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Crony Capitalism and State Capture 3: Uhuru Kenyatta’s Manufacturing Agenda

8 min read. Uhuru Kenyatta’s manufacturing agenda argues DAVID NDII is a protectionism policy regime that puts tariff and other barriers on imports that compete with domestically produced goods. But as he illustrates, a protected competitive industry is a contradiction.

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Crony Capitalism and State Capture 3: Uhuru Kenyatta’s Manufacturing Agenda
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Ever since it was pronounced as one of his “Big Four” legacy initiatives, Uhuru Kenyatta’s manufacturing agenda has been blurry but an extensive television interview given two weeks ago was very revealing; in a nutshell, it is protectionism. “We want to ensure that we protect our industries, work with our industries to ensure that they are competitive but we also encourage them not to take advantage and extort Kenyans by overpricing their products.”

Protectionism is a policy regime that puts tariff and other barriers on imports that compete with domestically produced goods. A simple definition of competitiveness is a company, industry or country that is able to produce goods and services that are comparable in price and quality with those traded internationally. Competitiveness is benchmarked against internationally traded goods and services. But the purpose of protecting domestic industries is to shield them from competition. Once they are shielded from competition, they do not need to be competitive.

Ever since it was pronounced as one of his “Big Four” legacy initiatives, Uhuru Kenyatta’s manufacturing agenda has been blurry but an extensive television interview given two weeks ago was very revealing; in a nutshell, it is protectionism.

We have a problem. A protected competitive industry is a contradiction in terms. Tea and sugar, two industries that have featured in this column on a number of occasions, provide a perfect case study.

As an export-oriented industry, the tea industry has to be globally competitive to survive. There is little the Kenyan government could do to help the industry if it was not able to produce quality tea at a price that its international customers are willing to pay. Consequently, there is no need to protect the local market from imported tea. Even though imported tea brands are available in supermarkets, they do not cause owners of domestic brands sleepless nights.

Sugar is a different kettle of fish altogether. It is the country’s most protected industry. Kenyan sugar costs $800 per tonne ex-factory, against a global price of $280. The only way Kenya’s sugar industry can stay in business is by being heavily protected. For the last twenty years or so, the country has sought and secured safeguards from the Common Market of Eastern and Southern Africa (COMESA) so that the country can restructure the industry, to no avail.

Why is Kenya’s tea globally competitive and sugar the complete opposite? Competitiveness is closely related to, and in fact, derives from productivity. Kenya has the highest tea farm productivity in the world, at about 4,507 kilograms of green leaf per acre, closely followed by Sri Lanka at 4,440. Unsurprisingly, Kenya and Sri Lanka are the leading tea exporters, each accounting for between 20 and 23 per cent of the world market. By contrast, of the COMESA trading partners, Kenya has the lowest sugar cane yields (see chart).

The only way Kenya’s sugar industry can stay in business is by being heavily protected. For the last twenty years or so, the country has sought and secured safeguards from the Common Market of Eastern and Southern Africa (COMESA) so that the country can restructure the industry, to no avail.

But the sugar cane yields are only part of the low productivity story. Kenya’s sugar cane also has less sugar content, and the state-owned factories are less efficient, i.e. they achieve lower extraction rates than those of the trading partners—low cane yields, poor quality cane, inefficient factories. To keep this industry alive, it is protected by a 100 per cent import tariff, or $460 per tonne, whichever is higher. At the price of $280 a tonne, the applicable tariff is $460, which is an import duty of 164 per cent.

Why are the sugar cane yields so low? We have the wrong model of sugar industry. Sugar cane is a capital intensive crop, that is suited to large-scale integrated farm and factory operations. Kwale International Sugar, which revived the failed Ramisi Sugar, reports obtaining 60 tonnes a hectare using a “state of the art subsurface irrigation system”. Smallholder farmers do not have the capital or knowhow to do this, and it probably would not make sense to invest in such systems on a small scale. Moreover, once the cane is planted, it requires very little labour until harvest time.

Tea, on the other hand, is a labour-intensive crop. It needs to be picked and tended meticulously by hand throughout the year. Smallholder tea farmers work in their fields every day. The economic law of comparative advantage predicts that a country’s competitiveness will reflect its factor endowments, that is, capital-rich countries will be competitive in capital intensive goods, and labour-rich countries in labour-intensive goods. Because we have relatively more labour than capital, the global competitiveness of our tea vis-à-vis the uncompetitiveness of our sugar reflects our comparative advantage.

Why are the sugar cane yields so low? We have the wrong model of sugar industry. Sugar cane is a capital intensive crop, that is suited to large-scale integrated farm and factory operations. Kwale International Sugar, which revived the failed Ramisi Sugar, reports obtaining 60 tonnes a hectare using a “state of the art subsurface irrigation system”.

It is instructive to compare sugar with coffee. Since the early 90s, Kenya has failed to reform the coffee industry to keep up with changes in the global market. Production and exports have plummeted from a peak 140,000 tonnes in the late 80s to just over 40,000 tonnes today. There is nothing that the Government can do to protect the coffee industry. It simply has to shape up or ship out. But the most important thing is that the resources that were producing coffee—land, capital and labour—have been redeployed to other products including macadamia nuts, avocado, dairy, bananas, real estate and so on.

The same would have happened in western Kenya if the sugar industry was not so heavily protected. The long-suffering smallholder sugar cane farmers would have long since switched to other products of which they would be competitive producers such as cereals, livestock, horticulture, oil crops and so on. Instead, protectionism misallocates 440,000 acres of some of Kenya’s best rain-fed agricultural land—a very scarce resource—to a crop that generates a mere $400 per acre, compared with tea, which generates $2,200 an acre.

