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Two Problems with SGR: First the Cost of Phase 1 and President Kenyatta cowardly blocking of Gov. Joho!

President Uhuru Kenyatta is a coward for not letting the Governor of Mombasa County, the Orange Democratic Movement leader Hassan Ali Joho attend the launch today of the Freight Train at the Port Reitz Station in Mombasa. It seems the Jubilee Party cannot handle opposition and has to freeze them out. Even as the launch of the SGR was happening, the Police escorted him away.

Maybe because the Chinese wrote this about the Kenyan Railway:

Kiraithe added that the government, through the ministries of finance, transport and environment, hasbeen heavily involved in accelerating the completion of the SGR built by the China Road and Bridge Corporation.“But the infrastructure is for Kenyans and has been achieved to improve our living standards,” Kiraithe said. In 2013, President Xi Jinping and his Kenyan counterpart, Kenyatta, witnessed the signing of the memorandum of understanding on financing the Mombasa-Nairobi SGR. The Export Import Bank of China financed 80 percent of the project” (Morangi, 2017).

“I was among a group of people who wrote a letter to the president [Uhuru Kenyatta], specifically with regards to the value for money proposition,” political analyst Tom Mboya told RFI on Tuesday. At a staggering cost of nearly four billion euros–almost entirely funded by China’s Export Import bank– just for the first phase linking the capital Nairobi to the port city Mombasa, there is reason to be concerned, reckons economist Aly-Khan Satchu” (Okello, 2017).

The Presidency statement on it:

President Kenyatta, who was flanked by Deputy President William Ruto and First Lady Margaret Kenyatta, said every Kenyan should be proud of the Standard Gauge Railway. “I call upon all Kenyans whatever their political beliefs to celebrate, today we should be together holding hands in celebrations,” said the President moments after the cargo train pulled alongside the Presidential Dias waiting for the flag off. It was song and dance as choirs played patriotic songs apt for the moment. “This is the Kenya we seek and this is the Kenya we want our children to inherit from us and their children to inherit from them,” said President Kenyatta amid applause, cheers and ululation. President Kenyatta said the SGR will make the port of Mombasa more efficient and will enhance the performance of the facility where the Jubilee Government has invested more than Sh60 billion in the last four years” (Presidency, 2017).

By the Statement made by the Presidency yesterday means that the Government spent: 60bn times 4 Shs. 240bn on the Standard Gauge Railway. Still, the East African reported differently earlier in the month: “So far, Sh327 billion has been spent on the first phase of the railway between Mombasa and Nairobi and Sh150 billion on the Nairobi-Naivasha section. With a national population of about 46 million, every Kenyan is set to owe China Sh18,413 in SGR debt once the deal is sealed” (…) “The SGR has been President Kenyatta’s pet project since he came to power” (Mutambo & Omondi, 2017). So if this is true, than the Presidency are dropping different numbers than the papers. Clearly the government trying to look more efficient, than what they are in reality. This should worry since most of the building of the SGR are based on development loans from the Exim Bank.

Is this why the words of and address to this from Joho is so striking:

In the light of this, we hereby demand that

1. That the government release the terms of the contract with the Chinese Exim Bank, the details of disbursement and attendant relavant information

2. The Government of Kenya release all details of the Take or Pay contract between KPA and the financiers? What is the goods threshold and the responsibility of collection of the these fees.

3. Due to conflicting reports, the government clarify in details all charges related to goods and their destinations.

4. The government clarify the method of nomination of goods for rail and the point and implementation of charges.

5. The government clarify the extinction date of the Railway Development Levy on goods and come clean on the amounts collected since.

6. The government release the terms of the port concession, all monies paid and the details of the contract

7. The the Government clarify the details of site selection of Naivasha as a dry port. The feasibility study and the project appraisal report.

8. That the government release the “Willingness to Pay” survey of the goods for meant for railway and the feasibility report of the proposed Naivasha Special Economic Zone.

9. And that the Jubilee government show us their plan for Mombasa” (Hon. Ali Hassan Joho, 31.05.2017).

By all means the Governor of Mombasa wants to know the realities of the SGR, but that is something every single Kenyan deserves as this is the pet-project of Kenyatta. Kenyatta might be proud of Phase 1, but can the government carry the price of the trains and lines. Or is this is a stunt for development?

That the Governor was blocked from the Train Station that is opened in his county, as he was blocked from the relaunch of the ferries in March 2017. Shows that the Jubilee cannot handle opposition or their eyes on their projects. They are so initiated to represent the whole community, that if the community and citizens elects opposition. Than they are not allowed to enter public displays and their launching of projects. This has now been proven twice. That the Jubilee cannot handle NASA leadership or ODM party leaders. If they could than they would have entertained and made it possible for Governor Joho to be at the state functions as he is the local elected leadership of Mombasa county. Is that hard for the President and his deputy?

