Kenya: U.S. Embassy Statement Regarding the Suspension of Assistance to the Ministry of Health (09.05.2017)

Opinion: President Kiir risks a lot with firing King Malong!

Today, there we’re a shocking news from Juba. As the SPLM/A and the President Salva Kiir Mayardiit who ordered through Presidential decree to sack his Chief of General Staff in the SPLA. That means the Army chief has been sacked in midst of civil-war, as the rising rebellions not only of SPLM/A-IO, but all the other rebels who works to dismantle the government of the President. Therefore this should be not seen as strengthening the Central Government, but more how fragile the powers of the President is at the moment.

President Kiir has fired Lt. General Paul Malong Awan from his position as the Chief of General Staff of the national army SPLA. Through Presidential Decree number 77/2017 he appointed General James Ajongo Mawut as bus replacement. General James Ajongo has been promoted to the rank of 1st Lieutenant General and will assume office tomorrow. He served as the Deputy Chief of Staff in Charge of Administration under 1st Lt Gen. Paul Malong” (The National Courier, 09.05.2017).

SSNA reported this tonight:

Tension is very high here in Juba as soldiers loyal to President are deployed on Juba streets and plainclothes national security agents drive in and around the capital telling people to go inside their houses. The South Sudan News Agency has been told by a senior government official that any politician from Aweil community suspected of being a supporter of the sacked army General has been detained. The official added that nobody knows what will happen as factions of the SPLA loyal to Awan have also blocked roads leading to Awan’s residence, warning, “If he [Awan] refuses to surrender his power peacefully, then Juba could burn.” (SSNA, 09.05.2017).

Truly, the consequences of this move isn’t certain, the motives behind it, if it was giving away guns to Dinka’s, the rumors in late April of a coup against the President. The son of the General who used stashed away government monies in Las Vegas and buying luxurious cars. The reason of fear of rising star and capabilities as General, could also be play the President saw. As he has seen people rise and get ambitions. Therefore, the reason for the sacking isn’t certain, what this can end in, are unsure, but certainly not create more stability. Something the youngest Republic needs. The Sacking will only create more uncertainty as soldiers are loyal to him and maybe not to President Kiir. So who knows what these soldiers might do or whose orders that matters the most? Will they fall in line of Kiir or will they follow Gen. Malong? Will these become rebels or will they still be part of SPLA? 

How this plays out and what is President Kiir’s plan with this actions, that is only in his mind. We can only know that he appointed someone else from the same area. But not the knowledge of what intelligence and reasons for the sudden sacking. If it was for his threats to the Governors of States, who still was stationed in Juba, instead of the State Headquarters. It is not easily to know. What we do know is that this has created tensions in the capitol and the end-game will play out over the next few days. Peace.

Kenya: Ministry of Health – “Health service delivery is on course” (09.05.2017)

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: USAID – “Suspension of Activities and Assistance to the Ministry of Health” (08.05.2017)

Kenya’s Political Parties Vulnerable to Cartels? (Footage)

UNMISS Deploys Peacekeepers to Aburoc to Enable Delivery of Humanitarian Aid (08.05.2017)

Currently up to 50,000 people are sheltering in and around the town of Aburoc on the west bank of the River Nile after a series of clashes between Government and Opposition forces.

JUBA, South Sudan, May 8, 2017 – Peacekeeping troops have been urgently deployed to Aburoc in the Upper Nile region by the United Nations Mission in South Sudan (UNMISS) to help enable the delivery of much needed humanitarian assistance.

“The aim is to provide humanitarian groups with the confidence they need to resume the provision of urgent assistance to tens of thousands of people in Aburoc who are fleeing the ongoing violence,” said the Head of UNMISS, David Shearer.

“This short-term deployment is in response to an immediate need and will provide a light, but robust, temporary peacekeeping footprint in the area.”

Currently up to 50,000 people are sheltering in and around the town of Aburoc on the west bank of the River Nile after a series of clashes between Government and Opposition forces. The most urgent humanitarian need is to provide drinking water.

“Without a secure supply of clean water, there is a risk of an outbreak of diarrhoea or even cholera which has the potential to kill thousands of vulnerable people. It is vital that our humanitarian partners are able to get this water and other aid through to alleviate the suffering,” said David Shearer.

“I also note that the Sudan People’s Liberation Army (SPLA) has acknowledged UNMISS’ intention to help facilitate the provision of humanitarian assistance to the people of the Upper Nile.”

The peacekeeping troops’ immediate task will be to secure the base from where humanitarians are providing water and other assistance. The road between Kodok and Aburoc will be checked for old landmines by the UN Mine Action Service and cleared as necessary. Protection may also be provided for water trucks using the road if that is required to enable people to move freely.

Security Council Condemns Attack Against UNMISS (08.05.2017)

The members of the Security Council further condemned the continued violence committed by all parties in South Sudan.

NEW YORK, United States of America, May 8, 2017 –  The members of the Security Council strongly condemned the attack against the United Nations Mission in the Republic of South Sudan (UNMISS) on 3 May in Leer, South Sudan. The members of the Security Council expressed appreciation for the actions taken by UNMISS peacekeepers to repel the attack.

The members of the Security Council recalled that individuals who, directly or indirectly, engage in attacks against United Nations missions, international security presence, or other peacekeeping operations, or humanitarian personnel, may be designated for targeted sanctions.

