent of their domestic needs. This is the situation in Kibera, Mathare, Soweto, Majengo, Gitare, Marigo, Gatina, Lunga Lunga, Kayole and probably in many other informal settlements in the Kenyan urban areas.

The Kenyan economy was already doing badly when the coronavirus struck and COVID-19 was just one more nail in the coffin. Those who were struggling are now barely clinging to life by the skin of their teeth. As the pandemic intensified, food prices soared and reached an unprecedented three-year high, while the cost of essential items like paraffin for lighting and cooking went up by more than 20 per cent in some cases.

Mildred Lucia, a single mother of four living in Dandora who used to wash clothes to earn a living until the coronavirus struck, laments the rise in the prices of basic commodities. “Vitu zimepanda, kama unga tulikuwa tunanunua unga kilo moja shillingi 40. Saa hii imepanda hadi 50 to 55. Napia mchele imepanda. Tulikuwa tunanunua Pakistan 40 shillings saa hii imepanda ni 55 nusu kilo!” The cost of basic commodities has skyrocketed, like maize meal that we were buying at forty shillings now costs between fifty and fifty-five shillings. The price of Pakistan rice has also gone up. We used to buy at forty for half a kilo and now it’s fifty-five!

Food prices have risen by over 25 per cent since the pandemic struck. Food and rent are the highest recurring costs in the informal settlements, followed by health. With no work, residents in the informal settlement see their debts pile up day after day. The sense of desolation evident in Nairobi’s informal settlements is replicated in every informal settlement in Mombasa, Kisumu, Eldoret and Nakuru.

The coronavirus pandemic and the government’s mitigating strategies disrupted livelihoods. Informal jobs were lost. Those working in the construction industry lost their jobs because building sites were closed and those that remained open could only operate within the limits of the curfew. At the beginning, the 7 p.m. curfew meant that construction sites closed at 3 p.m. having opened late as the curfew only ended at 5 a.m.

Workers were paid less for working fewer hours. Women who sell food and water to the construction workers and the washerwomen who make a paltry Sh200 per day washing clothes suddenly found themselves persona non grata in the homes of the wealthy who feared that they might transmit the coronavirus to them. The street hawkers selling food, groceries, vegetables and fruits were affected, not only because they were not able to freely ply their trade, but also because the incomes of their customers had been disrupted. And with movement curtailed, the earnings of boda boda riders dropped because they had fewer clients.

Children in the informal settlements had their education completely disrupted because they do not have access to online learning facilities and nor can they afford home schooling. Children stayed at home, or wandered aimlessly around the informal settlements making their parents very worried for their safety. Staying at home in the crowded informal settlements is untenable, yet when the children and their parents wander outside the anxiety rises further because no one knows who could be a COVID-19 vector. Parents return home after a day of trying to earn money to buy food and cannot hug their children because they do not have water to sanitise. Water in the informal settlements costs 150 per cent more than it does in the more affluent neighbourhoods where it is piped right into the houses.

As the loss of livelihoods ate up whatever savings families had, debts began to pile up: food credit, fuel bills and rent arrears. Landlords evicted the Incomeless tenants and locked up the houses, in some cases locking up the tenants’ belongings inside. Many residents of informal settlements built up huge rent arrears forcing them to adopt extremely desperate measures. Thirty-two-year-old Albert Otieno moved into the single room occupied by his old ailing mother, whose own house back in Budalang’i in Busia County had been swept away by the floods that preceded the coronavirus pandemic. In Albert’s culture, this is taboo and totally unacceptable. He says this has affected the entire family.

All these little traumas arising from valiant attempts to stay alive are taking a toll on the mental health of the inhabitants of informal settlements. Cases of domestic violence, homicide and suicide have risen significantly since the coronavirus hit. The National Council on the Administration of Justice (NCAJ) noted that 35.8 per cent of crimes reported just a fortnight into the coronavirus lockdown were of a sexual nature. The perpetrators were for the most part people close to or known to the victims.

Data from the Centre for Rights Education and Awareness (CREAW) shows a similar trend. During the pandemic, CREAW’s gender-based violence helpline has been recording an average of 90 cases a month, compared to 20 cases during the same period last year. The rate of gender-based violence was alarming enough for President Uhuru Kenyatta to order investigations into the rising cases. The National Crime Research Centre was tasked to probe the escalating cases of gender-based violence as well as the sharp rise in teenage pregnancies during the lockdown.

