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ME AGAINST THE SYSTEM: The frustration of Wasted Potential

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ME AGAINST THE SYSTEM: The frustration of Wasted Potential
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At almost 35, I’m yet to find balance in life. I was born into a family of five, two parents, two boys and a girl. I am the first born. My two siblings are doing just fine. Set in the family way, raising children, pursuing and living life by their own personal terms, happily, no less. Given all the trouble they put me through growing up, I can honestly say their success is my success, and wouldn’t have it any other way.

My personal life however, is a conundrum of sorts. No family. No (real) job, No prospects! Growing up in Kayole, Eastlands in ‘94, life was harmonious and easy for a child who saw the world through innocent eyes. Kayole estate was a World Bank housing project designated for the middle class. In the original plan, facilities such as schools, dispensaries and markets were strategically placed to serve the residents with paved roads and functioning streetlights. The houses came with large parking lots and a fully functional drainage system that stands to date. Crime was rare. In early 90s, there were a few white folks living in Kayole before they all moved out and relocated as the neighbourhood lost its gentrified status.

Apart from the few model houses that were built to World Bank standards, the rest of the dwellings were squatting houses that mushroomed into a hostile takeover after residents began flaunting the building regulations with no consequences. Those who were connected, began constructing 8 to 12 rooms on 50×100 plots and the Eastlands suburban vision that was part of the original plan fell apart. Toilets, bathrooms and cloth lines were communal in these new dwellings and with it came congestion tension between tenants.

In the early 90s, Kayole was characterised by wide open spaces everywhere, a gigantic play ground. Our days were marked by childish pursuits that included, football matches played using improvised polythene plastic paper bags rolled into a tight ball then fastened with sisal strands to give it a firm texture. My love for the sport was, as my mother put it, more than that of life itself. She had a point. I had a dream of becoming a professional footballer and joining the ranks of Roberto Baggio, the Italian midfielder, Luis Figo, the Portuguese Forward, and the Brazilian striker sensation, Romario, my football godfathers of the 90s. All of whom I followed on KBC, thanks to a portable radio that my dad had bought to keep himself updated on the politics of the day.

I must have been 12 years old when I first started noticing the three white men visiting our neighborhood and spending a lot of time watching us play. Two tall men, both lean in frame and the third, a bald man with the beginnings of a paunch. They drove an old Nissan Sunny. After the matches they would sit us down and offer us soft drinks and cookies engaging us in polite conversations about our families, our education, dreams for the future and whether we wanted to play footie in Britain! I particularly intrigued them a great deal.

Their talk of playing in Britain, cast a spell on me and I became obsessed with the idea. They kept on showing up every few months each time bearing gifts of new balls and sport shoes. Eventually, they insisted on meeting my parents to “introduce” themselves. My mother was super elated and quickly gave in to the request after I broke the news at home. My father however, a hardware store employee off River Road, downtown, warned me about fraternizing with strangers. His authoritarian style of parenting stifled any designs I had about my own life choices. So when he said no, it was final. Attempts by mother to bring him on board bore no fruit. His refusal adversely affecting me and I was diagnosed with clinical depression that required psychiatric evaluation.

The final blow came in 1997 when the indiscriminate land grabbing linked to David Mwenje, then Member of Parliament for Embakasi and other politicians in the Moi era arrived in my neighbourhood. The political class and their cohorts embarked on a privatisation spree, leaving no open public space untouched including our playground. Marooned and helpless, the sport died a natural death and the football scouts stopped coming. Consequently, my hopes died shortly thereafter, my dreams, valid as they were, with me as well. It would only come to emerge later that they were UK agents scouting for new talent in Africa and I was on their watch list. Twenty two years down the line, I wonder how my life would have turned out had I gotten my professional football break!

To stave off the pain of loss, I began drawing and sketching and my scribbling morphed into a budding career in calligraphy and poetry. My passion for creative writing was inspired and fueled by Tupac Shakur’s 1996 Album, Me against the World. I felt like a social pariah and Tupac’s music and US hip hop on inner city experiences became relatable. In the mid 90s, the transport sector experienced the emergence of a new breed of vehicle in Nairobi as the privatisation and free market bug hit with the collapse of the two major state funded public transport bus services, the Nyayo and Kenya Bus. The privately owned matatus ushered in a new-fangled culture that revolutionized the whole matatu industry and gave it its present day mojo. This was the age of the Manyanga, a name drawn from the original street Sheng term used to depict a young voluptuous woman. The pimped matatu was a far cry from its weathered predecessors, with graffiti cutting across its body, both inside and out. They spotted large sport tyres with flashy rims and loud music systems that played a lot of hip-hop and reggae music to lure customers. Influenced by both American hip-hop and Jamaican ragga cultures, both weed smoking and baggy jeans hip-hop fashion became vogue as the flashy touts paraded their brand of swag that quickly caught on as a trend that started in Eastlands and spread on to all parts of the city.

