By Nicholas Olambo
A frustrated President Uhuru Kenyatta lashed out at anti graft agencies at governance, anti-corruption and accountability summit held at state house, Tuesday 18th. He sought to defend himself saying that he has done everything within his powers to strengthen the fight against corruption, including increasing the budgetary allocations to relevant agencies like the ever toothless EACC (Ethics and Anti-Corruption Commission) and firing ministers linked to corruption allegations.
The president claimed that his fight to end corruption has to some extent cost him politically, he also blamed the Auditor General of writing numerous reports about misuse of public funds without naming individuals who are solely responsible for the misappropriation.
The judiciary also got a good share of the blame for over six hundred pending cases of corruption which they turn to blame on the analogue system. The opposition too did not miss their share; they are blamed for using corruption to seek political mileage when it should be approached as a national disaster.
The string of blames signifies nothing but a lost war. Judiciary complains of receiving weak cases to jail any suspect when it’s already known that the thread of judicial philosophy of Kenya is pro rich. The rights of the accused work best with for the rich in this country. Machakos Governor Dr. Alfred Mutua, for instance, was accused of flaunting procurement laws but got a lifeline through another court to resist arrest.
The string of blames signifies nothing but a lost war. Judiciary complains of receiving weak cases to jail any suspect when it’s already known that the thread of judicial philosophy of Kenya is pro rich. The rights of the accused work best with for the rich in this country. Machakos Governor Dr. Alfred Mutua, for instance, was accused of flaunting procurement laws but got a lifeline through another court to resist arrest.
Nairobi governor Dr Evans Kidero also got an injunction stopping investigators from snooping into his bank accounts when he was facing the shs 200 million bribe he allegedly paid Supreme Court judge, Phillip Tunoi. Judiciary is rotten, and heads will not roll when only ‘small people’ are charged within months and thrown behind bars and corruption chiefs walk free and run for political offices, gubernatorial and presidential.
The useless EACC sits only in Nairobi in a building with ownership problems. Corruption is now devolved and rampant in the counties where wheelbarrows are bought at over hundred thousand shillings, and a mere gate costs seven million shillings. Its distinguished list of shame did nothing to curb the vice; its 175 suspects are all free and seeking their ways to elective positions. No one has been found guilty and thrown in jail.
Now as the blame game continues, the reality of corruption rests with ordinary Kenyans starving, left with medical facilities without medicines, free education funds are looted and public schools are under staffed. This is because criminal minorities impoverish the majority of Kenyans and the response is to blame games and frustrations, a clear sign that the cartels are winning.
The buck must stop somewhere for the underperforming agencies, DPP’s who can’t prosecute even a fly, a judiciary that only receives weak cases of corruption and EACC that has turned out to be a cleaning house for the rich and powerful. The president has the power to change heads or fix these agencies through the parliament where he has the support of the majority wing.
The Ombudsman has written to the Cabinet Secretary, Ministry of Education Dr Fred Matiang’i on the above-captioned subject.
In the letter, the Commission raises concerns over the directive by the Cabinet Secretary requiring the University of Nairobi Kenya Science Campus to vacate its premises on Ngong’ Road by 1st December 2016 to pave the way for the Kenya Technical Teachers College which has been instructed to relocate from its current location in Gigiri.
The Commission has recommended that the process of initiating relocation of the two institutions be put on hold to first address concerns of stakeholders.
By Nicholas Olambo
The entire month of October has been declared a taxpayers’ month to appreciate every hustler paying the taxman his dues. As KRA (Kenya Revenue Authority) runs this month long futile PR exercise, its rogue officials, cartels and rogue port officials are in bed.
Just yesterday KRA officers impounded two Range Rovers disguised as clothes. As usual, the two high-end cars and six hundred bicycles in a 40ft container were from the UK and destined to Uganda. As usual, they were not declared in an attempt to evade tax. This dirty business is booming under the watch of KRA and may not stop any soon because KRA’s senior officials and government officials are the major beneficiaries.
It’s no longer news that there is a string of cartels that collude with KPA (Kenya Ports Authority) and KRA officials to import big cars into the country fraudulently as goods on transit and evading tax and duty payments in the process. Not long ago, KRA recalled over 120 vehicles which were illegally imported by cartels in Uganda and Britain.
