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A few facts on Kibakinomics PDF Print E-mail
Written by Faisal Aideed   
Monday, 10 December 2007

For a long time now, it seems that a section of the national media and the public have been sold the view that Kibaki has performed a sort of economic miracle for the country.

Acres of uncritical journalistic articles have been written in support of this claimed economic prowess of Kibaki administration. The subsequent ‘manufactured consent' has since been the primary electoral resource for the hobbling PNU campaign. 

Given the reluctance of the media to critically question these claims it has become incumbent upon us to enlighten the general public of the half truths and outright dishonesty bundled into these claims about Kibaki's alleged economic managerial skills. 

Facts not Acknowledged by PNU 

·        An economic recovery cannot be realized in a policy and implementation strategy vacuum. That the realized economic turn-around was based on the Economic Recovery Strategy (ERS) is a simple fact that PNU likes to sweep under the carpet as such honesty will inevitably acknowledge the stewardship of Prof. Anyang in the process and hence dilute their propaganda about President Kibaki's proverbial economic prowess. The Kibaki administration has not undertaken any major policy review or change of fundamentals of the ERS since the resignation of ODM luminaries from the NARC government. Hence, to claim that Kibaki and thus PNU is the sole progenitor the economic turn around, despite relying on policy framework developed under NARC leadership is pure dishonesty.

·        Since the parting of ways of the key NARC leaders, the Kibaki administration has not effectively implemented the core pillars of the ERS specifically on governance and security. As we know, the PNU membership dragged the country in a protracted constitutional review process that was a mockery of the ambitious aims of NARC, among which was to give the country a suitable constitution. The protracted and ill-fated constitutional crisis had effectively denied the 9th parliament an opportunity to undertake the required reforms in governance, rule of law and security hence in effect arresting the potential benefit that would accruing from the fiscal side of the ERS.

·        Kenya's economic turn around is not without a regional economic context. Despite other contributory factors such as the ERS, the import of regional economic health into our own national performance cannot be wished away. Africa as a whole and sub-Sahara in particular has experienced an economic upturn in the last five years irrespective of their varying policy context. Uganda and Tanzania have consistently out-performed Kenya in terms of economic growth for the past decade. Hence portraying Kibaki's administration as miracle workers as far as the economic recovery is concerned is to pull facts from the air.

·        There has not been any thorough cost-effective analysis of the massive national resource wastage through mega-corruption such as the notorious Anglo-Leasing and other unreported Anglo-Leasing like scams. An absence of such critical analysis is lending itself to the slavish acceptance of Kibaki's purported economic management strength.

·        The majority of NARC's manifestorial promises to the country have not been achieved despite the existence of adequate policy framework and the general economic vibrancy. Employment is still chronically high, there is widespread insecurity, poverty is even more widespread and corruption is endemic. Political harassment of dissent political view reminiscent of Moi's era continued to be a cornerstone of Kibaki administration as was publicly demonstrated by attacks on Media Houses and the misuse of public resources and officials in the current campaign. 

To say that the economy is in better shape than it was during the post-NARC era is factually correct but to claim the said recovery as a result of the efforts of Kibaki is not only dishonest but contemptuous of the intelligence of the public. The sad and final twist of this whole propaganda effort is that media houses that have hitherto experienced the negative elements of President Kibaki's political arsenal are colluding in the entrenchment and perpetuation of this lie.

We challenge the Media to show proof of any significant difference between the Moi and Kibaki government's economic policies. If they can interrupt their resolve to support the PNU and Kibaki, the media should come out and tell us where Moi and Kibaki differ, whether in style or on the substantive issues. 

They should tell us what has changed, as it is quite clear Kenyans are yearning for change.


Faisal Aideed
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written by JAYB , December 10, 2007
I think this analysis is what is one sided. First a government that Anyang Nyong was working for is the Kibaki government. Policy needs not change eevry day and that is the difference between the fact that he is implementing it unlike just wririting it. It is widely acknowledged that a lot of the policies on paper Kenya has had now and in the past were damn good and the failure came with implementation. To not aknowledge Vision 2030 is also a one sided arguement by you.