My two skill sets found a place in the industry where I spent my days in garages designing creative works and getting paid for it. I became a matatu graffiti artist and settled in my new ‘career’ until a directive from the Ministry of Transport under the famous “Michuki Rules” instituted by John Michuki in the Kibaki era banned matatu art. Flashy matatu art was term as a conduit for “hooliganism” and undesirable social elements and in an effort to streamline the industry, monochromes and yellow strip became the new civilised matatu look. Most garages closed shop ostensibly forcing many youths to look for alternative means to survive. All I was left with was my poetry and prose.

While moonlighting as a matatu art creative, I completed a certificate course at Utalii College specialized in food and beverage and joined the multitudes in the job market hunting for opportunities. My first stop was at The Norfolk, Nairobi, where a college buddy worked courtesy of his father, an industrial kahuna. He tried pushing my case with the head chef who agreed to an internship but personnel blocked my entry sighting my “nobodiness!” Undeterred, I kept pushing my luck for about a year until the management had enough of my persistence and finally physically threw me out of the premises.

Disillusioned, I decided to send over a hundred applications all over the country hoping for the best only to receive one reply, a regret letter, no less. In my desperation, I stormed through hotel doors demanding to see human resource managers to explain the problem! Was it me or them! Most would ask in surprise rather than shock at my audacity, “Who sent you?”

“Myself,” I would reply, “I sent myself” but that was not the response, they wanted to hear! I had no godfather in this skewed system, essentially, a nobody. As the post election conflict of 2007-2008 and the ensuing unrest blew over the country, I despaired, weeping and wiping my tears silently as my country burned with my hopes and dreams.

After a year of listlessness, a job vacancy landed on my lap in March of 2009, when I received a message stating, “a tour company is looking to hire new drivers, for more details, call the number below,” The number and company was unfamiliar but I went ahead and called the number immediately. A lady shared directions to their offices, in industrial area where I reported for an interview and despite my absolute lack knowledge of the tour operator space, I got hired on the spot and training started promptly. I began travelling to the country’s game parks, Nairobi, Nakuru, Meru, Mara, Tsavo guiding visitors and learning about wildlife. I experienced the novelty of museums, hotels and resorts as a tour driver, met new people and got wide exposure to Kenya’s rich natural and cultural heritage. There was one challenge though, the company was not paying us salaries even after seven months of hard labor. Frustrated and fed up, the bunch of disgruntled workers decided to exercise to two options left at hand, paralyze the operations and sink the ship or jump overboard and swim to shore. We settled for the former then bailed. Needless to say, I was once again on the streets scratching my chin, staring into space, my college certificates in hand. There were no breaks for another year and a half. Thankfully, the seven month stint had equipped me with enough skills and contacts to maneuver.

Shelving my academic credentials, I began hustling every top dog I had come to know in the industry, head-on. Luckily, my number came up and I got absorbed by one of the many I reached out to. Wilfred was a good man who wanted good for everyone. The management sadly misconstrued his kindness for nepotism and fired him. Without a safety net, my godfather dispatched, I knew it was only a matter of time before things went south which happened a week later. From then on, the job tap ran dry. At my wits end, living an insipid existence, I started entertaining suicidal thoughts.

My turning point was triggered by an old, torn bible handed down by my mother which sat gathering dust on my table. I was never a religious person and my church attendance was incidental but something caught my eye between the pages. I opened the book and stumbled on Acts 17:26-27

“And He has made from one origin and blood all nations of men to settle on the face of the earth, having determined their periods and boundaries. So that they should seek God in the hope that they might feel after him and find him, although he is not far from each of us.”

This verse provoked my contemplation on my spiritual purpose and the place of God in my life.

About to close the book, I happened upon this,

Romans 10:13 “Whosoever calls on the name of Jesus shall be saved.”

I stared at the verse, blankly, then vividly remembered a quote someone had once shared of a drowning man clutching on to a serpent. I closed my eyes and uttered a very simple prayer, crying, then shut the book and put it aside. Nothing happened and life went on as usual. Three months later when I started having psychic revelations, that correlated with live situations during the day. I started noticing very “mundane” things like a person’s energy, when one is in distress. I could discern impending illnesses, investment outcomes, accidents, robberies, even death, surprisingly. I attributed all this to a divine revelation and embarked on a new spiritual journey in the Christian faith my mind renewed. Jesus saved me!

Meanwhile, old buddies I had met along the dusty streets of struggle kept enquiring about my welfare. Some had joined the taxi business to earn a living. With nothing to lose, I found myself reunited with them chatting the days away, occasionally covering for any absentee drivers and developed an interest in the taxi business as a new career path. My first car was a Nissan B14, silver in colour that belonged to a senior police officer in Nairobi who always threated to shoot me if I ever played him. He had a serious demeanor. The threat was not taken lightly.

