Press Release: EIB backs KSh 12 billion of new private sector investment across East Africa (11.12.2015)

 

East-Africa

The European Investment Bank today agreed to provide EUR 110 (KSh 12 billion) million for investment by companies across East Africa under a three new partnerships launched in Nairobi earlier today. This is the largest ever support for investment by entrepreneurs and small business ever announced in East Africa by the EIB.

European Investment Bank Vice President Pim van Ballekom formally signed the three credit lined during a visit Kenya to mark the 10 year anniversary of local operations of the world’s largest international public bank and to highlight an expected increase in support for climate related projects in the region.

Under the new initiative the European Investment Bank, will back investment by micro, small and medium enterprises under three dedicated credit lines with the African Banking Corporation, NIC Bank and CRDB Bank that reflect different investment needs.

The new programme will support job creation and economic growth in Kenya, Tanzania, Uganda and Burundi by providing long-term local and foreign currency loans and support investment across a range of sectors, including agriculture.

“Investment by small companies and entrepreneurs is essential for economic growth and to create jobs. The European Investment Bank is pleased to strengthen our support to ensure that East African companies can unlock new business opportunities and build on previous successful engagement with leading local banks. Since the EIB’s regional office for East and Central Africa opened 10 years ago professionalism and enthusiasm of the Nairobi based team has strengthened our support for entrepreneurs and small business across the region.” said Pim van Ballekom, European Investment Bank Vice President.

“We are very happy to be partnering again with EIB and securing from them a second credit line . We first received Ksh. 770 million from EIB in 2012, which we have disbursed to our SME clients for longer term and at affordable rates. We have seen the immense potential SMEs have, and how access to affordable credit can turn around small entrepreneurs to become business leaders in their respective sectors. We are excited by this new credit line. It is a demonstration of the confidence that EIB has in ABC Bank, and it will bolster our capacity to continue lending to the SME segment to empower them to harness their market potential and contribute to the national economy. We look forward to the making of more success stories” said Shamaz Savani, ABC Bank Group Managing Director.

“We are delighted to deepen our partnership with EIB in supporting the development of SME and Midcap in various sectors of Tanzanian economy especially agriculture. SMEs in Tanzania contribute immensely to the growth of our economy and CRDB Bank has been playing a major role in the growth of local entrepreneurs especially women entrepreneurs and is keen in supporting SMEs to grow their businesses and improve their competitiveness.” said Saugata Bandyopadhyay, Deputy Managing Director Operation & Customer Service at CRDB Bank.

“As stated previously, we are accelerating our strategy to grow our Retail and SME Business. The EIB funding will support our push into the fast expanding SME sector,” said Mr. John Gachora, Group Managing Director, NIC Bank.

The three new lending programmes were formally launched in Nairobi by European Investment Bank Vice President Pim van Ballekom.

The three credit lines reflects the European Investment Bank’s broad support for private sector investment across Africa that addresses the varied investment needs of firms ranging from individual small entrepreneurs to more established companies employing hundreds of people.

The EIB agreed a new EUR 5 million credit line with ABC Bank that will support investment by companies in both Kenya and Uganda.

Companies here in Kenya will benefit from a new EUR 50 million credit line, agreed with NIC Bank Kenya.

Whilst investment in Tanzania and Burundi through a EUR 55 million loan to CRDB Bank will both support Tanzania based firms and includes EUR 3 million for companies based in Burundi. This is the EIB’s second engagement with CRDB.

Last year the European Investment Bank Group provided nearly EUR 22 billion to improve access to finance by small business around the world. In Africa nearly EUR 3 billon has been provided by the EIB for investment by small business and entrepreneurs since 2005.

Since 2005 the Nairobi presence of the European Investment Bank responsible for Central and Eastern Africa has supported more than EUR 3 billion (KSh 325 billion) of investment both across the region and elsewhere in Africa. Over the last decade the European Investment Bank has provided more than EUR 18 billion for investment across Africa.

Press Release: African Countries Launch AFR100 to Restore 100 Million Hectares of Land (05.12.2015)

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Commitments from 10 countries announced at the Global Landscapes Forum

PARIS (December 6, 2015)—African countries launched AFR100 (African Forest Landscape Restoration Initiative), a pan-African, country-led effort to restore 100 million hectares (386 thousand square miles) of degraded and deforested landscapes by 2030. The AFR100 target of 100 million hectares has been endorsed by the African Union. So far 10 African countries have agreed to join AFR100 and committed at least 31.7 million hectares of land for forest landscape restoration. AFR100 partners are earmarking more than USD $1 billion in development finance and more than $540 million in private sector impact investment to support restoration activities.

The announcement was made during the Global Landscapes Forum at the Conference of Parties (COP21) in Paris, where forest landscape restoration is a key ingredient of the global movement to adapt to and mitigate climate change. Commitments made through AFR100 build on significant climate pledges made by many African countries to support a binding global climate agreement.

“Restoring our landscapes brings prosperity, security and opportunity,” said Dr. Vincent Biruta, Minister of Natural Resources in Rwanda. “With forest landscape restoration we’ve seen agricultural yields rise and farmers in our rural communities diversify their livelihoods and improve their well-being. Forest landscape restoration is not just an environmental strategy, it is an economic and social development strategy as well.”

