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Crony Capitalism and State Capture: The Kenyatta Family Story

9 min read. 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 serving on the Technical and Strategy Committee of the National Super Alliance (NASA).

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South Africa: Xenophobia Is in Fact Afrophobia, Call It What It Is

5 min read. Anti-African violence in South Africa is fuelled by exclusion, poverty and rampant unemployment. This isn’t black-on-black violence. This is poor-on-poor violence.

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South Africa: Xenophobia Is in Fact Afrophobia, Call It What It Is
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Written in May 2008, as African bodies burned on the streets of South Africa, Ingrid De Kok’s throbbing poem Today I Do Not Love My Country poignantly captures the mood of an Afrophobic nation fluent in the language of violence and name-calling.  (I say Afrophobic because South Africa does not have a xenophobia problem. We don’t rage against all foreigners—just the poor, black ones from Africa.)

The irony of South Africa’s most recent attacks on African immigrants is that they happened in the wake of the African Continental Free Trade Agreement which positions the country as an economic gateway to the continent. As the debris is cleared off the streets of Johannesburg after a week of violent looting and attacks against African migrant-owned businesses that saw eleven people killed and almost 500 arrested, Pretoria now faces calls to boycott South African-owned businesses on the continent.

Zambia and Madagascar cancelled football matches. Air Tanzania has suspended flights to South Africa. African artists are boycotting South Africa. Should an Afrophobic South Africa lead the African Union next year?

The irony of South Africa’s most recent attacks on African immigrants is that they happened in the wake of the African Continental Free Trade Agreement which positions the country as an economic gateway to the continent

The South African government has remained steadfast in its denial of Afrophobia, opting instead to condemn “violent attacks” and highlight the criminal elements involved in looting African-owned businesses. The police attributed the attacks to “opportunistic criminality”. By denying that these are Afrophobic attacks, everyone can deny the role of South Africa’s political leadership in fomenting the hatred.

The Afrophobic attacks are not spontaneous criminal mobs preying on foreigners. They are the result of an orchestrated, planned campaign that has been fuelled by the ongoing anti-immigrant rhetoric of South African politicians.

The All Truck Drivers Forum (ATDF), Sisonke People’s Forum and Respect SA stand accused of orchestrating last week’s violence. ATDF spokesperson, Sipho Zungu, denied that his group had instigated the violent looting, saying that “the nation is being misled here.” Zungu did stress, however, that South African truck drivers “no longer have jobs” and the government “must get rid of foreign truck drivers.”

Zungu echoes the sentiments of many poor South Africans, and their views are the end result of a drip-feed of anti-immigrant messages from South African politicians, particularly in the run-up to this year’s elections.

Anti-African violence in South Africa is fuelled by exclusion, poverty and rampant unemployment. This isn’t black-on-black violence. This is poor-on-poor violence.

One-third of South Africans are unemployed. Thirteen per cent of South Africans live in informal settlements, and a third of South Africans don’t have access to running water. The problems are a combination of the country’s apartheid past and rampant corruption and mismanagement within the ANC-led government. Crime is climbing, mainly due to corrupt and dysfunctional policing services, high unemployment and systemic poverty.

By denying that these are Afrophobic attacks, everyone can deny the role of South Africa’s political leadership in fomenting the hatred.

South African politicians from across the spectrum have blamed immigrants for the hardships experienced by poor South Africans. Political parties tell voters that foreigners are criminals flooding South Africa, stealing their jobs, homes and social services, undermining their security and prosperity.

Even the government sees poor and unskilled African migrants and asylum seekers as a threat to the country’s security and prosperity. Approved in March 2017, its White Paper on International Migration, separates immigrants into “worthy” and “unworthy” individuals. Poor and unskilled immigrants, predominantly from Africa, will be prevented from staying in South Africa by any means, “even if this is labelled anti-African behaviour” as the former Minister of Home Affairs, Hlengiwe Mkhize, pointed out in June 2017. The message is simple: there is no place for black Africans in South Africa’s Rainbow Nation.

In November 2018, Health Minister Aaron Motsoaledi claimed in a speech at a nurses summit that undocumented immigrants were flooding South Africa and overburdening clinics and hospitals. When immigrants “get admitted in large numbers, they cause overcrowding, infection control starts failing”, he said.

Johannesburg—the epicentre of the anti-African violence—is run by the Democratic Alliance (DA), the second-largest political party in South Africa after the ruling African National Congress (ANC). DA mayor, Herman Mashaba, has been leading the war against African immigrants.