I entered in the taxi world feeling like a fish out of water. By day, Nairobi is the city in the sun. At night it is a hell hole that requires intelligence and a thick skin to get by. A puzzle to be solved before one can advance to the next level. By any measure, a pain in the butt. Police want a piece of you. City Council use any opportunity to shake you down. Thugs lurk at every bend and fellow operators want you dead.

The experiences I have faced are surreal. I remember my first case, her name was Dorothy. Heavy with child, we had just left Uchumi supermarket, at Adams Arcade and were discussing baby names headed to Nairobi hospital where she was to be admitted waiting to deliver. The two way Ngong Road was legendary with traffic jams that turned full blown chaotic during the rainy season. Everything was fine until she started feeling some kind of “wetness” and sharp pains from her lower abdomen that saw a previously calm woman turn breathless and scream in agony. I was clueless in matters of childbirth. The screaming sent me into a panic seizure and my thinking brain was suspended. It would take the intervention of two good Samaritans to deliver a newborn baby in my backseat. Between them sat Dorothy, looking half dead with blood all over. A few meters stood a cop directing traffic away from us, shooing curious onlookers that had gathered. It would take me months to recover from the ordeal.

Another bizarre episode happened at The Junction months later when a thug put a gun on my skull intending to steal my car as I walked towards it. His mission however, proved impossible when two police officers arrived and stood by obliviously waiting for a matatu. I took off singing Amazing Grace. I have ferried a corpse, had distressed a woman ditch her 2 year old daughter in my cab, had to deal with horny couples copulating in the back seats and met a long list of unsavoury characters in line of duty. The taxi business is Nairobi peppered with drama but the best was yet to come. In February 2015, more disruption came knocking when Uber, the app-based modern day taxi hit Nairobi streets running.

With its remote management capabilities, cheap rates and new cars, industrial dynamics changed drastically giving it an unfair edge over us old school traditional taxi types. Mass protests by local operators to have it deregistered met with tear gas courtesy of the government as we fought for the measly crumbs off the taxi table. This would mark the third time the government and free market forces had kicked me in the nuts and arrested my development! Days turned into weeks and weeks into months and years but nothing gave. My story was now akin to that of a wounded dog of war relegated to the back alleys to leak its wounds, waiting for death. To cope, most of my peers found solace in alcohol, gambling and prostitutes.

I have been caught between the proverbial rock and a crazy place, for almost a decade now and my youth is spent with nothing to show for it. I kill time by writing. It is my alcohol, my mistress, my prostitute. I love her and together we stare at the horizon hoping for better days ahead in this, my country.

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The author is a taxi driver based in Nairobi, Kenya.

Reflections

Gold and Gemstone Policy in Kenya: The Devil Is in the Detail

Small-scale artisanal gold and gemstone mining is decades-old but lack of knowledge and expertise, and limited support from the government have hampered the sector’s development.

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Gold and Gemstone Policy in KenyA: The Devil Is in the Detail
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The evergreen town of Kakamega is a picture of the hustle and bustle typical of any Kenyan town, with many hundreds of folks going about their daily business. But as you leave the town behind, the environment changes, a lush countryside of cultivated fields and densely planted trees giving no hint of the gold mining taking place in the nearby locality of Ikolomani.

Across the country, 432 miles to the southeast of Kakamega is the beautiful transit town of Voi, the largest town in Taita Taveta County which lies at the foothills of the Sagalla massif. But the much smaller town of Mwatate is the county capital, and the source of gemstones that Kenyans from other parts of the country know little about. Mwatate has rubies, red garnet, emeralds, moonstones, tsavorite, okenorite, and many more.

Small-scale artisanal gold and gemstone mining has been going on for decades in both Kakamega and Taita Taveta counties, undertaken mainly by local artisanal miners and by a few non-locals and foreign nationals.

The Mining Act 2016 recognises three levels of mining rights: artisanal mining permits, small-scale mining permits and large-scale mining licences. The small-scale permits and large-scale mining licences are issued at the national level through the Kenya Mineral Rights Board (MRB), while the artisanal mining permits are issued through the county artisanal mining committees. The Mineral Rights Board and the county Artisanal Mining Committees are administratively governed by the State Department of Mining under the Ministry of Petroleum and Mining. The Director of Mines and his representatives in the various counties are in charge of overseeing the implementation of the ministry’s policy frameworks. The Ministry of Petroleum and Mining has key mining regulations in place to govern this process.

But even though the Mineral Rights Board is in place, the process of setting up the county Artisanal Mining Committees (AMCs) has been long drawn out and there seems to be no hurry to implement the mining regulations that were commissioned in 2017. Kakamega County’s AMC was gazetted on 27 March 2020 and the team commissioned on 20 July 2020. However, the AMC has yet to begin its work as the key governmental mechanisms necessary to run the committee are still pending and so no mining permits have been issued to artisanal miners in Kakamega County since the gazettement.