Protectionists often bolster their case by observing, correctly, that the East Asian Tigers also protected their infant industries during the early stages. The best documented, and arguably also the most insightful case, is that of South Korea. South Korea’s industrialisation took place in two phases spanning two decades, 1955-65 and 1965-75. During the first phase, it pursued both import substitution and export promotion simultaneously, but with a heavy bias towards import substitution. By the early 60s it had run into the chronic balance of payments crises that have plagued all countries pursuing import substitution industrialisation through protectionism— including Ethiopia currently. The government realised that import substitution had hit a dead end, and changed course, as Larry Westphal and Kwan Suk Kim, of the World Bank and Korea Development Institute respectively, explain in their 1977 study, Industrial Policy and Development in Korea:

Policymakers came firmly to accept that rapid economic development depended upon an export-oriented industrialisation strategy. This view was predicated on the understanding that Korea’s natural resource base was very poor and on the realisation that further opportunities for import substitution were only to be found in intermediate and durable goods, where the limited domestic market could not justify establishing plants large enough to realize technological economies of scale.

The Koreans then embarked on trade liberalisation, devaluation and other policy reforms that the rest of the developing world was to adopt two decades later, and that we now call structural adjustment. These reforms were implemented between 1961 and 1964. Export-led manufacturing took off. By 1975, manufactured goods contributed a third of the GDP, and 75 per cent of exports.

As noted, Korea’s industrial policy pursued both import substitution and export promotion simultaneously from the outset. The policy regime, referred to as the “export-import link,” pegged incentives directly to export earnings. Like most other countries at the time, Korea had a controlled fixed exchange rate that maintained an overvalued currency, as well as a rigid import control regime. Exporting firms were allowed to retain a portion of their foreign exchange earnings, which they could sell at a premium, or to import restricted consumer goods for sale in the domestic market. Another element was generous ‘wastage allowances” on imported raw materials. To illustrate, if garment exporters were allowed 15 per cent wastage on fabrics imported to make clothes for export, and the actual wastage was 5 per cent, this was the same as allowing them to sell 10 per cent of their products in the domestic market.

The effect of these incentives was to substantially offset the protection of the domestic market and to keep domestic-oriented producers on their toes. Other incentives included subsidised credit and discounted tariffs on utilities and railway transport, also pegged to export performance. As export manufacturing grew, the case for protecting the domestic market diminished, since Korean goods could compete both abroad and at home. The protection regime was progressively rolled back such that by the late 70s, South Korea was, by and large, an open economy.

Embarking on a protectionist industrial policy today raises a number of vexing issues. I will highlight three.

First, what is it in aid of? The stated objective is to increase the manufacturing share of GDP. I have heard a figure of 15 per cent of GDP by 2022 mentioned. The manufacturing share of GDP has actually been trending downwards lately—7.7 per cent in 2018, down from 10 per cent five years ago. How much can protecting domestic industry contribute? In 2018 we imported Sh.218 billion worth of finished consumer goods—excluding motor vehicles—accounting for 12 per cent of total imports, and 9 per cent of the value of domestic manufactured goods. If all these goods were to be manufactured locally, it would increase the manufacturing share of GDP from 7.7 to 8.5 per cent. But of course, whatever protectionist policies are envisaged will not constitute anywhere near total substitution and will at best have a negligible impact.

Tea, on the other hand, is a labour intensive crop. It needs to be picked and tended meticulously by hand throughout the year. Smallholder tea farmers work in their fields every day. The economic law of comparative advantage predicts that a country’s competitiveness will reflect its factor endowments, that is, capital-rich countries will be competitive in capital intensive goods, and labour-rich countries in labour intensive goods.

The most critical imperative that any industrial policy ought to address is jobs. We need millions of jobs. Kenya’s industry is capital intensive and not job-creating. A World Bank study from a decade ago showed that Kenya’s manufacturing sector was 50 per cent more capital intensive than China’s, and almost five times as capital intensive as India’s (see chart below). Although the data is old, the structure of the industry has not changed that much. This is of itself a legacy of an import substitution industrial policy which promoted the capital intensive goods that the country imported, as opposed to an export-oriented policy which would promote the industries that could utilise developing countries’ abundant labour.

Second, Kenya is a member of the East African Community (EAC), COMESA, and the new African Free Trade Area (AFTA) trading blocs, which agreements we have signed and ratified. Under the EAC in particular, Kenya is bound by a common external tariff (CET). Kenyan manufacturers are the biggest beneficiaries of these trading blocs. In 2018 Kenya exported goods worth Sh.90 billion ($1.9 billion) to EAC and COMESA, accounting for 30 per cent of total exports. We made imports of Sh.123 billion ($1.23 billion), thus running a surplus of Sh.67 billion ($670 million). Virtually all of Kenya’s exports to the region are manufactured goods. The country can ill afford to begin a trade war with the regional partners, who would only be too delighted to find reasons to lock Kenyan goods out of their markets. How is the government going to protect local industries without jeopardising regional integration?

Third, the case for protectionist import substitution regimes was predicated on the infant industry argument—protecting nascent industries until they were strong enough to compete. The problem arose because, like our sugar industry, and Pan Paper for that matter, there was no incentive to grow up, and the state lacked the political will to roll back the protection until economic crises compelled them. The industries that are now to be protected are not babies. What is the case for protecting grown-up industries, some of which are already dominant oligopolies in their sector? Until when will they be protected, and what new policy instruments are there to ensure that this protection regime will not go the route of the old one? Protecting mature incumbents translates to not just protection from competing imports, but also giving them more muscle to fight potential entrants into their markets. Essentially, it amounts to entrenching cartels, and Kenyatta’s statement—which makes reference to taking advantage, extortion and overpricing—demonstrates that Kenyatta is actually alive to this fact. Why is he contradicting himself? State capture.

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

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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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