As for corruption we are know that neither Kibaki nor Raila is going to change the past. The only thing we can do is make institutions stronger to stop more corruption. As for Anglo-Leasing, please read and see when this happened. The only thing that happened is that the payments were due when Kibaki came on board and hence the discussions aboy payments. Let's not talk as if we are blind.

Having said that the growth in the economy should have stalled when the Narc guys left and that hasn't happened. There are still countries in Africa whose growth is not impressive despite your view that all are growing.

Kenya needs to implement the policies not talk! talk! and talk! and write policies. This is the problem. Look at the masterpaln for Nairobi done in 1975. Nairobi is where is it because no one implemented.
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Well done, oh critic
written by aeichener , December 11, 2007
It is refreshing to see that editorial policy has deemed - in its unfathomable wisdom, abysses of knowledge measureless to man - that KenyaImagine might have appeared a bit too pro-Kibaki in the last weeks or months. And thus a studious effort was commissioned to infuse some flair of dissent.

Good job, editors. The article by one "Faisal Aideed" (name chosen fittingly for content) gives some counter-balance and is well-written.

Alexander
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written by Dee , December 11, 2007
Faisal Aideed, well written, thoroughly researched & highly intellectual article.
It is refreshing to have a "clear-minded" counter balanced article.
I do hope all arguments pro or against will proceed in the same light.
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written by aeichener , December 11, 2007
Careful with your English grammar, Dee. Active is not the same as passive in the language.

The Kibaki government has never embraced corruption.
But it has been embraced by corruption, and has gladly suffered the touch.

Alexander
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written by Faisal , December 11, 2007
One correction regarding who is support to implement government policies. The view that a Minister designs policy (writes as one of the respondent put it) and the president implements is seriously erroneous.

A president and his/her cabinet and civil service constitutes what is collectively referred to as the EXECUTIVE arm of the government and as the name alludes, are normally changed with the execution of government business.

Secondly, non-implementation of policy/plan is a collective blame for seating government (i.e. the executive) and not limited to a single member of the administration. Hence non-implementation of policy/plans during Moi's tenure was a failure not of Moi alone but all the members of his government including his once longest serving vice president one Mwai Kibaki.

Thirdly, I have absolutely no any relation with the website owner and my views are mine and mine alone.
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written by Dee , December 11, 2007
Thank you for the corections Faisal. Positive criticism is welcome & a learning process in itself.
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Dr
written by Abdirahman Zeila , December 11, 2007
Thank you, Faisal, for the excellent article critiquing the 'development record' of Kibaki, as touted by his lieutenants.

As a person living in Nairobi, I have always wondered why I am not seeing any of this 'development'. The roads, for instance, have never been this pathetic, they are so rundown that I can hardly beleive it whenever some mandarin opens his mouth and says "Our Roads Budget is three times the previous Moi-era Budget"! You need to have nerves of steel to persevere what your ears hear from State officials.

Anyway, the World Bank actually puts paid to the big lie of plus 6% economic growth: it actually is 2.9%, according to the WB. And between the WB and Kimunya, I know whom to lay my bet on...

Cheers
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written by Dee , December 11, 2007
And on that note.

JAYB says Anyang Nyongo worked for the Kibaki government yet this is exactly what the writer is bringing out that credit should not go to PNU or Kibaki solely. It is Nyongo's prowess that the writer highlights as the main reason for the economic growth, you are only further re-emphasizing it. The reason according to the writer for the economy not lapsing after the exit of ODM from the NARC government as you say is;
The Kibaki administration has not undertaken any major policy review or change of fundamentals of the ERS since the resignation of ODM luminaries from the NARC government. Hence, to claim that Kibaki and thus PNU is the sole progenitor the economic turn around, despite relying on policy framework developed under NARC leadership is pure dishonesty.