Artisanal miners in Taita Taveta County are in a different situation altogether. The list of members of the county AMC constituted through their appointing authorities has been forwarded to the Ministry of Petroleum and Mining but the AMC has yet to be gazetted. When contacted on this issue, one of the reasons cited by the ministry officials was that factions within the mining fraternity have disputed the list of people proposed to be part of the AMC.

Applications for small-scale mining permits are submitted to the Mineral Rights Board through the Mining Cadastre Portal. The platform is meant to bring these services close to the miners but they complain of the slow response from the Ministry of Mining. They must travel to the ministry to submit the paperwork even after uploading it onto the portal. Access to a stable internet connection is also a challenge in the remote areas of Taita Taveta and Kakamega while some of the small-scale miners lack the capacity to use the online system. Most have to travel to the Ministry’s offices for assistance or else hire someone with the skills to undertake the work for them, rendering the application process both tedious and time-consuming.

The ministry has not undertaken any capacity building and shows a lack of commitment to make the system more efficient and user-friendly. The biggest hindrance, however, is the low budgetary allocation made to the Ministry of Mining, which leaves the staff with limited options in their efforts to serve small-scale miners.

The stated goal of the Mining Cadastre Portal is “to provide an electronic platform for all stakeholders in the mining sector in Kenya to engage directly with the Ministry of Mining.” Existing mineral rights holders (those with mining permits and licenses for mining) or those with pending applications can download, complete and upload the requisite documents. Prospective mineral rights holders can also submit their particulars and other supporting documents through the portal.

The portal is also a one-stop shop for information on mining activities in Kenya. It has a cadastre map of the key areas with mineral resources, as well as details of licence holders, and on-going applications; a click on any part of the map automatically displays the existing information about that specific geographical location.

For artisanal and small-scale miners (ASMs) in Kakamega and Taita Taveta, the portal has had a significant impact on access to public information on mining in Kenya. But the portal also has its limitations. Mining is a highly skilled sector that requires high levels of expert knowledge. Some of the requirements on the portal are beyond the scope of knowledge of most gold and gemstone miners in Kakamega and Taita Taveta. For instance, the portal requires a miner to take the coordinates of the area for which they are applying for a permit. This requires equipment that is typically used by geologists and land surveyors and that is expensive to hire or purchase. A sketch of the area or locality where the miner intends to undertake extraction is another requirement, a very sophisticated process that miners in general cannot undertake on their own.

Lack of knowledge and expertise coupled with lack of access to the internet, or even computers, therefore leaves the small-scale gold and gemstone miners unable to fully exploit the portal.

Aside from these limitations, however, the Kenya Mining Cadastre Portal has been a game changer when it comes to eliminating brokers from the mining sector and it has proven to be a more efficient system than the manual issuing of permits and licences

For instance, unlike the manual system that had no clear guidelines regarding payments, all fees due to the ministry are clearly indicated on the portal and paid directly to the ministry through a cashless system. Moreover, as the portal has centralised all the country’s mining information, cases of loss or manipulation of files or documents have reduced significantly.

The gold and gemstones that are mined in Kakamega and Taita Taveta are exported out of the country with or without any value addition under the provisions of the Mining Act of 2016 which require an export permit from the Cabinet Secretary the application for which is made on the Mining Cadastre Portal.

But while the law on the issuance of mineral export permits is sufficiently detailed, its implementation is the biggest challenge and I have no doubt at all that gold and gemstones are imported into and exported out of Kenya without any form of declaration. There are many routes along the porous Kenyan boarders through which the minerals can slip in or out of the country.

For instance, most of the gold that is mined in Kakamega is taken to Uganda by road undeclared. How can this be remedied, especially for gold and gemstone miners who want to run a clean business? Also, the process of implementing the gold refinery centre in Kakamega and the gemstone value addition centre in Voi remains pending. If the sector is streamlined, then the issue of traceability of gold and gemstones will be resolved and the mineral export licence will be of value to the artisanal and small-scale miners in the sector.

The article is done with support from Diakonia Kenya Country Office under the Madini Yetu Wajibu Wetu (Our Minerals, Our Responsibility) Project. Views expressed in the article are those of the author.

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Reflections

Sustainability Is Key in the Management of Natural Resources

For mineral wealth to have a positive impact there must be transparent policies, reasonable public regulation, commodity flows and sustainable and varied production systems.

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Sustainability Is Key in the Management of Natural Resources
Photo: Unsplash/Sebastian Pichler
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Natural resource wealth has massive potential and can hugely impact the economy of a country. The natural resource sector and more particularly the petroleum and mining industry is distinguishable from other sectors of the economy in that ventures in this sector are high-risk and prone to failure if not competently undertaken. Moreover, resources in the sector are typically immovable and must be exploited on the site of their discovery.