But the President and his Team is cowards who cannot even have the local government leadership at the launch of SGR at the Port Reitz Station. Peace.

Reference:

Morangi, Lucie – ‘ Chinese-built SGR to improve Kenya’s global standing’ (30.05.2017) link:http://www.chinadaily.com.cn/world/2017-05/30/content_29548836.htm

Mutambo, Aggrey & Omondi, George – ‘Uhuru seeks Sh370bn more to extend railway to Kisumu’ (16.05.2017) link: http://mobile.nation.co.ke/news/Kenya-requests-for-Sh370bn-for-SGR-third-phase/1950946-3928546-15jp48i/index.html

Okello, Christina – ‘Kenya’s ambitious new railway raises cost concerns’ (31.05.2017) link: http://en.rfi.fr/africa/20170530-kenya-4bn-railway-opens-amid-controversy-kenyatta-china

Presidency – ‘New dawn for Kenya as Standard Gauge Railway rolls out services’ (30.05.2017) link: http://www.president.go.ke/2017/05/30/new-dawn-for-kenya-as-standard-gauge-railway-rolls-out-services/

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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 31st 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 31st August, 2017 Dated the 11th May 2017” (The Kenya Gazette, Vol. CXIX – No. 62, Nairobi, 12th 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 31st 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: EACC investigation into Gov. Hassan Joho and Tom Mboya Primary School verifying his education!

Answer from the School to EACC:

 

Opinion: Everybody hates Governor Joho!

The Presidency and Regime under Uhuru Kenyatta and Deputy President William Ruto, must have some grand issues with Mombasa and Coast Region as they every week for the last month has attacked with all sorts of tricks against the Orange Democratic Movement (ODM) Deputy and Governor Hassan Ali Joho. That the Jubilee Alliance Party (JAP) and their cooperative measures to marginalize the opposition figure isn’t really working.

They have detained the man for wanting to see the first relaunch of the ferries as the Jubilee held rallies in his back yard as far back as the 13th March 2017. They have since then blamed his government for lacking accountability and transparency, like the Central Government haven’t had enough issues with corruption scandals.

So President Kenyatta should be cautious attacking fellow peers in midst of re-election rallies, but it isn’t like he cares. Since he feels like he is Teflon and cannot be touch. When they attack his educational background, as they have attacked him before his accountability as a Governor. Therefore, all we see is steady attacks on the character of Joho.

Also said he was meddling with drug-dealers and importers, as they we’re having drug cartels, like the sugar cartels supporting Jubilee and Kenyatta. But hey, not that anyone really looks into the donor funding to the Jubilee from the Sugar and Coffee Cartels to the Kenyatta government. Still, all problems of crime in Mombasa County is Joho’s fault. As the corruption of the Ports is Joho’s fault, not that this has been issue since the independence. That even Jomo Kenyatta was working against the corruption on the Ports of Mombasa, even President Daniel Arap Moi we’re complaining when needed about the graft at Mombasa.

So after decades upon end with independence and second generation Kenyatta, the problems are still there. If they seriously wanted it to change, than John Githongo would still have a job and not been kicked-out the door by former President Mwai Kibaki! But that is a story the ruling regime doesn’t want to eat, still they easily eats of state coffers and thinks side-stories of undressing leaders of opposition makes the world and Kenyan citizens forget that.

I am sure Cabinet Secretary for Interior Joseph Nkaissery is trying to find the next charge he can put on the ODM Governor, as he has tried to revoke his guns and take away his security guards. So, there aren’t that many tricks left in the basket of peddling nonsense into the public sphere. They have used all sorts of demagoguery and misused their place as key leadership. Instead of being noble and show character, they have gone straight for the heart and attacked the character instead of the polices.

So the Jubilee has misused their opportunity to gain and show that they are better than Governor Joho, they have lost on public display, they have used the Kenya Revenue Authority (KRA) looking into his tax-record, Kenya National Examination Council (KNEC) looking into his educational history and also the added accountability, where the leadership of Jubilee claimed his county got 40bn shillings instead of the 16 billions shillings Joho claims the Mombasa County received from the Central Government.

The Jubilee under Kenyatta and Ruto have used all tools and tried to destroy the legitimacy of the leadership of Joho. Just like they fear him more than Raila Odinga, Stephen Kalonzo Musyoka or Musalia Mudavadi. Since they are all walking around like kings, while all of business of Joho is on the front pages.

