President Kenyatta orders that imports of Sugar and Milk Powder to be tariff free until August 2017, who in the Jubilee will eat the spoils?

President Uhuru Kenyatta finally found a solution to the rising the prices and inflation on basic foods. Therefore on the day there is 30,000 tons Sugar coming in at Mombasa this morning.

This after the first Executive Order of Kenyatta this year said: “That the drought and the famine in parts of Kenya is a national disaster, duty shall not be payable for the following items- 

(a) Sugar imported by any person, with effect from the date of Notice to the 31^st August, 2017; and

(b) nine thousand tonnes of milk powder imported by milk processors, with the authority of the Kenya Dairy Board, with effect from the date of this Notice to the 31^st August, 2017 Dated the 11^th May 2017” (The Kenya Gazette, Vol. CXIX – No. 62, Nairobi, 12^th May 2017).

So as this happens, you can wonder if the Sugar millers and Sugar exporters are connected with the government. Since the 30,000 tons just appear on the day after the gazette. That means, someone knew about the plans of the government and let it happen. It isn’t just appearing from the sky, that a holy angel sends 30,000 tons of sugar to Kenya and the Port of Mombasa on the day after the Executive Order was signed and than relieved to the public by Cabinet Secretary for the National Treasury Henry Rotich. He is just a useful CS, who certainly will have his pieces of deliverance of all the duty free goods.

That the government, close connections with the Jubilee government and the Sugar cartels will surely gain profits on these exported foods. This been in a country where the tariffs has been a 100% on Sugar and added VAT 16 %. Therefore, this reactions seem to be a ploy to earn monies on gullible people and think that the people will take it as goodwill. This is happening at the same time, as the prices on sugar is still on a two year low worldwide. President Uhuru Kenyatta and Deputy President William Ruto, might think the Kenyans doesn’t see through this. But they should question the companies, the boats and who orders the duty free goods to Kenya from today and until 31^st August.

Like who earns the profits on the sugar and the milk powder in these months. They are clearly planning it and not only for the famine and drought. But for sole purpose of gaining massive amount of funds in the period of campaigning. This just appearing and ordered in the critical time. The Jubilee government doesn’t know how to be subtle. Can wonder if any of the corporations and importing businesses owned by the Kenyatta’s or Ruto’s would benefit from this. I wouldn’t be shocked, neither if anyone else of the Jubilee government got a payday and huge amount of Bob’s in their accounts. Peace.

The law: 

Kenya: At the moment, Sugar is not sweet for Jubilee!

The prices of Sugar in Kenya is special experiment, as the taxation on imports of sugar is a 100% and also 16% VAT on the sugar imported. Secondly, the industry is controlled by the state, there been talk of privatization of millers owned and the Kenya Sugar Board who regulate the industry. As well as the Ministry of Agriculture is making sure the output of the farmers are corrected.

Therefore, as the prices worldwide is sinking and going-low, the prices of sugar are going up. This is happening in the months right before election time.

The government must know the industry is struggling as the only private miller Mumias are again on a downward spiral:  “Already, the miller has been closed for three months. According to managing director Errol Johnson the closure was meant to fix equipment, which had contributed to the company’s poor performance due to inconsistent maintenance. The closure from April 11 came barely a month after the cash-strapped miller received Sh239 million from the government, as part of the bailout strategy” (BiznaKenya, 2017).

That the Mumias miller proving the big-problems in the Sugar industry, as it has been evident for years. The agricultural output and yields haven’t been the issue alone, it is denial of the state to figure out working changes to the millers, the import and also control it has over it. That the government has the oversight and the insight to the issues, are clearly that the Jubilee haven’t been interested in-changing it, as the benefit of this system. Therefore, President Kenyatta and Deputy President Ruto hasn’t touched it or done anything else than bailing out Mumias on the last dive of the company. Therefore, the reports shown here. Proves the initial factors to the grand issues and why the prices are sky-rocketing, while the international prices are falling. Take a look!

Barriers for Sugar Productions:

“Sugar milling is a high fixed cost business requiring substantial economies of scale in cane crushed to break-even” (…) “Existing relationships of patronage between governments and large milling companies serve to align the incentives of government and millers such that new entrants would find it difficult to compete with incumbents and obtain the same benefits” (Chisanga, Gathiaka, Onyancha & Vilakazi, P: 12, 2014).