In a bid to attract more support, Mashaba and the DA have adopted an immigrant-baiting approach straight out of Donald Trump and Jair Bolsonaro’s playbooks.

Mashaba has described black African migrants as criminals and has spoken of the need for a “shock-and-awe” campaign to drive them out.

In February 2019, Mashaba diverted attention away from protests against his administration’s poor service delivery in Johannesburg’s Alexandra township by tweeting that foreigners had made it difficult to provide basic services.

On August 1, police operations in Johannesburg to find counterfeit goods were thwarted by traders who pelted law-enforcement authorities with rocks, forcing the police to retreat. Social media went into overdrive, with many accusing the police of being cowards running away from illegal immigrants. Mashaba was “devastated” by the police’s restraint. A week later over 500 African immigrants were arrested after a humiliating raid, even though many said they showed police valid papers.

In 2017, South Africa’s deputy police minister claimed that the city of Johannesburg had been taken over by foreigners, with 80% of the city controlled by them. If this is not urgently stopped, he added, the entire country “could be 80% dominated by foreign nationals and the future president of South Africa could be a foreign national.”

None of this anti-immigrant rhetoric is based on fact. Constituting just 3% of the South African population, statistics show that immigrants are not “flooding” South Africa. They aren’t stealing jobs from South Africans and nor are they responsible for the high crime rate. South Africa’s crime problem has little to do with migration, and everything to do with the country’s dysfunctional policing services, unemployment and poverty.

Johannesburg—the epicentre of the anti-African violence—is run by the Democratic Alliance (DA), the second-largest political party in South Africa after the ruling African National Congress (ANC). DA mayor, Herman Mashaba, has been leading the war against African immigrants.

But South African politicians don’t let facts get in the way.  After all, it’s easier to blame African immigrants rather than face your own citizens and admit that you’ve chosen to line your own pockets instead of doing your job. If you can get others to shoulder the blame for the hopeless situation that many South Africans find themselves in, then why not?

South Africans are rightfully angry at the high levels of unemployment, poverty, lack of services and opportunities. But rather than blame African immigrants, frustration must be directed at the source of the crisis: a South African political leadership steeped in corruption that has largely failed its people.

The African Diaspora Forum, the representative body of the largest group of migrant traders, claimed that the police failed to act on intelligence that it had provided warning of the impending attacks. It took almost three days before Cyril Ramaphosa finally issued weak words of condemnation and for his security cluster to meet and strategise.  All of this points to a government refusing to own its complicity and deal with the consequences of its words.

South Africa has fallen far and hard from the lofty Mandela era and Thabo Mbeki’s soaring “I am an African” declaration.

Senior political leaders in South Africa are blaming vulnerable Africans for their failure to adequately provide a dignified life for all South Africans. Until this scapegoating stops, violent anti-African sentiment will continue to thrive, and South Africa will entrench its growing pariah status on the continent.

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A New Despotism in the Era of Surveillance Capitalism: A Reflection on Census 2019

6 min read. In the creeping securocratisation of every sphere of the State, the incessant threats and arbitrary orders, the renewed quest for that elusive all-encompassing kipande, and even the arbitrary assignment of identity on citizens, Montesquieu would see a marked deficiency of love for virtue, the requisite principle for a democratic republic.

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A New Despotism in the Era of Surveillance Capitalism: A Reflection on Census 2019
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The just concluded census 2019 brought with it many strange occurrences including the official classification of my good friend Rasna Warah as a Mtaita, a community to which she is only very remotely connected by virtue of being married to a husband whose mother is a Mtaveta. The Taita and Taveta, who give their home county Taita-Taveta its name, are two related but distinct ethnic groups. Rasna’s ethnicity is unambiguous, she is a Kenyan Asian, which should be one of the ethnicities available on the census questionnaire.

In standard statistical practice, people’s racial and ethnic identity are self-declared and the identity questions usually have options such as “other” and “mixed” as well as the choice not to disclose. But Rasna was not given a choice, as she recounts here. While this may seem like a trivial matter, the undercurrents of racism and patriarchy in this action are disturbing. It is, I think, even more alarming that the enumerators, given a little authority, felt that they had the power to exercise discretion on the matter.

Past censuses have been rather uneventful statistical exercises. This one had the aura of a security operation. In the run-up, we were treated to all manner of threats and arbitrary orders from the Internal Security Cabinet Secretary, the Jubilee administration’s energetic and increasingly facile enforcer. On the eve of the census, the government spokesman added to the melodrama by issuing a statement informing the public that census enumerators would be asking for personal identification details, including national ID and passport numbers and, ominously, huduma namba registration status. There are few issues as controversial right now as huduma namba and to introduce that question was a sure way of heightening suspicion and undermining the credibility of the census.