Being exhaustible and non–renewable, these resources call for prudent exploitation and management that must also factor in intergenerational equity. And unlike other industries, the exploitation of natural resources is community-based, in the sense that the activity takes place inside communities, providing opportunities for conflict as the business pursuits of an investor threaten the general welfare of the community.

Despite the lucrative nature of the sector, it comes with a number of challenges. Learning from the many countries that have experienced the “resource curse”, it is imperative that from the outset, the following issues are taken into consideration if at all a country wishes to progress and develop through the proceeds of its natural resources.

First, a country endowed with mineral resources should always plan to diversify its economy using the proceeds from its mineral wealth. This is done to avoid the Dutch disease and to ensure that the economy can withstand shocks caused by fluctuating prices. Venezuela and Nigeria are two countries that experienced economic recession due to a fall in the price of oil.

Second, while mineral exploration and production automatically comes with a high pollution risk, there is need take contingency measures to mitigate any such damage. Deliberate steps need to be taken to avoid the Niger Delta situation where land has been so degraded that the cost of cleaning up is estimated at £900 million.

Third, the phrase “resource curse” arises from the many cases where the discovery of minerals has resulted in retrogression instead of progress for the communities within which the commodity has been found. More often than not, these host communities experience conflict when the expected benefits are not realised, sometimes because of unrealistic expectations but more often because of corruption. It is important for investors and communities to engage from the outset, ideally with the government facilitating the process. Increasingly, however, civil society and religious organisations are stepping in to fill the gap left by unresponsive governments.

It is clear that natural resource wealth can provide opportunities for countries to improve the living standards of their people and can positively impact the development of nations. Indeed, it is a commonly held belief that nations richly endowed with natural resources are more advantageously positioned to shape the economic, physical and social aspects of their development than those less endowed.

However, the paradox of plenty has been the subject of extensive research by scholars and practitioners precisely because many resource-rich countries are associated with increased poverty levels, civil war, reduced economic growth, greater inequality and social injustice. This is because of a lack of goodwill to develop other sectors of the economy that are not necessarily dependent on natural resources, among other factors.

There are however, countries that can be cited for having taken off successfully.  Norway, one of the world’s richest economies, and Botswana, one of the largest producers of gemstones, have both clearly demonstrated how natural resources can be harnessed to foster development, build the economy and generally improve people’s livelihoods.

Conversely, countries like the Democratic Republic of Congo, with its has huge deposits of natural resources including cobalt which is highly sought after and is of great economic value, and Angola, with its vast reserves of natural gas, are examples of how resources can come to be regarded as a curse due to the civil wars, conflicts, under-development, low GDP, and the many other problems associated with these nations despite being resource-rich.

A number of academic studies also suggest that natural resource wealth slows down the economic growth of a country. This narrative is however challenged by countries like Singapore, the United Arab Emirates and Taiwan which, despite being modestly endowed, have invested the revenue from their limited natural resources in the areas of education and research, have strengthened their policy and legal frameworks and institutions, and established parameters for advancing wealth creation and multiplication, as well as savings for the future generations.

Many theories have been advanced in an attempt to explain the resource trap in mineral rich countries. However, none of the hypotheses advanced has identified the root cause of the paradox of resource abundance. This is because, by themselves, natural resources cannot be classified as either a curse or a blessing; they are opportunities that prudently exploited can jumpstart an economy and bring long-term fiscal benefits to a country.

Unfortunately, a majority of resource-rich countries are anti-democratic and have opaque policies and institutions. Predatory governance, greed and corruption often lead to the signing of secretive and exploitative production contracts that only benefit the investing multinationals and their countries of origin.

However, there are many tried and tested strategies and approaches that have resulted in strong economies with stable and functioning governments. For mineral wealth to have a positive impact and be a blessing there must be transparent policies, reasonable public regulation, commodity flows and sustainable and varied production systems.

A good example is the resource-rich state of Alaska in the United States where 9.6 billion barrels of oil were discovered in 1969. That year Alaska collected US$900 million from the oil lease sales but all the money was soon squandered. Worried that money from the oil resources would go to waste and benefit just a few, Alaskans voted to have the proceeds spent on state development.

Seven years later, and with infrastructure development largely achieved, a public vote established the Alaska Permanent Fund through a constitutional amendment. The fund was designed to receive at least 25 per cent of the oil revenue and in 1982 a dividend programme was added to the fund. The sovereign wealth component promotes and ensures intergenerational savings while the dividend fund ensures that all residents of Alaska enjoy the fruits of their natural resources by receiving annual dividends in the form of cash transfers. Since the first deposit of US$734,000 was made in 1977, the fund had over US$64 billion dollars in 2019 with each resident of Alaska receiving US$1,606 in dividends that year.

