Getting beyond an individual

The notice from President Obama to the US congress identifying 2 Kenyans (i.e. John Harun Mwau (Kilome MP) and Naima Mohamed Nyakiniywa to be on the list of Designated Foreign Narcotics Kingpins has me thinking. I have no idea who “Naima Mohamed Nyakiniywa” is, but most Kenyans are very familiar with Mr. Mwau.

To frame these thoughts, I would like to further point out

• the media stories circulating at the end of last year about the list of 5 individuals that the Kenyan Government had shared with the US government who were banned from travelling to the US; and
• the stories naming 4 MPs Harun Mwau, Gidion Mbuvi, Hassan Joho and William Kabogo and Mombasa businessman Ali Punjani as suspected drug lords for whom there was insufficient evidence to charge them in court.

I will start by firmly stating my belief that everyone should be “innocent until proven guilty”. No court of law has yet has found any of these individuals guilty of anything. Although, by reputation some of these guys are not very nice people, and could very well deserve to be behind bars, I think we all want and need for our legal systems to apprehend, prosecute and punish them within the bounds of the law because we will all be better off for having a government that works. However, that is a discussion for another posting.

I also believe that the United State doesn't arbitrarily designate individuals as drug-lords without some pretty darn good evidence so those names….... hmmmmmmm.......

But what i really want to do is to look at something bigger. I am concerned about what this says about us as a Kenyan people, what lessons we need to learn looking back, but also what is says about our future. What should our response as a society be when an elected official or person in leadership position has some serious issues that clearly call into question their leadership qualities.

I remember my high school days when supposedly all good upstanding citizens became doctors, lawyers, accountants and the trouble makers, the school dropouts and thugs became politicians. And for a long time, the rabble rousers, those who could round up the local hooligans during election time beat up opponents and by fear, bribery and all other means necessary won their parties nominations and were duly elected to be our parliamentarians. So, i have to ask, are we surprised at how corrupt and broken the system has been. If no self respecting Kenyan would get into politics, were you really expecting our country to have turned out any different.

But things are changing and have changed. I have watched with immense pleasure the process to find a new Chief and Deputy Chief Justice and while not perfect, there is clearly hope. When individuals begin to realize that public service is really public service and we the people can and must hold every individual accountable for their actions, then we can begin to hope for a government and public institutions and systems that serve for the good of the people.

So going back to the point i am trying to make. We have a long list of people that we keep electing back to office with very questionable links, deals and scandals hanging around them that we must get beyond. Think about Goldenberg, Anglo-Leasing and the myriad others. I think anyone in leadership needs to be held to a higher standard. How can we have extremely senior members of our government constantly implicated in questionable at the best or criminal activities and we the people keep on electing them or allow them to keep their government positions.

At some point, we have to find for ourselves a group of leaders that we are proud to represent us, that we can look up to and trust they are leading the country in a direction that gives us a future we can look forward to for ourselves and our kids.

To end, i will quote Ahmednasir Abdullahi responding to Aaron Ringera to defend the Judicial Service Commission’s decision to not shortlist him for the new Supreme Court:

“The position the judge applied for is not anybody’s birthright. The era of entitlement is over. Kenyans should outgrow the culture of entitlement and embrace a new culture of fair competition.”

Drought, Floods, Drought, Floods, Drought....... A Stupid Never ending cycle

f6 months ago, ie September 2009, Kenya was in the middle of a severe drought. Many farmers were facing another miserable harvest and the guys from Dagoretti Corner i.e. Kenya Meteorological Department. were predicting that our old friend El Nino was on his way back. I am sure we all remember pictures of dying domestic and wild animals both in local and foreign media.

Well, reading the Kenyan media now, you would think that we have woken up from a bad nightmare and Kenya, the Land of Milk and Honey is BACK. Milk flowing so plentifully that we can afford to pour it away.

So whats my problem. Well, I don't have a crystal ball, but i think i can comfortably predict that in the next 10 months, the famine will be back with starving and dying animals and we will be back to begging for food aid. And you know what, another few months later, we will have people drowning again because the rains will have come and well, rivers will flood, roads will be washed away and people will suffer.

So whats my problem with all this, well....... When are we as a people and our elected leaders ever going to get around to making a sound water management policy.

Kenya’s Unrest - The Implications for Its Neighbors

I read this interesting article today from a publication by the corporate council on Africa. I really believe that until we realize that we as a country have a joint destiny and we have to move together, we will be left behind while everyone else moves on.

Woe to us if they find a way to by pass us, because if we keep doing this, sooner or later they will build another network with us left out.