“Government ownership in the sector remains large, despite higher relative efficiency in the private sector and long term plans for privatization. While some privatization has taken place over the past decade, government-controlled factories held a 37 percent production share, with additional non-controlling shares in other firms. Part of the argument in favor of privatization is the relative efficiency of production in private mills over those controlled by the government” (…) “The local sugar milling market is quite concentrated, and combined with the barriers to trade this suggests that the largest players have significant power over prices. Mumias, the largest sugar company, had a market share of 38 percent of domestically produced sugar in 2011, lower than its typical market share due to cane shortages. Combined with the government-controlled share of the industry, this implies that essentially two entities control at least 75 percent of local production. The shares of local producers in domestic market sales vary quite widely depending on the period, as the volume of imports fluctuates a great deal. For example, Kenya Sugar Board data from the first two quarters of 2012 show importswere approximately 33% of local production” (Argent & Begazo, P: 5-6, 2015).

“Kenya National Bureau of Statistics, a government (Jubilee) body, reports that 2.2 million Micro Small and Medium Enterprises (MSME) have closed shop in kenya over the last five years. These are some of the reasons that inform our opposition to Jubilee. Personally, I think Uhuru and Ruto are fine Kenyans; wonderful husband to their spouses; incredible fathers to their children; and great benefactors to their elite friends, but have terribly failed in the duties of the office of the presidency” (…) “All sectors of Kenyan economy has been negatively affected by the floods of cheap imports, brought into kenya by unscrupulous businessmen connected to those in power, having unbridled freedom to import anything of their choice without paying taxes: From sugar industry; to textile; to agriculture, denying kenya the much needed revenue for development. Over the weekends, the leaders behave like Frank Lucas, donating part of the proceeds from these imports to the same societies they are killing by giving out these import certificates” (Sadat, 2017).

That the government haven’t made sure the industry and financial markets been sufficient is proven with the macro problems in Kenya. The import sanctions together with the stronghold control of certain millers and Kenya Sugar Board, there are patronage and cartels that sets the prices and the payments for the yields. Together with the storage and cane production that is initial to the issues that are there today. That President Kenyatta and DP Ruto hasn’t taken charge and paid amends is the reason for the prices at this point. That the Sugar Barons, Sugar Cartels and Sugar Companies are connected with government is understood as the politicians are taking handouts from them as well.

As the COFEK open letter to Kenyatta said so well and I will end with:

“No one in your government can categorically state how much stocks are being held in the strategic grain reserves. Casual talk of wanting quality of the same maize, from the millers lobby, heightens speculation that your government is unwilling to walk the talk on cutting the cost of living. As things stand, it is fair to say that your Government has taken a holiday on consumer protection as cartels take over the all-important food security sector. It follows that your government, is therefore, in breach of Article 46 of the Constitution you swore to protect. Needless to mention, it is a tall order for you to protect and uphold the sovereignty, integrity and dignity of the people of Kenya if they remain hungry – with a single or no meal at all, thanks to the high cost of living. Your government supposedly offers huge subsidies to farmers through farm inputs like fertilizers which do not get to them. It’s the middlemen and cartels who end up smiling to the bank as farmers toil in vain” (COFEK, 2017).

Peace.

Reference:

Argent, Jonathan & Begazo, Tania – ‘Competition in Kenyan Markets and Its Impact on Income and Poverty – A Case Study on Sugar and Maize’ (January 2015)

BiznaKenya – ‘Mumias Sugar to close indefinitely over cash problems’ (08.05.2017) link:https://biznakenya.com/mumias-sugar-close-indefinitely-cash-problems/

Chisanga, Brian; Gathiaka, John; Nguruse, George; Onyancha, Stellah & Vilakazi, Thando – ‘Competition in the regional sugar sector: the case of Kenya, South Africa, Tanzania and Zambia – Draft paper for presentation at pre-ICN conference, (22 April 2014)

Consumers Federation of Kenya (COFEK) – ‘Cofek open letter to Uhuru Kenyatta on high cost of living’ (02.05.2017) link: http://www.cofek.co.ke/index.php/news-and-media/1718-cofek-open-letter-to-uhuru-kenyatta-on-high-cost-of-living?showall=&start=1

Sadat, Anwar – ‘REVEALED: WHY The ECONOMY is Almost COLLAPSING Under Uhuru Jubilee Regime, GoK’s Kenya Bureau of STATISTICS Exposes Shocking Numbers’ (07.05.2017) link: https://www.kenya-today.com/opinion/revealed-economy-almost-collapsing-uhuru-jubilee-regime-government-body-kenya-bureau-statistics-exposes-shocking-numbers

Kenya: The Cheif Justice Should Stop Intimidating Judges (17.03.2017)

Kenya: “Re: The Contempt of Court committed by Adan Duale, the majority leader in the National Assembly and the Threat to the Independence and Integrity of the Judiciary (23.12.2016)

Victims of police brutality in Mumias speak out – Interview (Youtube-Clip)

“The brutal search for missing arms in Mumias has been stopped. The order was made by the Mumias West area deputy county commissioner Philip Soi.  This comes after a public uproar on police brutality during an operation to search for 7 guns stolen by armed men last week.  Residents have accused police officers of using unnecessary force. Soi, stated that the police force will employ other alternatives in the search” (Kenya NTV , 2016)

Petition to Judicial Service Commsison of Kenya; In the Matter of Gross Misconduct and Misbehaviour of Honourable Lady Njoki Susanna Ndungu (17.06.2016)

Lumumba criticises bid to extend Supreme Court judges contracts (Youtube-Clip)

“Kenya School of Law Director, Prof PLO Lumumba has criticized a bid by a section of Supreme Court judges to seek extension of their term to 74 years. He said the constitution was clear that a judge shall serve up to the age of 70 and urged those who had attained that age to retire honorably” (Daily Nation, 2016).