More fundamentally, anonymity is a canon of statistical survey work. In fact, the law prohibits dissemination of any information which can be identified with a particular respondent without the respondent’s consent. For this reason, censuses and statistical surveys are usually designed and the data maintained in such a way as to ensure that the respondents remain anonymous.

In October last year, the Government gazetted the census regulations that include a schedule of the information that would be collected. Identity information is not listed in the schedule. In January this year, the Keya National Bureau of Statistics (KNBS) issued a media briefing, still on their website, that also listed the information that would be collected. It too does not mention identity information. That it was the Government spokesman—and not the KNBS—who appraised the public, and only on the eve of the census, is telling.

The response to the protestations that met the disclosure was vintage Jubilee—dishonest and inept. The spokesman explained that the personal identity information would be removed to restore the anonymity of the data. If indeed the purpose was to establish registration coverage, the professional statisticians would have asked respondents to state their registration status. Moreover, for planning purposes, professional statisticians would have designed a comprehensive module that would have included other critical information such as birth registration status.

The draconian zeal with which huduma namba is being pursued—including the proposed legislation—is all the more perplexing because, since all the functions listed are those that are currently served by the national ID, the sensible thing to do would be to upgrade the national ID. Seeing as we have already had three national ID upgrades since independence, it seems to me unlikely that a fourth upgrade would have generated the heat that the huduma namba has.

In The Spirit of the Laws, Montesquieu classified political systems into three categories, namely republican, monarchical and despotic. He defined a republican system as characterised by citizenship rights. A republican system is democratic if political equality is universal, and aristocratic if the rights are a privilege that is denied to some members (e.g. slaves). In monarchical systems, the rulers have absolute authority governed by established rules. In a despotic system, the ruler is the law.

Montesquieu postulated for each system a driving principle, ethos if you like, on which its survival depends. The driving principle of a democratic republic is love of virtue— a willingness to put the public good ahead of private interests. He opined that a republican government failed to take root in England after the Civil War (1642-1651) because English society lacked the required principle, namely the love of virtue. The short-lived English republic, known as the Commonwealth of England, lasted a decade, from the beheading of Charles I in 1649 to shortly after the death Oliver Cromwell in 1659. The driving principle of monarchical systems is love of honour and the quest for higher social rank and privilege. For despotism it is fear of the ruler. The rulers are the law, and they rule by fear.

In The Spirit of the Laws, Montesquieu classified political systems into three categories, namely republican, monarchical and despotic. He defined a republican system as characterised by citizenship rights.

Identity documents are a key element of the apparatus of despotism. Our own identity card has its origins in the colonial kipande (passbook). As Juliet Atellah narrates in Toa Kitambulisho! Evolution of Registration of Persons in Kenya,

“The Kipande was worn around the neck like a dog collar. The Kipande contained the wearer’s tribe, their strengths and weaknesses and comments from his employer on his competence, therefore, determining his pay or whether or not he would be employed. The government used the Kipande to curtail freedom of Africans and monitor labour supply. It also empowered the police to stop a native anywhere and demand to be shown the document. For Africans, the Kipande was like a badge of slavery and sparked bitter protests.”

In essence, the kipande was a surveillance tool for an indentured labour system which enabled the settler economy to suppress wages. But it was not perfect. Keren Weitzberg, a migration scholar and author of We Do Not Have Borders: Greater Somalia and the Predicaments of Belonging in Kenya, makes an interesting and insightful contextual link between huduma namba and the colonial quest to better the kipande revealed in a recommendation that appears in a 1956 government document:

“Consideration should be given to the provision of a comprehensive document for Africans, as is done in the Union of South Africa and the Belgian Congo. This should incorporate Registration particulars, payment of Poll Tax, and such other papers as the African is required to carry or are envisaged for him, e.g. Domestic Service record and permit to reside in urban areas. Eligibility under the Coutts proposals for voting might also be included in the document. The document would then become of value to the holder and there would be less likelihood of its becoming lost or transferred, as is the case with the present Identity document.” 

The purpose of the huduma namba is the same as that of the “comprehensive document for Africans”—to instill in people the sense that Big Brother is watching. But despotism is not an end in itself. The raison d’être of the colonial enterprise was economic exploitation. This has not changed.

