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Sunday, March 21, 2010

Of Ellusive Vision 2030 and Executive Robbery

By Mwarang'ethe

A great man in the name of Frederic Bastiat, wrote words that shall echo for eternity. He noted this.

“The law perverted! And the police powers of the state perverted along with it! The law, I say, not only turned from its proper purpose but made to follow an entirely contrary purpose! The law become the weapon of every kind of greed! Instead of checking crime, the law itself guilty of the evils it is supposed to punish! If this is true, it is a serious fact, and moral duty requires me to call the attention of my fellow-citizens to it.”

Like Bastiat, we feel we have a moral duty to warn Kenyans of the greatest robbery which is a foot in the name of the so called Vision 2030. Now, under the “Vision” 2030, one of the key planks is infrastructure like roads, railways and ports. There is nothing wrong with this at first glance for we need them. However, let the reader first appreciate the origins of this “vision” by visiting this site: (Visited on 20/3/2010).

Having seen the origin of this “vision,” let us now turn our attention to some obscure “business news” which did not and cannot compete with more “serious issues” like the “women affirmative” action, counties and regions and such kind of jazz. (DN informs us that: “Thika Road land soars OVER highway.”

Then, we are informed by Mr Ibrahim Mwathane, the director of Landscape Surveyors, that:

“The value of land in Ruiru and Juja areas is appreciating fast as a result of the ongoing re-engineering of Thika Road into a modern highway. real estate experts, the prospects of new structures and amenities have pushed up the cost of land along the vital artery as Chinese contractors build the country’s first eight-lane highway. ... “New infrastructure will play a big role in increasing the value of land. Prices have also risen due to speculative activities since building work started last year,”

Meaning of the above statement

The above facts, do confirm what we have stated many times here. Land values do not result from any labour or capital expenditure of landowners, but, from:

(a) from good governance funded by Wanjiku, and
(b) population increment.

Thus, courtesy of Wanjiku taxes (Remember, she walks to work hungry) the new infrastructures in tune with “vision” 2030 are being put into place. If we take Thika road as an example, we are told this:

  1. “Kasarani, Githurai, Ruiru, and Juja are burgeoning industrial and commercial centres. For example the cost of 80 metres by 100 metres plot in Ruiru has risen to about Sh1 million.”
  2. Land from Globe Cinema, Muthaiga and Ruaraka area is currently valued at between Sh20 million to Sh40 million an acre.
  3. The cost of land from Ruaraka to Githurai ranges from Sh3 million to Sh6 million. From Githurai and Thika, the value ranges from between Sh500, 000 to Sh1 million an acre in the rural setting while the value rises to between Sh1.5 and Sh3 million in urban centres.
In a nutshell, we are now witnessing the unprecedented transfer of EARNED INCOME from Wanjiku to few landowners in terms of the WINDFALL GAINS in the name of “vision” 2030. What did Adam Smith say about these windfall gains? He was clear, but, no one seems to remember these words, not even “eminent economists” like Kibaki (remember education is ignorance):

“Ground rents, so far as they exceed the ordinary rent of land, are altogether owing to the good government of the sovereign,...Nothing can be more reasonable than that a fund which owes its existence to the good government of the state should be taxed peculiarly, or should contribute something more than the greater part of other funds, towards the support of that government."

In simple words, increased land values are a social/common product and no one has right in front of God and man and in justice and, or equity to monopolise it. Thus, in a free enterprise society, such monopoly ought to be extinguished. So, by refusing to extinguish this monopoly, what kind of economy do we have then? We answer socialism.

This is so because; socialism is denoted by DIVORCE BETWEEN LABOUR AND REWARDS. To the extent that, a few stand to make billions for doing nothing, for we suspect that, having known where these infrastructure will lie, these few, have moved to purchase these lands, we are practicing not free markets as we are told, but, socialism for the few. What is interesting is that, those few who believe in socialism are the first to accuse others of being socialists so as to confuse and frighten the ignorant masses who are being robbed.

Some have argued that, our views about land are motivated by Karl Marx views. Firstly, we ask, was also Adam Smith motivated by Karl Marx? Secondly, for anyone to link Karl Marx to land question betrays monumental ignorance on land question. For instance, during the English civil war, in 1659 (note the centuries before Karl Marx) Harrington warned that, Parliament was not to be trusted to reach a settlement that was good for the people, for it was likely to introduce the monarchy (sounds familiar?).

Although they did not love the monarchy, the gentry wanted a political formula that would protect its estates, i.e. land. Harrington’s advice for diffusion of land to those who had been dispossessed was at odds with the gentry. What did Harrington ask for? He had asked for compulsory education, election by ballot of the executive, executive drawn from all classes in rotation. They rejected such wise advice and brought the monarchy back on one condition. On MONEY MATTERS (remember what we have been saying about banks?), the landed class would determine public policy. It took centuries and rivers of human blood for even ballot to be accepted.