Meeting Betwween the Judicial Service Commission and the Law Society in the matter of the Retirement Age of the Deputy Justice and Justice Phillip Tunoi, Supreme Court Judge (03.06.2016)

Some more documents into the Judge Willy Mutunga v. Hon. Lucy Njora ++

Here you see more on the imposed scandal that are happening in the Supreme Court and the challenge of hiring a new judge, how they appropriately address the matter between themselves. This here is more on the matter, as things goes and goes! After the E-Mails, planned time in court and also a Petition to Court as well; this here will not stop until hopeful justice have prevailed!

On May 27, 2016, at 2:26 PM, Willy Mutunga wrote:

Colleagues:

The CA (Court of Appeal) has decided.

I am told there are applications and appeals already filed.

I have instructed Hon Lucy Njora (Supreme Court Deputy Registrar) to place the applications before me for directions.

I will deal with the applications as a single judge.

—

Dr. Willy Mutunga, D.Jur,SC,EGH

Chief Justice/President, Supreme Court of Kenya

“The poor need Justice; others need the Law.” Professor Dani Nabudere

“The rich don’t need the law, they’ve got wealth and power. It’s the poor who need the law.” Albie Sachs.

“The Supreme Court of Kenya neither has friends nor enemies among Kenyans. All the Court cares for is Justice for and to all Kenyans.”

Judge Njoki’s reply

On Fri, May 27, 2016 at 3:32 PM, Njoki Ndungu wrote:

CJ,

I saw your email very late. It would have been better if you had called on phone directly if you had directions for me. I assure you I have followed the provisions of our rules and Act strictly.

As duty Judge for today I already heard 2 certificate of urgency applications by Justices Rawal and Tunoi. I have already disposed of them, given interim orders and given dates for interparties hearing. I think that is in order.

Sincerely,

Njoki

Mutunga reply

On May 27, 2016, at 3:46 PM, Willy Mutunga wrote:

I counseled against copying the applicants in any mail coming from us!

I thought, given the history of this matter, you would have considered that those of us who are around could be involved in some brief conferencing. Even as a duty judge, isn’t there a standing guideline that after the files are given to judges is either the CJ or the DCJ who does the allocation?

I am surprised you suggest I should have called you? Did you think of calling me?!

From: Njoki Ndungu

Date: May 28, 2016 at 8:42:37 AM EAT

To: Willy Mutunga

Cc: Mohammed Ibrahim , jbojwang , swanjala

Subject: Re: The Decision of the CA

With utmost respect CJ, I do not understand your angry tone – which I find inappropriate – to me in this email, for the following reasons:

1. I did not know you were in the country to begin with as your earlier email communication to us indicated you would be out of the country from the 22nd may. (How would I know to call you when you are out of the country? You never pick my calls anyway.)
2. You did not copy any email to ME asking not to copy our colleagues.
3. The first email from you to me arrived in my inbox at 2.31 pm when I had already started listening to the matters, and I was not online at that time. I only saw your email AFTER I had disposed of the applications.
4. Justice Ojwang who was the only other Judge not affected by the matter who was in chambers at the time and we consulted and agreed I should proceed hear the matters.
5. The matters were exparte and took a short time. I communicated to you immediately I saw your email and got your message from The DR.
6. I am not aware that there is anything wrong or untoward with the manner I handled the matters.
7. Did you have a specific outcome in mind? It appears to me, that once again you are having issues with the decisional independence of Judges in your court, particularly myself. This is a subject that has been discussed before. How do you suggest we handle this?

Njoki.SCJ.

Here is more: 

Also this one which is fake and which is real:

The one up top or the one in the bottum, which is real? Aye?

Enough for now., right? We shouldn’t need to ask what is the real age of Judge, they should be honest men walking around us. The ones that we trust as their judgement should be as they are the epitome of law abiding citizenship. Instead here we have seen of dozen documents and proof that there is a state of unlawfulness in the Supreme Court of Kenya, and it is not a good look!  Peace. 

 

Kenya: “Re: Petition for Removal of the Honourable Chief Justice and President of the Supreme Court of Kenya Dr. Willy Mutunga (30.05.2016)

Another Document on the matter as well: