Ruto jitters: Is Raila really back? | Kenya news

Friday, November 10, 2006

Raila Dances With Strange Woman At US Hotel

For the first time I have been able to get a detailed report of one of Raila’s functions from his recent US trip where he talked about a wide range of issues before he was asked to open the dance with a lady from the audience at a very successful function.

I do not agree with Raila on everything but one of the things he said that had me both laughing and nodding my head was likening the political situation to a football game where President Kibaki is displaying a lot of activity in “injury time” so as to pretend that he has had an effective and good game. My sentiments exactly.

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Thursday, November 09, 2006

How Mathare Clashes Started And What The Killing Is All About

The news media in Kenya has very carefully avoided telling Kenyans the blunt truth and have instead thrived on giving only hints. The keep on referring to the term, "members of a certain community." Not really surprising when it is clear that the government will order your arrest or another Standard-like-newspaper raid on your newspaper the minute you mention the four letter word "Tribe" or the the four letter phrase "tribal clashes". As I write this police are looking for an MP who "crossed the line."




The shocking bitter truth, which Kenyans must now face, is that tribal clashes are back. Is it a coincidence that it has happened so close to the rapidly approaching general elections?

But what is even more worrying this time is that the clashes are happening in Nairobi. Somehow in 2001,mainly by the grace of the almighty, the clashes stayed out the capital city however this time they are simmering right at the heart of the city in the sun. Kibera (earlier this year) and Mathare most recently have already exploded. This is in addition to tribal clashes now spreading in the expansive Rift valley and reported so far in Kuresoi.

How did the Mathare fracas start?

According to Mathare residents. Slum dwellers have been quietly suffering under heavy Mungiki "taxation". It seems that when the successful crackdown to remove this radical group from bus stands countrywide met with some success, the violent blood hungry youths quietly moved to the two largest slums in East Africa, namely Kibera and Mathare and took over things.

It is said that bathing facilities at the Mathare slums are charged at Kshs 25 by Mungiki and toilet facilities at Kshs 35. The terror group even connects illegal electricity at Kshs 300 installation fee and Kshs 300 monthly. Monthly protection fees are Kshs 30 per house per month.

Mumgiki, is seems are even a government in themselves. At least they were powerful enough to have successfully "banned" women from wearing trousers anywhere within the Mathare slums.

It is believed that the recent government crackdown on hawkers contributed to triggering off the Mathare clashes because it greatly affected the cash flow in the slum area and those who have been quietly paying up started feeling the strain and resisted. That was how trouble started. Mungiki in revenge attacks then raided all the changaa dens they could find in the sprawling slums. Changaa dens are mainly dominated by members of the Dholuo community under the protection of the terror group called Taliban. It was felt by the terror group, that the main resistance to Mungiki taxes were being instigated by the Dholuo community in the slum area.

The Taliban is a group that was hurriedly put together to counter the Mungiki menace in the days when a similar bloody war had broken out in some matatu stands in the country. They now seem to have arisen again to counter Mungiki in the two slums in Nairobi.

But it seems that the main action is yet to commence. Remember Mungiki founder member Nduru Waruinge? He's now a changed man and has since left the group. However he recently announced his interest in a certain Nairobi parliamentary seat. Not his native Dagoretti constituency where he was born, but neighboring Kibera constituency where Raila Odinga is the current MP.

I wonder who the Mungiki in Kibera will support for MP and I also wonder who the Taliban will support. And I wonder if the campaign there will be done without the help of Pangas and Machetes.

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Can Mungiki Be Stopped?

Or maybe the right question to be asking is; is their enough political will to stop Mungiki?

There is no doubt that the Mungiki build-up which has now escalated into blood-letting with the death of 6 people so far and cores of injured must have been noted by the local intelligence service. It is highly unlikely that they were unaware of what was going on. In fact it is instructive that about a month ago, internal security minister announced that there was a new crackdown on Mungiki. So why was nothing more drastic done by the government to deal with the disaster that was waiting to happen?

Could it be that the government fears the political fall out from the group and it's largely house of Mumbi sympathizers?

Or could it be the ongoing crisis of leadership we have in the country where decisions are slow in being made and where decisiveness is completely lacking?

As it is let nobody fool themselves about the Mungiki. They are very well organized and trained. Not to mention that a Mungiki members take a blood oath very similar to the Mau mau oaths that were taken in the run up to independence. These people fear nothing, least of all some ill-prepared policemen that they bribed yesterday.
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Strange Comment By Mathare MP

Mathare MP and minister for Sports Maina Kamanda, was asked for comment over the escalating violence in his constituency in he ealy days of skirmishes. His remarks were strange, bordering on the bizarre. He said that he did not see any major problem in Mathare. Was the MP frightened of the Mungiki?

Two city MPs have been linked to hooligans and terror groups in the past, and many a political opponent has quickly and rather painfully found out that these are not people to mess with. The two city MPs are Mathare MP Maina Kamanda and Embakasi MP (now assistant minister) David Mwenje who is on record as having publicly expressed support for Mungiki in the Moi days.

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Why Are Newspaper Vendors Being Paid Not To Sell The Standard?

As the political temperatures continue to rise rapidly in Kenya, all sorts of strange things are beginning to happen all over the place.

A recent report from Kenya's oldest daily newspaper, the East African Standard indicates that there are groups of unknown people going round compensating vendors in cash not to display or sell the Standard newspaper.

The big question is who could be behind this mischievous development? This is a question that is not too difficult to answer.

It has been clear for sometime now that the Standard group, which includes the popular KTN (Kenya Television Network), has been a thorn in the flesh to the Kibaki regime. This culminated in the infamous Standard raid earlier this year where hooded persons believed to be policemen raided the newspaper offices and burnt newspapers, took away computers and technically shut down the KTN station for hours on end as the management scrambled to pick up the pieces and get the popular TV channel back on air.

If truth be told, insiders say that up to that point the Standard newspapers circulation sales were low and struggling. The raid had the inevitable effect of causing the newspapers' circulation to climb rapidly. Naturally people wanted to read for themselves what it was that was upsetting the government so much.

In fact if you pick any copy of the Standard newspaper even today or listen to a KTN news bulletin you will quickly note that the media group is generally more sharply critical of the government than its' main competitor, the Nation media group. Although government hawks have read some mischief in this, the explanation is really very simple.

It is widely believed that the Standard group's main shareholder (who has remained a deep mystery to this day) is actually former President Daniel arap Moi. In the last days of Kanu, the paper was forced by these circumstances to tone down its' criticism of the Moi government. Thankfully, enough lessons had been learnt from the Kenya Times debacle for the former president's financial advisors to strongly advice against turning the newspaper into another party mouthpiece, because that would have surely killed this lucrative cash cow.

When the Kibaki government took power, many journalists, frustrated from the previous in-house gagging went overboard to make up for lost time. This is basically the situation that reigns at the newspaper to this day.

Could it be that the same campaign unit that has flooded blogs (including this one) and discussion forums online, pushing the Kibaki agenda, has also hit the streets to curtail the distribution of the critical Standard newspaper? It seems that there is really no other direction in which to point an accusing finger.

If this is true then the people behind the continued purge on the Standard must be sure that they have things under control at the Nation media group. Incidentally it was the Nation that broke the Anglo Leasing scandal story but has since become increasingly docile to the point of printing blatant lies under pressure about the Presidents' second wife and other family. More so now that there is a new CEO who is yet to develop the thick skin required to fend off political powers that be.

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The Kibaki economy is so good that…

In this regular series we will focus on various aspects of the Kenyan economy to highlight how ridiculous the current campaign on a platform of an improved economy is to the vast majority of Kenyans.

The Kenyan economy, due to deliberate policies of the current government, has improved so much so that the matatu fare between the city center and the Kawangware slums is now Kshs 100/- one way!!

This is how matatu operators have pulled it off. Matatus plighting this route are breaking the journey into two. They only go up to Yaya center where they charge Kshs 50. Commuters then have to board another vehicle (quite often the same one) and pay another kshs 50 to Kawangware.

Many people who live in Kawangware are jobless and those who have anything resembling a job hardly earn Kshs 150 (approx $2) a day. You do the arithmetic.