He also noted one truth that, popular government entailed the diffusion of land rights. This will take may be another 1000 years, for, it seems, just as Harrington was shouted at in 1659, we hear same echo, you are too utopians bwana Mwarang’ethe in the 21st Century. So, from this, we can see that, the idea of Karl Marx and land is a red herring adopted by those who dispossess Wanjiku to hide their crimes against humanity which has been going in modern times since 1235. Thus, let no one tell us about Karl Marx for we shall wonder how ignorant one can be in the 21st Century. Now, we ask, is there an alternative to this robbery in the name of “vision” 2030? We answer in the affirmative and give an example.

Hong Kong – A sterile Outcrop Transformed

The terms, on which Hong Kong was to be administered as revealed by Lord Aberdeen in 1843, the then UK’s Foreign Secretary is all we need state to silence would be detractors. He noted that:

"The principal source from which revenue is to be looked for is the Land; and if by the liberality of the Commercial regulations enforced in the Island, foreigners as well as British Subjects are tempted to establish themselves on it, and thus to make it a great mercantile EntrepĂ´t, with very limited dimensions, Her Majesty’s Government conceived that they would be fully justified in securing to the Crown all the benefits to be expected from the increased value which such a state of things would confer upon Land. Her Majesty’s Government would therefore caution you against the permanent alienation of any portion of the land, and they would prefer that Parties should hold land under Leases from the Crown, the terms of which might be sufficiently long to warrant the holders in building upon their allotments . . . It would probably be advantageous also that the portions of land should be let by auction."

This was a clear case of Adam Smith's way of levying tax or communism if you are brainwashed by the modern “education.” And, it is self evident to all today, the integration of the public finance with private property rights has transformed what was a sterile outcrop on the edge of China into one of the most dynamic capitalistic economy. In fact, if Hong Kong had the natural resources we have in Africa, its economy would be more advanced than even of the USA by far. That is what awaits Kenya/Africa when it wakes up to the reality we preach here.

The facts of the Hong Kong economy were captured by Heritage Foundation (2003). When it came to income tax rates, the top rate was 17% in Hong Kong, in Singapore was 22%, in the UK, was 40%, and in the USA was 39.1%. As concerns marginal (average payer), it was 17% in Hong Kong, 8% in Singapore, 22% in the UK and 27.5% in the USA. As to corporation tax, in Hong Kong, it was 16%, 22% in Singapore, 30% in the UK and 35% in the USA.

The most interesting figures were in the government expenditure per cent of the GDP. In Hong Kong, the expenditure was 21.6%, Singapore was 18.1%, in the UK, it was 38.3% and in the USA was 30.4%. What is clear from the last figures is that, due to the tax structures in the UK and in the USA, which rob those who labour because land was monopolized under the guise of capitalism/free markets, these governments, are now forced to intervene in the name of so called welfare state. Unfortunately, such intervention is a dangerous delusion as is evident in mounting public debts which are will eventually bankrupt the UK and the USA. Also, this will be self evident in Kenya within the next 10 years (remember the “infrastructure bonds” we are issuing for these “vision” 2030 roads?)

Through the Hong Kong scheme, those who made/make money did/do not own land for windfall gains were/are captured by the colonial/current government through auctions. The result of this was/is low taxation as we show above, which thereby, enabled/s capitalists or the investors to make huge profits and high wages for workers. This philosophy remains the best kept secret of Hong Kong. While World Bank continues to pile infrastructure debts such as on Thika road on Wanjiku, we can see how Hong Kong uses its land values to fund its infrastructure while relieving those who labour from inquisition in the name of tax.

Some questions to ponder about

  1. Have some people with insider information about “vision” 2030 bought land along the infrastructural routes? If so, how many billions do they stand to make? If so, do these people believe in free markets or socialism?
  2. Instead of allowing a few idlers to pocket these billions, what if we took these values, and relieved our teachers, doctors, nurses, etc of taxes to the value generated by the infrastructures they have funded? More so, what would this do to our economy and wealth gap?
  3. If Hong Kong which has no natural resources is outperforming USA, can you imagine what Africa would look like if we adopted this system with all the natural resources we have?
  4. In the last few months, we have been screaming about a few millions that have been stolen. Of course, the World Bank joins in that cry. Why are these people silent about what Hong Kong does?
  5. To Phil, we ask, why is the ODM so hopelessly unable to sell such a wonderful idea to the masses who are confused to think land reforms means eviction of Kikuyu’s from RV?
  6. To PDM guys like Vikii, Deroo, we know you guys have gone to heaven and hell in search of “progressiveness” ideology. But, we ask, does this “ideology” of yours include what Hong Kong has done? And, if not, why?
  7. Finally, let the reader read the DN article, together with two articles we have posted here before, i.e. The First Principle in Drafting a Constitution and Why the New Constitution is Void Ab Initio. Once you do that, is the futility of the current “new constitution” which does not come even close to respecting the NATURAL RIGHT TO PROPERTY become self evident because, as we noted, it seeks to entrench ARTIFICIAL RIGHT TO PROPERTY, i.e. rent seeking?

