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Crony Capitalism and State Capture: The Kenyatta Family Story

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With business interests in the heart of the Kenyan economy, how has Uhuru Kenyatta’s presidency benefited The Family? Has Kenya benefited from the Kenyattas? DAVID NDII looks at the numbers.

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Crony Capitalism and State Capture: The Kenyatta Family Story
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Nothing is more dangerous than the influence of private interests in public affairs, and the abuse of the laws by the government is a less evil than the corruption of the legislator, which is the inevitable sequel to a particular standpoint. In such a case, the State being altered in substance, all reformation becomes impossible. ~ Jean Jacques Rousseau

In November 2013, seven months into Uhuru Kenyatta’s presidency, one of the dailies carried a story profiling what it termed as the Kenyatta family business “expansion drive”. “Uhuru Kenyatta’s presidency” it averred, “has injected fresh energy into his family’s commercial empire, putting a number of units on an expansion mode that is expected to consolidate its position as one of the largest business dynasties in Kenya.” The paper listed interests in hospitality, dairy healthcare, media, banking and construction. The feature went unremarked in public debate. Conflict of interest is not part of Kenya’s political lexicon.

At the time, Brookside Dairy, the family’s flagship business, was completing an acquisition spree that has swallowed up all the large private milk processors leaving only the state-supported and erstwhile processing monopoly, Kenya Cooperative Creameries (KCC), and the farmer-owned Githunguri Dairies (owner of the “Fresha” brand) as serious competitors.

The pay-off has been remarkable. During Uhuru Kenyatta’s first term the consumer price of milk increased 67 percent (from KSh 36 to KSh 60 per half-litre packet), while producer prices remained unchanged at KSh 35 per litre), effectively increasing processors’ gross margin by 130 percent (from KSh 37 to KSh 85 per litre). Given the industry’s 400m litre annual throughput and Kenyatta family’s market share, which stands at 45 percent, the consumer squeeze translates to an increase of the Kenyatta Family’s turnover from KSh 13 billion to KSh 22 billion, and gross margin from KSh 6.7 billion to KSh 15 billion a year.

Two years ago, it emerged that the president’s sister and cousin (or niece) had abused procurement reserved for disadvantaged women and youth to supply the health ministry. The company involved was registered after Kenyatta assumed office. The website, which has since been taken down, listed their business as supplying healthcare products, building materials, construction equipment, dry foods and supplementary foods to “government entities, parastatal entities, non-governmental organizations, corporates and counties”. It also advertised investment consultancy and “facilitation” services, also known as influence peddling. The business was set up specifically to profit from Kenyatta’s presidency.

During Uhuru Kenyatta’s first term the consumer price of milk increased 67 percent (from KSh 36 to KSh 60 per half-litre packet), while producer prices remained unchanged at KSh 35 per litre), effectively increasing producers’ gross margin by 130 percent (from KSh 37 to KSh 85 per litre). Given the industry’s 400m litre annual throughput and Kenyatta family’s market share, which stands at 45 percent, the consumer squeeze translates to an increase of the Kenyatta Family’s turnover from KSh 13 billion to KSh 22 billion, and gross margin from KSh 6.7 billion to KSh 15 billion a year.

Koto Housing, associated with Uhuru’s sister and specialising in expanded polysterene (EPS) modular construction technology was cashing in on police housing. No sleuthing is required to establish this— it’s on the company’s website. Since then, the family has established an even bigger EPS building company C-MAX, which also showcases police housing on its website. Instructively, the website also markets “affordable housing” as one of the product lines. Affordable housing is one of Kenyatta’s “big four” agenda.

That the Kenyatta family would set up businesses to trade with the government during his tenure, and have no qualms showcasing government business on their websites, is astounding. But nothing brings home the family’s obliviousness to conflict of interest than its entanglement with the Rai family, the timber and sugar merchants now embroiled in the contaminated sugar import scandal. Parallels have been drawn between Kenyatta’s engagement with Rai and the South African Gupta state capture saga.

Two years ago, it emerged that the president’s sister and cousin (or niece) had abused procurement reserved for disadvantaged women and youth to supply the health ministry. The company involved was registered after Kenyatta assumed office. The website, which has since been taken down, listed their business as supplying healthcare products, building materials, construction equipment, dry foods and supplementary foods to “government entities, parastatal entities, non-governmental organizations, corporates and counties”. It also advertised investment consultancy and “facilitation” services, also known as influence peddling. The business was set up specifically to profit from Kenyatta’s presidency.

Sometime in the early 90s, the Rai siblings sued one of their brothers, Jaswant Rai, alleging that he had secretly been siphoning money from the family business and investing it on his own. They alleged that the money was invested in two Kenyatta Family businesses: Timsales, a timber merchant, and the Commercial Bank of Africa.

