No heaven for us: Kenyans and Privatisation PDF Print E-mail
Written by Stephen Wanyama   
Sunday, 06 July 2008

Remember that scene from Road to Perdition? The one in which John Rooney says to Mike Sullivan, the kindly gangster played by Tom Hanks,

There's only murderers in this room..... Open your eyes, Mike. This is the life we lead, the life we choose........ There's only one guarantee. None of us will see heaven.

This accusatory line, against even those of us bold and blind enough to take on the banner of justice and righteousness as we rail at the excesses of the Treasury this month, reminds us what price we are bound to pay for the path we have chosen. In stark contrast to the increasing fortunes of the connected able Kenyan, are the shrinking fortunes of the Kenyan poor, of Kenyan industry and Kenyan enterprise, all these increasingly unsheltered from the harsh vagaries of the global economic reality. While we now, wallow in our new found riches, happy to be part of the jet-set crew, many millions now more indigent glower silently in rage.

Yes, Beth Mugo is right to admonish us against pronouncing the Minister of Finance guilty in the mobbing fashion that the Kenyan media and the opposition have done. Still, even if the simian impulse to mob justice that comes so naturally to us -based so often on a misinterpretation of the facts and outright ignorance- is perhaps unjustified this time, what is certain is that our endless binge at the trough of public wealth is both immoral and unsustainable. Whatever expiatory contortions may save the Finance Minister or diminish his culpability in the eyes of we, his fellow robbers, the economic reality and the moral one, is that like Rooney's confession above, we are, all of us, unlikely to see heaven.

The Kipipiri MP's faux pas are not in any way diminished by the fact, all our righteous anger aside, that whatever crimes we find him guilty of are not uncommon in our mockery of a republic. Nor does the brazenness of his lies before parliament lose its arrogant glare in the supreme irony of the histories of his loudest accusers.

Amos Kimunya may look surprised that anyone thinks him worthy of censure, and he is rightly surprised. We have as a nation a very selective attitude to the disposal of public wealth. Just as misplaced as the anger of the likes of Cyrus Jirongo and company, is the faux rage of the Kenyan middle class. With smudges of Safaricom's green and golden goodness still staining our itchy fingers, we are many of us, co-conspirators and abetters of this increasingly egregious crime; the unabashed transfer of public assets towards priviledge in a country as indigent as ours.

This movement takes various carnations. There's the speedy ascent into billionaire status through favourable access to privatisation of state enterprises (Mobitelea and Kisumu Molasses Plant), there's the preferential trade rights (whether for importation of fuel, safety belts or sugar), preferential rights to the provision of services for the state and its agents (Mutula Kilonzo for example), there's our history of massive public land allocations (settler farms, ADC, AFC, Maasai Ranches, car parks, residential properties  or everyone's Karura forest slice), there's the sinful incomes of public ‘servants' like Members of Parliament, Judges, Permanent Secretaries and even pretend ‘do-gooders' like Maina Kiai. But what sanitises all the above, is our participation in the now endless stream of offers-for-sale and IPOs; divestitures of public property.

What all the participants in these crimes share, is the desire to reap where we have not sown, the fact that we are taking advantage of our social and economic privilege to rob the increasingly enervated, demoralised and ignorant Wanjiku. We conspire to bleed Kenya dry and only show up outraged and in a huff when not invited to the party. Like MPs and Ministers who continuously increase their salaries and allowances but then lament national poverty and the need for increased capital expenditure, we cannot see the connection between our participation in the drainage of the Exchequer and the stark inequalities around us.

Our actions and those of the MPs result in confirmation and enlargement of the chasm between the haves and the have-nots in this country, a skew in national wealth distribution and the transfer of control over our economy into a select few hands. Worst of all however, it is a mere redistribution of wealth, not a creation of any sort of real value. It does not promote market efficiency, it does not promote innovation, there are no lower prices, and no improved product for the consumer, no new jobs, nothing but a further lining of the middle-class's nest.

This most obsessive kleptomania, is the reason we are so enamoured with the Bomas Draft, Truth and other endless Commissions, Committees, NGOs with their unending conferences and parties, and highly paid positions in the public service. The more such positions we can create, the greater the size of the bureaucracy, the more rent-seeking positions, the better for us. We love la lucre. Inflation? Ongeza. We are duty bound to rob the taxpayer, labour and industry will pick up the tab. Not us, we are hard at work, pressing pens and pushing paper.

But we can be relied on to rage on whenever we are denied access to the trough. We enjoyed KenGen, Kenya-Re and Safaricom because those were events we could buy into. The Grand Regency is bad, not because its exchange contravenes some moral code but because we did not have a chance at it. The overall message is move a little; give us our chance at the trough.

After the ethnic angle at the post-election crisis was played out in Kisumu, something more foreign took hold; the poor begun to attack the homes of the wealthy.  This is unprecedented in our history of conflict but it is the end game we are courting with our all-around grab. We are already suffering massive budget deficits; we have an unsustainable public debt. Population growth, land pressures, water shortages, climate change and the global food and energy crises will continue to press on the government spending and national prosperity even as industry's contribution to national revenue suffers from the dilapidated infrastructure and unaffordable cost of business. Crime will continue to soar as we board ourselves up with our millions for comfort.

Empirical evidence from around the globe suggests that massive inequality of the kind we are breeding is the kindling for social tumult; this especially when those without see it to have come about as a result of gross injustice, of the collusion of the powerful against the weak. We may now present Kimunya as our expiatory sacrifice, but unless we mend our ways, there will be no heaven for us, more likely - hell to pay.


Stephen Wanyama
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our time to eat
written by Mlevi , July 08, 2008
Before Nicolaus Copernicus displaced the notion that the Earth was the center of the universe, many very smart people spent a significant amount of intellectual resources working on theories and formulas to show the mechanics and workings of the universe with the earth at its center. Copernicus placed the sun in the middle and everything became much simpler, reliable and accurate.

I think we are at such a place in Kenya, most of us, some of us very smart and resourceful, have devoted most of our resources to sustaining and maintaining a world view that is in very desperate need of abandonment. Despite the all the empirical evidence suggesting otherwise we are not quite ready to go into a 12 step program to deal with our
our endless binge at the trough of public wealth
. This is especially more acute when we view public wealth and its distribution from our tribal perspectives and the time to eat mentality.

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What a great piece
written by pndiangui , July 09, 2008
Instead of the government thinking why the SME's are shunning the Equity markets as a means of raising capital to expand, it is the biggest supplier of the assets built by taxpayers to benefit an elite few hence perpetuating the very rich-poverty gap that it portends to eliminate.
I don't where the view of privatisation brings about competency came from since KPLC never delivered even after privitisation , neither did NBK. It was only after competent managers with little loosened bad political influence were injected did these organisations start performing. Infact for NBK it was also not until the GOK let it off the hook of huge non-performing political loans. KCB suffered the same catastrophy and it wasn't because of privitisation that the the performance improved but the hiring of Gareth George from citibank and a chain of other competent managers.
The performance of Kenya Pipeline or KPA will not improve because of making it private but by giving capable people who can think and act beyond the current eclipses of mental models.
Now this might take talent from the private sector, it might even take capital from the private sector inform of debt but that doesnt mean ownership has to change.
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