Finally, as you watch the “new constitution” drama, remember these words by Bastiat which summarizes the ongoing constitutional “reforms.”

“As long as it is admitted that the law may be diverted from its true purpose — that it may violate property instead of protecting it — then everyone will want to participate in making the law, either to protect himself against plunder or to use it for plunder. Political questions will always be prejudicial, dominant, and all-absorbing. There will be fighting at the door of the Legislative Palace, and the struggle within will be no less furious. To know this, it is hardly necessary to examine what transpires in the [Kenyan] French and English legislatures; merely to understand the issue is to know the answer.”


Anonymous said...

Dont you have anything to do with your weekends. What a waste of time.

Anonymous said...

PDM watch out

Wanjiku has started to take action- "He watched as Mr Paul M’Ithinkia and Mr Stephen Thinkei who are the leaders of the feuding groups, shook hands and pledged to work together"

Even Kiraitu has started to see the writing on the wall. DONT mutilate the draft constitution.
I like these PDM guys.No shame at all!

Raila appeals for unity of purpose

By Francis Ngige and Patrick Muriungi

Prime Minister Raila Odinga concluded his tour of Eastern Province with a warm welcome in Meru.

Raila, who was accompanied by several ministers and MPs, was elated by the warm reception at Nteere grounds in Meru town.

But absent from the rally were local MPs apart from Central Imenti Gitobu Imanyara, who hosted the PM.

It was a symbolic return for the PM at the grounds where prior to the 2007 General Election, stones rained on his entourage as he attempted to campaign for ODM.

As part of his welcome in Meru, Raila witnessed the reconciliation of the warring factions of the Njuri Ncheke Supreme Council of Elders.

He watched as Mr Paul M’Ithinkia and Mr Stephen Thinkei who are the leaders of the feuding groups, shook hands and pledged to work together.

Large crowds lined up the streets of Meru and braved a morning shower to welcome the PM who held three meetings in the town.

From where the PM’s chopper landed to the venue of his meetings, Raila was met with ecstatic crowds.

A section of Meru-Nanyuki road was closed for traffic as the PM walked for more than 500m to the venue of the meeting. Raila’s rally followed a similar on in Ukambani where he was also warmly welcomed.

In his Saturday’s meeting, Raila was accompanied by Deputy Prime Minister Musalia Mudavadi, Cabinet ministers Anyang Nyong’o, James Orengo and Joseph Nyaga.

Working links

Others were MPs John Pesa, John Mbadi and former Kibwezi MP Kalembe Ndile, who announced a working relationship with Raila.

And at the public rally, more than 20 youth who claimed to have been hired by a former minister to disrupt the 2007 Raila campaign rally, apologised and pledged to support him in 2012. The PM who landed in Meru at 10am had a tight schedule, first meeting ODM delegates from Meru, Embu and Mbeere at Gitoro Conference Centre before addressing leaders at Kamunde hall.

"When I attempted to address people in this ground during campaigns, I was met by a hail of stones. Today, I’m glad everyone is here to welcome me," said Raila.

He spoke against tribalism saying Kenya had suffered due to the vice.

"We will move forward once we end tribalism. Nobody chose to be born anywhere. We should treat each other as Kenyans," said the PM.

Anonymous said...

@ 12:58 PM,

At least Mwangethe has added some value this weekend. I bet you were either drinking or gossip this weekend as most kenyans do wishing and hoping that their problems go away.

Anonymous said...

Pole, it must be damn COLD out there as YOU WALK ALL ALONE. Pole lakini sio kwa ubaya. We are the c...(not yet but surely headed there, mtado?)

Anonymous said...


Your articles bore me tears. I am having problems staying awake to write this comment. Why don't you take them to some lecture hall where Kenyans will pay a fortune to fall asleep listening to you?

This campaign for your articles here is a very clever ploy to finish Kumekucha. Let Chris tell us how many people read this cr** over the weekened.

Chris, please ban all articles from this professor of land, economics and all things boring.


Anonymous said...

campaign kick boredom out of Kumekucha

I am one of the senior Kumekucha readers and followers, only that I have not revealed my true identity like Taboo and Phil.

I have launched this campaign to throw out boring long articles from this blog. I will not stop until Chris does something.

Any fool knows that if you want to educate people or inform them, the first rule is that you have to be entertaining or at least interesting. Chris has written about land many times but I never fell asleep reading his pieces.