Raiply, the Rai family’s flagship plywood manufacturing business came to prominence for what appeared to be a carte blanche license to log public forests during Moi’s tenure. The case confirmed what the public had long suspected: that Moi had a stake in the business. Kabarak Limited, a name synonymous with Moi, had a 1.4 percent stake in Raiply. Moi banned logging of hardwoods from indigenous forests in 1986. According to the task force the Jubilee administration appointed recently, the Kenya Forestry service has continued to give Raiply licenses to log these invaluable forests for plywood.

Sometime in the early 90s, the Rai siblings sued one of their brothers, Jaswant Rai, alleging that he had secretly been siphoning money from the family business and investing it on his own. They alleged that the money was invested in two Kenyatta Family businesses: Timsales, a timber merchant, and the Commercial Bank of Africa.

Rai’s clout in the Jubilee administration became apparent during the disposal of the bankrupt Pan Paper Mills, Kenya’s lone pulp paper mill and a monument to failed import substitution industrialisation. Established in 1971 as a joint venture between the Government and an Indian investor, Pan Paper’s claim to fame is that it has never made a profit, even though during the pre-liberalization era, the Indian investors paid themselves handsomely through transfer pricing, management fees and royalties. Pan Paper collapsed in 2009, was bailed out and reopened by the government in 2010, but it closed down again a year later. A second revival failed.

In 2014, Pan Paper’s receiver managers resigned abruptly, protesting that a powerful hidden hand was manipulating the transaction to ensure that Pan Paper’s assets were sold cheaply to Rai. A new receiver was promptly appointed and the assets, reportedly worth KSh 18 billion were sold to Rai, for KSh 900 million – even less than the Ksh 1 billion the government had injected in the failed revival.

Kenya’s current sugar production according to Kenya National Bureau of Statistics data is in the order of 600,000 tons a year, against a consumption of 830,000 metric tonnes, making for an annual deficit of 230,000 tons. Kenya has been accorded safeguards to protect the domestic sugar industry by COMESA trading partners, but these safeguards dictate that Kenya imports the deficit from COMESA countries. Also, it was the practice, as I remember it, that preference was given to the domestic millers in proportion to their market share.

It has now come to light that mid last year, in the run-up to the election, the government, citing drought, opened the floodgates and allowed all and sundry to import sugar duty-free. The KNBS data shows 990,000 tons imported during the year—more than a year’s consumption. To be sure, 376,000 tons, the volume of domestic production, was well below normal, but this translates to a deficit in the order of 450,000 tons – less than half of what was imported. Moreover, it is unclear why duty was waived—sugar withdrawal symptoms are not fatal.

Sugar importation was the Moi era’s default election financing racket. In those days, the racket was a closed shop controlled by a small cabal of Moi’s associates known as the “sugar barons”, not the feeding frenzy we are witnessing today. Jubilee’s dynamic duo may be Moi’s political children but one among the many things they did not learn from him was disciplined corruption. Little wonder that Moi once described them as “ndume hawajakomaa”.

Domestic sugar industry protection in these parts borders on the irrational. Sugar is classified as a “sensitive item” under the EAC’s Common External Tariff, which means it attracts punitive import duties, set at 100% or US$460 a ton, whichever is higher. With sugar currently trading at U$265 a ton on the world market, the applicable rate is US$460, which is effectively an import duty rate of 170 percent. Regular goods are taxed at 0,10 and 25 percent while rates for other sensitive items range from 35 to 60 percent.

Sugar importation was the Moi era’s default election financing racket. In those days, the racket was a closed shop controlled by a small cabal of Moi’s associates known as the “sugar barons”, not the feeding frenzy we are witnessing today. Jubilee’s dynamic duo may be Moi’s political children but one among the many things they did not learn from him was disciplined corruption. Little wonder that Moi once described them as “ndume hawajakomaa”.

But even with the punitive import duty, the landed cost still works out to between KSh 80-85 a kilo, which allowing for distribution costs and trade margins, would still have put sugar on the shelf in the KSh 110 to Ksh 120 range at which it has been selling. In effect, the foregone duty has been pocketed by the importers. For 960,000 tons, we are talking US$ 455 million (KSh 45.5 billion). If the importation had been done by the sugar millers, and at the right quantity, a duty waiver would have translated to revenue in the order of KSh 20 billion – enough, if properly managed, to turn the struggling mills around. Instead, when they most needed the financial cushion, the government let the dogs out.

When the contaminated sugar scandal first broke with a raid on a backstreet operation in Eastleigh (Nairobi’s “Somali Quarter”), with the culprits caught packing the contraband as “Kabras” sugar, it created the impression that this was a crackdown on the Somalia-Kenya border smuggling racket. Kabras is the brand name of the Rai-owned West Kenya Sugar Company. Then, Aden Duale, Jubilee’s motor-mouthed Parliamentary majority leader turned the guns on Rai. This immediately elicited a stern, sanctimonious public statement from West Kenya Sugar. It admitted to importing sugar, but did not disclose how much. It was not long before sugar hoardings popped up in various Rai establishments up and down the country, including Pan Paper.