The 2001 Nobel Prize for Economics was shared by George Akerlof, Michael Spence and Joseph Stiglitz for their analysis of markets with asymmetric information. A market with asymmetric information is one where material attributes of a good or service are private information known only to the seller and not observable by the buyer; the seller has an incentive to conceal the attributes. In essence, it is a market where the buyer cannot be sure that they will get what they pay for. Asymmetric information problems are pervasive in labour and credit markets.

Identity documents are a key element of the apparatus of despotism. Our own identity card has its origins in the colonial kipande (passbook). As Juliet Atellah narrates in Toa Kitambulisho! Evolution of Registration of Persons in Kenya

A potential employer cannot tell in advance whether a worker is a performer or not, or even whether he or she is dishonest—they only get to know that after hiring the worker, and at considerable cost if they get it wrong. We know that job seekers go out of their way to misrepresent themselves, including faking qualifications and references, and concealing adverse information such as previous dismissals and criminal records. To mitigate the problem, employers go out of their way to obtain and check out references including certificates of good conduct from the police.

The original kipande, as Atellah notes, included information on the bearers “strengths and weaknesses and comments from his employer on his competence.” It does not require too much imagination to see how errant natives would have made for a severe labour market information asymmetry problem, motivating the settler economy to invent this seemingly innocuous but probably effective labour market information system.

Similarly, a potential borrower’s creditworthiness is not observable to lenders. Lenders only get to sort out good and bad borrowers from experience. A customer’s credit history is a lender’s most valuable asset. A public credit reference system, such as the Credit Reference Bureaus, is a device for mitigating credit market information asymmetry. The parallel with the kipande character reference is readily apparent.

In essence, the kipande was a surveillance tool for an indentured labour system which enabled the settler economy to suppress wages.

As a credit information system, the digital panopticon envisaged by huduma namba is priceless, and as one of the country’s leading mobile lenders, the Kenyatta family-owned Commercial Bank of Africa (CBA) is the primary beneficiary. Indeed, well before the public was informed about it, huduma namba featured prominently in a CBA-led mobile lending platform project called Wezeshafeatured in this column—that was subsequently rebranded and launched as Stawi.

Nine years ago this week, we promulgated a new constitution. Since its enactment the political and bureaucratic establishment has spared no effort to restore the unfettered discretion and apparatus of rule by fear that the new constitutional dispensation is meant to dismantle. Early in its term, the Jubilee administration sought to pass a raft of security-related legislation that would have clawed back most of the civil liberties enshrined in the Bill of Rights. Uhuru Kenyatta is on record, in one of the pre-election TV interviews, attributing his underwhelming performance to the constraints on his authority by the 2010 Constitution. He went on to express nostalgia for the old one.

In the creeping securocratisation of every sphere of the State, the incessant threats and arbitrary orders, the renewed quest for that elusive all-encompassing kipande, and even the arbitrary assignment of identity on citizens, Montesquieu would see a marked deficiency of love for virtue, the requisite principle for a democratic republic.

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Africa and Palestine: A Noble Legacy That Must Never Be Forgotten

4 min read. Today’s generation of African leaders should not deviate from that the solidarity between Africa and Palestine. Indeed, writes RAMZY BAROUD If they betray it, they betray themselves, along with the righteous struggles of their own peoples.

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Africa and Palestine: A Noble Legacy That Must Never Be Forgotten
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Europe’s “Scramble for Africa” began in earnest in 1881 but never ended. The attempt at dominating the continent using old and new strategies continues to define the Western relationship with this rich continent. This reality was very apparent when I arrived in Nairobi on June 23. Although I had come to address various Kenyan audiences at universities, public forums and the media, I had also to learn. Kenya, like the rest of Africa, is a source of inspiration for all anti-colonial liberation movements around the world. We Palestinians can learn a great deal from the Kenyan struggle.

Although African countries have fought valiant battles for their freedom against their Western colonisers, neocolonialism now defines the relationship between many independent African countries and their former occupiers. Political meddling, economic control and, at times, military interventions – as in the recent cases of Libya and Mali – point to the unfortunate reality that Africa remains, in myriad ways, hostage to Western priorities, interests and dictates.

In the infamous Berlin Conference of 1884, Western colonial regimes attempted to mediate between the various powers that were competing over Africa’s riches. It apportioned to each a share of the African continent, as if Africa were the property of the West and its white colonists. Millions of Africans died in that protracted, bloody episode unleashed by the West, which shamelessly promoted its genocidal oppression as a civilisational project.

Like most colonised peoples in the southern hemisphere, Africans fought disproportionate battles to gain their precious freedom. Here in Kenya, which became an official British colony in the 1920s, Kenya’s freedom fighters rose in rebellion against the brutality of their oppressors. Most notable among the various resistance campaigns, the Mau Mau rebellion of the 1950s remains a stark example of the courage of Kenyans and the cruelty of colonial Britain. Thousands of people were killed, wounded, disappeared or were imprisoned under the harshest of conditions.

Palestine fell under British occupation, the so-called British Mandate, around the same period that Kenya also became a British colony. Palestinians, too, fought and fell in their thousands as they employed various methods of collective resistance, including the legendary strike and rebellion of 1936. The same British killing machine that operated in Palestine and Kenya around that time, also operated, with the same degree of senseless violence, against numerous other nations around the world.

While Palestine was handed over to the Zionist movement to establish the state of Israel in May 1948, Kenya achieved its independence in December 1963.

At one of my recent talks in Nairobi, I was asked by a young participant about “Palestinian terrorism”. I told her that Palestinian fighters of today are Kenya’s Mau Mau rebels of yesteryear. That if we allow Western and Israeli propaganda to define Paestine’s national liberation discourse, then we condemn all national liberation movements throughout the southern hemisphere, including Kenya’s own freedom fighters.

We Palestinians must however shoulder part of the blame that our narrative as an oppressed, colonised and resisting nation is now misunderstood in parts of Africa.

When the Palestine Liberation Organisation committed its historical blunder by signing off Palestinian rights in Oslo in 1993, it abandoned a decades-long Palestinian discourse of resistance and liberation. Instead, it subscribed to a whole new discourse, riddled with carefully-worded language sanctioned by Washington and its European allies. Whenever Palestinians dared to deviate from their assigned role, the West would decree that they must return to the negotiating table, as the latter became a metaphor of obedience and submission.

Throughout these years, Palestinians mostly abandoned their far more meaningful alliances in Africa. Instead, they endlessly appealed to the goodwill of the West, hoping that the very colonial powers that have primarily created, sustained and armed Israel, would miraculously become more balanced and humane.

When the Palestine Liberation Organisation committed its historical blunder by signing off Palestinian rights in Oslo in 1993, it abandoned a decades-long Palestinian discourse of resistance and liberation.

However, Washington, London, Paris, Berlin, etc., remained committed to Israel and, despite occasional polite criticism of the Israeli government, continued to channel their weapons, warplanes and submarines to every Israeli government that has ruled over Palestinians for the last seven decades. Alas, while Palestinians were learning their painful lesson, betrayed repeatedly by those who had vowed to respect democracy and human rights, many African nations began seeing in Israel a possible ally. Kenya is, sadly, one of those countries.

Understanding the significance of Africa in terms of its economic and political potential, and its support for Israel at the UN General Assembly, right-wing Israeli Prime Minister Benjamin Netanyahu has launched his own “Scramble for Africa”. Netanyahu’s diplomatic conquests on the continent have been celebrated by Israeli media as “historic”, while the Palestinian leadership remains oblivious to the rapidly changing political landscape.

Kenya is one of Israel’s success stories. In November 2017, Netanyahu attended the inauguration of President Uhuru Kenyatta. Netanyahu was seen embracing Kenyatta as a dear friend and ally even as Kenyans rose in rebellion against their corrupt ruling classes. Tel Aviv had hoped that the first-ever Israel-Africa summit in Togo would usher in a complete paradigm shift in Israeli-African relations. However, the October 2017 conference never took place due to pressure by various African countries, including South Africa. There is still enough support for Palestine on the continent to defeat the Israeli stratagem. But that could change soon in favour of Israel if Palestinians and their allies do not wake up to the alarming reality.

The Palestinian leadership, intellectuals, artists and civil society ambassadors must shift their attention back to the southern hemisphere, to Africa in particular, rediscovering the untapped wealth of true, unconditional human solidarity offered by the peoples of this ever-generous continent.

Kenya is one of Israel’s success stories. In November 2017, Netanyahu attended the inauguration of President Uhuru Kenyatta. Netanyahu was seen embracing Kenyatta as a dear friend and ally even as Kenyans rose in rebellion against their corrupt ruling classes

The legendary Tanzanian freedom fighter, Mwalimu Julius Nyerere, who is also celebrated in Kenya, knew very well where his solidarity lay. “We have never hesitated in our support for the right of the people of Palestine to have their own land,” he once said, a sentiment that was repeated by the iconic South African leader Nelson Mandela, and by many other African liberation leaders. Today’s generation of African leaders should not deviate from that noble legacy. If they betray it, they betray themselves, along with the righteous struggles of their own peoples.

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