Your second point of argument is Kibaki implements, while the likes of Anyang Nyongo while in NARC only wrote these policies. Yes you are right, the presidents job is to implement the policies written by those in his cabinet for development purposes. Your argument can only hold when comparing the works of siting, previous & future presidents, KEY WORD..PRESIDENTS,
as that is their jurisdiction, TO IMPLEMENT. When you say the Nairobi masterplan of 1975 has not been implemented that is entirely the fault of the then president & not even president Kibaki can be held accountable for that, even though his ministry was key in development then, can we blame Kibaki for the policies not implemented in the Moi government simply because his written policies were not implemented? And should they have been implemented then the credit due would go to all stake holders involved. The same applies for the NARC government.
PNU & Kibaki SHOULD NOT take credit for economic development & other developments that were achieved due to the NARC policy framework.
The second issue is the vision 2030. It should be noted that vision 2030, is an independent economic plan for the country & regardless of who takes over power it will proceed. It is not a PNU agenda, but involves all economic shareholders, industries, manufacturers, producers, the consumer. The opposition is also involved i.e. it is a national programme for development that has been hijacked by PNU, that should not be confused at all.

Finally, corruption can be done away by political will & not by stronger institutions. A point in example is Nigeria, yes it is one of the most corrupt states in existence yet the institutions in place that have the similar structures as our KACC, but with less constitutional power, are combating corruption far much better than Kenya has done.
Fighting corruption is all about
1, POLITICAL WILL & working institutions. unfortunately, the Kibaki government has simply embraced corruption instead of choking it to death.
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re: Selective Development
written by aeichener , December 11, 2007

I have farms in Kitale (Kenya's maize granary) yet every time we go to harvest, we encounter the same problems of bad roads.


As to Kitale, it would seem to me that the main problem are not so much bad roads, but rather that the important agricultural railway branch line is no longer operated.

Alexander
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Selective Development
written by New Day , December 11, 2007
SELECTIVE DEVELOPMENT: Let us face it, some areas of Kenya such as Nyanza and Western have seen not one byte of Kibaki's 'development', why simply because they have been neglected. I have farms in Kitale (Kenya's maize granary) yet every time we go to harvest, we encounter the same problems of bad roads. Its the same thing for other agricultural sectors except coffee farmers who have been given a lot of assistance (ask yourselves why). These despite having presented appeals to the Ministry of Roads through District Authorities. Nothing much has changed really. Now, Kibaki just recently reopened RIVATEX after all these five years, why did it take so long, or was this a campaign trick?
POOR RECORD: I would like to take issue with Kibaki when he says in his campaigns,'Kazi hii nimeanza, sasa nipatie miaka tano niimalize' What is this? Did the guy not know that elections are held after 5 years, and he needs to draft a 5 year plan and implement it to conclusion then we can judge him on that score? If he has just now started his work then he has failed because we need to see his 5 year plan from 2002 and what he has been able to achieve, then we can decide if he fits the job.
TRIBALISM: Enough said on this issue already. Poor tracking of the nation's mood and perception evolution by Kibaki's government has contributed to these daring acts of tribalism in employment, security, development, and national pride. No philosophies, no official leadership, schemes to enhance unity, nothing. In fact, cronies have infiltrated to perpetuate ethnic fragmentation.

However, all is not lost, we are still better off that Somalia. (Please not I am not raising these in comparison to ODM or any other parties).
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New day?
written by Stephen Wainaina , December 11, 2007
Here is a link to an article in the East African Standard on Kipipiri, Finance Minister Kimunya's constituency.

Politics of spilt milk could make MP cry.