For the first time, AFR100 brings together political leadership with an ambitious package of financial and technical resources to support a large-scale forest landscape restoration effort across Africa. Nine financial partners and 10 technical assistance providers have pledged support, led by the New Partnership for Africa’s Development (NEPAD Agency), Germany’s Federal Ministry for Economic Cooperation and Development (BMZ), and World Resources Institute (WRI).

“The scale of these new restoration commitments is unprecedented,” said Wanjira Mathai, Chair of the Green Belt Movement and daughter of Nobel Peace Prize Laureate Wangari Maathai. “I have seen restoration in communities both large and small across Africa, but the promise of a continent-wide movement is truly inspiring. Restoring landscapes will empower and enrich rural communities while providing downstream benefits to those in cities. Everybody wins. ”

Countries that have agreed to join the AFR100 initiative include:

• Democratic Republic of Congo | 8 million hectares
• Ethiopia | 15 million hectares
• Kenya | Committed, but finalizing hectare target
• Liberia | 1 million hectares
• Madagascar | Committed, but finalizing hectare target
• Malawi | Committed, but finalizing hectare target
• Niger | 3.2 million hectares
• Rwanda | 2 million hectares
• Togo | Committed, but finalizing hectare target
• Uganda | 2.5 million hectares

AFR100 builds on the climate commitments made by African countries. So far, 13 of the INDCs (Intended Nationally Determined Contributions) submitted by African countries include restoration, conservation of standing forests, or “climate-smart” agriculture. According to WRI analysis, following through on the commitments would cumulatively reduce emissions by 1.2 Gt CO2eq over the next 10 years, or 36 percent of Africa’s annual emissions and 0.25 percent of global emissions.

“Restoration is really Africa’s gift to the world,” said Dr. Andrew Steer, president and CEO, World Resources Institute. “As the world forges a climate agreement in Paris, African countries— which bear the least historic responsibility for climate change– are showing leadership with ambitious pledges to restore land. These countries are well on their way to meet the goal of restoring 100 million hectares of land, which will help sequester carbon and bring economic benefits to low-income, rural communities. These African leaders are turning their words into action and making a real contribution to respond to the global threat of climate change.”

AFR100 recognizes the benefits that forests and trees can provide in African landscapes: improved soil fertility and food security, greater availability and quality of water resources, reduced desertification, increased biodiversity, green jobs, economic growth, and increased capacity for climate change resilience and mitigation. Forest landscape restoration has the potential to improve livelihoods, especially for women. For example, 20 years ago, women in southern Niger spent an average of 2.5 hours daily collecting firewood, which was scarce in the degraded landscape. Now they prune on-farm trees saving two hours a day, time that can be spent on other income generating activities.

Commitments announced through AFR100 also support the Bonn Challenge, a global target to bring 150 million hectares of land into restoration by 2020 adopted in Germany in 2011, the New York Declaration on Forests that extends that challenge to 350 million hectares by 2030, and the African Resilient Landscapes Initiative (ARLI), an initiative to promote integrated landscape management with the goal of adapting to and mitigating climate change. With these new partners, the Bonn Challenge process has surpassed the 100 m hectare mark, on track to meet its goal well ahead of the 2020 target date.

AFR100 builds on a strong tradition of successful forest landscape restoration in Africa. In Ethiopia’s Tigray region, local communities have already restored over 1 million hectares, making the land more drought-resistant. In Niger, farmers have increased the number of on-farm trees across 5 million hectares of agricultural landscapes, improving food security for 2.5 million people. AFR100 will provide a forum for countries and communities to share knowledge and resources to achieve restoration at a greater scale.

“We know that restoration works for Africa. We’ve seen it work in countries as diverse as Malawi, Ethiopia, and Mali,” said Dr. Ibrahim Assane Mayaki, CEO of NEPAD and former Prime Minister of Niger. “But we need to scale up restoration across the whole continent- more than 700 million hectares of land in Africa have potential for restoration. AFR100 provides a platform to work together more effectively to accelerate the achievement of restoration successes to benefit tens of millions of people who are currently searching for ways to adapt to climate change and improve their well-being.”

AFR100 will help to translate ambitious commitments into action with support from private sector investors, foundations, development banks, and bilateral and multilateral funders. AFR100 will leverage a variety of financing, including grants, equity investments, loans, risk management guarantees and funds for specific interventions.

So far, AFR100 partners have set forth over USD $1 billion of development financing:

  • World Bank: USD $1 billion in investment in 14 African countries by 2030, as part of the Africa Climate Business Plan to support Africa’s climate resilient and low carbon development
  • Germany’s Federal Ministry for Economic Cooperation and Development (BMZ) is providing support for the development of the AFR100 initiative

Impact investors have already earmarked USD $546.5 million for restoration under AFR100:

  • Ecoplanet Bamboo: USD $175 million by 2020
  • Sustainable Forest Investments – Netherlands: USD $150m by 2030
  • Terra Global Capital: USD $100 million by 2030
  • Green World Ventures: USD $65 million by 2020
  • Moringa Partnership: USD $56.5 million by 2030
  • NatureVest (impact investment arm of the Nature Conservancy)
  • Permian Global

Through AFR100, we expect to trigger one of the largest investments in forest landscape restoration the world has ever seen,” said H.E. Dr. Gerd Müller, Federal Minister for Economic Cooperation and Development, Germany. “This investment is vital for empowering local communities to scale up the inspiring restoration successes we’ve seen in Africa over the last decade.”