(Look out for more snippets highlighting how the Kenyan economy has "grown").

Tuesday, November 07, 2006

Steadmann Presidential Poll Figures Change Suddenly After Kumekucha Analysis

After I pointed out in a recent post why the Steadmann figures on Presidential popularity cannot be accurate, the latest figures quietly released and drowned in the news by so many other things, show a major adjustment.

One of the things that has happened is that Raila Odinga has suddenly overtaken Kalonzo Musyoka in popularity (LOL – wonders never cease.) You will remember that I pointed out in my post that the numbers on the ground contradicted the findings of the polls. By doing some simple tribal arithmetic, you will quickly realize that there is no way Kalonzo can beat Raila in any national poll. (read post for yourself).

My question is, what has happened recently (which we all misses in the news) that has suddenly caused Raila to overtake Kalonzo? What did Kalonzo do that caused his popularity to plummet so dramatically?

My worst fears seem to have been confirmed. If it is indeed true that somebody was cooking these figures, then they would have been much better off just leaving them as they were. By changing them so dramatically, they have told us a lot that we were not sure about.

By the way, somebody also left the following anonymous comment on my Steadmann analysis… at about the same time the new poll figures were made public. Do you believe in coincidences?

The latest poll:
Kibaki 43%
Raila 17%
Kalonzo 17%
Uhuru 9%
Musalia 4%
Ruto 1%
Balala 1%

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Colgate Shuts Down Kenyan Factory 50 Kenyans Are Now Jobless

Last week in the booming Kenyan economy, things were so good that multinational, Colgate Palmolive could not take it any more, the multinational shut down it's factory in Kenya, which has been in operation since the 1960s.

50 more people (not counting hundreds of casuals) without a job is not a big number but these small numbers tend to add up rather quickly.
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Want To Succeed In Kenya Today? Take Up Golf

My sincere apologies to some of my most faithful readers who love the game of golf with all their hearts. But whispers reaching his blogger indicate that the Nation CEO landed his new plum job on the golf course.

Yes, the guy plays golf like every ruling class-VIP-upward mobile-serious executive-people who matter in Kenya today-person. Nothing wrong with Golf and nothing wrong with golf course appointments. It happens everywhere in the world.

The only problem is that if you are a politician supposed to empathize with the plight of the ordinary Kenyan then the golf course is definitely not one of the places to develop empathy. It is OK for CEO Linus Gitahi thought, he is not in politics.

I am very grateful for one thing though. The fact that Moi does not play and has never played Golf in his life. Can you imagine what would have happened to Kenya during his long 24 year rule? If the horrors we saw were from a non-golf player, then you get my drift.

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Insecurity: If The Government Is Not To Blame, Who Is To Blame?

Because this blog is infested with NSIS agents and Kibaki campaign strategists, as is every high traffic site that deals with Kenyan politics, you will often see very convincing reasoning that is easy to take in, in the comments sections.

Reading the comments you will be told that without Kibaki, the Kenyan economy would still be where it was under Moi. (But they will omit to tell you that the very same Moi is a major political strategist in this government and interestingly since he came in, the Kibaki government has enjoyed the most extended and solid stability it has ever had since coming into power.) You will also be told that the Kibaki government's brilliant policies and strategy is the reason why the economy has improved so much.

If you are reading this and trying to find the truth, sober up for a minute and examine the facts on the ground.

For starters the system of accounting used to arrive at the growth rate was conveniently changed in 2003 to the World Bank's (1993 SNA – System of National Accounting). The major thing this new system does is shift the accounting system from products costs to the income element. In simple English it will always make things look better than they really are by focusing on income and ignoring costs.

Sample this, in 2004 using the new system the economy grew by 4.3 per cent. But using the old system it actually grew by only 2.4 per cent.

But I may look like I am splitting hairs here, so let me quickly move on to my main point.

This attitude of government which is nothing short of shortchanging and conning the ordinary wananchi has extended to virtually everything this government does and says. Especially as we head towards the elections. Another extremely annoying claim this improved-booming-economy government keeps on making is that it has created hundreds of thousands of jobs. Figures I heard recently indicated that well over 400,000 jobs have been created annually since 2003. But my big question is how many jobs have been lost? If a million jobs are lost in a year and then 400,000 new ones created, then my arithmetic tells me that the truth is that 600,000 jobs have been lost. But alas, that is not the system of analysis currently being used, we are talking about new jobs created here (are we not?), let the rest go to hell.

But it does not really matter whether you want to believe me or not. And it does not matter what the government keeps on saying and what propaganda they keep on forcing down our throats, already the evidence of what I have been saying here in this blog for a long time is beginning to materialize clearly for everybody to see.

5 more were killed in the Mathare clashes a few hours ago in what is believed to have been a Mungiki revenge attack. There is so much insecurity in the country that thugs dressed as robbers walked into city hall and got into the safes with wielding equipment and stole a number of things. We are seeing images that are a stark reminder of 2001 as Kenyans are forced into refugees status in their own country and some are showing up in hospitals with arrows embedded in their bodies.

As I write this NTV reports that there was a bank robbery in the Momabasa main Postbank where thugs made off with shs 7 million after turning up at the bank at 6:00 am in the morning and posing as security guards.

The government can keep on feeding the public with all the propaganda and plain lies designed to help them win re-election for the President, but just watch and see what will happen for yourself. It will soon be very difficult to even find a place secure enough to hold those propaganda spewing press conferences.

Since this government is not in a position to see the truth, let the next government take careful note of the following; any economic policy that does not have job creation as it's number one priority and (not an afterthought after you have dealt with Raila and ODM) is doomed. As long as we have so many Kenyans jobless and idle and with no hope for tomorrow, mainly because the system favors the corrupt and the big old political names, then there can be no security in Kenya.

P.S. Some people also believe that as we approach the elections, some politicians sponsor criminal activities top raise funds for their campaigns.

What do you think about this whole issue?

Friday, November 03, 2006

Kenya's Time Bomb Is Still Ticking Away, But Who Cares

I came across this blog today that has an excellent piece about the ongoing Chlomodeys case (the white guy accused of shooting dead a black Kenyan and defended by a black Kenyan lawyer with an English accent).

As I read the post, I was reminded of Kenya's time bomb which I keep on talking about here. The ignored long suffering masses. They work hardest but then we go and demolish kiosks and kick hawkers off the streets without giving them an alternative.

This behaviour mainly pushed for by our ruling political class is colonial hangover we can't seem to shake off. Just read the piece for yourself.

The article that brought tears to my eyes.

I rarely recommend other blogs here but I'm going to be a regular visitor to this one...

Kiboro Leaves CEO Seat At Nation Media Group

Baton passed on to 44 year old with long career in the pharmaceutical industry

If former Nation media group CEO Wilfred Kiboro sticks to what he said on Wednesday, this morning, he will be driving his grandson to school and enjoying every minute of it.

On Wednesday Mr Kiboro symbolically handed over the keys to his office to new CEO Linus Gitahi (44) and walked out into the Nairobi sunshine to start his retirement. For many CEOs letting go is sometimes very difficult and indeed past executives of Nation have found it difficult to stay away. Take the example of former group managing editor the late George Mbuguss who when on leave would wonder around aimlessly in town and then find himself in the office. "Just taking a peek to see what tomorrows splash is," he would say, but would end up spending his entire leave in the office.

But for Kiboro, there is no doubt that he will be happy in a way that he is handing over the pressures of the office to somebody else. Mr Kiboro is 62 and at that age the sort of pressure the CEO of the Nation media group has to bear cannot be a healthy thing. More so with the elections around the corner and political wannabes thinking that they deserve extra mileage and special treatment at East African's most widely read daily. And worse still, thinking that they can have it with a little prodding. Not to mention the bullying calls from government heavyweights who read a second meaning that undermines the government in every other sentence.

Mr Gitahi should have no illusions about his leadership and managerial abilities not being tested to the full. Yesterday Kiboro handed over a healthy, prosperous company to him, but Gitahi will have his work cut out to maintain profits. To start with he has to defy the laws of gravity, which say that everything that goes up must come down. In business after years of healthy growth, the dip in profits will always come and Kiboro's exit seems to have been timed precisely with eyes fixed on the growth graph. You can't blame him, who doesn't want to leave with a bang?