It has been reported that Rai imported 189,000 tons of sugar, close to a fifth of the total duty free imports last year. The tax benefit to Rai, and loss to the public, for this amount of sugar is in the order of US$86 million (KSh 8.6 billion). We are talking here of the annual budget of an entire county. The sugar itself is worth upwards of US$50 million (KSh 5 billion). Businesses seldom have this kind of cash lying around, so it is most likely that the transaction was bank financed. If so, it would be interesting to know which bank this is.

It is western Kenya’s misfortune that the region was the hub of both the sugar industry and Pan Paper, Kenya’s most disastrous import substitution industries. The people of Webuye, and the larger Western region, have nothing to show for it. A log of wood typically converts to 8000 sheets of A4 paper worth Ksh. 60,000 (US$600). This is about the same as the value of raw timber. The same log converted into furniture will have a final value twenty times that amount (e.g. three dining tables worth KSh 40,000 each) or higher depending on quality. The furniture industry is a relatively low capital requirement, labour intensive industry that would have utilized Webuye’s forest resources for a locally-owned job and wealth-creating industry.

In its lifetime, Pan Paper has consumed 25,000 hectares of public forests — about 600 hectares per year. Pan Paper at its peak employed 1,500 people. A timber-furniture industry cluster utilising the same resource would have created ten times as many jobs, injecting more than Ksh 100 billion a year into the region’s economy.

In a previous column, I posed the question as to what made the leaders of the East Asian Tigers pursue export-led industrialisation going against the dominant development paradigm of the day. I postulated that they did not set out to perform economic miracles, but rather to improve the lot of their people, which led them to the realisation that capital intensive import substitution industries would not create jobs for the masses.

Half a century on, Uhuru Kenyatta, who claims to be inspired by Lee Kuan Yew, is taking the country back to crony capitalist import substitution. In recent months, import tariffs have been raised on timber, vegetable oils and paper products, in all of which the Kenyattas and Rais are players. It was rumored that the Rai purchase of Pan Paper was a Trojan Horse to access public forests for their timber business. The rumour was all but confirmed by the recent appointment of Jaswant Rai to the board of the Kenya Forestry Service. As I opined, “when East Asian leaders were asking prospective investors what they needed to do for them, ours were asking what was in it for them”. Nothing has changed. The “big four” manufacturing pillar is also about profits for Kenyatta & Co. – not about jobs. The president’s bread is buttered on the side of capital, not labour.

Kenyatta’s presidency has increased the profits of his family’s conglomerate by at least Ksh 10 billion a year, and that is not including the side lines of family members’ “tenderprises” such as the sister’s health ministry tenders and the uncle’s NYS fuel supplies. The best-run businesses in competitive markets typically make profits in the order of five percent of turnover. In effect, the presidency translates for the Kenyatta conglomerate the equivalent of a KSh 200 billion turnover business —a business the size of Safaricom (whose hefty earnings are due to inordinate market power).

When East Asian leaders were asking prospective investors what they needed to do for them, ours were asking what was in it for them. Nothing has changed. The “big four” manufacturing pillar is also about profits for Kenyatta & Co. – not about jobs. The president’s bread is buttered on the side of capital, not labour.

It should not surprise then that no expense has been spared, no price has been too high not only to keep Uhuru Kenyatta in power, but also to roll back the constitutional dispensation and restore to the presidency the unfettered power on which the family fortune rests.

David Ndii
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David Ndii is a leading Kenyan economist and public intellectual.

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Is Poverty a Political Choice?

Philip Alston, the outgoing UN special rapporteur on extreme poverty and human rights, says that international development organisations got it all wrong: not only are more people likely to be extremely poor in the next decade, but they are likely to remain extremely poor for the rest of their lives because “poverty is a political choice”.

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Before the outbreak of the coronavirus pandemic, forecasters had been predicting that the world was becoming a better place: more people were being lifted out of poverty; more children were enrolled in school; fewer women were dying in childbirth; the internet was changing the lives of communities in the remotest corners of the planet; and if all went according to plan, and with adequate investment in the right science, life-threatening diseases would be a thing of the past.

International development experts and organisations have since at least the 1990s being gathering data to show positive trends in the state of the world’s people. While grim realities often surface, such as the fact that more people today suffer from depression and anxiety than ever before, the general view is that while things are not good for a large chunk of humanity, they will eventually get better for everyone – provided there are sufficient funds and investments (often couched in the language of aid) to ensure that everyone inhabiting this planet leads a reasonably healthy and productive life.