These vehicles that were declared as transit goods to Uganda but ended up in the local market have outstanding tax issues. It’s not a new trend; KRA has been sleeping on the job failing to hit its tax collection target because of its rogue officials who foster these crimes are never seriously brought to book.
George opanga is a KRA official known to be colluding with the cartels, operating alongside businessman Elijah Girimani, these two have been behind a conspiracy to evade tax by procuring uncustomed goods and George fraudulently messing up with KRA’s Simba online system. They are being put in and out of custody, delaying justice because they have ‘stolen’ enough to hire canning lawyers.
The courts are also big obstacles to bringing these criminals to face justice through serious punishment. KRA is on record pleading with the courts to deny the accused bails as they are flighted risks and their associates are being tracked by investigators.
They are the brains behind the importation of stolen luxurious cars, registration without payment of requisite tax like they did in July in respect to a Range Rover at JKIA customs warehouse. The dirty deal saw the taxman lose over six million shillings.
Girimani who denies all the charges brought against him is one unscrupulous businessman who procured uncustomed goods having knowledge that import duty amounting to over Shs 4.5 million had not been deposited at National Transport and Safety Authority offices in Upper Hill.
Officials that cause the taxman these millions of losses are simply arraigned in court then given small bails, literally some mean cash that they pay and walk free. KRA staffers, Benard Ong’ayo, Nicholas Ambala and Fredrick Mwendia have been charged with conspiracy to evade payment of duty.
The racket that was launched in February is lenient, failing to net the cartels. They continue to operate as anonymous because some of them or their clients are high and mighty in the government. Water CS Eugene Wamalwa is a known beneficiary/ victim of the complicated KRA tax evasion syndicate.
His Range Rover that was that was deregistered was among the over 120 vehicles that were recalled by the tax agency. A whole cabinet minister who should be leading by example had his luxurious car, Range Rover V8 model (made in 2015) operating with a fake plate belonging to an Isuzu truck.
Vehicles stolen in the United Kingdom find their way into the Kenyan market through these dirty deals, Eugene’s Range was imported as house hold goods, in fact, cushions and couches. Nothing has been done to him. The lame excuse is blamed on faceless cartels as KRA hides in the desperate statement that some buyers are innocent customers. They simply lack guts to go for the big fish.
Tax evasion is a serious crime but the taxman only works round the clock to fleece the straining Kenyan any penny in his pocket. Now they are targeting to tax the shs 200 you send to your mother or your girlfriend via M-pesa and leaving the war on cartels unfinished. They claim to be interested in playbills/ till numbers.
M-pesa is registered, and the records are there to show all the transactions, KRA should go for the banks like Equity staff stationed in Namanga and other suspected banks like Cooperative Bank of Kenya, Commercial Bank of Africa and National Bank of Kenya that collude with cartels. Clearing and Forwarding firms and people in business like Anthony Maingi of Helix Company and Nelson Mugo Mwanzia of Excess Luggage Ltd for fraudulently conspiring or evading tax and duty payments.
The hawkers in Nairobi’s busy business hub, Eastleigh are left in desperation state after being left in darkness following failed promises from the Nairobi County Government and National Lands Commission to give them back their land illegally being held by Private Developers, Alfa Traders.
The parcel of land that the Alfa Traders claims has been a market space for the hawkers before they were violently displaced on the takeover. Ombudsman came to the Hawker’s relief in their report that found the land to be a public entity open for the traders and at the same time figured out the alleged land lease held by the dubious contractors was fake.
The commission recommended the Nairobi County Government to repossess the land and allocate it to the hawkers and also for them be compensated for losses incurred when their stalls were destroyed during Alfa Traders violent takeover. Commission also recommended for the Chief Valuer of lands at City Hall to be relieved of his duties since he was caught to be part of the land grabbing cartel.
The National Lands Commission present during the Ombudsman’s Eastleigh report launch, promised to give a conclusive report on the ownership of the contested land as early as the start of September.
Two months down the line, nothing has been forthcoming from both camps with Kidero mum, no cessation steps, all charlatans in City Hall seated pretty, NLC hasn’t given their report as promised. The hawkers are left asking themselves on who to turn to next since their operations have been stalled. The Business Community in Eastleigh ordered them out of their few available spaces.