The situation on the ground in the media world is also very fluid currently. To start with the exodus from print media to online, which is in full cry in the West has started to slowly but surely show signs of taking hold in this market. The worst hit area is in circulation where it is becoming harder by the day to sustain circulation figures and profits. Circulation has always been the Nation's traditional strength and trusted cash cow, pouring in millions daily in hard cash brought in by newspaper vendors countrywide. The main culprits are the Nation's own online edition which is picking up readers like there was no tomorrow. The management is yet to find a way to translate those rising numbers to equally rising revenues. There have been attempts of course but as of the moment they remain just that, unsuccessful attempts.

It is obvious that print is on its' way out and that the new major battleground for media companies in Kenya is Television. Here the Nation does not enjoy the same supremacy it is used to in print. There is stiff competition and most people feel that competitor KTN, is currently ahead in this game.

In radio Kiss FM and the KBC national service rule, so much so that the Nation radio division has been re-launched several times. It is now called Easy FM.

All in all, Mr Gitahi takes over a ship that is sailing on course but headed straight to some dangerous icebergs capable of tearing the ship apart or at least doing some damage. How he steers this shs 14.8 billion ship with his inexperienced but youthful hand will be the guiding factor and determinant of what will happen over the next 5 years or so, which are bound to be very eventful in the media world.

One interesting aside here, is the policy the Nation media group has always maintained of bringing in an outsider as CEO rather than grooming somebody from within the organization. I wish Gitahi all the best, but incase there are slip-ups, an insider could be brought in to fill the gap. Keep your eyes on the guy who has risen at Nation faster than a NASA space rocket, Dennis Aluanga. (see my earlier analysis).

This policy of bringing in outsiders no doubt has it's merits especially in an organization the size of the Nation media group. However it usually leaves a lot of resentment around. The scenario has many similarities, and is akin to that of Moi bringing in Uhuru Kenyatta as his preferred candidate. Few will remember that Kiboro himself was brought in as an outsider to head the company in 1992. The "plastic" smiles told it all at the handing over ceremony on Wednesday as the young 44 year old from "nowhere" came in to occupy the seat that some consider to be the most powerful in Kenya, outside politics.

Read my analysis of the Kiboro reign.

N.B. It is interesting that the Nation group initially reported that the new CEO is 39. In the latest report, he has been reported as being 44. No explanation has been given as to how Mr Gitahi aged 5 years in less months than those years.

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Tuesday, October 31, 2006

The Choices For The Kenyan Economy In This Debate: More Of The Same Or A Brave New Direction

Why The Kumbafu Hawkers Are Our Best Hope For A Super New Economy

The recent announcement by Safaricom of record unprecedented profits, never before achieved in East and Central Africa has hardly been taken with the impact it deserves.

The leading mobile phone company in the region reported a staggering profit of a whooping Kshs 12.2 billion before taxes. Those earnings for their financial year ending March 2006 were equal to about 63% of the entire profits of the banking industry. In other words the profits made by the big four, Barclays, Standard Chartered, KCB and Citibank put together. Profits rose by a huge 44.6 per cent from 8.4 billion the previous financial year.

This unprecedented achievement by Safaricom proves one thing beyond any doubt. And that is the fact the economy is crying out for a change in direction and a change in policy. For starters the main diving force behind the extra-ordinary Safaricom profits was… you guessed it, the Kumbafu hawkers and small road-side kiosks and small tiny traders. Those are the people who sold the bamba 50 shs airtime scratch card like crazy. The sell phone company openly admits, that it was the bamba 50, more than any other single factor that caused the exceptional financial performance.

This is clear evidence that the country has a large force of persons who do not need to be persuaded to be a working nation. They just need the opportunities.

But Safaricom is not the only company that has been smart enough to see the potential in the mass market. You will have heard of a small bank called Equity Bank (opps it is no longer small, thanks to the Kumbafu riff raff).

When all mainstream banks were behaving the way the government is behaving now and basically saying that they had no time for the kumbafu riff raff. Equity concentrated on serving this ignored sector of the market. The big banks laughed at their stupidity and concentrated on putting all their money in government paper (treasury bills). You know the story, today those same guys who were laughing then are desperately trying to play catch up with Equity.

Safaricom or Equity would have chosen to sing the song I am sick of hearing Kenyans sing and said that growth in profits takes time. And they would have been nowhere today. What we need are government policies that are designed to bring in ordinary Kenyans into the action.

Sadly many readers of this blog do not see any problem in having a growing economy side by side with growing unemployment. I understand these kind of people very well. Empathy is not one of their strengths. They have either been brought up in a life of privilege and comfort and have probably never used a pit latrine in their lifetime. So they would hardly understand that almost half of the Kenyans living in Nairobi do not even have the luxury of a pit latrine. They use paper bags and then dump them where the rest of the garbage is. This blogger uses pit latrines regularly to keep his feet firmly on the ground.

How would such people appreciate the fact that no economic policy that does not have the creation of jobs right at the top of the list will work in today's Kenya? How will they see the grave danger in security and peace when we continue to give only lip service but basically ignore the massive unemployment situation in the country? How will they realize that economic policies that were used in the 60s and 70s when Kenya was a young growing nation will not fly today, at least not for long? How will they realize that the vast majority of Kenyans are crying out for real change and are so desperate that if change does not come soon, something will have to give?

What is urgently required is for us to restore opportunity to the rapidly disappearing middle class and low-income earners in Kenya.

I appreciate the fact that my posts are getting read by people who sound like they are seasoned economists who understand the issues very well. But many of them seem to believe that it is unrealistic and downright untenable for low-income earners to be brought into full participation in the economy so quickly. To them anybody who says they can make an attempt to bridge the widening gap between the rich and poor in Kenya is nothing short of a hopeless dreamer.

Here is what the next government should do as a matter of urgency;

i) Put employment creation at the top of the list of priorities of government policy.
ii) Apportion a certain percentage of all government procurement to small businesses and micro-enterprises. If it was upto me, I would say at least 50% for starters.
iii) Guarantee a hefty amount in small business bank loans with leading banks so that small traders and entrepreneurs can access bank loans to establish and expand small business.
iv) Create small business "incubators" countrywide and identify talented hawkers and small traders who can be assisted to quickly expand their businesses into the next level, thus creating employment.
v) Support the establishment of websites to promote and sell juakali products worldwide.

These are just a few of the many things which can be done, including passing the necessary legislation, which can help boost small business.

It is not a bad idea to encourage many small traders to come together to form things like co-operatives of sorts and lobby groups to fight for better opportunities (as has been suggested), but this will not have a serious impact if these small traders are not coming together from a position of strength.

P.S. We can learn yet another important lesson in the Kencell/Safaricom saga. Early on Kencell (which has now been bought off by Celtel as a result of business policies that did not work out too well) made a deliberate decision to go upmarket where all the money was (exactly the thinking of the current government). Safaricom decided the money was with the Kumbafu riff raff. The results speak for themselves.

P.S. 2: Bill Clinton made the same bet in 1993, the crux of his economic policy was to reduce the government deficit while restoring opportunity for the middle class. The result was unprecedented continuous growth of the America economy for 10 straight years.

To do what must be done, we need a change of government. ODM Kenya can't do it either (it's the same guys). I don't know who can do it yet. But what I know is that the time for change is now, and that person (or group of people) will come forward before election day. Anybody out there whom this blog can support to carry forward this economic policy that is the only chance for Kenya?

I rest my case on the issue of the Kenyan economy.

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Monday, October 30, 2006

Why Clever Positioning Means That Kibaki Has Already Won Re-election… Barring Extraordinary Circumstances

Clever Positioning Of Their Man By The Kibaki Think Tank Led By An International PR Company Means That Barring Extraordinary Circumstances Kibaki Has Already Won Re-election

…But It's Going To Be A Very Violent One

Here's Why…

To Understand What Has Been Done, You Must Understand What "Positioning" Is.