An overriding assumption made by these experts and organisations is that once a country achieves a certain level of per capita income and reduces poverty to single digit figures (i.e., becomes “developed”), issues such as healthcare and education will take care of themselves. But, as has become alarmingly evident in the United States’ COVID-19 infection and mortality rates, wealth alone cannot guarantee good quality public health.

The United Nations and financial institutions like the World Bank have made it their mission to eradicate poverty. Heads of state meet every year at the UN General Assembly to discuss their countries’ progress in various human development indicators, including poverty levels. The goal of ending poverty is renewed every decade or so (remember the Millennium Development Goals of 2000 that morphed into the Sustainable Development Goals in 2015?) but the poor, as they say, will always be with us.

What’s more, now that we have COVID-19, all the gains of the past decades are likely to be reversed. Not only are poverty levels set to increase with rising unemployment, but inequality levels will most likely soar worldwide.

However, before this pandemic, did we really see the progress that international development organisations claimed had been achieved? Or were the statistics plain wrong?

Dodgy statistics

In a highly critical report released early this month, Philip Alston, the outgoing UN special rapporteur on extreme poverty and human rights, says that international development organisations got it all wrong: not only are more people likely to be extremely poor in the next decade but they are likely to remain extremely poor for the rest of their lives (with or without the impact of COVID-19) because “poverty is a political choice” – the result of “longstanding neglect of extreme poverty and the systematic downplaying of the problem by many governments, economists, and human rights advocates”.

In fact, according to Alston, contrary to “over-optimistic assessments”, there has only been “a slight decline in the number of people living in poverty over the past thirty years””

Alston’s scathing final report to the UN Human Rights Council’s forty-fourth session spells out in unflinching detail how the World Bank duped the world into believing that poverty lines across the world were dropping. The report says that the current international poverty line (IPL) is derived from an average of national poverty lines adopted by some of the world’s poorest countries, but its value (US$1.90 purchasing power parity per day) is “explicitly designed to reflect a staggeringly low standard of living, well below any conception of a life with dignity”.

“Almost all of these celebratory accounts rely one way or another on the World Bank’s international poverty line (IPL), under which the number in extreme poverty fell from 1.895 billion in 1990 to 736 million in 2015, and thus from 36 to 10 percent of the world’s population”, says the report. However, “escaping poverty” is not the same as enjoying an adequate standard of living that includes access to healthcare and education. The report proposes abandoning the IPL in favour of a more nuanced and accurate portrayal of poverty.

In 2014, the Standard Bank Group’s researchers made a similar assessment. Their research debunked the myth that Kenya is an emerging economy set to become a robust middle-income country by 2030. The Group’s research showed that – contrary to optimistic projections by Kenya’s Vision 2030 enthusiasts – Kenya still had a long way to go before it is could be classified as middle-income.

According to the Group’s report, only 4 per cent of Kenyan households fell into the middle class category that year, which the Group placed as those that had an income of roughly between Sh60,000 ($600) and Sh300,000 ($3,000) a month. Using this definition, the vast majority of the country’s households – a staggering 92 per cent – were considered low income i.e. those that earned under Sh40,000 ($400) a month. These figures were validated by an Ipsos Limited survey that showed that 93 per cent of Kenyan adults earned less than Sh40,000 a month and 43 per cent earned less than Sh10,000 ($100) a month.

These statistics fly in the face of African Development Bank figures that place Africa’s middle class as those that earn between $4 and $20 a day, or between about Sh12,000 and Sh60,000 a month.

Anyone living in Kenya, where the cost of living is extremely high and where there are very few free or subsidised services, knows that if you earn Sh12,000 a month, you are definitely not middle class, and that if you earn Sh60,000 shillings a month, you are really struggling to pay for food, rent and school fees, and are more likely to live in a slum than in a middle class neighbourhood. Yet, it is these kinds of figures that international financial institutions use to elevate countries to middle-income status.

Alston is also sceptical of the UN’s Sustainable Development Goals (SDGs), which he says are pegged on economic growth and private sector funding. (The SDGS, adopted in 2015, are a set of 17 goals, including eradicating poverty, achieving gender equality, combatting climate change and promoting sustained inclusive and sustainable economic growth by 2030.)

“Instead of promoting empowerment, funding, partnerships, and accountability, too much energy surrounding the SDG process has gone into generating portals, dashboards, stakeholder engagement plans, bland reports, and colourful posters. Official assessments are rarely critical or focused, and they often hide behind jargon”, he says.

He adds that the strategy to achieve the SGDs is focused on privatisation, which is problematic because privatisation often prevents the poorest and the most vulnerable from gaining access to services. In addition, the SDGs underplay the role of governments, which is “often relegated to insuring private investments”. Alston’s critique reflects the neoliberalism that has pervaded the development sector since the 1990s when privatisation and the freeing of markets were considered the solutions to ending economic stagnation and poverty.