Deputy President, Ruto recently attempted to intervene and his recommendation to have the traders move to a small piece of land around Pangani wasn’t welcomed.
Kenya Insights has established that despite all the orders on the Duping contractors to stop construction, nothing has changed and they’re continuing regardless. It gets interesting that the illegal construction is ongoing under a full police guard. Someone in the system has been compromised to facilitate the illegal construction. From our investigations, the developers have resorted to a bi-weekly construction that happen only at night with gun tooting plainclothed officers guarding the premise.
Who’s misusing state resources in frustrating the helpless hawkers, why is the the county government feigning disability in dealing with the private developers, why can’t Kidero adopt the Ombudsman recommendation to weed out the corrupt elements in his office that are facilitating land grabbing. Why is NLC silent on the report, why haven’t they released time within promised timeframe?
Who will guard the hawkers from the bully richmen who are grabbing every single parcel of available public land. The County Government seen to have gone deep into bed with the wealthy businessmen together with NLC leaving poor traders in desperate states with tightened cost of living.
Kenya Insights, embarks on a lengthy justice trail for the traders and will push the agenda to shame the bully traders and the forces frustrating the hawkers steps.
By Nicholas Olambo
The government of Burundi has said the country is pulling out of the International Criminal Court (ICC) and ‘they’ are ready to face the impacts of withdrawing. The cabinet announcement came six months after the court’s Chief Prosecutor, Fatou Bensouda, indicated she would investigate the unending violence.
Political turmoil erupted in Burundi in April 2015 when President Pierre Nkurunzinza indicated his bid for a third term. The violence has seen hundreds killed with thousands fleeing to seek refuge in neighboring countries like Rwanda. President Paul Kagame (Rwanda) is on record requesting Pierre to stop producing more refugees.
The mantra that only Africa has the solution to its problems is a loose narrative that does not work for the civilians. The African Union whose body language supports the withdrawal of many African states from the Rome Statute has let Burundi down. AU chose to send peace delegation over peace troops to Burundi for mere threats from Pierre Nkurunzinza. How would his small force defeat over 50 nations?
AU, under its charter, has the power to intervene in a member state because of grave circumstances as war crimes, genocide and crimes against humanity without that member’s consent. AU chose to sit back and watch the unrest tear the small country into pieces stalling the idea of African solutions to African problems.
AU failed miserably to assert itself and cut a clear difference from what is was before, the lethargic Organization of African Union. Sending troops to Burundi was the opportunity to do that, but it chose to row back. The choice favored Pierre who was against the deployment of peace troops.
It’s the fault of Africa and AU to produce many ‘materials’ for the court, Pierre’s greed to force himself for a third term after intimidating the judges of the constitutional court to rule in his favor resulted into what can only be tried at the ICC. Ordinary Burundians have suffered and still continue to suffer under the watch of AU, a replica of the same is taking root in Congo but does AU care?
It will watch in silence but put every pressure to support a withdrawal of member countries and suspects at the court. The court was under intense pressure from AU over cases against President Kenyatta and his deputy, William Ruto for their alleged in 2007/8 post poll chaos.
AU has shown and will still demonstrate that it stands for the ruling African elites only and has nothing in favor of the ordinary African. Hundreds of ordinary Burundians are suffering under its watch; the same is the case in Congo and the Oromos in Ethiopia.
Burundi’s withdrawal from ICC is not in the best interest of the country but one individual, Nkurunzina who knows that he will be declared a wanted man by The Hague-based court sooner or later to answer to charges of war crimes, genocide, forcible transfer of population and crimes against humanity. He has chosen to take a path already supported by AU to insulate himself.
Kenya, (in)famously known as East Africa’s powerhouse, is on the verge of collapsing due to extensive and institutionalised corruption. The corruption situation is so desperate it had the international community begging that if Kenyan political moguls must steal, they should just steal a little. Corruption is so deeply rooted in the Kenyan legal system it would have an oblivious onlooker think it is etched somewhere in the constitution; it is so extensive that the Kenyan citizenry would not be surprised if a sole individual rose and claimed to have radical title over the land of Kenya.