Two gentlemen by the name of Al Ries and Jack Trout wrote what in my view is the most important marketing book ever written in the 60s called Positioning. This book changed marketing forever and every Kenyan needs to understand the basic principle behind positioning as presented in this book before it is too late. This is because the Kibaki campaign machine is about to steal an election based on this simple principle of marketing and human behaviour.

I want to remind you of something… Remember all the noise we all made when it was reported that the government was hiring the most expensive public relations outfit in the world to improve its' image? Remember how we all said that it wouldn't work, and that they didn't know enough about Kenyan politics. And then remember how we all just dismissed them and forgot about them?

Well, these guys have been working overtime and they've just pulled off something that is going to guarantee a Kibaki win in 2007, unless we all wake up to what is happening before it is too late.

Bear with me for a minute while I explain what positioning is.

The book by Mr Ries (pronounced Rees) and Mr Trout broke new ground because it changed the way we look at marketing. Until then people always knew that marketing wars were fought out there in the field in the marketplace. Trout and Ries told us that they are fought in the minds of people and suddenly it dawned on everybody how true that was.

Mention the product "soft drink" and the first name that comes to mind is Coca-cola, mention "toothpaste" and the first name that comes to mind is Colgate. Those two are positioned at the top of the minds of consumers. So to sell a competing soft drink or a toothpaste successfully, you must first be able to "position" your new product properly and not in the field or marketplace but in the minds of consumers.

So this guys comes up with Uncola or a non-Cola and positioned their soft drink directly opposite Coca-Cola and their marketing has proved to be very successful. But probably the most successful positioning was that of Avis rent-a-car in the US. Everybody knew that Hertz was the number one rent a car outfit so to positioning themselves as number one was not believable. (This is one of the most important aspects of positioning. And that is, it must be believable to occupy a position in the mind). So Avis deliberately positioned themselves as No 2 and they said in their adverts that they were number two, but there was a kicker to that statement. What does a number two company do that a number one company doesn't do? They try harder of course. So that implies that customers will always get a better service and a better deal from a company that is trying harder because it is number two than from a usually arrogant market leader who is already number one. That clever position caused an unprecedented rise in sales.

So positioning is very important to marketing and it is even more important in politics. George W. Bush did not win in 2004 because he was popular. He won because his clever handlers positioned John Kerry as the candidate Osama Bin Laden preferred to win the presidency because he was not as tough as Bush was. That was enough. When Osama himself released a tape on cue shortly before election day, I knew Bush had won. Images of 9/11 were still too fresh on the minds of Americans and nobody wanted Osama taking over America, which is exactly what was being implied in the George W. Bush TV ads.

So what is Kibaki's expensive PR consultancy and his handlers doing?

They have simply positioned Raila as the only chief opponent of the Kibaki government, with his ODM Kenya party. Have you noticed that the minute you criticize Narc Kenya or president Kibaki, you are labeled a Raila sympathizer. This positioning has been done so well that even if Kalonzo Musyoka were to win the ODM nomination, it would be impossible for him to shake off the Raila label. If he loses and defects, he really won't matter because the race "in the minds" of voters is between Kibaki and Raila, yes and also between Kikuyu and Luo. The Kikuyu with their sympathizers and the Luos with their sympathizers. All those politicians who crowded into ODM are finished as far as the Presidential race is concerned. Yes, even Uhuru Kenyatta has lost a golden chance to position himself as an alternative candidate under a unified Kanu. So now, whoever wins the ODM nomination, it really doesn't matter because the presidency will be a fight between Raila and Kibaki in people's minds.

The effect has been dramatic. Most Kenyans no longer look at issues. The whole thing has already degenerated into a tribal thing. It is now simply what that Jaluo is saying or what lies that Okuyo is telling this time. If you doubt it, just try and take a middle position in any debate, or even those online discussion forums. You will find that it is impossible.

Notice how this is in sharp contrast to the original Narc (National Rainbow Coalition) in 2002 whose strategy and famous summit was under the full control of Raila, but nobody saw those elections as Moi versus Raila. We all saw it as Moi versus a united opposition. Or Moi versus the rest of Kenya.

I keep on warning about this, and I will never get tired of doing it, because I see real danger here. Kibaki was warned about the referendum in November last year, he ignored the warnings. To date, almost a year later, the wounds of that November Referendum are yet to heal. Let the President take the warnings seriously this time round, because the result could be catastrophic and the bucks stops on his desk.

Kenyans should pray very hard that we do not go into the general elections in this kind of set up. Tensions will be way too high and there can only be one result, chaos. We are not yet ready for a Luo versus Kikuyu presidential race, which is exactly what the 2007 polls are shaping up to be.

Quick Question
Why would anybody want John Michuki dead? And if they were serious why wait until he has left the house to fire shots inside? Why not stake him out or ambush him? Why Is Michuki himself so sure that it was an attempt on his life, before any investigations have even been done? Citizen TV says that the slain chief met with people who at first identified themselves as policemen but shot the chief dead when he asked for further identification to prove that they were policmen. Oh... and the chief bumped into them totally by accident. Then at around the same time things steal Kalonzo Musyoka's secret game plan for election 2007. Oh please... what game plan is there in ODM Kenya that is different from everything that we have seen in the past and is valuable enough to be stolen?

It is the rapidly approaching general elections, stupid.


Tomorrow: The Exciting Alternative To Kibakinomics And What We Can Learn About It From Safaricom and Bill Clinton. Don't Miss It

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You receive a press release and then write a post in your own words following the instructions carefully. Already there are bloggers who are making some useful amount of money every week doing this. All you need to get started is a blog.

Saturday, October 28, 2006

Kibaki And The Economy: The Truth Please?

I appreciate all you wonderful folks out there who take the time to leave comments at this blog. Thank you very much. Even critical comments are very useful because they help me to stay on my toes and they improve the quality of information here because every time I sit down t write something I have to be sure of what I am saying.

I did predict recently that the Kibaki campaign team would go into overdrive over the improved economy and that is now already happening (by the way, I wonder how this campaign is being financed? Where is the money coming from? But that is a topic for another day.)

Today my question is very simple. What particular Kibaki policies have been responsible for improving the economy? Better tax collection, I hear you say. Ensuring that farmers are paid better for their produce, I hear somebody else say. My next question is, are this policy implementation moves or just administrative house-cleaning?

I hear somebody else say that the improved economy did not happen during the Moi era but has happened during the Kibaki one. I disagree. Former President Moi has in fact done much more single handedly to contribute to the current strong Kenyan economy than what Kibaki has done. Moi's contribution was the single move of handing over power peacefully and ensuring a smooth transition where the constitution leaves too much room and loopholes for abuse. And even when he and his much hyped "project" had lost the election badly. This is something Kibaki is yet to achieve and going by what is currently happening I doubt whether Kibaki would do the same if he happened to lose in 2007. I wait to be proved wrong. Regular readers of this blog know that I am rarely wrong.

What corrupt Moi did in December 2002, after running down the economy for 24 years changed the investment climate in Kenya virtually overnight. All of a sudden investors started seeing Kenya in a totally different light. The massive foreign exchange inflows that resulted and continue to date is what has changed everything. The results would have been more or less the same and maybe even better had somebody else from the opposition been elected president. I don't want to drop names as all hell will break lose, especially If I dare mention some names. So let me just say that things would have been a lot better if for example I had stood for and won the presidency. My biggest asset? I would not be thinking in the 70s.

The one attempt at improving the economy that I remember was the pitiful attempt to reduce interest rates, the idea being to promote borrowing amongst ordinary Kenyans. That one worked well in the 70s, it will never work today for obvious reasons. Interest rates crept right back to almost where they were. Which is just as well because that way the country is able to attract the tons of foreign currency that are mainly responsible for the much hyped 5.8% growth.

I am not the only one with this verdict on the Kibaki error. None other than former chairman of the Constitution of Kenya Review Commission Prof Yash Pal Ghai in a statement this week has called the Kibaki administration ineffective. That is putting it mildly.

Ladies and Gentlemen we have in our hands an administration that has blundered its way round things for 4 years, during which some of its' members have acquired vast wealth and during which Anglo Leasing happened (only to be blamed on the Moi administration, which means John Githongo should have his head examined for imagining a scandal that never actually happened). The most effective thing about this administration has been its' current well iled and well financed propaganda campaign that has almost convinced even me that the Kibaki administration has been responsible for the improved economy.

