Prior to being let go from the most promising job I’d ever gotten, I’d entertained the idea that maybe I was somehow safe. But when the news was broken to me over a static-laced WhatsApp call from the mdosi, I barely reacted.
‘Do you have anything to say?’ he asked.
‘Is this decision final?’ I responded.
‘Yes, it is.’
‘Then I have nothing more to say.’
An awkward silence reigned the conference room and eventually I left them to whatever else they needed to settle. I walked to my desk, broke the news to my family and started looking for a new job. It’s now been four months. I am yet to work in an office again.
I was almost 25 when I was technically fired. Each day that passed without a response to my job applications felt like a tightening noose.
Others who have been through the same – and it appears as though anyone with ambition has gone through this – told me, ‘Relax. These things happen. Enjoy this moment.’
That’s the problem. What’s to be enjoyed when there’s no money to leave the house? Eventually the stress of job seeking began to suffocate me, an unseen persisting pressure pushing my mind further and further to that inevitable pop. It once got so bad that a friend figured that the best way to comfort me was to show me how many other people had survived my situation.
‘Even Oprah was fired,’ she exclaimed. But that’s about the only thing some of us will ever have in common with Oprah.
Job seeking in Kenya right now seems to be an extreme sport. One where only the resilient or downright lucky get to win. For some, getting a job is a straightforward affair. Graduate, intern, employee, retire. For others it gets a bit more creative. One friend of mine said you only need three key things, ‘Looks, manners and connections.’
I thought it a bit shallow. She disagreed.
‘Looking good is one step in the right direction. When you’re presentable, the world is your canvas. That’s why the world’s best conmen are also the best dressed. The moment you look good, it gets easier to insert yourself in groups. Once you do that, you can get connections anywhere.’
The logic in it couldn’t be denied. Looking good is its own reward. Think about it. Everything we wear is indicative of adhering to an acceptable aesthetic. You have to look a certain way to be taken seriously. You can’t show up to a pitch meeting with unruly hair and mismatched sneakers. And you can’t just say that being sloppy is your preference. There is a standard to meet.
You have to graduate from Charm School to be able to create a job opportunity out of a chance encounter. That’s half a foot in the door. Why our teachers couldn’t spare a moment out of the pointless curriculums to share this about adulting, we may never know.
But it can’t just be about looking good. It has to be about qualifications too. Perhaps the reason why I can’t get a job I would be perfect for is because I may not be as experienced as the recruiters want. Or because I don’t possess the requisite degree. However, Twitter is inundated with posts of highly qualified individuals looking for work, any work. Plenty of individuals with prestigious degrees in fields like Microbiology and Engineering are looking for any kind of job. A few have taken to the streets with banners showing their qualifications.
Unemployment rates in Kenya are at a crisis point. Recent reports from the Kenya National Bureau of Statistics show that seven million Kenyans are unemployed. Out of these, 1.4 million have been desperately looking for work. The rest have given up on job hunting, with some opting to go back for further studies.
The data suggests that rate of unemployment is at 7.4%. Other studies show the rate at 11.4%. I couldn’t care less about the numbers. So what if seven million other people are as jobless as I am? It doesn’t change my personal situation.
Sometimes these jobs are only available at entry level. And even then, they end up being frustratingly temporary. A friend who eventually opted to seek employment abroad had an interesting early experience before he left.
After being employed as an I.T. intern in a reputable firm, a workmate suggested that he seek a permanent position.
‘Just apply,’ he was told, ‘What could go wrong?’
After making the application, the senior manager called him aside and told him he needed to grease the wheels.
‘You need to buy the wazee a mbuzi.’
After months of arduous labour configuring laptops and providing tech support, this was the thanks he got. When he showed hesitation in providing the mbuzi, the manager refused to approve his pay for two and a half months. This forced my friend’s immediate supervisor to pay him out of pocket. Eventually he had to leave the job and figure out what else to do. He was lucky enough to get a better opportunity a few weeks later.
But his happy ending isn’t the norm for entry-level workers. In 2016, I left a job as a data entry clerk because the project got axed. Other companies hire interns and have a policy against retaining them. Some start-ups, though courageous enough to hire newbies in the work environment, end up sinking anyway because of finances.