Hardly a week passes before a new corrupt deal, involving millions of shillings, is unearthed, the most recent being the Nike apparel scandal involving the National Olympic Committee of Kenya (Nock). A recent survey by audit firm PricewaterhouseCoopers (PwC) found that only two countries, South Africa and France, have higher corruption rates than Kenya, a new low for the country following a series of corruption scandals that have rocked the Jubilee administration and institutions in the country. South Africa is number one with 69%, while France is second with 68%. Kenya comes third with 62% on economic crimes.
According to the survey, Kenya ranks top of the world in areas Former Judiciary Registrar Gladys Shollei was hounded out of office for graft claims. such as embezzlement, bribery and procurement fraud. Embezzlement is ranked as the most dominant economic crime in the country. The extent of corruption in Kenya would have one think there is no legal and institutional framework to curb corruption, which it does have; there are succinct laws and well-established institutions mandated to deal with corruption. It, however, would appear as though they do not carry out their duties as codified, and that they in fact aid in perpetration of corruption. This begs the question, is Kenya’s situation a case of institutionalised corruption? While Botswana basks in the glory of a world-class democracy, Kenya boasts, ashamedly so, of a thriving lootocracy, where leaders have no conception of sufficiency, setting up the rules to grab as much money as they can.
They also concentrate power, to arrange the country for their benefit. Unchecked by modesty, satiety, or shame, they take all they can get away with. Their “core mandate” is to loot until someone stops them… or not. Highlight of top scandals Kenya has had as many corruption scandals as it has heard promises from political leaders to curb corruption, among other vote-wooing promises. Some quick calculation reveals that the country has lost trillions of shillings in corruption and embezzlement scams since the days of Jomo Kenyatta. Among the most notable scams are the 1990 Turkwel Dam project, the Police Mahindra Jeeps scam, Goldenberg, dubbed Kenya’s longest-running scandal, the Sh4.1 billion Navy ship project associated with Anura Pereira, the Sh300 Prisons boilers scam, Anglo Leasing, and the 2006 banking fraud scam worth Sh150 billion, among others. In 2007, Britain’s The Guardian featured on its front page a story about more than £1 billion (Sh132 billion) transferred out of Kenya by the family and associates of former Kenyan leader Daniel arap Moi. The Guardian sourced the information from the Wikileaks article “The looting of Kenya under President Moi” and its analysis of a leaked investigative document (The Kroll Report) prepared for the Kibaki government in 2004 to try to recover money stolen during Moi’s rule. Others are the Grand Regency Scandal
(2008), the maize scandal of 2009, the Triton Oil Scandal, the Tokyo embassy scandal, the Sh53 billion laptop tendering project (under Jubilee), the Sh314.2 billion Standard Gauge railway project, the Sh10billion GDC scandal, the Sh55.6 billion Greenfield Terminal scandal, the Sh8 billion Karen land saga, said to involve 40 MPs, and the Sh250 billion Eurobond saga, among many, many others. From the Moi Era to Kibaki’s golden age and to the digital reign of the Jubilee government, each has had its fair share of corruption scandals and appears as though every new regime tries to outdo its predecessors in the corruption league.
The mantra is to eat and let eat. Institutionalisation of corruption The Anti-Corruption Squad (ACS), dubbed the (first) anti-corruption body was constituted in 1993 and disbanded in 1995 before it could make any significant impact. Through an amendment to the Prevention of Corruption Act Cap 65, Laws of Kenya, the Kenya Anti Corruption Authority (KACA) was created in 1997. Its first director was John Harun Mwau, who was suspended and later removed in 1998 through a judicial tribunal. Mwau has since been named as one of the most notorious drug lords of the world by the US government.
In 2000, KACA was disbanded through High Court case “Gachiengo vs. Republic”, with the ruling that the existence of KACA undermined the powers conferred on both the Attorney-General and the commissioner of police by the Constitution. It was further held that the statutory provisions establishing KACA were in conflict with the constitution then. In 2001 the Anti-Corruption Police Unit (ACPU) was created by an Executive order; it operated under the Criminal Investigations Department (CID). It was operated by the police and performed its functions until creation of the Kenya Anti-Corruption commission (KACC). KACC was a public body established under the Anti-Corruption and Economic Crimes Act, 2003. It replaced the Prevention of Corruption Act. The new Act also established the Kenya Anti-Corruption Advisory Board, an unincorporated body comprising persons nominated by a cross-section of stakeholders. The Advisory Board made recommendations for appointment of a Director and Assistant Directors. It also advised the Commission generally on the exercise of its powers and performance of its functions under the Act.