The choice for Kenyan voters in this election will be simple. It will be between going for real change or re-electing the wazees for another 5 years of blundering ineffective government (remember they had to call Moi in to help) and claiming credit for the hard work and sacrifice of gallant Kenyans.

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New Constitution For Kenya: Why This Is Our Best Chance Yet

This is the best time for Kenyans to get the new constitution that they so badly need.

This is the seduction stage where all politicians are suddenly all ears to what the electorate is saying, with elections so close. The moment we have cast our votes, the winners will promptly go back to their usual self-seeking ways and we will just see a repeat of what we saw with this Kibaki administration where they hijacked the process and emerged with an unworkable and "strange" document which Kenyans quite rightly rejected in the historic November referendum.

Kenyans should push with all they have for the new constitution to be enacted shortly before the elections as has been proposed.

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Friday, October 27, 2006

Kibaki's Vision For The Growing Kenyan Economy: Small Traders Not Included

Last night Finance Minister Amos Kimunya was interviewed on the NTV On The Spot show hosted by July Gichuru. The usual sms survey during the show must have brought wide smiles to President Kibaki's handlers because it revealed that a whooping 79% of those who were watching the show believe that the economy has grown by 5.8% and have actually felt the impact.

I do not want to pour cold water on this survey for no reason but the truth is it is a reflection of the kind of audience a show discussing the Kenyan economy is bound to attract. Company CEOs and generally the top 1% (to borrow from a fascinating new book about the widening gap between the rich and the poor worldwide and the dangers this poses.). These are the sort of understandably selfish Kenyans who speak the language of the Kibaki administration. Many play golf regularly at the Muthaiga Golf club (not far from starving Kenyans living in the most appalling conditions which few can imagine, in the nearby sprawling Mathare slums). These people (a significant percentage of them are not even Kenyans) are fully in support of the idea of getting the riff-ruff (hawkers) off the streets and as far as possible from the city.

What came out of the Amos Kimunya TV interview is the thinking at the heart of the Kibaki administration. The minister kept on repeating the same message over and over again during the entire duration of the interview.

The message was simply this;

The government wants to see many small independent traders merging to form bigger entities, which will have a bigger impact in the economy than many small micro enterprises. In the minister's book, "big" means more efficiency and more profits.

At first sight this may appear to be very sound and solid thinking. Except for one problem. An aggressive promotion of such a policy over the next few years will result in only one thing. It will sink the country into chaos and anarchy.

This is the thinking of the 70s. Modern management and economies are thriving on micro enterprises. It has been proved over and over again that the fastest and surest way of creating employment is to promote small business not encourage mergers that will form big enterprises that will use technology to limit their staff numbers.

The Kimunya interview proved conclusively that this government is only paying lip service to the creation of jobs.

We are fooling ourselves big time if we think that we can continue to ignore the growing gap between the poor and the rich in Kenya. We are being blind if we think that we can push job creation down the list of priorities and expect crime not to escalate beyond the current levels.

We must also bear in mind that the reason why most Kenyans live below the poverty line today is because of massive corruption and the implementation of policies that have always been designed to maintain the status quo. To keep on heading up the same beaten track will only lead to disaster.

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Why Both Kenyans And Tanzanians Are Victims Of Propaganda

Anybody who wants to understand just how deep a hole the nation of Tanzania is in, just needs to read the comments by Tanzanians in all articles in this blog that touch on the nation. Especially the most recent ones.

Tanzania is o the verge of a total blackout after months of a crippling 12 hour power rationing regime. Crime is set to rise to unprecedented levels after the government ordered the demolition of tens of thousands of structures near roads and even in poor estates that has wiped out sources of livelihood for hundreds of thousands of locals. The Tanzanian shilling is in a free-fall, and I could go on and on.

But reading the comments, it is clear that Tanzanians believe that their economy is still growing faster than that of Kenya and that hakuna tatizo katika jamuhuri ya muungano wa Tanzania (there's no problem in Tanzania).

That is exactly what propaganda does – it blinds or dramatically limits a person's vision so that they are able to see everything only from one point of view.

But Kenyans too are victims of years of propaganda. And his is in the issues of relating to our dear brothers from the DhoLuo community. If you are reading this blog for the first time, let me make it very clear that I have no connection whatsoever with the Luo community, except that one of my closest friends (now deceased) was a Luo whose death can be directly linked to this propaganda that I am talking about here.

Reading many of the ridiculous Tanzanian comments should be an effective mirror that should help us see ourselves better and begin to understand the reasons behind some of our short-sighted views when it comes to issues of tribalism in Kenya.

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Alnoor Kassam And The TradeBank Story: Proof That Many Prosperous Asians In Kenya Usually Run An Illegal Business On The Side...

...It Is The Only Way To Make Super Profits

Innovative Entrepreneur Who Crossed Swords With "Total Man" Nicholas Biwott Spills His Guts And Tells All...

To Heal His Conscience, he Says

The Standard newspaper has this week been carrying an exclusive series where their Washington correspondent interviewed Alnoor Kassam, now doing very well as an entrepreneur in Calgary, Canada.

Many younger generation Kenyans have no idea who Alnoor Kassam is. Yet behind this name is one of the most amazing Kenyan business stories of innovation, which I am about to tell.

Alnoor Kassam, as I remember him, was a short bespectacled man with a funny walk (almost a limp). But he built a Kshs 100 billion (annual turnover) business from almost nothing, in a very short space of time. That was the Diners Club Turnover shortly before his empire came crashing down.

Kassam bought the local Diners Club franchise when it was struggling. Those running it then saw it as a headache business where collections were quite often difficult. Kassam saw it as a legal way to "print money" because the 5% per month interest rate on Diners Club credit card balances actually meant a 60% per annum rate.

Kassam's first business on graduating as a Chartered accountant and returning to Kenya in 1979 had been a book match company called Empire Match Company. Book matches are those small matches that open like a book and often have advertisements printed on their front. With the sort of margins he was making from this small business, Kassam must have been very excited about the prospects in Diners.

However like a vast majority of Asian business persons in Kenya then and now, the match company was his legitimate business or cover, but he had another much more lucrative illegal business on the side that was his main cash cow. Kassam was an illegal foreign exchange dealer. In those days, it was illegal to hold or trade in foreign currency. Kassam found ways, using his foreign contacts of obtaining foreign currency, which he sold at a premium in the forex-starved local market.

On purchasing the Kenyan Diners franchise and with a little help from an American program that uses retired professionals and entrepreneurs to give technical advice to businesses in third world countries, Alnoor Kassam was able to build the local Diners Club franchise into one of the fastest growing and most innovative organizations ever seen in these shores.

Employees were motivated with huge cash rewards for performance and ideas that would improve customer service and profits. The workplace at Diners became one of the most exciting places anybody in Kenya would be privileged enough to work in. Some of the innovations that resulted included 24 hour round-the-clock banking services and drive-in banking amongst a host of other very innovative ideas that had never before been seen in these shores. A major subsidiary, Diners Finance quickly followed.

But the problem subsidiary that brought everything crashing down was TradeBank.

Kassam bought the bank from an Israeli national by the name of Gad Zeevi and was informed that TradeBank had loaned HZ construction Shs 400 million. That money actually went directly into the pockets of the then all-powerful cabinet minister and Moi confidante Nicholas Kipyator Biwott. Kassam came up with all sorts of schemes to recover this colossal amount owed to TradeBank, including acquiring the building that almost cost him his life, Yaya Centre as an asset against the cash owed, but the loan was never recovered. In fact it caused the collapse of TradeBank and Alnoor's business empire in Kenya.

The other big mistake Kassam made was to get mixed up with politicians. Kassam's life was threatened many times and this was how he finally had to flee the country for dear life through Tanzania after some security officers turned up at his office one day to arrest him.

In his account of how he escaped, published in the Standard this week, Kassam says he invited the arresting officers for lunch while he made good his escape through a back entrance they probably did not know about. Or did he just bribe them, as is widely believed?

Kassam claims that he has told all in the Standard, but there are a number of mysteries that linger like this one. How do you get arresting officers to allow you out of their sight? By just inviting them to lunch? Or did he mean he invited them to "chai?"