That the state and their top leadership continues to pound on Joho, shows how little character themselves have, that they have to go after a governor when themselves going into National Elections. That they are going after a local politician, when they should go against the faces who could be Presidential Candidates. Since they are not touching the NASA/CORD leadership, instead they pick Joho as prey, but instead of clearing the flesh of the bones. They are instead creating their own wounds. Peace.

Kenya: Re: Clarification on Disbursements to the County Government of Mombasa (13.03.2017)

Opinion: Ruto and Kenyatta should have hiked on the Ferry from Mtongwe; They we’re lost at sea throwing shade at Joho in his backyard!

“Governor Joho and Governor Kingi are all about talk and no action. They have offered nothing new. They have nothing to show for all the money they have been given to invest on your behalf. Only talk”Uhuru Kenyatta (GoK, 2017).

“It is a sad thing to have leaders who don’t understand…don’t play with me….Mombasa is for everyone,” (…) “Why follow me? Why should we follow each other? I am not his wife,” (…) “Clean the city. Do your job, don’t follow us. If he plays with us we will flog him” – Uhuru Kenyatta (Otieno, 2017).

Well, today the Jubilee Alliance Party leadership and the ruling regime with President Uhuru Kenyatta and Deputy President William Ruto had a rally in Mtongwe Ferry Launch. There also Orange Democratic Movement leader and Mombasa Governor Hassan Ali Joho. This was not accepted as they even had to attack him at the rally. This seem like the tactic from the Jubilee this go around. In Turkana County the Jubilee leaders personally attacked Josephat Nanok.

Now, they are trying to attack Honourable Governor Joho by all means was the key figure and the one they had prepared to make like fool. They even used his willingness to pop-by the rallies in his backyard. This is for now and has been his stronghold. This is the man who was elected with a grand majority in 2013 and the Jubilee wants to unsettle his position. That has been in the works for months as CS Joseph Nkaissery have tried to take his gun, bodyguards and detaining him because they could on the last go around.

Governor Joho has been in the spotlight in the same reasons as Lord Mayor Erias Lukwago in Kampala; he is an opposition leader in a big and important county. Lukwago is the elected leadership of Kampala; the same is Joho of Mombasa County. It seems like what the National Resistance Movement (NRM) does to Lukwago, the same is the Jubilee doing to Joho. It is like machoism without anything to win for the ruling regime.

That Kenyatta and Ruto need to show strength and leadership, that is natural as they want to be looked as saviours and statesmen. Still, the acts of Kenyatta in Turkana and now in Mombasa are differing for the vision or wished perception any civil leader wants. That Jubilee has the upper-hand before this election. However, these sort of attempts to benign them, instead they belittle themselves and their own achievements.

Kenyatta and Ruto, should be grown men who could show of their own achievements, Jubilee has nearly ended their first term. Therefore, they should have enough facts to not bend into fiction. Where the Jubilee government claims that none of the governors in the counties they are visiting is delivering. Still, the government themselves has grand corruption and big scandals in their years in office.

So it not like Jubilee government have delivered the policies or the service delivery they promised in office. Kenyatta and Ruto should have offered a token of goodwill to the governors in Turkana and in Mombasa; instead they act like big-men who stand above them. They are right now higher in the hierarchy, but still they should be able to cross political affiliation. That is something that is hard for the President and his Deputy. They are in the backyards of Nanok and Joho, but there they had to act with vile attempt glory. Instead of showing grace and being statesmen, that is too far and too much to wish for.

If they cannot show grace and some tact, what is to expect of the rest of months ahead, the Turkana and Mombasa rallies proves the reality of their visions of themselves. Where they are acting as they are above Joho and as previous rally above Nanok. Certainly this is not the impression the ruling regime wanted to give. Peace.

Reference:

GoK – ‘President raps Coast ODM governors as “all talk and no action” as he wraps tour’ (13.03.2017) link: http://www.president.go.ke/2017/03/13/president-raps-up-coast-odm-governors-as-all-talk-and-no-action-as-he-wraps-tour/

Otieno, Brian – ‘[AUDIO] Stop following me like I’m your wife, Uhuru tells Joho at Mtongwe ferry launch’ (13.03.2017) link: http://www.the-star.co.ke/news/2017/03/13/audio-stop-following-me-like-im-your-wife-uhuru-tells-joho-at-mtongwe_c1523952

Full version: Joho blocked from attending President’s event (Youtube-Clip)

By blocking Joho Uhuru only made him King – Manyora (Youtube-Clip)

Kenya: Recuitment and Deployment of National Police Reservists (01.03.2017)

kenya-police-01-03-2017

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