It will be a new day when we stop trying to employ tribalistic innuendo to make political points. Central province suffers all the same problems as does the rest of the country, and I know because I have a farm in Cherangani as well. You are also not acknowledging the fact that as Tim Norwood points out in his article, rural poverty has been decreased because of the better prices people like maize farmers can now attract.
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written by Dee , December 11, 2007
What I would really like to understand is why the rate of inflation is up by 11.8% practically two times the amount of supposed economic growth at 6.2% There is no logical explanation to this other than, there is a subtle lie in the statistics. Reality on the ground is kenyans are feeling the effect of the inflation rather than economic growth. The cost of petrol has soared remarkably, transport is no longer affordable from the public transport user to the private vehicle user, prices of basic commodities have soared. It is not nuclear astrophysics, to figure which is the lie & which is not!!!
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dunces
written by Maina Gichangi , December 12, 2007
Faisal,
Thank you for acknowledging that government is a collaborative effort. In fact, it is not just the executive that is responsible for economic and social growth, parliament and the judiciary also pray a crucial part. The role of the civil service cannot be gainsaid either.

Now that we have that out of the way.
a) No one has denied the involvement of Anyang' Nyong'o. But even you will have to admit that Anyang' Nyong'o alone is different from Anyang' Nyong'o with Raila Odinga. I am sure he was not and he is not behind the plethora of fatuous pledges published by Machungwa Machungu. Raila and his schemes rule the ODM and its policy, not Anyang' Nyong'o. Do you remember that Anyang' Nyong'o rebelled against Kibaki long long after Raila? Nyong'o was still hard at work.

b)With respect, your second point is mere propaganda. The government put forward a constitution for the people's consideration. It was rejected and the government accepted the will of the people. It is wrong of you to suggest that the government, with the full consequences of the implementation of Bomas right before its eyes should have given it an automatic okay. Don't you realise that a four-tier government for example will bankrupt Kenya?

c)The point about the regional economic growth is valid, but it neglects mention of one very important difference. The Ugandans, the Congolese, Sudanese and the Tanzanians for example enjoy the possession of vast mineral resources, with the commodity boom currently on, they were bound to enjoy the fruits of high prices. Kenya does not enjoy similar benefits. I'd also like to point out to you the effects of debt forgiveness of many countries, and the almost negligible FDI inflows in Kenya compared with those to her neighbours.

d) I have nothing to say in defence of the Kibaki government and corruption. Except to propose that we agree that the ODM with a constellation in which Musalia Mudavadi, Henry Kosgey and William Ruto shine brighter than most is unlikely to be a safer bet.

e) Your last point is rendered in a language resembling English in its style, but unintelligible to me. Can anyone else help?

Dee,
There are many reasons for inflation. The global oil price for one has tripled since Kibaki became President, farmers are now getting more money for their produce, CDF is really boosting the money supply as is the increased social expenditure on the part of the Central Government.
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written by Maina Gichangi , December 12, 2007
Secondly, non-implementation of policy/plan is a collective blame for seating government (i.e. the executive) and not limited to a single member of the administration. Hence non-implementation of policy/plans during Moi's tenure was a failure not of Moi alone but all the members of his government including his once longest serving vice president one Mwai Kibaki.


You have my unreserved apologies. This is actually a most astute comment, especially as it also acknowledges the complicity of the ODM's chief players not just in the failures of the three years of the Kibaki government when they enjoyed membership of the executive, and even more significantly in the tragedy of the Moi government.