Read the fascinating Standard newspaper articles on Alnoor Kassam;

Alnoor Kassam Confessions Part I

Alnoor Kassam Confessions Part 2

Alnoor Kassam Confessions Part 3

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Why Kenyans Have No Time For Hawkers: We Admire Thieves And Big Time Crooks Instead

It is interesting that this has come up at a time when the government seems to have declared war on hawkers ad small traders in general.

Alnoor Kassam admits in the Standard articles that he cut his business teeth selling his book matches door to door and quite often he would set up temporary street stalls to sell the matches to passersby. That is hawking.

One of he reasons why the government and many Kenyans have no time for hawkers is because of the culture we have promoted that is really a bad hangover from the colonial era. Kenyans have no respect for the small trader or hawker who starts small and grows their business to success.

In the minds of Kenyans (and especially the current government) these are petty (nuisance) traders who take ages to grow their business. Or to quote my favourite regular lady commentator and supporter of this blog, who recently told a story about how she had somebody referring to the whole hawker issue; hawkers are riff raff that need to be cleared from the streets. These are actually stupid people who are not serious business people.

I will tell you the kind of people Kenyans respect. They respect thieves of public funds and corrupt entrepreneurs who give a bribe and make their money overnight. These business people, in the minds of many Kenyans will dress smartly and have flashy offices and cars.

Sorry guys. Those are not business people. They are not entrepreneurs. They are thieves, thugs and the real riff raff that Kenya does not need. Period.

But it was clear from the President's speech last night on KBC TV that "his government" (as he is always so fond of referring to it) prefers big business. Small traders should operate as far away as possible from the city and pieces of land have in fact been purchased for them in the furthest outskirts possible. The whole idea is so that the "riff raff" can do their business as far away from the city center as possible.

The situation has been made worse by the fact that in Kenya we allow senior government officials to do business. They use their positions to make quick money at the expense of the public and then call themselves businesspersons. These are the businesses that want all riff raff taken as far away as possible from the city.

I am not saying that hawkers should be given a free hand in the CBD (Central Business District). What I am saying is that we need to be a little more creative than the colonial government (those are the bylaws being used here) and what looks like a nuisance can be "the engine" to create jobs and turn Kenya into a major African Tiger. What's wrong with hawkers being licensed to trade in small side streets in downtown Nairobi? Or on major streets on Saturday afternoon and Sunday morning when other shops are closed?

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Wednesday, October 25, 2006

Kikwete Blames God For Power Crisis

Breaking News From Tanzania


Is Tanzania On The Verge Of Shutting Down?

President Jakaya Kikwete was in the news this morning according to one of my sources in Tanzania, apologising for the power crisis to ordinary Tanzanians for the first time. But the real news was what he said after the apology.

The President says that the crisis is the Almighty himself, testing his government and it is not man made in any way.

This is NOT TRUE.

But I will get to that in a minute.

This latest development clearly illustrates the gravity of the crisis in Tanzania. The reason that the president is apologising is because there is worse to follow, possibly a total blackout in some major commecial centres in the country (as experts have been continously warning for sometime now). This is unprecedented because even in the darkest days of Nyerere's Ujamaa, the country did not have this sort of electricity shut down.

It is clear that President Kikwete's government is facing the sort of crisis that will definitely spill over and affect Kenya in one way or another in the coming weeks. The widely quoted (old figures) about Tanzania's good economic performance are about to start sticking out like a sore thumb.

Any of my Tanzanian brothers reading this who thinks this blogger is happy at being proved right (after blowing the whistle months ago) is badly mistaken. My closest friends live in Tanzania and most of the are Tanzanians. I love this beautiful country deeply (othewise why bother commenting?). What has happened is tragic and may have the effect of even slowing down Kenya's rapidly risisng economic growth. Foreign investors kenya will try to woe over the next few years will warily look at what is about to happen in Tanzania and get cold feet about investing in neighboring Kenya.

Anyway, here is to story of how corruption in high places played a major role in bring about the current Tanzanian crisis;

Impeccable sources in Tanzania close to the ministry of energy told this blogger the following fascinating story.

Immediate former President Benjamin Mkapa had forseen the coming energy crisis and had ordered two huge generators to help alleviate the coming crsis. However when Kikwete's new government came into power, the then Minister for Energy, Dr Ibrahim Msabaha, cancelled the order pointing out that there was corruption involved which the incoming government of President Jakaya Kikwete wanted to clean up.
My source said that the minister then went ahead and called in his Asian friends (from the kariakoo commercial area in dar-es-esalaam) and gave them the tender to supply the generators pronto. Apparently delivery for such big generators takes a little while - a couple of months at the very least (which his Asian friends found out later. Long after the Mkapa contract had been cancelled and the ordered generators sold to another client in South Africa. What this meant was that even as the crisis was starting to bite, the government was starting afresh the whole process of ordering generators.

But this sad story does not end there. The company given the contract does not exist in America where they say they claimed they were registered. To make matters worse something went wrong and the company ended up supplying some unservicable Boeing engines which cannot generate any power. (Read the revealing article that talks about this in detail).

So it is not God to blame as President Kikwete is saying, but corruption and simple human greed.

My source tells me that the Energy minister and his colleagues were eager to recover cash spent on the campaign trail quickly and were keen to get a huge contract to do this (almost identical to the Anglo-Leasing saga in Kenya).

I have made a decision to allow all the abusive comments by readers of this blog claiming to be Tanzanians that are heavy in empty rhetoric and abuse and lacking in facts and objectivity. I find it a very effective way to show evidence (in writing) to anybody (whether Tanzanian or Kenyan) that Tanzania is not ready for The East Afrian Federation and that with this kind of attitude there is a serious crisis in this nation that will virtually be impossible for Tanzanians to get out of in the near future. You can help somebody in trouble who wants to be helped, but how do you help somebody who is sure they are doing well?

The saddest thing about it all is that the vast majority of Tanzanians are convinced that Kenya is finished without the East African Federation or Customs Union. The truth is that Sudan beckons and dozens of other countries worldwide including the United States and Britain, two western powers that are desperate for Kenyan nurses and medical personnel. The evidence on the ground is that Kenya's huge well-trained idle work force is about to dissapear and became as precious as electrical power currently is in Tanzania.

History will prove that the very East African Union that Tanzanians are fighting so hard to kill (while giving hypocritical lip service in favor of it at Arusha) was the last boat that would have saved a sinking nation.

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Sunday, October 22, 2006

Why Charles Njonjo Should Shut Up

Somewhere in the up-market Nyali residential area of Mombasa, is a smart and yet huge residential home belonging to a Kenyan who likes to keep a low profile. It is whispered in the neighborhood that workers frequently leave after only a short time in employment. They complain that the bad tempered employer often scares them by threatening to kill them whenever they make a small mistake in the course of their work in the house.

The name of the foul-tempered employer is James Mungai. Some of the older residents in the area know only too well, who James Mungai is. Or rather who he was.

This man was once one of the most powerful men in the land. Yet he was only an assistant commissioner of police in charge of Rift Valley province during the Kenyatta administration. He was rumoured to have been related in some way to President Kenyatta. His arrogance was legendary. He would keep traffic held up for hours on end as his crossed a busy highway riding on a horse.

James Mungai made the life of one Daniel Arap Moi (then vice president) hell. It is said that once when Moi arrived from a foreign trip, he insisted on searching the Vice President for "concealed weapons” he had brought into the country. The search called for the then VP to strip naked and bend over (I kid you not). Little wonder that Mungai fled the country when Moi took over power after the death of President Kenyatta in 1978. He later returned and after being briefly held, was released. Whatever people want to say about Moi, the former president has a big heart to have forgiven Mungai for the terrible things the man did to him.

This was the kind of behaviour going on in Kenya when Charles Njonjo was the powerful AG and a member of Kenyatta’s kitchen cabinet. Njonjo more than anybody else promoted the propaganda politics against the Luo community that promoted tribalism and kept Raila Odinga’s father, the late jaramogi Oginga Odinga from making a political come back shortly after the death of Kenyatta.