Distress calls to helplines have surged more than ten-fold since the lockdown measures were imposed. The US Centers for Disease Control and Prevention (CDC) advises that dealing with pandemics can be stressful, and that the prevention strategies suggested could lead to fear and anxiety thereby increasing stress levels. Stress can cause fear and worry for one’s safety as one is forced to continue doing what they must in order to live. This results in an upsurge of mental health challenges and a worsening of pre-existing mental health conditions.

There are also other health-related challenges that further complicate the lives of the poor. In the informal settlements where cases of chronic diseases such as tuberculosis and HIV/AIDS are more prevalent, and cases of hypertension and cardiovascular disease remain untreated for long, access to health services is disrupted because resources to travel to seek health services cannot be raised. The result is that scheduled medical appointments are missed, and respecting medication schedules becomes impossible.

There is also the reluctance to visit a health facility for fear of contracting the coronavirus there and cases have been reported where healthcare providers lacking personal protective equipment (PPE) are reluctant to see patients they suspect could be infected. This means that expectant mothers are not able to access prenatal care, and new-borns cannot be taken for post-natal clinic appointments. Moreover, many children in the informal settlements will miss their immunisations and this will have long-terms effects well after the COVID-19 curve has been flattened. Mutahi Kagwe’s remarks rang hollow for the millions of poverty-stricken Kenyans forced to take risks and behave as they normally do as they struggle to eke out a living day by day.

Universal basic income is the answer to the inequalities exposed by COVID-19. This bold statement is the title of a blog by Kanni Wignaraja, the United Nations Assistant Secretary General and United Nations Development Programme (UNDP) Regional Director for Asia and the Pacific, and Balázs Horváth, Chief Economist, UNDP, Asia-Pacific. Kanni has been consistent in her writing in support of a policy response to the coronavirus that has universal basic income (UBI) as its centrepiece. She has argued that without a robust response targeting the poor and the marginalised, the long-term social effects could be grim, and could erase any economic recovery put in place to re-energise the economies devastated by the coronavirus lockdown.

Of all the models of social protection, universal basic income is probably the most radical approach. Social protection describes a wide range of interventions — direct and indirect, in cash or in kind, social services, reliable public and private initiatives that enable people to deal with risk, vulnerability or shocks such as the coronavirus, provide support to overcome acute and chronic poverty and enhance the resilience, the social status and rights of marginalised individuals.

As the coronavirus pandemic tightened its grip on the informal settlements, a consortium of NGOs — Oxfam Kenya, The Kenya Red Cross Society, Concern Worldwide, ACTED, IMPACT, the Centre for Rights Education and Awareness (CREAW) and the Wangu Kanja Foundation — have been running a cash transfer social protection project targeting 20,000 households in Nairobi’s informal settlements with funding from the European Union (EU). The programme began in June and was designed to complement the government’s Inua Jamii initiative that was offering cash support to the poor. The cash transfer project reached out to 11,250 households that were already receiving Sh2,000 from the government with a Sh5,668 top-up every month.

Through the Nyumba Kumi mechanism, the project identified a further 8,750 households which received Sh7,668 monthly. The sum was calculated to provide at least 50 per cent of what is described as the Minimum Expenditure Basket (MEB), or half of what an average family needs to survive. The project also identified 1,200 survivors of sexual and gender-based violence (SGBV) for legal and psychosocial support and even resources to find a safe house. The Royal Danish Embassy also signed a DKK20 million (Sh310 million) grant to provide cash support to 40,000 vulnerable households within informal settlements in Mombasa and Nairobi. By mid-September, Sh204,020,492 — approximately €1.6 million — had been transferred to 15,792 individuals. This is obviously a drop in the ocean, but does it present a model that can be scaled up as a solution to help alleviate poverty?

Social protection programmes that provide cash transfers have greater impact compared to initiatives run by the government. Studies have shown that government-run social protection programmes in Kenya typically missed out 90 per cent of the informal workers compared to a reach of 50 per cent in Latin America and the Caribbean. Workers in the informal sector, when compared to other workers in Kenya, are less likely to get involved with organisations or service providers through whom they can access medical benefits from employers. The elderly and persons with disabilities (PWD) are worse off in this respect.

Speaking for UNDP, Kanni Wignaraja has made it clear that there must be some sort of minimum income that acts as a safety net so that the most vulnerable do not succumb to hunger or other diseases well before COVID-19 gets them. In Nairobi’s informal settlements where this social support project was running, it was a case of pulling people back from the brink.

Beneficiaries of the cash transfers recount how the money literally gave them a lifeline. Albert Otieno was able to pay his rent arrears, buy medication to treat his cancer and buy food for his children. The money also eased the domestic tension and brought a smile to his wife’s face; for the first time since he lost his job his family were able to eat three square meals a day. Albert is still in disbelief that he was included in the social protection programme without knowing someone or having a godfather or being asked to pay a bribe. He describes himself as a guy who was a thorn in the flesh of the Nyumba Kumi chairman because whenever he had no money to buy his medication or food for his family he would go to the chairman. The transparency in vetting and the integrity of the programme is why he feels it should be adopted by the government. Otieno says that in Kayole where he lives, he has not heard of any beneficiary of the government’s Inua Jamii programme although it is supposedly on the ground.

Beatrice Mbendo, a 39-year-old pregnant single mother of three whose washing jobs had dried up, was able to pay her debts including rent arrears when she received the money. In her view, the government should have a social protection programme for the poor even in the absence of a pandemic. So does Mildred Lucia, who sells tissue paper in Dandora Phase 4. She is a mother of four whose business collapsed with the onset of COVID-19. She used to be a washerwoman, but all like her are now treated like pariahs because of fear that they might infect their clients. When she received the cash transfer, the money went to feeding her family which had been reduced to eating a single meal a day. Mildred also invested a little money to grow her business and she is hopeful that this boost will get her out of the clutches of poverty.

Margaret Mutambi was thrown out of her home after an abusive eleven-year marriage. When she received the cash transfer she was able to purchase household goods for her new home, pay rent arrears and buy food for her children. Margaret decries the fact that there are no formal jobs for women in the informal sector, saying that their vulnerability to sexual and gender-based violence is exacerbated by their dependence on men. At her lowest moment before she received the cash transfer Margaret had to re-use a face mask when she went out to look for work because she could not afford Shs20 to buy a mask and could not afford to stay put at home.

Cash transfer as a social support strategy has its critics, with the most vociferous saying that it is unsustainable and leads to a dependency syndrome that results in recipients not being keen to try and get back on their feet. Others have complained that receiving “hand-outs” is undignified and robs the assisted communities of their sense of self-worth. Yet others complain that cash transfers promote lethargy and laziness, that recipients adjust to being in the programme and have no incentive to exit even when their lives improve. Those against cash transfers also argue that poor people do not know how to handle money, and that they are wont to waste whatever they receive or invest in non-essentials. However, research and evaluative studies have debunked these myths and vindicated the cash transfer social protection approach.

The argument that UBI is unsustainable is the most challenging one to counter except from a moral standpoint. Kanni responds to it with an existential dilemma. She states,

The alternative to not having UBI is the rising likelihood of social unrest, conflict, unmanageable mass migration, and the proliferation of extremist groups that capitalise and ferment on social disappointment. It is against this background that we seriously need to consider implementing a well-designed UBI, so shocks may hit, but they won’t destroy.

A properly designed social support programme should be able to transition the community from abject poverty to a state where social business can take over in uplifting living standards The Grameen Bank model has demonstrated that the poor have the capacity to work themselves out of poverty as long as they are given initial support. By the end of 2008, the bank had loaned up to $7.6 billion to the rural poor with a repayment rate of 99.6 per cent. Of these borrowers, 97 per cent were women. The 2006 Nobel Peace Prize recognised the work of Grameen Bank and its founder Muhammad Yunus.

Grameen Bank believes that the poor know best how to better their situations and debunks the notion that unconditional cash transfers to the poor will be abused and lead to further poverty. Research findings show that cash transfers actually do provide the poor with support to pull themselves up, and notions of reluctance to resume work have been disproved.

In the informal settlements the normal cannot be avoided. It is a threadbare normal, rendered worse by the efforts to curb the spread of the coronavirus. Without cash transfers, the risk of death lies not in ignoring the government’s advisory but in actually adhering to it.

Today, the cash transfers from the state and the bilateral partners have ceased but millions are still held hostage by poverty. Is there a lesson to be learnt from the UBI “coronavirus vaccine” that, for a while, shielded some 20,000 households from COVID-19? Could UBI be used as a blueprint for a national social support and livelihood system that could be run by the national and county governments?

Continue Reading

Trending