In addition to new financing, a coalition of organizations will provide technical assistance on a wide range of activities, including the mapping of restoration opportunities, securing further financing, and implementing restoration efforts on the ground. Partners include World Resources Institute (WRI), Clinton Foundation, Food and Agriculture Organization of the United Nations (FAO), International Union for Conservation of Nature (IUCN), Jane Goodall Institute (JGI), Kijani, New Partnership for Africa’s Development (NEPAD Agency), The Landscapes for People, Food and Nature Initiative (LPFN), and The Nature Conservancy (TNC) and The Greenbelt Movement.

Nkaissery tells journalists: “You aren’t off the hook yet” (Youtube-Clip)

“Interior Cabinet Secretary Joseph Nkaissery says the three newspaper journalists who were being investigated for allegedly publishing sensitive government information are not off the hook yet. Nkaissery spoke to Citizen TV barely a week after nation Parliamentary Editor John Ngirachu was arrested” (Kenya Citizen TV)

CORD on Nkaissery’s remarks Media Freedom (Youtube-Clip)

My letter to the Minister of Interior Affairs of Kenya Hon. Joseph Nkaissery on detaining John Ngirachu

Nkaissey 121115

Dear Sir Honorable Joseph Nkaissery!

You did say this yesterday!

To the whole world you said this:

 “Listen there is way, to tell you, You cannot get AWAY with allegation. So it is up to you, if you don’t want to relieve the sources, then you’ll fry Alone! It is…It begins today, if you’re telling the truth. Don’t worry if our friend will be saved. So long as he is telling the truth. If anybody, if you understand ENGLISH, anybody, except two people; the president and his deputy; anybody will be writing statement if you make an allegation, beginning today!”

We know the man frying at that moment  is John Ngirachu; the journalist of the Daily Nation; who was at a Police Station detained by the CID, after writing a story about your Ministry, which you runs honorable Nkaissery. There was to other journalist involved in the stories and not detained yet James Mbaka of the Daily Star and Alphonce Skiundu of the Standard.

This after your Ministry had questioned by the Auditor Generals query on the usage of funds and the use of total Ksh. 3,8 billion in a single day. Honorable Nkaissery you was even questioned on this matter by the Public Accounts Committee in the Parliament.

Your life doesn’t seem easy right now Mr. Nkaissery! You are a public person right? You’re an elected official who are in charge of a government ministry and the funds that brings. Journalist are tiring people, anybody who knows the ways of Daniel Arap Moi; was teaching you this right? Or was it anybody elese?

You sure learned by this history, isn’t that right Honorable Nkaissery?

The Nation has been the subject of frequent government attacks over the past 18 months. Joseph Ngugi, a Nakuru-based correspondent, was one of the first journalists charged in October 1993 with breach of security regulations for attempting to report on political violence in Molo” (…)”Mutegi Njau, the news editor of the Daily Nation, was arrested in April 1994, along with the paper’s Eldoret correspondent, and charged with subversion. The paper had run two stories on official involvement in political violence in the Burnt Forest area of the Rift Valley” (…) “In early January 1995, two Nation reporters were summarily dismissed in circumstances which caused many observers to believe this was a result of official pressure on the company” (Article 19, 1995).

Anybody who knows English and has heard it, remember this one, right?

“Paul Amina was previously arrested in August 1987 (see UA 214/87, AI Index AFR 32/29/87, dated 11 August 1981) and detained under Kenya’s public security regulations, which provide for the indefinite detention without charge or trial of those held to be endangering public security. No reason was given for his arrest in 1987, but it is believed that he was detained because of his reporting of politically sensitive court cases” (…)”Paul Amina, freelance journalist and former prisoner of conscience, was arrested by security police at the International Press Centre in Nairobi on Friday 16 August 1991. He was taken to an unknown destination where he is believed to be held incommunicado. He has not yet been brought to court to be charged with any offence” (AFR 31/26/91, 1991).

Seems like Joseph Nkaissery has learned well, though he needed to teach John Ngirachu a lesson not to make allegations that hurts you. You’re supposed to be Teflon. Anybody should know that! You have only two persons above you and that is The President and his Deputy; therefore detaining a simple little journalist shouldn’t be an issue. You run the Interior Ministry. He only has some Secret Informants and get some leaked information at the Parliament. That bastard!  

The Auditor General shouldn’t even have questioned your for the extra high spending in one day. That is your business, not anybody else, especially not somebody who check society and if there is check and balance. The coverage damage you, therefore it is damaging all of society. Because you’re a pinnacle in society while the Journalist is just a pencil pusher who never couldn’t even have teach the kids of today ENGLISH in Eldoret. You must forgive us. We don’t know English as you honorable Nkaissery.

Honorable Nkaissery you can see from Daniel Arap Moi as your lecturer, he was that also, so you must be one of his noble student. I write this to you because detaining somebody for not giving you the sources of their story on your ministry and monies you’re in charge of. I am sure you wished Ngirachu the treatment of Mr. Njau or Amina of the 90s Kenya. Since you think that is such a proud part of the political heritage! Since you trying to copy it and wish every allegation have to write a statement proving where they got the intelligence. You must be such a noble man Honorable Nkaissery who wishes to have all of this into your ministry. Honarable Nkaissery you must be great fan of extra paperwork to shut down your enemies. And they can’t be trustworthy people if they keep their sources to themselves. They should have Informers in Parliament. That is not noble like you. Anybody would know that.