Charles Njonjo is the one who looked the other way as Mungai harassed the Vice President of the Republic Of Kenya. He looked the other way as massive landgrabbing and looting was carried out by those close to the centre of power.

How he can have the cheek to emerge from retirement to start talking about his concern for tribalism in the country is not only ridiculous but the stuff of dark comedy. What is Raila Odinga upto chasing after Njonjo? It is a well known fact that President Kibaki and Njonjo have never liked each other, so is Raila trying to goad the President?

Whatever the reason, Njonjo should shut up and be grateful that he is not in some prison for sins committed against the people of Kenya… at least not yet.

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Jakaya Kikwete's Tanzania In Deep Crisis: Prepare For The Worst

This blogger has been deeply criticized in the recent past (see the post in this blog with the highest number of comments by far) for being biased against Tanzanians and the government of Jakaya Kikwete. I have taken this very seriously because despite whatever shortfalls this blog has, one thing that it has achieved is a reputation for accuracy. Biased views and news are not consistent with accuracy.

It is for this reason that I have remained tight-lipped on any Tanzania news or comment for an extended period of time now. I have even resisted the urge to comment on the current phase of collecting views from citizens of the three nations on the proposed East African Federation (my view is that the nation of Tanzania holds the key and at the moment they all see integration and a federation as a threat).

The truth is that I deeply love the nation of Tanzania and my closest friends are indeed Tanzanian nationals. It is a nation that I understand very well. My conscience has been eating away at me as I have remained silent in the wake of unprecedented events which have been unfolding in that nation. Events that will soon explode into a full-blown crisis for all to see.

Considering the numbers (albeit rapidly dwindling) of Kenyan nationals in Tanzania and the fact that Kenya is the second largest foreign investor in the country, anything that happens in Tanzania is of deep concern to Kenyans and this Kenyan blog.

It is said that President Kikwete receives hundreds of SMS's on his cell phone every day from ordinary Tanzanians and sometimes even finds time to reply to some of them. If this is true then it dismisses the widely held view that the man is a victim of bad advisors because it would mean that he is directly getting the views of ordinary folks on the ground.

Recently the government has gone on a massive unprecedented campaign to demolish all illegal structures in a move that has ruined many small traders and entrepreneurs, not to mention the livelihoods that have been affected. There is of course nothing wrong with cleaning up a city except for two critical issues in this case;

1) The timing
2) The Implication on the Tanzanian economy

Coming at a time when the country has been going through a crippling 12 hour dawn to dusk electricity rationing regime, the demolitions which have been simultaneously carried out in every corner of the city, including low income and slum areas have caused untold suffering to millions of ordinary Tanzanians who have been depending on them for a livelihood.

The implications on the Tanzanian economy go way beyond dramatically increasing the unemployment numbers. In a country where there are no supermarket chains or units targeting ordinary folks, the demolished structures have always been the main sales outlets for a wide range of fast moving consumer items. What this has meant is that industries grappling with power rationing have also found themselves facing a sudden drop in sales caused by the elimination of tens of thousands of distribution outlets across the city.

But by far the most worrying aspect of the whole Tanzanian crisis is the reaction of the administration. There has been a deliberate effort in recent times to release positive economic figures and news on the performance of the economy. Most of the figures are from last year and not the last 10 months that President Kikwete has been in power. There was a unique exception last week when it was revealed that the government's debt had in 9 short months (from January to September, this year) shot up by a staggering $302 million to a total of $9.383 billion. The main culprits, experts say are "unrestricted domestic borrowing and unnecessary foreign debts."

With all due respect to the highest authority in the Tanzanian nation, the governments' lukewarm response to the deepening crisis has caused many, including this blogger to arrive at only one chilling conclusion. That there is a lack of understanding and grasp of fundamental economics, and the impact of decisions being made on the economy of the nation, at the highest level of decision-making in the country.

How else would you explain the following;

a) A deliberate and aggressive campaign against foreign domination in various areas of the economy including hunting and mining, at the beginning of the year, that clearly sent jitters across the investment community in the country. Did nobody see the impact this was going to have on investor confidence? Has nobody in this government been able to link this to the rapidly depreciating Tanzanian shilling (caused mainly by capital flight?)

b) The decision recently to have the BOT (Bank Of Tanzania) release massive amounts of foreign currency into the market in a bid to stabilize the Tanzanian shilling. Did nobody in government understand that this was a futile exercise without dealing with the structural causes of the depreciating shilling? Like restoring investor confidence amongst those investors already in the country, and dealing with the power-rationing crisis? As it is, a day after the release of massive amounts of dollars by BOT, there was a shortage of dollars, a tell-tale sign that there were massive transfers of forex out of the economy still going on.

c) The decision to go ahead with the demolition of semi-permanent structures in every corner of Dar-es-salaam when the economy was already reeling from the crippling power rationing regime. Did nobody in government see the impact that this would have on the economy?

What To Expect In Tanzania Over The Next Few Months
a) Rate of crime will shoot up dramatically triggered by loss of income from both the current electricity rationing and the demolishing of structures used by traders.

b) Tanzanian shilling will weaken further against major foreign currencies.

c) Many foreign investors will continue their strategic retreat, causing further weakening of the local currency as a result of capital flight.

d) A political crisis of sorts will result that will put enormous pressure on President Jakaya Kikwete’s government.

(Tomorrow: How The Current Power Rationing Was Caused By Corruption In High Places.)

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Saturday, October 21, 2006

Kenyan Presidential Race: Why Latest Poll Is A Fraud

Somebody somewhere is very determined to push forward Kalonzo Musyoka's candidature for President. Poll after poll has put him way ahead of all other candidates. The strange thing about these polls is that they contradict what we all know about Kenyan politics.

In western countries polls like the Gallup poll have impeccable reputations, which they fiercely guard. Gallup have done such an excellent job over the years that polls are generally taken very seriously these days. The problem is that sometimes people forget that the poll that they are looking at is not a Gallup poll. Indeed it is instructive that the guys who have been churning out these controversial presidential polls tried to affiliate themselves to Gallup without the proper accreditation. Gallup would not have it and to date Steadman remains unaffiliated to Gallup. Chances are high that they are unable to match the standards required.

The biggest question mark about this latest poll is why the option of those unsure has not been included. This would reflect the real picture as my own quick sampling shows that at least 40% of the electorate are unsure of who they are going to vote for. This is understandable because ODM Kenya (no doubt the most popular party currently) has yet to name it's presidential candidate.

The other thing that makes me suspicious is the fact that surveys of this nature are horrendously expensive. So who is financing Steadman's quarterly surveys? Could it be some political grouping? This would make the most sense because the power of surveys like these ones is well known by politicians. The vote will always swing in the direction of the candidate that voters feel is most likely to win.

So the big mystery is who is behind this poll and what message are they so keen on selling to Kenyans. One message that has clearly and consistently come out of this poll is the fact that Kalonzo Musyoka is the most popular opposition candidate. Much more popular than Uhuru Kenyatta and much more popular than Raila Odinga. This does not quite make sense. My quick survey puts both Raila and Uhuru ahead of Kalonzo.

It would probably help us in our attempt to answer some of these questions if we asked ourselves a simple question;

Who would stand to gain the most from Kalonzo Musyoka being the main opposition candidate?

All answers point to President Kibaki's camp. The biggest nightmare amongst the president's handlers is a Uhuru Kenyatta candidature. This would split the massive Kikuyu vote (sorry folks, Kenyans still vote along tribal lines). And this time chances are that it would be in favor of the younger Kikuyu candidate.

But there is even a more compelling reason to keep on pushing Kalonzo Musyoka's name as the most popular opposition candidate. The thinking is that any candidate wining the ODM presidential nomination, other than Raila Odinga will split ODM right down the middle. Those who lean on this kind of thinking are quick to point to the last time that Raila was seeking a presidential nomination. This was in the run up to the 1997 presidential elections. The party was Ford Kenya and Raila was running against the late Michael Kijana Wamalwa. The late former Vice President won that one, but Raila did not want to accept the results and moved on to NDP, the party which he used to stand for President. And he in fact ended up surprising everybody by coming a strong third behind Moi and Kibaki in that order.