The first Director, Justice Aaron Ringera, and four assistant directors, formally took office on September 10, 2004. Following parliamentary pressure in July 2009, Justice Ringera was forced to resign from office together with some of his assistants, paving way for appointment of Patrick Lumumba in September 2010. The Ethics and Anti-Corruption Commission (EACC) was established after former President Kibaki signed the Ethics and Anti-Corruption Act into law in 2011. This Commissions’ life was also short lived. Between March and May 2015 Commissioner Jane Onsongo, Vice Chair Irene Keino and the Chairperson Mumo Matemu were forced to resign. In November 2015, President Uhuru Kenyatta nominated Philip Kinisu to chair the EACC. Less than a year later, Kinisu was found to have had undeclared dealings with the National youth Service, and forced to step down. Like its predecessWitness protection Act, 2006, Ethics and Anti-Corruption Act, 2011, the Access to Information Act, Proceeds of Crime Act, and Anti-Money Laundering Act, 2009.
The world views corruption as an antisystem. It is a universal phenomenon, independent of social system, age, position or class. It is also a very old phenomenon. Forms of corruption include systemic/endemic corruption, where corruption is integrated and is an aspect of the economic, social and political system. It is embedded in a wider situation that helps sustain it. This is what ails Kenya the most. There is also individual corruption, which occurs irregularly; political corruption, which includes transactions between public and private sector, notoriously known as grand corruption. At the bottom of the corruption chain is petty and moral/ legal corruption. Kenya, tragically, suffers from all of the aforementioned forms of corruption.
The lootocrats of the regime give it in small dosages. The moment Kenyans seem like they want to forget one corruption scandal, another blows up, in is a never–ending cycle. It is so big and endemic that it undermines laws codified to curb it and infiltrates the institutions established to implement anti corruption laws. Kenya maybe rightfully said to have a deeply etched culture of corruption, one that is born with us and that survives generations on end. Why is this? Is it the insufficiency of laws, weak anti-corruption systems or a curse to the Kenyan people? The one thing that remains constant is that if it is allowed to grow on, it will be the sole cause of the collapse of the East African power house.
To reiterate the words of the vice chair of the Salaries and Remuneration Commission, Daniel Ogutu, “… Kenya is like a sick patient, who does not look sick but on going to the doctor, is told, ‘at this rate, you’re soon going to collapse… It may take f ive or 10 years, but you will surely collapse…”
Grab your copy of Nairobi Law for more insightful stories as this from your nearest supermarket.
By Nicholas Olambo
The former PS of Foreigner Affairs ministry has announced his quest to contest the Laikipia gubernatorial seat in 2017. Mr. Thuita Mwangi was in the company of his aide, driver and a body gourd when he pulled the overdone PR stunt, entered a food kiosk near the county commissioner’s office for a cup of porridge and mingled with the small crowd.
Pirates spent their ransoms putting up hotels and businesses in Eastleigh, Nairobi, looters of the public funds finance their ways top elective leadership. Mwangi was in March this year acquitted of the Shs 1.6 billion corruption case that involved the procurement of the Tokyo Embassy during the Kibaki regime. Quite a number in the crowds raised an issue with others wanting to know how he is going to change the county.
Known for flouting procurement procedures, Mwangi claims he posses the much needed different style of managing the county and its resources. He is not the only one, other looters and corruption tainted leaders have announced their intentions to run for county top jobs. Ann Waiguru of the infamous shs 791 million, Charity Ngilu who was kicked out of Lands docket over corruption charges and Felix Koskei.
The sacked minister has declared he is in the race to unseat Governor Cleophas Langat of Nandi County in 2017 elections. Koskei illegally allocated sugar import permits and allowed illegal cultivation of 100acre government piece of land where he planted potatoes. He was supended in 2015 and subsequently kicked out by President Uhuru Kenyatta.