Honorable Nkaissery what is the truth? What is the honest truth about the monies and your ministry? Why would anybody like the men of the Public Account Committee ask you questions? And why didn’t they ask you directly for statements instead of getting it from informants. You who are such a noble man Nkaissery! Anybody can see that.

I don’t want to to leave you alone or fry you Honorable Nkaissery! But I want to ask how come there was spent so much shillings in your ministry in one day? And why did you detain and ask the two other journalists to be detained for the story? Anybody who has heard the story, wonder about that!

They can’t be saying stuff like they do. Anybody should know the truth. The honest truth from a honorable man like you Joseph Nkaissery! CID got a statement and detained a journalist for an article. That the journalist himself said he got the intel from the Hansard. The Hansard is public property or is there something hidden in the English language that makes them not legal for journalist to read these?

I just want to know the truth Honorable Joseph Nkaissery for why anybody like Ngirachu was detained. That is a statement I want to see and also the reason for why since you have to power over the CID with your station at the ministry honorable Nkaissery. Can you tell that to anybody? I am sure you’re the best source of it. This cannot be seen as political insensitive. It’s just rational sir. So please if you understand my ENGLISH. Please tell this to anybody, the truth in a statement, your allegations of Ngirachu and his colleagues.

John Ngirachu 121115

Sincerely yours

Writer of Minbane.

Reference:

Article 19 –‘Censorship in Kenya: Government critics face the death sentence’ (May 1995) link:   https://www.article19.org/data/files/pdfs/publications/kenya-censorship-in-kenya.pdf

Letter from 1991 – ‘Fear of Torture/Legal Concern’ (19.08.1991) – AFR 31/26/91

Endgame:

Kenya 121115

The Kenyan Saga of Journalist John Ngirachu: Minister Nkaissery’s statement to journalists (Youtube-Clip), Press Statement from the Media Council of Kenya (10.11.2015), Press release from Raila Odinga & Press Statement from the Kenyan Editors Guild (10.11.2015)

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STATEMENT BY THE KENYA EDITORS GUILD ON THE ARREST OF NATION MEDIA GROUP JOURNALIST JOHN NGIRACHU

An old proverb aptly advised human kind over the ages that, “Whom the gods wish to destroy, they first make mad.”

This evening, the Cabinet Secretary in charge of the Ministry of Interior Major General (retired) Joseph ole Nkaissery outdid himself in purported execution of the mandate of his Ministry. John Ngirachu, a Nation Media Group journalist on lawful duty in the National Assembly was arrested within the precincts of Parliament on orders of Nkaissery.

The cabinet secretary has evidently followed through his threat to target the media over a report on the Auditor General’s query on how Nkaissery Ministry spent some Ksh.3.8 Billion in a single day.

The Kenya Editors Guild and indeed the entire independent media fraternity is appalled by the arrest of Ngirachu and the bizarre demand by Nkaissery that the journalist ‘reveal the source of the story’. The query of the Auditor General on the Ksh.3.8 Billion Interior Ministry spending is a matter for which Mr. Nkaissery was questioned by the Public Accounts Committee in Parliament and effectively, Nkaissery is one of the sources of the story, and indeed a reliable one.

The demand for source of the story is therefore mere posturing by Nkaissery who has proceeded to threaten that Ngirachu will quote; “be fried if he does not reveal the sources of his story”. We are indeed disappointed with this unpolished language of an otherwise senior cabinet minister; phrases such as ‘frying’ an innocent journalist could at best find home back in 1980s when Nkaissery led an infamous military ‘security operation’ against potentially innocent villagers in West Pokot.

We have also taken note of a 4-page incoherent statement that preceded the arrest of Ngirachu. The statement is an attempt to build a case against not just the media but also a broader base of Kenyans that have dared question a wide range of issues particularly the runaway corruption in government.

The Nkaiserry statement has bizarrely suggested what it terms ‘a choreographed campaign to destroy the government’. The statement termed corruption and the media reporting of it as ‘an internationalized hysteria aimed at harming the Nation.’ Nkaissery also accuses quote “the media of castigating the government as irredeemably corrupt.” The statement then proceeds to warn that those making allegations of corruption will be held to account.

I am urging the media to publish the statement in full so that the public can appreciate the peculiar, even irrational thoughts contained in the 4-page statement.

If the statement is anything to go by, the arrest of journalist John Ngirachu is only the beginning of tougher times for the media and any other independent voices brave enough to raise questions on the corruption crisis that ails our country tonight.

We complete with an assurance, John Ngirachu will be free and back to work shortly.

Thank you.

Linus Kaikai
CHAIRMAN, KENYA EDITORS GUILD

Press release:

HARASSMENT OF JOURNALISTS 

My attention has been drawn to the arrest of Parliamentary Editor for the Nation Media Group, Mr John Ngirachu. I have also learnt of the absurd explanation by Internal Security Cabinet Secretary Mr Joseph Nkaissery that Mr Ngirachu will be released when he reveals the source of the story he wrote on the Internal Security spending.