The truth of the matter is that once Agwambo has set his sites on something, he is unstoppable, an unstoppable tractor (hence the nickname Tinga). So far Raila is the single presidential hopeful who has spent the most campaigning. Not even President Kibaki comes near. Remember the expensive DSTV ads?

Sadly it is not in the interests of the country to have a Kikuyu/Luo face off for the presidency (see the debate on the Luo versus Kikuyu prejudicial rivalry). By the grace of God this has been avoided so far and should continue to be avoided. Kenya is not yet ready for this, temperatures would run too high and any hope of having an issues-centered campaign would vanish.

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Kumekucha General Election Scheduled For End Of October

Kenyans Go To The Polls On October 31st At Kumekucha

Readers of this blog and other Kenyans have a chance to exercise their democratic right here in this blog starting October 31st when we will launch a poll/general election here to find out who is really the most popular Presidential candidate.

To participate, all you need is a functioning email address. The other option will be to leave a comment in this blog specifying your preference. I will try and make this election as issue oriented as possible and there will also be a "none of the above" option.

The main objective is to get all of us Kenyans, including Kumekucha himself focused on issues rather than on personalities and tribes. This usually proves to be increasingly difficult as the elections draw closer.

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AG Anglo Leasing Prosecutions: A Lesson From The Devastating Steam Engine

Kenyan AG Amos Wako is some survivor. The proverbial cat with 9 lives, if you like. However it is now very clear that those extra lives are rapidly running out.

As pressure mounts for the government to prosecute some big fish Anglo-Leasing-scandal culprits, Hon Wako has suddenly found himself soaking in most of the pressure.

But before I go into Wako's current problems and where I believe they will lead, it is useful to get the background behind the current situation.

You may not like or enjoy physics, but bear with me for minute as I use this complex scientific subject to illustrate an important point about the Kibaki administration.

For many years steam was used to run trains and major industrial machinery. The concept behind steam engines is in accumulating pressure and then releasing it in a controlled manner to run your engine. The worst and most dangerous thing you can do is to accumulate the pressure for long periods without releasing it. The explosion that will inevitably result will be devastatingly damaging.

President Kibaki's way of running things is to postpone decisions for long periods of time thus accumulating the pressure in this "steam engine" called politics. This is no secret and those who have analyzed the president's management style for many years have often accurately labeled him the "fence seater."

Here is an example to illustrate this point;

When it was clear that President Kibaki was faced with rebellion within his coalition government, he delayed his decision to sack LDP members. Led by Raila "Kibaki Tosha" Odinga, they were the main rebels over the president's failure to honor the infamous memorandum of understanding (MOU) signed before the elections and which was the "glue" that held the fragile coalition government together. By delaying the inevitable, the president built up enormous and unnecessary pressure for himself so much so that when he finally acted, his government almost came crushing down with the unprecedented situation where politicians were turning down cabinet appointments.

Had he acted earlier, it would have been a lot easier to gain public support and sympathy over his decision to rubbish the MOU. LDP would have clearly looked like the "spoilers" drawing first blood in upsetting the opposition unity that had removed Kanu and President Moi from power.

A replica situation is about to play itself out with the Anglo Leasing prosecutions.

This administration has been postponing its' decision to prosecute Goldenberg and Anglo Leasing big fish. Actually decisions have been postponed again and again. Now with the general elections knocking on the door, it is clear that issues of corruption and this government's failure to prosecute the "big fish" will be a major campaign issue. So the pressure that has slowly been allowed to build up is about to explode.

You see the big names that the government is seeking to make sacrificial lambs out of are very powerful people with political and financial clout who will not just sit around and do nothing. Most are already fighting back in anticipation. The result is that we will have one hell of a fall out.

All this would have been avoided if decisions were made much earlier and decisively. As it is, even now the decisions being made at this eleventh hour over this highly sensitive matter are not decisive. One can't help feeling that this entire circus between AG Amos Wako and Anti-corruption boss, Aaron Ringera is a gimmick to buy time and delay prosecutions indefinitely.

Currently the main "pressure valve" holding all the "steam" in place is one Amos Wako. What are the chances of him surviving when the inevitable explosion happens?

You tell me.

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Hawkers In The Streets Of Nairobi: A Time Bomb Waiting To Explode

Chances are that you have often gotten very upset with vendors on Nairobi streets who tend to block the entire sidewalk meant for human traffic and thus make it very difficult for anybody to walk the streets comfortably.

But let me introduce you to another angle of this problem that few have talked about. A family's sole breadwinner leaves home for work as usual one morning and does not return in the evening. The family searches for them in all police stations within the city and in the mortuary also. They never find them. One month later they appear on the door step of their home with clean shaven heads. It emerges that they were arrested by City Council Askaris and thrown into a cell in one of the two notorious police stations in the CBD, namely Central Police Station and Kamkunji. The spend the night there and appear in court early the next morning where they are charged with hawking and sentenced to one month in jail or a fine. Since no relative is in court and the money they had has been stolen by the Askaris who arrested them, the breadwinner ends up spending a month in the "cooler" with hardened criminals ad if they happened to be women, you can be sure they will be raped. And yet their only crime was trying to but bread on the table.

Do spare a thought for hawkers next time.

The really interesting thing here is that when the Narc government swept into power, one of the first things that was done was to attempt to deal with this hawker menace. However this attitude did not last very long.

It is quite likely that if the next government is formed by ODM Kenya, history will repeat itself. Campaign rhetoric followed a brief period of pretending to be doing something.

There are a few basic facts the government seems to have ignored in their attempts to deal with the so-called hawker menace.

1) No attempt has been made to deal with the ailment so far by either the current Kibaki administration or the Moi administration before it. Instead the government has concentrated all its' efforts on the symptoms.

Why do we have a hawkers' problem in the first place? Why is there such a huge unstoppable migration from rural areas to Nairobi? Answering these questions will lead you directly to the real ailment that produces the symptom called hawker menace. The entrepreneurial spirit in hawkers can be tapped and used in a positive way by investing heavily in small business 'incubators' where the best of these budding entrepreneurs can be given facilities under which their businesses can incubate and grow to create employment and wealth for the country.

The old 1960s idea of throwing them to some field that is too small and too far away from their regular clients to be of much help will not work. We now require lots of creativity and imagination which can easily turn this menace to a major asset.


2) Major industrialists the world over including Kenya's own biscuit baron, Mandatally Manji of House Of Manji started out as hawkers.
Kenyans have been taught to admire people with massive wealth without caring how that wealth was accumulated. The result is that we have little respect for honest entrepreneurs, let alone budding ones who have got no contacts to bribe for big government contracts and who my have not been around during the coffee boom to make huge overnight wealth smuggling coffee.

Kenyan industrialist, Mandatally Manji started out as a part-time hawker in the Karatina market (near Nyeri). The best future Kenyan entrepreneurs are now hawkers. So why do we choose to hit them in the head with heavy clubs and throw them into police cells with dangerous criminals, instead of finding a way to nurture their entrepreneurial zeal?


3) Whatever approach is decided on by both the government and those enforcing it must be consistent.
We have heard stories of hawkers stabbing and even killing City Council Askaris. It is important to try and find out why it sometimes comes to this. City council askaris are known to be very corrupt and it is not unusual for one to demand a bribe just hours before a major raid which they are already aware of. Thus the same officer you bribed with your day's sales a few moments earlier, after being assured that you will be able to operate in peace for the rest of the day ends up arresting you a few hours later. Imagine how you would feel. Personally I don't condone bribery and this principal of mine has been put to the test many times. It is very difficult to live in Kenya without having to remove a bribe, but it is not impossible, as I have proved.

There would be a lot of respect for city council askaris and the government of the day, if both were not corrupt ad were consistent in the way they dealt with hawkers. As it is both have a different approach when they are either soliciting for a bribe or for votes and when they are not. So why would we not expect hawkers to fight back?

Quick Question: Remember the elite Kanga squad that was credited with the infamous Standard newspapers raid? They've now been disarmed (asked to surrender their weapons). This effectively means that the once dreaded police unit is now no more.

But why now, and so many months after they carried out that shocking raid on the Standard offices?

It is the approaching general elections, stupid.

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