While this is a ‘norm’, it spells a world of doom for young people in their early twenties. Most of us end up getting mjengo type jobs where they’re veritable casual labourers. The mjengo system is a daily struggle to earn an unsteady pay check. Contracts that are renewed monthly. No job security. Linear use of skills. Doubtful job roles. No benefits. No legal protections. And you have to struggle through them because you’re ‘paying your dues’. Desperately hoping that perhaps the universe sees it as a proof of workmanship. That it will in turn reward you.
Then this is where the Boomers and Gen Xers come in. Parents are mad at the ‘lack of initiative’. If you’re hard at work shouldn’t there be fruits to show of your labour?
My father had one such conversation with me when I was unemployed after my first internship.
He raised one hand above his head, ‘These are your expenses.’
Another hand hovered near the ground, ‘This is your income.’
He brought his palms to meet around his face, ‘This is where you should be. Why can’t you get a job?’
Because nobody would hire someone fresh out of college with only three months’ experience to their CV.
The murmur of frustrated parents echoes around homes in the city that still support their recent graduates.
‘Why don’t you start a business?’
‘Food always makes money.’
‘Even with the economy sinking, Kenyans won’t stop wearing clothes, go into the mtumba business.’
But to be honest, entrepreneurship isn’t for everyone. It’s suited only to a gifted few. And even so, entrepreneurs struggle to make it through in a crony capitalist state like Kenya.
Another friend who owns a wildly successful travel solutions company told me, ‘Not everyone is cut to do it.’
Sure. All you need is guts, guile and a never-ending thirst for glory, right? Wrong.
My friend went on to add, ‘Cash flow is a serious problem, at least for me. Business only booms when the economy is good.’
‘So how did you survive?’ I asked.
‘You have to stretch the shilling, make sure you have years of savings for utilities and expenses because profit will be erratic. Work from home, use business offices if you have to reduce rent expenses. Keep a routine. Prepare for bad times. The 2017 election period caught us off guard. Nairobi is no longer just about Kenya. Understand that you will be facing international competition.’
This sounds like a lot to think about. It’s also what affects one entrepreneur among millions of others. If you are unemployed with barely any savings to your name, do you jump into that pool?
Technically, starting a business in Nairobi is supposed to be easy. Running it and keeping it afloat isn’t. And with the rising costs of living in the country, starting a business seems like a bad idea.
Essentially, it brings you back to the job-seeking arena. Get a job, save some cash and start a business, yeah? However, getting that job still isn’t easy. Most job-seeking sites have sales jobs aplenty. Sales seem to be the most common job available in the country.
‘Sales jobs are numerous because no matter what is happening, you’ll always want someone out there touting your product,” a friend of mine who heads business development for a media company tells me. It’s basically free marketing. That way your company is always known and you always have a potential client to add to your portfolio.’
Sales job are also notoriously poorly paid. Some companies even pay only on commission with no retainers or benefits. You can operate at no cost to the company.
It’s not always what it seems though. A sales operator for a hardware company told me it was difficult for him to get there. After leaving a job at an insurance company to go back to school, things didn’t improve just because he had upgraded his papers.
Two years with casual jobs, he eventually gets an email inviting him to an interview. The fact that it was being held in the conference room of a church raised a few flags, none of them red. Upon showing up at the gate, a young well-dressed man asked for his name, phone number and a two-hundred-shilling registration fee for the meeting.
‘Meeting? I thought this was for interviews?’
‘No, this is a network marketing meeting.’
He looked around and saw the poster then. It was a gathering for a multilevel marketing training course organised by a well-known cosmetics company. Why did they have their meeting in a church? God knows. Perhaps church halls are cheaper? Maybe for credibility? Churches do have a reputation for getting people to make it rain so…
Months passed before he got a sales job that barely provides him with an income. But at least he gets that coveted job experience recruiters live for.
Nairobi ensnares dreamers, those who have the temerity to be ambitious, in its gaping maw, sucking them dry and then spitting them out. This phenomenon doesn’t spare any generation.
A lady who had left for red, white and blue pastures in the early 2000s returned to Kenya after two years of experiences worthy of a depressing Chimamanda immigrant epic. Upon her return, she expected to be reinstated at her civil service job.