The members of the Security Council further condemned the continued violence committed by all parties in South Sudan, including the ongoing military offensives, and called on all parties to immediately adhere to the permanent ceasefire as called for in the Agreement on the Resolution of the Conflict in South Sudan and to remove all obstacles to delivery of lifesaving humanitarian assistance.

Suddenly, President Kenyatta want to deal with souring food prices, but has no solution outlined!

You know something is wrong when the basic food items like Maize flour, Rice, Milk and Sugar are going up in Kenya. This has happen during the term of President Uhuru Kenyatta and Deputy President Willam Ruto, the Jubilee Coalition. That the President takes so easily on it during the campaigns, proves that he has forgotten the common plight. This isn’t just a drought that brought the higher prices, there is systemic defaults that the government has to be concerned about. Therefore, the President coming out and saying this!

In his speech the President also criticised the opposition, which he described as a coalition crafted to get job for its four leading figures. He described the leader of the opposition as “a man who does not know how to solve problems but only knows how to talk about problems”. The Head of State said the Government is working on an appropriate plan to deal with the rising cost of maize flour. He revealed that Parliament will be recalled soon to come up with legislations to deal with the issue of food prices. We have been quiet about this issue but we have been working on a plan and soon Parliament will resume soon and it will come up with a lasting solution,” said the President” (The Presidency, 2017).

That he says the Opposition only talks about it, it is him who has the power and have the majority government. President Kenyatta has had all the possible time to create and make sure the citizens and businesses could thrive. Instead their been years of problems for Mumias, corruption scandals and in general not the sort economic policies that the Kenyan people or businesses needs. Therefore, the news of 10 coastal hotels closed in the recent months. The higher prices on electricity and other basic food items. Proves that the government has not facilitated it for citizens.

This can be proven with the added debt and deficit that the Kenyan government has risen. That the loans have been misspent as well as corruption scandals, which has proven that it isn’t only the Port of Mombasa where it is, but the central government has certainly their mismanagement. There been chickens inside the IEBC, NYS Scandal, JKIA, and so many others.

Inflation in the month of Aril has been reported to have increased to a record high of 11.48 percent. This was as a result of the ongoing drought that has hit most parts of the country and therefore forcing commodities to increase in prices so as to reach the markets set target” (Shawiza, 2017).

Just as Barclays has spelled gloom over the Kenyan economy, because the President cannot like going into a tight and highly anticipated campaign when the state struggles with this:

In various supermarkets around major towns, shoppers are being met by empty shelves. Those who spoke to Nation lamented that the increased prices had hit them hard, forcing them to forego some meals in the day, especially to save for school fees. In a country where maize remains a staple food, the price increase has left many households suffering. Even with the government intervention, the prices of a 90kg bag of dry maize is still high at Sh5,200 in Kisumu, Sh4,700 in Mombasa and Sh4,500 in Nairobi” (Daily Nation, 2017).

There we’re reasons for this, since the rise of prices doesn’t come in vacuum, the President and his government knows that, but has stayed ignorant, because they seem to confident that they will be in-charge after the coming election. Therefore, he should trade the waters more careful, unless the Jubilee is rigging it. However, the prices are hurting the citizens and the people who are supposed to support the party.

They have already struggled with months of uncertainty with the IEBC and the Doctors strike as they both have proven the systemic problems inside the republic. This is something that the Jubilee government has festered and not cleared the shop. Instead of building trust, they have tried to stop it like they detained doctors, they tried to silence the demonstrations against the corrupt IEBC board.

So with the rising state debt, the rising prices on food stuffs and the mismanagement of government funds. That the Jubilee attacks the NASA for their deals is the only good thing they have, but it is not sustainable as their own are awarded. So I cannot believe in that, that the NASA only favors and give jobs to their own. There are similarities there, but the Jubilee shouldn’t complain about giving favors, when they have built their own system doing so. Also, giving credits and envelopes to smaller parties for their support!

President Kenyatta should not for populism, but for the concern of the issues of the higher prices on the basic foods. Since this affects all citizens and their pockets, as well as stores and shops are getting empty on the shelf’s, not only Nakumatt who has struggled for months, but also others. Therefore, the are grand issues in the economy, if it wasn’t so than the banks like Kenya Chase Bank Limited taken control by the Central Bank of Kenya. If all of this issues are not handled, together this all proves there are governance structures and policies who needs changes. Since the state are clearly forgetting their sole purpose to facilitate life for their citizens, not secure wealth for the elite. Therefore, the Jubilee, has to prove they really care, as the inflation and debt ratio is rising to levels that the President should anticipate. Not try to control after it hit the fan! Peace.

Reference:

Nation Team – ‘Kenyans tighten their belts as prices of goods soar and shortages bite’ (03.05.2017) link: http://www.nation.co.ke/news/Families-hit-by-soaring-food-prices/1056-3911702-pigm45z/index.html

Shawiza, Vera – ‘Cost Of Living: High Food Prices Reason For Increased Inflation’ (03.05.2017) link: http://sokodirectory.com/2017/05/cost-living-high-food-prices-reason-increased-inflation/

The Presidency – I will work tirelessly for Kenya’s prosperity, President Kenyatta pledges’ (06.05.2017) link: http://www.president.go.ke/2017/05/06/i-will-work-tirelessly-for-kenyas-prosperity-president-kenyatta-pledges/

South Sudan: J. Canon Clement Janda – “Withdrawal from Membership of National Dialogue” (03.05.2017)