EACC, a clearing house for the ‘big fish’ as always found no sufficient evidence to back the claims and throw Koskei to jail. He is now funding his campaigns with corruptly earned money and proceeds of potato sales from the government land. He was fired alongside Davis Chirchir, Kazungu Kambi and Michael Kamau.
By Nicholas Olambo
2016 has not been a good year for the arrogant and controversial political analyst Mutahi Ngunyi. Mutahi has been known for his rapper attitude and ‘dissing’ analyses on Cord leader Raila Odinga. He once described him as ‘a busy house girl’ in the grand coalition government. He was alleging that Mr. Odinga wanted to be seen doing everything including nothing. He always appeared to have a bone to pick with Rail. Ngunyi is the brain behind generation of ‘tyranny of numbers’ hypothesis.
His blunt utterances always caused uproar like suggesting that Raila should be jailed over Uganda sugar deal and calling Luo community poverty stricken. ‘Raila should be put on trial. The Judge: Poverty stricken Luos…. The Charge: selfishness. Selfishness, selfishness, selfishness…’ he wrote on a tweet. His political analysis career is ‘Raila based’ giving him all sorts demeaning descriptions like equating him to a slow punctured car. He is now cornered in the infamous NYS saga where shs 791 million was misappropriated. Ngunyi’s firm did business with NYS and was overpaid.
His blunt utterances always caused uproar like suggesting that Raila should be jailed over Uganda sugar deal and calling Luo community poverty stricken. ‘Raila should be put on trial. The Judge: Poverty stricken Luos…. The Charge: selfishness. Selfishness, selfishness, selfishness…’ he wrote on a tweet. His political analysis career is ‘Raila based’ giving him all sorts demeaning descriptions like equating him to a slow punctured car. He is now cornered in the infamous NYS saga where shs 791 million was misappropriated. Ngunyi’s firm did business with NYS and was overpaid.
He is finding no defense in Raila, instead he claims he is shocked why he was overpaid shs 11.87 million. He told the National Assembly Public Accounts Committee (PAC) that he did not know how NYS Picked his firm to do it’s restructuring and if it was single sourced. Guilty Mutahi claims that he only learnt from the auditor general that he was overpaid in March 2015 but he assumed it was from a different client since he had been paid his dues prior to that.
He is finding no defense in Raila, instead he claims he is shocked why he was overpaid shs 11.87 million. He told the National Assembly Public Accounts Committee (PAC) that he did not know how NYS Picked his firm to do it’s restructuring and if it was single sourced. Guilty Mutahi claims that he only learnt from the auditor general that he was overpaid in March 2015 but he assumed it was from a different client since he had been paid his dues prior to that.
The Mutahi defending himself now is so different from the one with the foul mouth, he looks rained on and begging for mercy with weak threats to sue ministry officials who made the mysterious payments. He swore on his mom’s bible that he is clean. Is he clean? This is the same guy who authoritatively said in an interview with the Nairobian that he makes money in CCP (corruption, consultancy and politics).
The Mutahi defending himself now is so different from the one with the foul mouth, he looks rained on and begging for mercy with weak threats to sue ministry officials who made the mysterious payments. He swore on his mom’s bible that he is clean. Is he clean? This is the same guy who authoritatively said in an interview with the Nairobian that he makes money in CCP (corruption, consultancy and politics).
Mutahi was responding to a question on the source of his money to rent lavish offices at the MMID Studio House in Museum Hill and pay his staff of mostly young, gorgeous and sophisticated looking women. The arrogant analyst claimed that The consultancy house (his firm) does a lot of work from bodies like governments and IGAD through referrals across 18 countries. Corruption is indeed his source of income and has finally ended his arrogance and career; no one listens to Ngunyi anymore.
Auditor General report has uneartheddisturbing inconsistencies within the office of AG Githu Muigai. The Office of the Attorney-General and Department of Justice had a total budget for the year 2014/2015 of Kshs.3,482,018,843 for both recurrent and development expenditure. However, the Office utilised a total of Kshs.3,002,775,301 resulting in an underutilization of Kshs.479,243,542 (13%) of the total budget.
Further, the office did not receive Kshs.801,509,542 (21%) of the planned exchequer releases to implement its annual objectives.