Statistics, as Alston illustrates, often conceal more than they reveal. It all depends on who is computing them and for what aim. While statisticians and demographers will claim that their science is neutral, and based purely on verifiable numbers, carefully crafted formulas and accurate calculations, sceptics have wondered whether numbers tell the whole story.

In addition, quite often it is difficult to tell which variable impacted which outcome. Are low maternal mortality rates an indication of women’s equality in society or merely a reflection of better healthcare? Are urban growth rates a reflection of levels of industrialisation or do some urban areas grow spontaneously? Do high literacy rates and low poverty levels correlate with higher rates of happiness?

Creating just and happy societies

Interestingly, these were the questions that bothered King Jigme Wangchuk of Bhutan nearly fifty years ago when he created the Gross National Happiness Index in 1972, and declared that “if the government cannot create happiness for its people, there is no purpose for the government to exist”.

The four key pillars of this index are equitable and sustainable socio-economic development, preservation of cultural values and heritage, conservation of the natural environment and good governance. Economic growth does not feature high in Bhutan’s happiness index because the kingdom’s policymakers consider spiritual and emotional well-being far more important than GDP, which is considered an inadequate tool to measure other intangible – but invaluable – types of wealth, such as culture and nature.

Bhutan has long acknowledged that economic growth without social justice increases levels of unhappiness in society. This reality has been supported by more recent research that shows that highly unequal societies also tend to be unhappy societies, with high levels of dysfunction.

In a ground-breaking study published a few years ago, epidemiologists Richard Wilkinson and Kate Pickett found that levels of mental illness within a society were related to its level of inequality. In the Unites States, one of the most unequal societies in the world, a quarter of the population suffers from some form of mental illness, while in the more egalitarian Japan, less than 10 per cent do. Germany, Belgium and the Netherlands also have less income inequality and less prevalence of mental illnesses, perhaps because these countries invest more in social welfare programmes than others.

In their book The Spirit Level: Why Greater Equality Makes Societies Stronger (2009), Wilkinson and Pickett show how highly unequal societies tend to produce narcissistic individuals – people who are excessively preoccupied with themselves and place a lot of importance on individual success (which could explain the Donald Trump phenomenon).

The epidemiologists also found that in highly unequal countries, people tend to be physically and psychologically unhealthy as well. Obesity, depression and drug addiction are more common in unequal societies. In such societies, homicide and other criminal behavior are also more prevalent.

Because unequal societies tend to produce people prone to violence and crime, they are also fearful. Hence they tend to build gated communities and protect themselves with guns or private security. People thus become more distrustful of each other and lose their sense of community, which increases anxiety levels.

The authors say that instead of curing mental illness through increased use of drugs and psychiatric services, countries should look at making their societies more equal through policies that reduce the income gap and that build people’s resilience.

This echoes the claim that economic growth alone cannot deliver just, cooperative and healthier societies. China’s cities, for example, have become unliveable due to high levels of air pollution because China decided that growth was more important than environmental protection. China also failed to contain COVID-19 in time, which led to it becoming a pandemic, which suggests that the country still has a lot of work to do in the area of public health.

In the United States, shootings in schools and other public places have become more common, perhaps because the attackers feel disconnected from their world. In Kenya, we are building high-rise apartments for the rich but not a single public park has been built since the colonialists left. We are building more roads, but not expanding pavements or bicycle paths. Meanwhile, before the COVID-19 lockdown, motorists in Nairobi were spending more time in traffic than with their families at home.

Inequality was already out of control before the pandemic hit early this year. According to an Oxfam report released in January, in 2019, only 2,153 people had more wealth than 4.6 billion people, 60 per cent of the world’s population. In addition, “the richest 22 men in the world own more wealth than all the women in Africa”.

According to the World Inequality Report 2018, 50 per cent of the world’s population owns less than 2 per cent of the world’s wealth while 40 per cent of the world’s population (the global middle class) owns less than 30 per cent.

Such depressing figures are set to get grimmer in the near future. According to Alston, COVID-19 is projected to push more than 70 million additional people into extreme poverty, and hundreds of millions more into unemployment and poverty.

Alston says that poverty and inequality can only be eradicated if governments invest in social protection for citizens and involve the poor in policymaking. Governments must also take charge of service provision instead of relying mainly on the private sector.

Extreme poverty must be understood as a violation of human rights. “Protestations of inadequate resources are entirely unconvincing given the determined refusal of many governments to adopt just fiscal policies, end tax evasion, and stop corruption”,says Alston.

Alston concludes his report by stating: “Poverty is a political choice and will be with us until its elimination is reconceived as a matter of social justice. Only when the goal of realizing the human right to an adequate standard of living replaces the World Bank’s miserable subsistence line will the international community be on track to eliminate extreme poverty.”