I want to express my solidarity with the family, friends and media fraternity over this unfortunate development. I also wish to advise the government to respect the timeless tradition that journalists are duty bound to protect the sources of information they have as long as that information is of immense public interest and there was no way of obtaining it other than by relying on confidential sources. I believe that was the case in regard to security ministry spending. This is not the first time spending by internal security ministry is coming into sharp scrutiny.

I wish to assure Mr Ngirachu that I stand with him personally and the Opposition does too. I assure him that his dreams for a free and open society are valid and legal and he must pursue them without any fear of fighting a lone battle. We will do all we can to secure his freedom.

I demand that the young man be freed immediately to pursue his career. Kenya has to move forward and close the chapter of repression and opaqueness in the management of public affairs permanently. I appeal to my colleagues in government to stop entertaining the idea that Kenya can move backwards or stand still.

In the meantime, I have also instructed lawyers Senator James Orengo and Mr Paul Mwangi to immediately get in touch with the Nation Media Group and take up the young editor’s case for free and defend the rights and privileges of the media for the sake of Kenya.

The Rt. Hon Raila A. Odinga, EGH

Press Statement: New Battle Group of Uganda Soldiers arrive in Somalia to take part in Peacekeeping Mission in Somalia (08.11.2015)

ALJAZEERA Somali AMISOM

The first group of Ugandan soldiers expected to  replace their colleagues who have completed a year’s tour of duty at the African Union Mission in Somalia (AMISOM) have arrived in Somalia.

The soldiers, resplendent in their new army uniforms, jetted into Mogadishu Airport at 8:45am today, on board a Boeing 737 and were received by the Acting Uganda Contingent Commander, Col. Silvio Aguma, who also doubles as the commander of battle group 15, based in Arbiska. The new group  is headed by Col. Bob Ogik.

Col. Aguma saluted the outgoing troops for a job well done and expressed optimism that the incoming group will also excel in their duties.

“They (outgoing soldiers) did a very commendable job. They were centered around Baraawe, that is where their area of operation was and the new battle group that is coming in, battle group 17, will exactly move to Baraawe and take over the responsibility of conducting security operations, maintaining and making sure that the main supply routes remain open,” said Col. Aguma.

The officer said it was very critical that the main supply routes remain open for both AMISOM personnel and people of Somalia to enable them continue with their day-to-day duties uninterrupted.

“I do hope that the incoming battle group 17, since they are still fresh from training, are going to perform even better than the battle group rotating out,” the Acting Uganda Contingent Commander said.

In an earlier briefing to the outgoing soldiers, moments before they boarded the same plane that brought in their counterparts from Entebbe, Uganda Col. Aguma urged caution and discipline.

“It was almost a year ago when you left Singo for this very important mission. You started with step one and you have covered a thousand kilometers and today you are marking the last step. When you reach back home please maintain the discipline that has seen all of you finish this mission successfully,” Col.  Aguma said, while issuing the outgoing soldiers certificates.

Moments later, the visibly ecstatic soldiers, some waving and others flashing the thumbs up sign, in a single file marched and boarded the plane ready for a two- hour journey back home to rejoin their families.

Every battle group taking part in the peacekeeping mission serves for one year and has to rotate out once the tour of duty ends. Uganda is one of the troop contributing countries (TCCs) to the mission which seeks to rout the militant group, Al-Shabaab, in a bid to pacify and stabilize the hitherto war-torn horn of Africa country.

Other troop contributing countries are Kenya, Djibouti, Ethiopia and Burundi, all reinforcing the Somali National Army (SNA) in offensives against the Al-Shabaab.

 

Press Release: Kenya must review Double Tax Agreement with Mauritius (02.11.2015)

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(Nairobi, November 2, 2015) – Kenya is teetering on the brink of financial meltdown with the implosion of at least two private commercial banks in the last few months and signing of loophole-ridden double taxation agreements with tax havens Mauritius, United Arab Emirates and Qatar.

Tax havens are countries or states that position themselves as low tax jurisdictions allowing companies and rich individuals to hide their wealth without paying appropriate taxes where they actually make their profits or wealth. Tax Justice Network-Africa (TJN-A) in October 2014 sued the Government of Kenya (specifically the Cabinet Secretary to the Treasury, Kenya Revenue Authority and the Attorney-General) challenging the constitutionality of the Kenya/Mauritius Double Taxation Avoidance Agreement signed in Port Louis, Mauritius on May 11, 2012 and as contained in Legal Notice 59 published in the Kenya Gazette of May 23, 2014.

The Agreement significantly undermines Kenya’s ability to raise domestic revenue to underpin the country’s development by opening up loopholes for multinational companies operating in the country and super- rich individuals to shift profits abroad through Mauritius to avoid paying appropriate taxes. For example, provisions under Article 11 of the Agreement relating to interest limit Kenya’s withholding tax to 10 per cent whereas the Kenyan domestic rate currently stands at 15 per cent. This will significantly affect the tax base of the Kenya Revenue Authority (KRA). The Agreement also sharply contravenes Articles 10 and 201 of the Constitution and is inconsistent with the principles of good governance, sustainability and accountability. The Agreement is open to abuse and this could endanger the growth and development of Kenya.