You are the first ODM supporter I have met who acknowledges that government is a collaborative effort. Please tell this to the people are Orange House. (is it repaired yet? If not, then at Rainbow house.
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written by Magothe , December 12, 2007
Dee-inflation is caused by a mixture of factors among them what are called demand-side factors e.g. growth in money supply which is incidentally the largest cause of inflation in Kenya reflecting Diaspora remittances and increased lending. Petrol pricea are a global phenomena and nothing whatsover to do with Kibaki.
Abdirahman Zeila_Are we talking about the same World Bank-please gon on their website and have a look at the google-data map showing Kenya's GDP rate for 2006 as 5.7%.
Faisal Aideed-Kibaki was also the president under the NARC govt. Poverty has been reduced from 54% in 2002 to 46% of total population. The question is, has the economy grown since 2002? And the answer is unequivially yes. And it will continue to so under Kibz govt where the chances that it will get retarded under Raila are very high given some of the unfinanced promises he is making that will require a rise in interest rates
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Biashara ya siasa
written by Bob , December 13, 2007
One week, reported on the Online Standard dated 11/5/2007 Kibaki promised the Ramisi Sugar Factory revival to the people of Coast province and Kenya at large. Statistically it would crush 500,000 tonnes per day and 120,000 metric tones per year. It would employ 15,000 young people and support 1.5 million. The factory stands on 15,000-acre piece of land, which will include nucleus farms. Outgrowers being allocated 5 acres each from 13,000 acres donated by the government giving us 26,00 potential outgrowers. The government whose tenure is dawning in less than two months now plans to expand the cultivation to 40,000 acres. Good numbers, good figures.
40,000 minus 13,000 equal 27,000 more acres for the outgrowers. Which means apart from the 2600 initial outgrowers some one has to train an additional 5400 people to outgrow sugar. The 17 billion debt the government took over from the sugar factories should tell us something about the viability of this selling point. The sugar cane farmers in Nyanza and Western do not boast of being average leave alone rich. They get paid twice a year, get loaned fertilizer, and get bitten by snakes. Somebody tell me.
The Ramisi Sugar Factory is a bridge being sold late and you can buy it if it is your thing. Bridges are not my thing. Let Danson buy that one


After Kibaki offered the people of Coast province he then on December 4th Offered the teachers a pay rise. Where have his offerings been for the last five years. The teachers surely deserved a raise then and before. When the Lecturers tried to get one they were taken around and around and given nothing. I am sure the teachers asked for a raise within these last five years. Nothing was given. Why offer to give them one now. It is a political bribe that like MOU tunayoijua shall not be honored after the election. On Jamhuri day December 12 th 2007 the president (Kibaki) promissed a clean goverment apart from extolling or enumerating his development record. God Bless America. I mean namukae hivyo hiivyo, no, mujienjoy.
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The True Facts
written by Cogni , December 13, 2007
Faisal Aideed may write well but his facts are seriously incomplete. Aideed also seems to be deeply conflicted, he denies that any economic recovery has occurred under Kibaki and that Kenya's economic growth is no better than its neighbors. Then Aideed goes on to claim credit for Kenyas Economic turn around on behalf of odm and Anyang Nyongo. To me this indicates a schizophrenic denial because Aideed cannot rationally deny the economic progress under Kibaki but he cannot bring himself to give Kibaki any credit.

The facts are Anyang Nyongo worked under Kibaki and took his instructions from the President. The ERS reflected the Presidents agenda not Nyongo's. Nyongo today is campaigning for change from the economic path taken by Kibaki the ERS indeed that is evidence that the ERS is not Nyongo's brain child it was based on the election manifesto of NARC which had its genesis in the DP and NPK manifestos.

The most important part of the ERS is not its wonderful language but rather its implementation. That Implementation is where Kibaki has done well the KAZI that needs to endelea.

Aideed also seems unaware of the great work that has been done in formulating a comprehensive growth strategy to build on the ERS success. That strategy is called Vision 2030.

On the constitution review the President did not drag the process anywhere. Sufficient time was accorded to the deliberation and consideration of the proposed constitution. Indeed the President would have been at fault if he had short circuited the process in order to conform to an artificial time limit of 100 days. The fact that the proposed constitution was defeated was a testament to the ODM demagogues ability to whip up tribal passions.

The claim that Kenya's economic growth is nothing special when compared to its neighbors exposes a serious lack of comprehension on aideeds part.

Unlike its neighbors when Kibaki took over Kenya's economy was contracting while its neighbors were growing. Kenya was the sick man of east africa with a dying economy. When a dying man gets off the death bed and walks again we rejoice at the miracle only the dimwitted mutter that walking is nothing special because we all do it.