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The Coronavirus Pandemic: A Breath of Life Into the Struggle for the Implementation of the 2010 Constitution?

The pandemic has hastened the national discussion on the formation of alternative political movements and leaderships that will guarantee the national peace that the elite have shown themselves to be incapable of providing.

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The Coronavirus Pandemic: A Breath of Life Into the Struggle for the Implementation of the 2010 Constitution?
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My governor friend and I were discussing the implementation of the 2010 Constitution. He used a metaphor to speak about the progress made thus far: the constitution gave birth to a beautiful child destined to grow and transform all the ideological, social, economic, cultural, spiritual and political aspects of our Kenyan society.

The ultimate goal of this transformation would be to replace the neocolonial status quo with a free, just, equitable and egalitarian, peaceful, prosperous, ecologically safe and democratic society. Such a society would form the basis on which to hold a national discussion of its weaknesses and, based on this dialogue, consequently build a firm foundation for yet another, better society, at which point it would come as no surprise if another new constitution were to be promulgated.

We the people of Kenya, having created the constitution, not only imposed it on the ruling elite but we then proceeded to hand over the baby to the same elite—a political leadership of child and body parts traffickers—to bring it up. A progressive constitution requires a progressive political leadership for its implementation.

The struggles of constitution-making do not end with its promulgation. Its implementation continues the struggles between the anti-constitution forces and those forces that call for its robust implementation and, as we approach the tenth anniversary of the promulgation of the 2010 Constitution on 27 August 2020, the struggle for its implementation continues unabated.

Genesis of the Struggle

The independence constitution gave birth to a neocolonial system that ensured the colonial state remained intact. Indeed, under that constitution, the multi-racial and multi-ethnic ruling elite continued to protect foreign interests, including the British colonial powers that never left Kenya. Therefore, it is not surprising that the independence constitution was resisted right from the time of its promulgation.

The opposition party, the Kenya People’s Union (KPU), opposed the neocolonial status quo. Both Jaramogi Oginga Odinga’s book, Not Yet Uhuru and Bildad Kaggia’s The Roots of Freedom chronicle this fact. Both authors were founding members of KPU. Underground political formations such as The December Twelfth Movement and Mwakenya, and their publications Mwunguzi, Cheche, Pambana and Mpatanishi, also resisted the neocolonial state and its policies.

The so-called Second Liberation movement was premised on the repeal of Section 2A of the constitution that decreed the supremacy of one-party dictatorship. The movement also sought to have a constitution that would be aligned to the promise of a multi-party democracy while civil society organisations and opposition political parties continued the struggle for a new constitution. When the Moi-KANU dictatorship was defeated in 2002, the Kibaki-KANU-NARC dictatorship could not resist the people’s clamour for a new constitution and the 2010 Constitution was promulgated on 27 August 2010.

Gains and Challenges

The vision of the 2010 Constitution makes clear the rejection of the neocolonial status quo and affirms the supremacy and sovereignty of the Kenyan people as those with the powers to recall their representatives in parliament. The constitution provides for gender equity and equality and reiterates that the three arms of government derive their authority from the people. It promotes a political leadership comprised of men and women of integrity and national institutions that are independent and whose authority is derived from the people of Kenya. The constitution eschews the politics of division and calls for institutionalised, de-personalised, and democratic political parties, signaling the end of 47 years of gross electoral injustices.

We have a progressive Bill of Rights running the whole gamut of political, civil, economic, social, and cultural rights: decentralisation and democratisation of the imperial presidency to devolution; holding institutions, particularly those in finance and security, accountable to the power of the constitution; equitable distribution of national resources; the protection of land, our major resource, through the reduction to 99 years of the duration of leases given to foreign interests and the creation of a new land law regime that is communitarian to co-exist with a tenure system under which land is commodified (the co-existence of the two land tenures systems is envisaged as a strategy to build a future system that is based on access and use of land to all).

The neocolonial status quo served strong, dangerous, greedy and corrupt foreign and national interests that saw the promulgation of the 2010 Constitution as an inconsequential hiatus. This position has been resisted, reflecting the continued struggles for its implementation which has seen both progress and retrogression. Firstly, the imperial presidency has not been fully democratised and decentralised. Its restructuring has been resisted. It continues to oversee opaque sovereign debts and corruption and, against the provisions of the constitution, continues to maintain the colonial and neocolonial machinery of violence. Both the Treasury and the security apparatus are still departments of the imperial presidency contrary to the decrees of the constitution. And nor has there been consistent support for devolution from the imperial presidency and some institutions have become less independent while others have become moribund. No strong checks and balances exist.