Three main reliefs sought by TJN-A are: that the High Court declares the government’s failure or neglect to subject the Kenya-Mauritius Double Taxation Avoidance Agreement to ratification in line with the Treaty Making and Ratification Act 2012 as a contravention of Articles 10 (a), (c) and (d) and 201 of the Constitution of Kenya.

That the Court directs the Cabinet Secretary for Treasury to immediately withdraw Legal Notice 59 of 2014 and commence the process of ratification in conformity with the provisions of the Treaty Making and Ratification Act 2012.  And award cost of the petition with interest against the Government of Kenya. The case came up for mention at the Nairobi High Court today, November 2, 2015. The court will fix a date for hearing the case on November 9, 2015. Speaking at a press briefing earlier today, the Executive Director of TJN-A, Alvin Mosioma said “there is need for public participation in the process of ratification of double tax agreements…double tax agreements kill the competitive edge of local firms”. 2 Senator Hassan Omar of Mombasa County who also addressed the press said Kenya’s “Parliament needs to appreciate its responsibility in safeguarding the public’s interests,” adding that “the reason people steal is because there is complicity and people are aware of it”. Provisions under Article 12 of the Agreement which relates to royalties also restrict at- source withholding tax to half (10 per cent) of Kenya domestic rate of 20 per cent. This will significantly weaken Kenya’s ability to raise revenue to finance its development. Additionally provisions under Article 20 of the Agreement reserves all taxation of “other income” not dealt with in specific Articles to the residence state.

This effectively reduces withholding tax to zero per cent on services, management fees, insurance commissions among others, whereas Kenyan domestic withholding tax rate currently stands at 20 per cent. This is a major gap that will lead to massive revenue leakages. The Agreement is neither United Nations nor OECD compliant and it also fails to address the issue of disposal of shares in companies. The Agreement effectively reserves under Article 13.4 all taxation of capital gains from selling shares in companies to Mauritius where the effective Capital Gains Tax is zero per cent. Under the Agreement foreign investors in Kenya can acquire Kenyan companies through Mauritius holding companies and Kenya cannot tax any of the gains when they sell these businesses again. This is open to abuse. Similarly, domestic Kenyan investors can dodge Kenyan taxes by round-tripping their investments illicitly through Mauritian shell companies. Kenyan companies can also easily avoid Kenyan taxes in dividends paid to foreign investors through devices like share buy-backs therefore deny the government of development funds.

The provision is very similar to the Capital Gains Tax Article in the India-Mauritius treaty which has proved very controversial costing India an estimated US$600 million a year in revenues as a result of tax avoidance and illicit round-tripping by Indian business executives driving the Government of India to initiate steps to renegotiate its agreement with Mauritius. Under the definition of ‘bilateral treaty’ in Section 2 of the Treaty Making and Ratification Act an ‘agreement’ such as the one between Kenya and Mauritius and which is the subject matter of this legal case, is a treaty subject to the Act and therefore requires that the Cabinet Secretary to the Treasury in consultation with the Attorney General, submit to the Cabinet the treaty, together with a memorandum outlining, inter alia – 1. Policy and legislative considerations, 2. Financial implications 3. Implications on matters relating to counties, 4. The views of the public on the ratification of the treaty.

Mauritius presently has tax treaties with 13 African countries namely Botswana, Lesotho, Madagascar, Mozambique, Namibia, Rwanda, Senegal, Seychelles, Swaziland, South Africa, Tunisia, Uganda and Zimbabwe. Apart from Kenya, Mauritius also has signed Double Taxation Agreements with Congo, Zambia and Nigeria. Currently Mauritius is negotiating DTAs with Algeria, Burkina Faso, Egypt, Gabon, Ghana, Malawi and Tanzania. Unlike Mauritius’ DTA with Uganda and Nigeria, for example, which have specific provisions for withholding tax for management/technical services fees, Kenya failed to negotiate any such provisions. 

In a related development, the Government of Kenya has signed an equally harmful Double Tax Agreement with United Arab Emirates and Qatar – both of which are tax havens – in which Kenya further deems its right to tax as unnecessary in a bid to attract investment from these two countries. These agreements will deepen Kenya’s current cash crunch by allowing the further erosion of the country’s tax base. – END.

ABOUT TJN-A: Tax Justice Network-Africa (TJN-A) is a Pan-African initiative and a member of the Global Alliance for Tax Justice. It is a network of 29 members in 16 African countries. TJN-A collaborates closely with these member organisations in tax justice 3 advocacy at the national and regional levels. TJN-A seeks to promote socially just and progressive taxation systems in Africa, advocating for pro-poor tax policies and the strengthening of tax systems to promote domestic resource mobilisation. TJN-A aims to challenge harmful tax policies and practices that favour the wealthy and aggravate and perpetuate inequality. For further enquiries, please email Kwesi Obeng at kobeng@taxjusticeafrica.net (+254 726 804 400) and/or Michelle Mbuthia at mmbuthia@taxjusticeafrica.net (+254 724 994 796).

NRM Primaries – Losers of this rigged elections plans to go independent!

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Well, the spokesman of the party is strongly saying the party will be more united now then ever after this Internal Election. Surely when they all or so many has rigged themselves there. Surely they can all discuss the value of pre-ticket ballots and stuffed ballot boxes in the polling stations. That must be something that is discussed in the four day conference at Kololo right?