‘It’s standard practice. As long as you asked for leave, you just go to HQ and they reinstate you,’ she told me.
Unfortunately, things didn’t go as planned.
‘When I left, I asked for the time off over my supervisor’s head. He threatened me, told me to return after a month or else. I didn’t return. And when I was back two years later I found out he’d written a bad recommendation to the seniors at headquarters.’
‘Did you give up?’ I asked her.
‘No, I talked to a former workmate. He organised a meeting with one of the men in charge and they told me to pay KSh20,000 if I want to be reinstated. I paid and they told me to wait for two weeks then I can get my old job back. I didn’t. They were reshuffled into other jobs and I never even got back the money I paid.’
‘What about your supervisor? Couldn’t you talk to him and get him to rescind his bad recommendation?’
‘No, he died shortly after I came back. I was on my own. Every time I paid off the officials, they would get reshuffled. Eventually I ran out of money and none of them were willing to help unless I paid them.’
‘What about family? Couldn’t any of them help?’
‘Nobody wants to help a 40-year-old woman who could afford to travel abroad. And everyone else said they didn’t have any money or connections.’
Years later, she finally got a job. But she moved as far away as possible from Nairobi and its burdensome toxicity.
Is there any hope for little old me? We of the woefully unprepared for jobless insecurity, do we stand a chance? After experiencing an unprecedented bout of brokeness I reached out to people who were going through the same. Spells of having no money, crises of faith and crippling self-doubt. I asked a friend who has been through some of the most Dickensian worst of times.
‘It gets better,’ my friend promised.
‘After clearing college, our school was changed which made my diplomas unusable. That was barely my first hurdle. After that I got a sales job but turned it down because I just can’t do sales. I have tremendous respect for the people who do. I ended up drifting.’
‘Drifting?’ I asked.
‘Yeah, I was sneaking into classes at a friend’s school. I worked as a cleaner in a computer stall, I worked in a movie shop, I learnt to talk to people, how to broker deals and whatnot. I lost friends. I moved to Zimmerman and got a great job doing IT security then I got fired after a month. Let me tell you, don’t believe your own hype. Don’t oversell yourself on your CV.’
‘I don’t even know how to do that in my CV,’ I quipped.
He laughed uneasily.
‘I got an internship along Mombasa road where I had to walk to town every day because they weren’t paying us. After, I went to a job in Karen where after two months, the money stopped coming in. The company was going under but the boss didn’t tell us until after five months. I didn’t leave until after seven months. The boss would give us handouts. But then I ended up not paying rent. Eventually my house was locked and my stuff auctioned except my laptop and the clothes on my back. I contemplated suicide so many times, I looked for ways I could leave all this from being shamed by my relatives, friends with the ‘alirudi ocha‘ vibe.’
‘But after this I got my ‘big break’ because of a blog I had been writing since 2013. A CEO from abroad emailed me about it. At first, I thought it was a con but I just responded and got an amazing opportunity consulting with them. It’s what I’m doing now. I’ve worked with celebrities, big tech and governments.’
I was so inspired by his story. Empowered too. Binging on prosperity porn is one of the survival mechanisms of dreamers who toil in dead-end jobs or are ‘in-between jobs’. Stories like my friend’s show that while Nairobi makes you struggle, it can breed greatness, right?
We soak in all the stories about people who were felled by circumstance or their own folly managed to claw their way back, and maybe even thrive.
You have to be lucky. You have to be timely. My peers call it ‘your moment will come’. My more religious peers say, ‘Wait for God’s time’. Because there is a heavenly itinerary for when watu ordinary like Mwende and Kimemia will finally get someone to notice their work. The sad truth is that for most, dreams come true through the ‘blessing’ of others. It is that successful people give you a chance to shine. It makes me realize that it’s not necessarily your fault if you miss out when you’ve been working so hard for ‘the moment’.
My former employer even reached out to me after I was let go, ‘It had nothing to do with you or your talent,’ she insisted.
Maybe there are forces at work that can swing either way. Beyond skills, qualifications, work ethic and experience, it seems like you have to have guardian angels, good luck charms and even the occasional visit to the mganga to get that dream job or set up that dream business. It seems like a whole lot of moving parts, and I can’t blame anyone who can’t keep up.
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.
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.
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.
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.
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.
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.
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