We have witnessed the return of intra-elite struggles christened with various monikers: Tanga Tanga, Kieleweke, Tinga Tinga, Manga Manga, BBI, Dynasties, Hustlers. These struggles portend possible violence during the elections in 2022. They are also a reflection of a ruling elite that has maintained the politics of division (ethnic, religious, gender, generational, regional, clan, class, occupation and race) and that is extremely callous in its politics of inhumanity. It is an elite that continues to act as the loyal comprador class of foreign interests in the West and East. The forces massed against the implementation of the constitution are headquartered in the bosoms of the Kenyan elite.

Devolution has engendered in Kenyans the belief that resources will be shared equitably, that Kenya will become peaceful and stable, and that projects of state-building and nation-building will be strengthened. Under devolution, baby steps have been taken towards ending the marginalisation of certain counties and communities. In some counties, the sharing of state power with the grassroots through public participation has taken place and in others the leadership has resisted corruption.

Although the jurisprudence on Chapter 6 of the Constitution (Leadership and Integrity) is yet to be settled in the Supreme Court, we have witnessed progressive jurisprudence on the protection of devolution as well as on the implementation of the Bill of Rights (in particular political, civil, housing, evictions and public interest litigation) and on the overall protection of the independence of the judiciary.

We have seen attempts by the imperial presidency and parliament to thwart this positive trend by starving the judiciary of funds. Court orders have been disobeyed, weakening the constitution and the rule of law. Both the imperial presidency and the neocolonial parliament still believe that national resources belong to them and that—as those who hold the taxpayers’ money in trust—they are not accountable to the people from whom both institutions derive their powers.

We have also witnessed robust protection of the constitution from civil society groups, both in the middle class and at the grassroots. We have seen the emergence of movements that are calling for alternative leaderships at the helm of the movements of transformation and political parties. We have also heard the clarion call that “We do not want reforms from the current political leadership; We want the political power to carry out authentic reforms. We are now the authentic people’s opposition”. The emancipatory spirits of Mau Mau, the independence movements, the movements against neocolonialism, Saba Saba and Limuru have been resurrected. In all these movements, the centrality of the Kenyan youth is visibly signaling new political demands from those who have been marginalised by the system.

Coronavirus: Breath of New Life into the Struggle?

Indeed, the pandemic has provided a great opportunity to continue the struggle for the implementation of the 2010 Constitution. I believe the pandemic has brought with it the answer to the ever-present political question in Kenya: Who are the friends and who are the enemies of the Kenyan people?

The pandemic has further exposed the inhumanity of the state and the elite political leadership by their actions during this crisis: extrajudicial killings; demolition of the housing of the poor in Kariobangi Sewerage and at Ruai; disobedience of court orders in regard to the pandemic; refusal to take steps to progressively bring about the realisation of the public good under Article 43 of the Constitution (food, water, education, social security, health, sanitation); and, with the exception of two, a lack of response through social justice philanthropy from the billionaires and multi-millionaires and their infamous foundations.

If any evidence were needed to show how uncaring our state and the ruling class are towards the majority of the population, it is in their demands that the poor wash their hands while failing to provide them with soap and water using the resources that they hold in trust for the people.

To oppress the poor for not wearing masks was callous in the extreme, while lockdowns and curfews became death sentences for those who had no food and those looking for casual jobs to survive. No resources were committed to implementing the right to health for all. Indeed, all we heard were the familiar tales of corruption as the pandemic provided the elite class with another opportunity to indulge their unquenchable thirst for theft and debts.

One positive effect of the pandemic has been to hasten the national discussion on the formation of alternative political movements and leaderships. Many virtual meetings and launches have been convened, events ironically made possible by the very tools developed by surveillance capitalism.

Alternative transformative movements are growing in strength. Embryonic alternative political parties exist, their mobilisation and organisation energised by the pandemic. The merger of these movements and political parties is no longer an abstract idea and, as they move in from the margins, the old normal of before the pandemic—which was neither acceptable nor sustainable—is no longer guaranteed a further lease of life.

Indeed, the pandemic has breathed some life into the struggles for the implementation of the constitution. Calls by the elite to change the constitution have been met with demands to tekeleza katiba, implement the constitution. The good news to me seems to be that this herculean struggle will result in the baronial narrative that has gone unchallenged for the last 57 years facing the resistance of strong counter-narratives. Ironically, it is these counter-narratives, these alternative movements and political leaderships that will protect the baronial elites from themselves and their politics of revenge, and guarantee the national peace that the elite have shown themselves to be incapable of providing.

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Seeds of Neo-Colonialism: Why GMO’s Create African Dependency on Global Markets

Rather than addressing food scarcity, genetically modified crops may render African farmers and scientists more, not less, reliant on global markets.

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Seeds of Neo-Colonialism: Why GMO’s Create African Dependency on Global Markets
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As COVID-19 continues to lay bare the deficiencies in the global food system, imagining new food futures is more urgent than ever. Recently, some have suggested that seeds that are genetically modified to include pest, drought, and herbicide resistance (GMOs) provide an avenue for African countries to become more self-sufficient in food production and less reliant on global food chains. Although we share the desire to build more just food systems, if history is any indicator, genetically-modified (GM) crops may actually render African farmers and scientists more, not less, reliant on global actors and markets.