Just think of Opondo are talking to Odoi: “How can we do it even better in the 2016? The media and this social media people have spread our malfunctions to the world and this moles are tearing us apart! We got to do something!”

Well, that is made up, but you get the point right, and what worth has it to have politicians when none of them lives by the old saying: “Taxation without representation”. But now, do yourself a favor an take a look at this wonderful masterpiece called the aftermath of the NRM Primaries and some of the reports I have gotten today!

Ofwono Opondo said today: “NRM is going to be more united then ever”.

Abletong:

“Owino has said Wednesday’s NRM primary elections were marred by massive vote rigging and intimidation orchestrated by armed forces. Mr Owino, who described the deployment of armed forces as “nonsense,” alleged that the army engaged in intimidating people, especially supporters of Ms Otengo’s rival, Mr Samuel Okwir” (…)“When time came for collecting polling materials and results, the police and the soldiers did not allow us to go to the polling stations. Soldiers were using the vehicles belonging to the District Internal Security Officer, OC station and that of the town council,” Mr Owino told Daily Monitor” (…)”The district party registrar, Mr Isaac Odyang, said the election was free and fair though he acknowledged there were few soldiers and police deployed about 100 metres from the tallying centre” (Oketech, 2015).

Amudat:

Reports from the area is that NRM members has burned the cards in the area up to a thousand member cards been put into the fire. A NRM member in the area said this: “There was no free and fair election in Amudat. What was in Amudat was National Rigging Movement,”

Arua:
“I take the opportunity to thank friends, relatives, family, supporters and the entire Arua community for standing firm with me during NRM Primaries. Though we didn’t make it, we thank God for taking as through the exercise. Not all hope is lost and I still remain hopeful for 2021. I congratulate Hon Abiriga Ibrahim for making it” (Brian Godfrey Obiga).

Buduma South:

Hon. Oboth Oboth is planning court actions after the conduct of the primaries in the district, which he lost. He claims that it was extensive rigging.

Buduma North:

Hon. Fox Odoi alleged rigged for one of the candidates and one of the contestants of the petition has already had it dismissed.

Bujenje County:

Princess Kabakumba Masiko lost her place rumored that she will now join Go-Forward.

Bufumbira East – Kisoro District:

Eddie Kwizera who lost to James Nsaba Buturo, he plans to either join the FDC or Go-Forward.

Kabale:

Fred Ruhakana said this: “I have today quit the NRM. The Primaries were highly rigged in favor of the incumbent”.

Kanugu:

“Those who lost in recent NRM elections have rejected results that were announced on one of the radio stations in Kanungu district saying that announcement was unfound. Those who are against the recent release include James Kaberuka, Ahimbisibwe Gad Rugaju,Josephine Kasya, Muhumuza Frugency and Elizabeth Karungi. They claim that there was no transparency in tallying process, tallying of votes in Kinkiizi west was not done and selective harassment of agents by police”

“Brothers and sisters, lam petitioning NRM EC to repeat the exercise of holding NRM party primaries in Kyaddondo South. If not, l am declaring that l will stand on an independent ticket” (Ahmed Musaazi, 2015).

Katakwi District:

Jessica Alupo (Now Minister of Education and Sports) who lost her place in the Primaries are going to run as an independent this coming election.

Kibaale:

“Police fired tear gas at National Resistance Movement party supporters in Kisiita sub-county, Kibaale district who were protesting results of the recent primaries” (Tumusiime, 2015).

Kitgum:

An aspirant for Kitgum Woman MP NRM flag bearer, Ms Jane Achiro Opio, has said she will petition the party’s electoral commission, calling for fresh elections after her name was not printed as number one on the ballot paper as she had guided her supporters” (…)”Ms Achiro castigated the district NRM officials for allowing the elections to continue despite realising that Ms Achan’s name had been erroneously entered on the ballots for Kitgum Woman MP election” (…)”“I had told all my voters to tick the first aspirant on the ballot paper because all the names of aspirants are arranged in alphabetical order,” she said.

Ms Margret Lamwaka was declared the NRM flag bearer with 20,200 votes” (Okot & Komakeach, 2015).

Lira:

Omara Odung the Mayor of the town lost in the Primaries to his now councilor. Mawa says: “votes from tally center of railway where he comes from not counted”. The now former mayor says now he will go into the polls in 2016 as an independent.

Mbarara: Mayor Aspirant of Etaara!

“That is the first promise that Mugabe Robert Kakyebezi made to the town dwellers, once elected the next mayor of the soon to become city; that he would restore the largely defunct street lights” (…)”Kacebezi took advantage of the slanderous language of the incumbent Wilson Tumwiine which turned a lot of support away from him” (…)”He also ridiculed some of his contenders saying that they owned no single building in the town and thus were not fit to be elected mayor” (UGBlizz, 2015).

One of the ones who lost in Mbarara Municipality Dr. Medard Bitekyerezo who describes himself: “There will be no end to the troubles of states, or of humanity itself, till philosophers become kings in this world, or till those we now call kings and rulers really and truly become philosophers”. He says that after losing he will run as an independent.

Mbale Muncipality:

Umar Nangoli lost to John Weekesa Wabongo, who now threatens to join Go-Forward if justice doesn’t prevail.  