Kenya's economic turnaround is self evident and Kibaki at the helm deserves his fair share of the credit. Kibaki has not only turned the economy around but he has reformed the civil service which is now receiving international accolades.

The Kibaki administrations efforts in improving the business and investment climate have also received international recognition.

The government has improved tax collection and streamlined its operations. The success is such that Kenya has been weaned of reliance on donors for budgetary support.

The government has been able to offer and fund free primary education as well as some free and or reduced fee primary health care and aids drugs.

Many collapsed industries have been revived and stalled projects completed. The turnaround is complete now Kibaki can focus on speeding up growth, building and rebuilding infrastructure.

This is the work that must go on. The media is not in the business of explaining the obvious. The change is obvious only the deaf and blind cannot see it.
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Poor Planning = inefficiency
written by New Day , December 13, 2007
QUOTING FROM TIM NORWOOD'S ARTICLE:'The alternative is that each of us find instead personal redemption in unshackling ourselves from the slavish faith in politicians or trust in government, and that we instead seek to create greater prosperity for ourselves and for the wider society'.
This statement is in irony to the actual role of the citizenry, which is to cooperate with the instruments of governance to better their livelihoods and not to run away from it or shun it. The problems in the Kenyan ruling class is poor transparency and accountability due to a weak judicial system, which has resulted in looters walking scot free even as the public watches; Golden Berg Final Reports areyet to be made public, Anglo Leasing scandal is still being stiffled by powerful government people and now the Kroll report is yet to be demystified.
Functional Governments the world over are supposed to operate by the will of the people, or face the highway. To ask people to govern their own affairs is tantamount to anarchy. Bad Gvts can always be corrected and that is what should apply to Kibaki's weak government, correction.

Stephen Wainaina,
My comment was not meant to incite any tribal innuendo as I stated below it that its content was not in support of any political party. I have also read your comments in response to Tim Norwood, where you extol the glorious returns witnessed by maize farmers and other agricultural sectors. I am yet to verify if this has been implemented, the last time I checked farmers were saying that the NCPB was taking too long to pay maize farmers. Now check out this link: http://www.cgd.or.ke/documents...roblem.pdf a report titled 'the maize crisis' to get an insight into the maize production challenges. On a scale of 1 to 5, demand for maize for consumption between 2000 and 2010 will have increased from scale 3 to 3.8 ! Yet production has remained the same over the same period. Centre for Governance and Development, 2005.

The NCPB CAP 338: Article 15 - continues to be the subject of abuse from the control ewra since it bestows powers to the Ministry for Agriculture to fix prices. The Government utilizes the Act to intervene in the maize market through setting purchase prices for NCPB. However, the set prices are always in conflict with the market pricing mechanism resulting in obvious distortions and eventually market failure. The result of this intervention is that the maize market no longer relies on market signals but waits to react to Government action, a behaviour that is reminiscent of the control era.

The major source of uncertainty in commercial maize production results from uncertainties associated with government action. The Government intervenes in the maize market through the NCPB but this intervention is often uncoordinated and the time for entry or exit into the maize market unknown. This uncertainty is more harmful to the maize farmers compared to low prices whose effects can be countered through proper planning. If maize farming is treated as a business, it is difficult to operate in an uncertain business environment such as that presented by unplanned government involvement in the maize sub-sector.

Stephen Wainaina check your facts before you convince me of the governments sterling 'development record'. Am sure farmers in Kipipiri also have a share of problems regarding their agricultural productivity, which infact add to the gvt failures. However, you still need to convince me that Kibaki's gvt has not sidelined some regions in its development agenda. Realize I am only just touching on maize sector where I am shareholder. When we get to the Nyanza fish industry, Lake Victoria countrymen may have a word or two to comment on the development felt, that I leave for them. And take Tim Norwood's comments with a big pinch of salt.
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Well Well
written by Faisal , December 13, 2007
I am glad that we are at least debating the economy rather than which tribe is what or not......