From the example above, it is very clear that a country can truly develop using its natural resource wealth. One of the ways in which it can do this is by securing tenure rights to natural resources through regulations that determine who can use the natural resources, for how long and under what conditions. Tenure rights clearly specify the expectations of each stakeholder with regards to their roles and, importantly, the role that the hosting communities are going to play during the entire period of the extraction of the resource.

Contract transparency is another way in which good governance can prevail in the extractive industry. Resource extraction contracts signed between the host governments and the multinational companies should be made public to provide general information to the public and ensure transparency, scrutiny and accountability.

There are countries, like Ghana, that support the idea of contract transparency as a fundamental principle in managing their extractive industry, but many nations have not fully embraced the idea of contract transparency for fear of sparking public outrage and also to conceal the information for personal gain. Through contract transparency, everything that is in the contract is laid bare and the specific expectation from every stakeholder is made public. This promotes good governance and transparency and also ensures that the benefits trickle down to the community level, promoting sustainable development.

Creation of a strong regulatory and institutional framework is also another way of ensuring good governance in the management of natural resources. The legal or regulatory framework can either enhance or inhibit development in the extractive industry and there is no template for what needs to be done in order to ensure a strong legal and regulatory framework. Each country has a unique opportunity to come up with its own tailor-made legal and regulatory framework that works for it and this involves developing laws and regulations that address specific issues in the industry while at the same time safeguarding the interests of the communities and  incorporating international best practices.

Having competent and functional institutions to implement the laws and regulations is another important step towards ensuring good governance in the management of the extractive industry. For the enacted laws to be effective, they must be implemented by institutions that are proactive and competent. Narrowing the implementation gap by ensuring that what is happening on the ground is in tandem with the provisions of the law is one of the critical roles of functional institutions.

A strong civil society can help in ensuring good governance in the management of natural resources.  Civil society organisations provide information and have the moral legitimacy to set the resource governance agenda. They can help to democratise power in resource management, and can work to keep other resource governance actors like governments and companies accountable. The civil society plays many roles, among which is the monitoring role, where it ensures that all the state and non-state actors play their role effectively in the management of resources and, more importantly in monitoring and ensuring that benefits are realised at the community level. They also help in highlighting corrupt practices in the industry and non-adherence to the internationally recognised practices guiding the extractive sector. Civil society organisations also have a role in representing the views of ordinary citizens on issues of national importance, in this case the extractive industry.

Lastly, civil society also plays a role in setting the agenda to ensure that the interests of the public in general, and development, are given priority. According to the Institute of Global Environmental Strategies Report of 2007, governments are increasingly involving local communities and non-governmental organisations in the management of natural resources. The ways in which the different stakeholders are involved varies. In involving different stakeholders, the governments broaden the scope of engagement and possibly minimise the chances of achieving a negative impact, reduce conflict and increase efficiency in resource management.

And finally, natural resources cannot be discussed without mentioning the environment. In an effort to benefit from the natural resource wealth while dealing with environmental issues, the following principles should be considered: All decisions made must be anchored in best governmental practice in order to ensure best practice in perpetuity. Resources must also benefit communities away from the resource as the impact of pollution may be felt away from the immediate location of the activity. Where there is no scientific evidence of possible impact, an investor should provide contingency measures and where such evidence of possible impact on the environment exists—usually through an Environmental Impact Assessment—an investor must formulate measures to avoid harming the environment and a polluter must sufficiently compensate for harm caused. We must give future generations the same opportunity to have access to a healthy environment that we as a generation have been given.

The article is done with support from Diakonia Kenya Country Office under the Madini Yetu Wajibu Wetu (Our Minerals, Our Responsibility) Project. Views expressed in the article are those of the author.

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Reflections

Time To Address Compensation and Resettlement Issues in Kenya’s Mining Sector

The Land Act, the Mining Act and the Land Value Act are inherently contradictory and the country lacks a national policy on issues arising from involuntary displacement.

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Time To Address Compensation and Resettlement Issues in Kenya’s Mining Sector
Photo: Unsplash/Japhet Khendlo
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Vision 2030 promises to transform Kenya into an industrialised middle-income country and, to that end, proposes ambitious projects which include the Standard Gauge Railway (SGR), the Lamu Port-South Sudan-Ethiopia Transport Corridor (LAPSSET), multipurpose dams and the development of oil and other mineral resources among others.

Large-scale projects, including mining projects, catalyse socio-economic development, which is what many people expect and can easily see. On the other hand, they undermine human rights, cause livelihood disruptions and break up the social fabric of the affected communities. This article focuses on this second aspect and examines compensation and resettlement policy gaps and challenges with respect to the mining sector in Kenya.

Large-scale mining projects lead to involuntary displacement, deprive those affected of the use or access to their resources, disrupt sources of livelihood and interfere with the cultural fabric of the affected communities. International safeguards developed by the World Bank and the Africa Development Bank on involuntary displacement recommend that all community concerns must be taken seriously in the planning and implementation of all investment projects.

World Bank guidelines provide that involuntary resettlement should be avoided and where it is unavoidable, all the people affected must be fully and fairly compensated. Moreover, compensation and resettlement should be seen as an opportunity to improve the livelihoods of those affected. However, the legislation currently guiding compensation and resettlement in Kenya does not regulate these processes in a clear and specific manner.

Take for instance the story of Phase 2A of the Standard Gauge Railway (SGR) that runs from Nairobi to Naivasha traversing Nairobi, Kajiado, Kiambu, Nakuru and Narok Counties, a project which was delayed for three years due to land acquisition and compensation issues.

In the June 22 2019 edition, The East African published stories of human suffering caused by the project. A mother of three, Ms Kusero was promised Sh2 million for her quarter-acre property but a house made of recycled oil drums is all she received as compensation for allowing the SGR to run through her land. Hers was one of many such stories of families whose land was compulsorily acquired for the project. On paper, they were paid billions in compensation but in reality, only a few actually received compensation.

Ms Kusero says that for people like her there were no negotiations and raising grievances regarding compensation was extremely frustrating. “You go to the National Land Commission and you are asked to go to the Ethics and Anti-Corruption Commission. Then you are sent to the Directorate of Criminal Investigation and Director of Public Prosecutions before being bounced back to the National Land Commission. In the end you get frustrated without redress.”

The second story is about the extractives sector and concerns compensation owed by the Kenya Fluorspar Company to the Kimwarer Community in Kerio Valley. After exploration and confirmation of the existence of viable fluorspar, the company excised land and started its mining operations before it had compensated and resettled those it had displaced. There were no consultations whatsoever regarding compensation.

A task force report on the Review of Fluorspar Mining in Kerio Valley established that some attempts at compensation were made. In 1982, two cheques of Sh3,606,000 and Sh500,000 were released by the National Treasury to the District Commissioner to compensate the affected residents. The land compensation value was determined at Sh450 per acre of which Sh50 was deducted directly by the District Commissioner as contribution to a local school fundraiser in the Kimwarer area.

The affected residents who wanted alternative land in compensation were promised they would be resettled on Kilima I and II and Grosell farms in Uasin Gishu. They were also promised that they would receive shares in the Flourspar Company and in the Wagon Hotel in Eldoret town. Those among them who attempted to settle in the promised land were later evicted and accused of invading private property. To date, the victims of these atrocities have not received justice.

Gaps and challenges in the policy and legislative frameworks

Large-scale mining operations require massive tracts of land and often lead to significant human rights violations. Communities whose livelihoods depend on land find themselves in a struggle to defend their rights against the mineral rights granted to investors who are usually large-scale multinationals acting with the full support of host governments.

Kenya’s constitution sets out the general principles of equitable, sustainable and efficient use of land and establishes forms of land ownership. It vests ownership of mineral resources in the government, which means that any land with mineral resources can be compulsorily acquired in the public interest. It further protects the right to property from unlawful deprivation of ownership or limitation of enjoyment unless for public purposes or in the public interest in which case prompt, just and full compensation is required. It is from these provisions that mineral resource projects draw justification to cause involuntary displacement.

Kenya passed a new Mining Act in May 2016 to bolster the legal regime and reinvigorate the mining sector. The Act provides that where a mineral right disturbs or deprives access to the landowner, causes damage to property or occasions loss of earnings, the landowner may claim compensation whose payment must be prompt, adequate and fair.  It doesn’t define what “prompt”, “full” and “just compensation” mean. The mineral rights holder is responsible for all the compensation and resettlement costs.

Moreover, the Mining Act appears to overlook the sensitivity of cultural resources. It does not protect or seek to identify cultural assets. Instead, it provides that no demand or claim for compensation shall be made for any loss or damage for which compensation cannot be assessed according to legal principles. Cultural resources are sensitive owing to the level of emotional reaction they spark when interfered with. They include spiritual sites, shrines, medicinal plants and graves whose value cannot be determined using formal processes but only through consultations and negotiations in good faith. The World Bank’s cultural safeguards on involuntary displacement provide that cultural property should be identified, protected and appropriate actions taken to avoid or mitigate adverse impacts, and that interference with cultural assets may only be justified when the loss or damage is agreed to be unavoidable.

The Land Act empowers the National Land Commission on all matters related to compensation. The Commission has the responsibility to make inquiries and determine interests in the land, receive claims of compensation and facilitate just compensation. It does this on request from agencies seeking to compulsorily acquire land. From 2013 to 2019, the Commission paid-out Sh38.273 billion in compensation of which 75.2 per cent went to the SGR and road projects. Within the same period, neither land acquisition nor compensation was undertaken by the Commission for mining-related projects, which raises the question as to how land acquisitions and compensation for extractives are carried out.

Parliament passed the Land Value (Amendment) Act In 2019 to address concerns relating to compulsory land acquisition, compensation and resettlement. One of the gains in this law is that it defines “just compensation”, “prompt” and “full”, terms that are used in the Mining Act, the Land Act and in other laws without clarity.  Accordingly, “Just compensation” means a form of fair compensation that is assessed and determined on the basis of the criteria set out under the act. “Prompt” means within a reasonable period of time but not more than one year after the Commission has taken possession of the land. “Full” means the restoration of the value of the land, including improvements made on the land at the date of notice of acquisition.

It is to be noted that unlike in the past where the NLC was required to compensate the landowner before taking possession, the Land Value law now allows possession of the land before compensation is paid. This is contrary to the Mining Act which provides for prior payment of compensation. Taking possession before compensation would disadvantage the affected persons and the one-year period set for paying compensation is too long especially for large-scale mining projects that normally deprive the owner of use of property such as farmland, homestead and grazing areas. The World Bank standards require that compensation is paid in full before displacement or restriction of access.

The Land Value law also provides criteria for assessing the value of compulsorily acquired land based on a land value index to be developed by the Land Cabinet Secretary in consultation with county governments and approved by the National Assembly and the Senate. Assessing land value for compensation purposes requires wide consultations with the affected persons and the relevant agencies, which this Act does not seem to embrace. As provided for, the development of a land value index excludes the participation of the National Land Commission, land valuation agencies such as Surveyors of Kenya, government ministries such as the Ministry of Petroleum and Mining whose main work causes involuntary displacement.

Key issues and action required

The first issue is the fragmentation of the legal frameworks that guide compensation and resettlement in Kenya. The country lacks a national compensation and resettlement policy that standardises compensation and resettlement and ensures that all socio-economic and cultural issues arising from involuntary displacement are properly addressed. The national policy framework on compensation and resettlement should be developed taking into consideration international best practices and safeguards to provide a harmonised policy direction that considers all the complexities that come with involuntary displacement. The policy framework should broadly articulate compensation and resettlement in such a way that it is understood to be an opportunity for improving the livelihoods of the affected people rather than as a process to subjugate them and worsen their livelihoods. At the very least, regulations on compensations and resettlement should be developed for the Mining Act.

The second issue is the uncoordinated institutional approach for compensation matters. The National Land Commission takes charge of both land acquisition and compensation based on requests and funds from the acquiring agencies whose roles are often unclear. The suggested national policy should provide a clear framework for institutional coordination and harmonise the efforts of all relevant agencies; compensation and resettlement must be a multi-agency function. In this way, overlooking community concerns will be minimised and, more importantly, the processes will be more transparent and less fraudulent. Effective institutional coordination will also enable an integrated grievance redress mechanism.

The third issue concerns the land survey regime; it is mired in corruption, inherently opaque and exploitative. Compulsory land acquisition heightens emotions and ignites serious land speculation perpetrated by public officers with privileged information who collude with greedy elites to defraud the state through inflated land prices.

Reforms to introduce transparent land surveying and valuation are required. This means strengthening the policy frameworks and the institutions involved and also requires a robust mechanism for monitoring compulsory acquisition, compensation and resettlement. It should become policy that a compulsory land survey is undertaken prior to the compulsory acquisition of any unregistered land.

The fourth issue is the absence of cultural resources as a factor of compensation and resettlement in the available legislations. Disruption caused by extractive projects on the social, economic and cultural ecosystems of the affected people can never be truly compensated or restored. Compensation merely helps the affected persons to continue with their livelihoods but does not and cannot restore their exact loss.

Legislations guiding compensation should clearly recognise cultural resources and all assets with cultural meaning and value for the affected people as an aspect of the process of negotiating compensation. Effective community participation must be allowed in identifying and deciding the compensation for cultural resources that may be affected by mining projects.

The final issue has to do with the procedures for paying compensation. Where the project affects the whole family, it is unclear whether compensation is awarded to an individual or to a household. Capacity building for the beneficiaries on the use of finances is also a concern and because it is rarely undertaken, waste of compensation funds, family disintegration, homelessness and other socio-economic concerns ensue. Support mechanisms to ensure effective financial planning are therefore important.

The lack of a mechanism to monitor the payment of compensation is another concern, leading to serious irregularities, corruption and human rights violations. Furthermore, the approach to dispute resolution needs to be harmonised to recognise structures at the county level. As they currently stand, the Land Act, the Mining Act and the Land Value Act are inherently contradictory.

The article is done with support from Diakonia Kenya Country Office under the Madini Yetu Wajibu Wetu (Our Minerals, Our Responsibility) Project. Views expressed in the article are those of the author.

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