I resist this new ploy to rid this blog of readers by posting long and very boring articles.

bros and sisters join me in this noble cause.

Anonymous said...

Anon @ 9:28pm,

I agree. I think the idea here is to divert traffic to Jukwaa and all those other Raila and Kibaki worshipping sites.

And as usual Chris is asleep behaving like Kibaki.

Joe said...

Now, It becomes more interesting if you consider who owns most land between Thika Road, Ol-donyo-Sabuk, and Nairobi-Kangundo Road.

Phil said...

Mwarang'ethe said.....
To Phil, we ask, why is the ODM so hopelessly unable to sell such a wonderful idea to the masses who are confused to think land reforms means eviction of Kikuyu’s from RV?

Not at all. ODM has gand plans for this country. You only need to read the ODM manifesto on governance and land reform to understand that the party has extremely good plans for our landlessness.

ODM, with James Orengo as Lands Minister, has formulated and facilitated the adoption of the land policy by cabinet and by parliament. This is a huge achievement considering the governments of Kenyatta, Moi and Kibaki only created squatters, IDPs and increased landlessness in the fifty years they ruled Kenya after independence.

Adopting a land policy is not an end to the reform process, but it certainly is a fine start.

What happened in RV during the PEV was clearly not an official ODM policy. If it were a party policy, then it could have engulfed the entire country and especially areas which the ODM was muchmore popular than in the Rift Valley. Besides, violence and ethnic evictions have been recurring in RV for decades. ODM was not in existence in 1992, 1997, 2002, etc. yet there were clashes in specific areas in Rift Valley. Clearly, in 2007, Our party popularity was hijacked by the same people you presently see trying to derail the constitution. These people are working in their own individual interests, as Joe points out below.

Blogger Joe said...

Now, It becomes more interesting if you consider who owns most land between Thika Road, Ol-donyo-Sabuk, and Nairobi-Kangundo Road.

You got it Joe. These people have been resisting land reforms since independence.

Anonymous said...

PANUA rat M-pesa (real name michael Pesa) exposed!..what a cheap blog he/she runs!

Anonymous said...


who was harrington? why are you assuming the name is easily recognisable like Karl Marx or Adam Smith?

Philip said...

Let those who sleep sleep.

If I was greedy and had money I could have bought several hectares of land in Isiolo. Then buy MPs and Minister for Planning. Let them start a satellite city in Isiolo as Nigeria did for Abuja. Then let the media announce about escalating land prices in Isiolo, then sell my land to the same Government, give part to the MPs who supported me, and life goes on.

Anonymous said...

then, then and then. You are a joke

Anonymous said...

ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha haaaaaaaaaa!

2030 is not that far way from today (2010), all one needs to do is add an extra 20 years to their current age and they will experience a changed Kenya by 2030 with or without the ellusive vision 2030 and exceutive robbery.

if your current age is 25, 30, 35, 40, 45, 50 or 55-plus, then add 20 years to it in preparation for a very different kenya that awaits many in 2030.

the lucky kenyans are those who are 25, 30 and 35 years of age. they will be able to experience the wonderful era without the usual pains and burdens of old age.

while soooooo many Kenyans who are in the 40-plus age bracket (bucket) will have been asorbed in the underbelly of mother earth come 2030.

yeap! 55 yrs + 20 yrs = 75 years and in good or bad health depending on how well one invested in healthy living habits since the age of 30 years.

the down hill spiral begins at the age of 30 yrs and the rest is history as we know it.

it is your future, it's your country, it's your health, so be there to share 2030 with the rest of your fellow kenyans and the rest of the world.

Anonymous said...

i forgot to add one thing, i hope those who will have exited the earth will be at peace with themselves, their past lives and the resting places in the cemeteries (around kenya or wherever) asigned to them after the fact (death).

one kenyan demanded that he be buried with his american passport on kenyan soil. why? only he knows after august 13, 2004.


Anonymous said...

Correctly your article helped me very much in my college assignment. Hats high to you dispatch, wish look progressive for more related articles promptly as its sole of my favourite topic to read.

Anonymous said...

You apparently have read too much and managed to confuse yourself. The success of Hong Kong has little to do with their land taxation policy LVT. LVT if implemented in Kenya would hurt and dispossess poor land owners. It is an extremely regressive tax analogous to the colonialists hut tax. Most poor Kenyans who are subsistence farmers would be forced by the tax on their land to sell the little land they own to wealthy individuals.

Anonymous said...

5:02 PM

In college and seeking help from "Of Ellusive Vision 2030 and Executive Robbery"?

I thought Makerere University had broad band and students can access as many political affairs periodicals, economic reviews and other magazines as much as they want.

I give you a C- for seeking tutorials from kmc. Your GPA may hurt in the end.

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