Given that I have touched a raw nerve (i.e tried to put the erroneous claim of Kibaki's monopoly over economic ideas in question) of those who support him, I expected the name calling that dots some of the otherwise intelligent commentaries.

I clearly said the economy has turned around and it has done while Kibaki was and is the president. That I have not disputed. What I clearly argued is that the administration that took over in 2002 is not the sole author of the economic upturn. Current ODM luminaries were part and parcel of that team which Kibaki led. Hence to claim that PNU and Kibaki alone are the ones who can continue the Kazi is a bit patronizing.

It is one thing to claim I am mad or unintelligible but quite another to claim that Kibaki implemented the NARC manifesto and that he is a good economic manager. Let those who brag about their linguistic prowess explain to the rest of us how Kibaki is a good economic manager while his minnows siphoned billions right under his aging nose?

How many excuses are enough to convince the millions who are unemployed that Kibaki needs an extra five years to deliver the 500,000 jobs a year he promise in vain five years ago? Or that Kenya is more diverse than his government?

The main questions here are not who has the monopoly of ideas or is effective implementor of policies. Everyone knows that Kibaki is already past his best and he does not have a monopoly of ideas.

But rather who can we trust? One who has broken our collective trust and embark on the very same thievery that we despised in the former president and who also failed to deliver on several key components of his pledges?

Or do we risk our trust with someone who has consistently championed democracy and social justice even while the current leadership were signing praise of those who collectively strangulated and raped us?

Is it time we forcefully told Kibaki that yes out collective razor can cut the proverbial mugumo tree?

It is not just a disputed abstract percentage figure of growth stupid. It is our collective trust.

And with that I need not say who has my vote.
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written by emmo opoti , December 14, 2007
New Day,
You were once a very astute commentator, what happened? The link published shows clearly that farmers in Kipipiri, the Finance Minister's own constituency suffer the same problems you suffer up in Kitale. In fact I doubt very much that you have a farm up there, I will explain why later. Where exactly is your farm?

Now as to Nyanza, another place where I have interests. The state has doubled its funding for research and development in the sugar sub-sector, from 85 million shillings to 170 million shillings annually. To enable farmers and millers re-build their financial base, the Kibaki Government also suspended interest and penalties on previous loans amounting to about 4.7 billion shillings owed to the Sugar Development Fund. The outstanding loan balances have been rescheduled over periods agreed upon with the debtors.
In addition, the Sugar Development Fund has reduced its lending rate from 10 percent to 5 percent. The government has also authorized the advance of 800 million shillings to sugar millers to offset some of the outstanding payments to sugar cane growers.
Sugar cane industry figures show a radical shift in profitability. In 2003-2004 SONY posted profits of 136 million shillings, compared to a loss of 446 million shillings the previous year. Nzoia Sugar Company achieved a net profit of 356 million shillings against a loss of 246 million shillings the previous year. Muhoroni Sugar Company made profits of 118 million shillings compared to 64 million shillings the previous year.


Miwani Sugar 680 million shillings debt paid off.The attempts to revive Miwani follow a recent Government decision to buy out all claims against the sugar miller for Sh680 million. KSB has bought out the second debenture holder in the factory, Oriental Commercial Bank for Sh330 million and settled another Sh350 million in debt owed to businessmen Surjit Singh and Malkiat Singh through Vanessa Associates.

State and ADB finance 3b rice project in South Nyanza.

The Kenya Sugar Board (KSB) will loan out Sh500 million to farmers in sugar growing areas via the Agricultural Finance Corporation (AFC), a State agricultural lending body..................
Yesterday, in Kisumu, Agriculture minister Kipruto arap Kirwa launched the fund with Sh945,000 in start-up loans.
Under the scheme, farmer loans at 12 per cent per year interest rates, are expected to lead to an additional 9,000 acres of cane being grown over the next five years. The extra acreage is predicted to add around 418,000 tonnes of cane for processing.
The loans are also meant to push research and development of cane, and develop irrigation systems and help farmers get tractors and trailers to ease transportation of the product. In future, the funding will be expanded to cover other farmers needs under the Farmers Advance Scheme.
Link here.