Examination of the recurrent account bank reconciliation statement revealed payments in cash book not in bank statement of Kshs.104,619,219.36 out of which Kshs.35,744,293 have been long outstanding and also payments in bank statement but not in cash book amounting to Kshs.53,132,463 out of which Kshs.45,162,116 have been long outstanding. Although the AG Office has explained that they have adjusted their cash book with Kshs.33,127,388 and Kshs.33,078,871 respectively and further explained that most of the payments in bank and not in cash book were pay advances that were paid by Central Bank of Kenya on their behalf to foreign banks, no analysis was provided to support and justify the adjustments. In the circumstances, the cash and cash equivalents balance of Kshs.93,871,592 30 could not be confirmed by the OAG.
The statement of receipts and payments reflects proceeds from domestic and foreign grants of Kshs.300,000,000 as at 30 June 2015. It was alleged that the donor agencies paid the funds directly to recipient projects/programs and the expenditure incurred thereon in form of Research, Studies, Project Preparation, Design and Supervision. However, no supporting documentation has been provided for audit review to confirm the amount received and spent by the Office of the Attorney-General and Department of Justice. Consequently, Auditor General notes thst it was not possible to confirm the accuracy and propriety of the revenue or expenditure of Kshs.300,000,000.
Further, Ouko highlighted weaknesses in the internal control systems of the AG office stating that there are no risk management policy in place during the year under review. No risk assessment was carried out to identify and address key areas of concern and document specific controls in response to identified risks – There is no evidence that management assessed the internal controls applicable to address any material weaknesses that could be inherent in the controls.
The report indicates, AG office has not produced operating manuals to guide key processes and controls for receipts from debtors/customers, payments to creditors, personnel, expenditure, assets and liabilities and investments. There was no operational plan for the year under review. Most systems of the Official Receiver are manual, the institution does not have an approved Information Technology (IT) strategic plan and security policy. The institution has no formal, documented and tested disaster recovery plan/emergency procedure in place, to guide on cases of emergency
A quick survey around Kenya or the streets of Nairobi on the origins of Mpesa will have you fooled. Over 80% of us Kenyans believe Mpesa is a national treasure that encapsulates the innovative potential of the Kenyan people. But, the reality is far from this. Since 2008, we have been deceived on the brand of a foreign corporate colonial in bed with a corrupt Kenyan elite. Mpesa is an ongoing Heist and is not Kenyan invention by any measure.
Today, it is no coincidence that Safaricom and Mpesa run and control almost all aspects of our lives. Our mobile phones, bank services, taxi service, government payment services and even Nairobi’s Big Brother 24/7 security cameras. Behind the big green brand that is now synonymous with our country, is a carefully weaved scheme to rob unsuspecting Kenyans. Safaricom and Mpesa are golden egg laying geese for Kenya’s rooted political elite. A money minting machine.
To understand how it all comes together, it is important to connect the dots and dig deep. This is what we did and the revelations are shocking to say the least. What you are about to read is an 8 part investigative report on the roots of Mpesa, Safaricom, CBA Bank and the daylight robbery that is going on in Kenya.
The True Origins of Mpesa
“Those who do not learn history are doomed to repeat it.” George Santayana
The history of Mpesa dates begins at Vodafone UK’s strategic office in 2003 (source) . Vodafone was experimenting with new products for its emerging business unit. The basic idea was to partner with the UK government’s DFID Financial Deepening Challenge Fund (FDCF) to churn out innovative ideas in line with millennium development goals. After a successful proposal, workshops were organized in Nairobi and Dar Es Salaam. On 11 October, 2005, a pilot partnership followed between the Safaricom, Faulu Kenya, a microfinance institution (MFI), and Commercial Bank of Africa.
A team led by Nick Hughes and Susan Lonie was put together to drive the Kenyan initiative. Originally, M-pesa was conceived to streamline Microfinance Institution (MFI) manual based operation. However, person to person money transfer turned out to be the killer app, shelving the original use cases.
A team led by Nick Hughes and Susan Lonie was put together to drive the Kenyan initiative. Originally, M-pesa was conceived to streamline Microfinance Institution (MFI) manual based operation. However, person to person money transfer turned out to be the killer app, shelving the original use cases.