Mukono South:

Rev. Peter Bakaluba Mukasa lost and is saying that he will go independent.

Nambole:

“Money-Man, Tycoon, Kingmaker Hajji Hassan Basajabalaba has lost the NRM National Entrepreneurs League Chair to Rukaari. He will no longer sit on the NRM’s prized top decision making organ the CEC. He was defeated with a margin of 53 votes after he polled 230 as his ‘tormentor, Rukaari polled 283 votes”.

Rwampara Country:

Vincent Kyamadidi has claimed that there was no place to tick him off on the ballot-papers and as a result of this he will go as independent candidate in the district this coming election.

Okoro County – Zombo District:

Stanley Omwonya rigged the elections so diligently that out of the four sub-counties, he only won the one which is his home and he still won the election for the new constituency that was made and called Oraa out of Okoro.

Tororo West:

Sarah Opendi will run as independent.

Journalist shot during the Primaires:

“Enoch Matovu, a correspondent for a local television, NTV, in Mityana District was reportedly shot on the head while covering an incident of vote rigging during the NRM party elections at Bulera police station in Mityana district. He sustained a bullet injury on his head” (…)”Matovu told HRNJ-Uganda that he was covering the incident and never saw who shot at him in the scuffle, “I saw the local people opening the car and removing the ballot papers which they scattered around the police station, and that’s when I stopped understanding. I later discovered that I was admitted in Mityana Hospital.” Matovu narrated. Two unidentified men have so far been arrested and detained at Mityana police station, according to police” (…)”The scuffle ensued when an unidentified man turned up at a polling station near the police with ballot papers and could not ably explain where he got them. The local people became hostile and wanted to lynch him but he managed to escape and hid inside the police station. His car was broken into and the ballot papers scattered by the angry locals. Matovu is still undergoing treatment” (HRNJ-Uganda, 2015).

The President speaks a NRM Conference in Kololo Grounds in Kampala:

“NRM always follows the truth. All the problems we have had in the party primaries is because people are not following those principles. That is why you find people hiding ballot papers to vote more than once.That is why some people interfere with the register” (…)””Why should people steal votes when you are there. You should not allow it. Why should you beat a fellow Ugandan?” (…)”The NRM secretariat died when it was under my young brother Mbabazi.   The NRM garden had grown weeds” (…)”A member of NRM can ask, what will I benefit? Then you tell him what about peace, free education for the children, roads? And he says even FDC members benefit in that. UPC used to give their leaders sugar and left out others and that is why they are no longer in power” (Mulondo, 2015).

Sideline story: 

The Same day one of the men behind the book called ’99 Reasons why Museveni Must Go’ who released the book on Friday (30.10.2015) at the American Embassy was shortly after that detained by the police. The man I am speaking of was the gentleman of Muhamed Ssegirinya.

I know I have read and written so much on this NRM Primaries, that is because its sadly very entertaining and also the issues continues to pile up together with massive reports. Now we are getting a sour loser who knows that these elections are rigging parties, pre-ticket ballots or written wrong on the ballot-papers. The tale of the NRM Primaries of 2015 is in the name of Kenyan Ballot-Papers.

If they are more united after this then there more united in the way of rigging themselves into power and not giving in to the people, and letting the people find the ones they want to represent themselves. So with the NRM-Regime they will continue to live in the sense of Anti Taxation-with-representation, because that is something Museveni fears with a passion it seems. Peace.

Reference:

HRNJ-Uganda – ‘Journalist shot at, another arrested by police and assaulted while covering NRM party elections’ (29.10.2015) link: https://hrnjuganda.org/2015/10/29/journalist-shot-at-another-arrested-by-police-and-assaulted-while-covering-nrm-party-elections/?utm_source=HRNJ-U+ALERTS&utm_campaign=d55bcb9928-NTV_JOURNALIST_SHOT10_29_2015&utm_medium=email&utm_term=0_ff0af7ac98-d55bcb9928-131087245

Oketech, Bill – ‘Security intimidated voters – NRM boss’ (30.10.2015) link: http://www.monitor.co.ug/News/National/Security-intimidated-voters–NRM-boss/-/688334/2934790/-/g1kahf/-/index.html

Okot, Johan & Komakeach, Dan Michael – ‘Kitgum NRM aspirant calls for fresh election’ (31.10.2015) link: http://www.monitor.co.ug/News/National/Kitgum-NRM-aspirant-calls-for-fresh-election/-/688334/2936162/-/gwnmvvz/-/index.html

Mulondo, Moses – ‘Museveni condemns malpractices in NRM primaries’ (30.10.2015) link: http://www.elections.co.ug/new-vision/election/1407488/museveni-condemns-malpractice-nrm-primaries

Tumusiime, Alex – ‘Chaos As Kibaale NRM Results Are Announced’ (31.10.2015) link: http://ugandaradionetwork.com/story/chaos-as-kibaale-nrm-results-are-announced?utm_medium=twitter&utm_source=twitterfeed

UGBlizz – ‘Elected Flag bearer Kakyebezi Robert to Light Up Mbarara Town’ (31.10.2015) Link: http://www.ugblizz.com/article.php?article=800&title=elected-flag-bearer-kakyebezi-robert-to-light-up-mbarara-town-blizz-uganda#sthash.0qFw0Owg.dpuf