Ms Perez Anyienda, one of the more than 80 farmers in Rongo who have uprooted their sugarcane and maize crops to plant amaranth, said she has been earning more than Sh30,000 per acre compared to the Sh8,000 she earned growing maize on the same piece of land.......The Poverty Eradication Commission, an arm of the ministry of planning, introduced local farmers to the crop in 2005 as a poverty alleviation scheme. But farmers have learnt the tricks and are now cultivating it commercially. We are happy that the amaranth is showing the potential of reducing poverty in the country, said Dr Gilbert Oluoch, chairman of the Poverty Eradication Commission. The Commission introduced the crop on a pilot scheme in Bondo in 2005, where 230 farmers were involved in its cultivation. It was introduced as a smallholder commercial crop in the fight against poverty. The objective was to assist farmers to increase their income said Dr Oluoch.
Link here.

P.S. The Ahero Rice Scheme has also been revived, etc, etc.

Now with regard to maize. Link here.
The programme, at its pilot phase, has benefited about 8,000 farmers across the country, mainly in Western Kenya. It is being extended to Sotik, Bomet, Runyenjes and Chuka in the Mt Kenya area. Through the scheme, farmers receive a Sh6,000 voucher from the Government, which enables them to acquire various farm inputs like seeds, fertilisers, stock borer dust and post-harvest pesticides. The government also offers supervision services to ensure that farmers adhere to the maize growing requirements and recommends which inputs are better for specific areas.

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best site in Kenya
written by gichangi , December 16, 2007
I have just been going through some past articles, and came upon this one here.

My heart swam in the vision of orange, my spirit stirred in the cacophony of hooting, praising and poetry. My skeptical heart was drawn, then hit, then slayed. I am a believer now. It was scenes from Palm Sunday the musical, redressed in orange garb, with free water (labeled not miracle), no ass to ride on, no weeping for the city but the rest of it was there. All of it, most of it. A Sunday, a Messiah, poor people, those rejected by the existing order, the oppressed and the maimed flocking the capital city for the triumphant launch of the Master's program. Yes, I believe.
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Improve or expand?
written by newafroguy , December 19, 2007
Given limited national resources which development approach is more prudent; creating more districts or expanding the capacity of existing ones?

A new district will require a new district Hq and staff. Never mind the new buildings and utility costs.

Exapanded capacity might include training existing staff, adopting ICT based processing and improving infrastructural access to the existing district Hqs eg roads and phone lines etc.

Those of us living in the west will appreciate what a good transport network can achieve as a means of development.

I belive we can decongest our cities, improve living conditions and security, reduce road carnage, lower product costs, attract more investors, and the list goes on if we prioritized infrastructure development over increasing administrative units as a means of improving service delivery.

My conclusion: Kibaki's district bonanza is ill advised.
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Maize Farming is Expensive
written by New Day , December 22, 2007
Quoting from Today's Daily Nation (for the benfit of the Emmo Opotis):
'Responding to requests from residents of Cherangany, President Kibaki said the Government was going to subsidise the prices of fertiliser.

The farmers said the prices of fertiliser were high, making the maize sub-sector unprofitable.

Currently a bag of fertiliser is going for Sh3,000 per 50 kilogramme bag, up from Sh1,800. He asked Trans Nzoia farmers to take their maize to the National Cereals and Produce Board instead of selling it at throwaway prices to middlemen'.

(I do not contribute to this website hoping to receive bouquets and a crown from the issues that I raise, or to please individuals. My desire is to share my opinions about the development of Kenya). New Day
Ps- Just for the record, my farm in Kitale is located in Amuka community a stone throw away from Hon. Musalia Mudavadi's home. Rural electrification has only progreesed due to Musalia's decision to build his home within that savanna otherwise there is no government officer who was going to look into the programme.
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Last Updated ( Monday, 10 December 2007 )
 
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