Kenya’s Unrest - The Implications for Its Neighbors
Fabrice Njankou, Department Intern
Edited by: Haben Berhe, Associate

The disputed election of December 27, 2007 in Kenya, which saw incumbent President Mwai Kibaki declare himself winner despite allegations of election rigging by the opposition Orange Democratic Movement and its leader Raila Odinga, has had a negative impact on the business environment in the region. Interestingly the unrest that followed the hotly contested elections is creating business opportunities for Kenya’s neighbors. In Rwanda, Uganda, Burundi and the Democratic Republic of the Congo business transactions with Kenya in the agribusiness and manufacturing sectors have drastically fallen in the past weeks as goods, raw materials and other commodities destined for other regional countries are stranded at the Port of Mombasa. In response, neighboring countries are forced to consider other creative means to source these goods.

Production chains in the manufacturing sector have been interrupted by the shortage of raw materials and other items necessary in the manufacturing process. In addition, the oil shortage has substantially increased transportation and storage costs. According to the Uganda Manufacturers Association (UMA), prices of consumer goods have steadily risen as manufacturers factor in the cost of fuel into their prices. For instance, a small business such as Elgon Co. (U) Ltd, specializing in leather tanning, is one casualty of the current situation in Kenya. The company has over a dozen uninsured containers destined for Pakistan that are stranded at shipping docks.

The agribusiness industry has also been affected by Kenya’s political unrest, with industries such as the coffee industry experiencing logistical difficulties in the transportation of coffee beans, due to a shortage of trucks and containers stuck at the Mombasa port. The Ugandan company
Kyagalanyi Coffee Ltd., which exported 4,000 bags of coffee last month, saw its exports reduce to zero in January. Uganda and Rwanda are also experiencing problems in transporting their agricultural goods via Kenya. Approximately 70 percent of Rwanda’s tea is sold weekly at Mombasa’s tea auction, which is also where 80 percent of the Uganda Tea Development Agency’s sales are also made. The agency has 666 tones of tea worth $1.7 million stuck at factory or in transit. In an effort to avoid similar woes, Rwanda has reached an agreement with Tanzania to use its Dar es Salaam port for its petroleum products shipments.1

Kenya’s flowers export, estimated to be Sh 26 billion (US $366,300,000), has been the cornerstone of the Horticulture industry. If the unrest persists, there is a risk that companies such as Oserian, the largest flower company in the country, will be unable to ship 6 millions of its Sweetheart flowers for Valentine’s Day. In neighboring Uganda, flower exporters are concerned about the increased cost of production of about 20 to 30 percent.

Kenya’s tourism industry, one of its top foreign currency earners, has been the most affected by the current crisis. The country is ranked as one of the top tourism destinations on the continent. With the industry valued at $750 million, it receives significant investment from investors interested in the sector. It is clear that the country’s political instability has slowed the dynamic growth Kenya has experienced over the past decade. It is estimated that Kenya is to lose 95 percent of its 320,000 tourists from January to March.2 Tanzania and other African countries that depend heavily on tourism may view the current developments as an opportunity to absorb those tourists.

What’s the Relevance
The rapid political downturn in Kenya has exposed the need of an alternative transportation infrastructure in the region. According to Strategic Forecasting Inc., a leading market strategy and intelligence firm, the current situation in Kenya has reinforced the need for regional infrastructure investment, such as the creation of alternative supply routes to be used if similar disruptions occur in the future.3 An example of a new regional initiative is the East African Community’s agreement with Uganda, Rwanda, Kenya, Tanzania and Burundi to modernize its rail networks. Alternatives such as the construction of inland port and fuel reserves are now being called for by the Uganda trader’s umbrella body KACITA, based on the belief that such infrastructure would have insulated them from Kenya’s troubles.4 Tanzania is perceived to gain the most from these events as landlocked countries begin to increase their use of the port of Dar es Salaam for their exports.

The unrest in Kenya has no doubt raised uncertainty regarding investment in Africa. The continent is considered to be experiencing its strongest growth in the past thirty years, however social institutions remain fragile, therefore, the risk of instability constantly looms. Notwithstanding, U.S. investors should not hastily divest from Kenya as the turmoil has been relegated to a few confined areas. Kenya is still East Africa’s largest economy with a modern manufacturing sector. Investors would be abandoning a well-educated workforce and infrastructure that is superior to that of its neighboring countries, the foundation that has made Kenya the regional hub for investors for a long time. Rather, investors could rally around the political dialogue taking place to help resolve the conflict. An undesirable situation would be divestment that may potentially exacerbate the crisis by increasing unemployment and economic insecurity.

Feed back on this article could be sent to Fabrice and Haben at hberhe@africacncl.org
1 All Africa. “Tanzania: Country to Benefit from Kenya’s Tragedy”. February 4, 2008.
2 The Daily Telegraph. “Kenya Counts the Cost as Tourists Stay Away”. February 4, 2008.
3 Stratfor. “Global Market Brief: A Second Look at African Infrastructure”. January 3, 2008.
4 East African Business Week. “How Kenyan Crisis Could Bring EAC to its Knees”. January 21, 2008