In a paper we recently published in African Affairs, we trace a nearly 30-year history of collaborations among the agribusiness industry, US government agencies, philanthropic organizations, and African research councils to develop GMOs for African farmers. We found that these alliances, though impressive in scope, have so far resulted in few GMOs reaching African farmers and markets. Why, we ask, have efforts to bring GMOs to Africa yielded so little?

One reason, of course, is organized activism. Widespread distrust of the technology and its developers has animated local and transnational social movements that have raised important questions about the ownership, control, and safety of GM crops. But another issue has to do with the complex character of the public-private partnerships (PPPs) that donors have created to develop GM crops for the continent. Since 1991, beginning with an early partnership between the US Agency for International Development (USAID), the Kenyan Agricultural Research Institute, and Monsanto to develop a virus resistant sweet potato (which never materialized), PPPs have become a hallmark of GMO efforts in Africa. This is mainly so for two reasons. The first is that GM technology is largely owned and patented by a handful of multinational corporations, and, thus, is inaccessible to African scientists and small to mid-sized African seed companies without a partnership agreement. The second is that both donors and agricultural biotechnology companies believe that partnering with African scientists will help quell public distrust of their involvement and instead create a public image of goodwill and collaboration. However, we found that this multiplicity of partners has created significant roadblocks to integrating GMOs into farming on the continent.

Take the case of Ghana. In the mid-2000s, country officials embarked on an impressive mission to become a regional leader in biotechnology. While Burkina Faso had been growing genetically modified cotton for years, Ghana sought to be the first West African country to produce GM food crops. In 2013, Ghanaian regulators thus approved field trials of six GM crops, including sweet potato, rice, cowpea, and cotton, to take place within the country’s scientific institutes.

However, what began as an exciting undertaking quickly ran into the trouble. Funding for the sweet potato project was exhausted soon after it began. Meanwhile, cotton research was put on indefinite hold in 2016 after Monsanto, which had been supplying both funding and the Bt cotton seed, withdrew from its partnership with the Ghanaian state scientific council. Describing its decision, a Monsanto official said that without an intellectual property rights law in place—a law that has been debated in Ghanaian parliament and opposed by Ghanaian activists since 2013—the firm could not see the “light at the end of the tunnel.”

Monsanto was also embroiled in legal matters in Burkina Faso, where their Bt cotton had unexpectedly begun producing inferior lint quality. Meanwhile, Ghanaian researchers working on two varieties of GM rice had their funding reduced by USAID, the main project donor. This left them with insufficient resources, forcing the team to suspend one of the projects. The deferment of both the cotton and one of the rice projects dealt a blow to the Ghanaian scientists who were just a year or two away from finalizing their research.

In many ways, the difficulties presented here from both Ghana and Burkina Faso suggest that efforts to bring agricultural biotechnology to Africa are a house of cards: the partnerships that seem sturdy and impressive from the outside, including collaborations between some of the world’s largest philanthropies and industry actors, are actually highly unstable. But what about the situation in other countries?

Both Nigeria and Kenya have made headlines recently for their approval of GM crops. The news out of Nigeria is especially impressive, where officials recently approved a flurry of GMO applications, including Bt cotton and Bt cowpea, beating Ghana to permit the first genetically modified food crop in West Africa. Kenya also approved the commercial production of Bt cotton, an impressive feat considering the country has technically banned GMOs since 2011. Both countries, which have turned to an India-based Monsanto subsidiary for their GM seed supply, hope that Bt cotton will help revitalize their struggling cotton sectors. While biotech proponents have applauded Nigeria and Kenya for their efforts, it will take several growing seasons and more empirical research to know how these technologies will perform.

As the cases described here demonstrate, moving GMOs from pipeline to field is not simply a matter of goodwill or scientific discovery; rather, it depends on a multitude of factors, including donor support, industry partnerships, research outcomes, policy change, and societal acceptance. This complex choreography, we argue, is embedded in the DNA of most biotechnology projects in Africa, and is often ignored by proponents of the technology who tend to offer linear narratives about biotech’s potential to bolster yields and protection against pests and disease. As such, we suggest the need to exercise caution; not because we wish to see the technology fail, but rather because we are apprehensive about multi-million dollar collaborations that seemingly favor the concerns of donors and industry over those of African scientists and farmers.

The notion of public-private partnerships may sound good, but they cannot dispel the underlying interests of participating parties or the history and collective memory of previous efforts to “improve” African agriculture.

This post is from a new partnership between Africa Is a Country and The Elephant. We will be publishing a series of posts from their site once a week.

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