At the time, Safaricom was heavily linked to the Moi political class of the 90s. Ex-President Moi, Biwott and unknown associates owned of 12.5% of Safaricom via a veiled ownership through Mobitelea. Safaricom was perfect for this project
Once Mpesa exhibited early signs of success, Safaricom and Vodafone executives green lighted the project.
Once Mpesa exhibited early signs of success, Safaricom and Vodafone executives green lighted the project.
Sagentia, a technology consultancy firm based out of Cambridge was contracted to build out everything. Not only did the firm write the software for Mpesa, it also designed the business processes, and provided operational and technical support during the pilot and after launch (source). This is the true origin of Mpesa, the rest is history.
During the last term’s fire fiasco that clobbered most high schools in the country with scores of schools razed, murmurs of cartels were heard with many pointing fingers at the exams leaking faction.
It was also blamed that the publishing firms conspiring with corrupt head teachers were unhappy with Education CS Fred Matiang’i strict audit policies. A cartel also exists between County Education officials and respective headteachers where they conspire to inject unnecessary particulars in the fee structure and split the loot on maturity.
Parents end up being the victims of this buffoonery and plain robbery. This has been shown in exorbitant fee statements across many schools.
For example in St Georges girls, the school wanted to add new facilities in an already congested area. So the principal and administration imposed 20,000 on all students compulsory. For those who went without it they got chased home.
Concerns from this are the orphans, poor children. How would an ordinary casual labourer, newspaper vendor or jobless parent who’s basic needs are even a struggle be able to afford that !?? Charity is voluntary. Apparently the ministry of education approved of it. I hear it’s happening in alot of schools but it’s not fair.
Here’s a copy of the fee structure;
The school is near statehouse and KNEC on Dennis Pritt Road. Normally, parent’s approval must be sought before inclusion of extra particulars in the school fees in the case of St Georges under Principal Mrs Rukunga, imposed the 20K on parents this is unfair if not criminal. Such burglary is denying bright students from getting quality education of not keeping the out of school in totality. Shame on you the Principal and Kenya Insights urges Education CS to jump into the poor students help.
This ploy is not limited to this school alone and is replicated nearly in all schools a disturbing trend that is making basic education extremely expensive competing with tertiary levels. We’re hoping the no nonsense CS Fred Matiangi is going to crack a whip on these menaces frustrating education.
Philip Kinisu the immediate former chairman of the EACC has tendered his resignation. The career of yet another distinguished Kenyan has ended in ignominy. How many more careers must Kenya sacrifice to this ogre named the EACC after Mwau, Ringeera, Lumumba, Matemu and now Kinisu? Why does it continuously eat its own children? Should we sacrifice yet another Kenyan or do we hire a foreigner? Or is it time we did away with the EACC altogether!
President Uhuru Kenyatta has on several occasions expressed a sincere desire to fight corruption. Indeed, one of the biggest purges of corruption in government took place on his watch when several Cabinet and Principal Secretaries were fired and charged with corruption-related offences in courts of law. This was perhaps the most courageous move taken by any leader in independent Kenya. It ruffled a lot of political feathers, especially within the Jubilee coalition. The trail on official corruption however has since gone cold. Opposition sceptics now say it was a ploy to hood-wink US President Barrack Obama and Pope Francis, both of whom instructively spoke strongly against corruption during their State visits.
In taking the bull of official corruption by the horns President Kenyatta was knowingly and willingly swimming against the tide. Official corruption in Kenya is so endemic that it is graduating to being systemic. Corruption cartels often influence government tenders through powerful point-men in the political sphere. It is the proceeds of corruption, that for the most part, oil and grease the political system. There is therefore a symbiotic relationship between politics and corruption in Kenya. That is why in the past it was traditional to have a corruption mega-scam like Goldenberg and Anglo Leasing after every general election to recoup funds spent in the election campaigns.
It is a credit to the Jubilee leadership that they have not followed that course. A one-man war against corruption in Kenya was bound to invariably run into powerful headwinds due to the multiple convergent interests. It becomes even more difficult when that person is a politician seeking re-election. Hopefully we expect a more robust assault on corruption during the Presidents second and final term.
Meanwhile, we must honestly address the issue of the suitability of the EACC as it clearly isn’t functioning. The hiring and f iring of EACC chairpersons has become our favourite game of musical chairs despite it being a bottomless pit for public funds! It has become a graveyard of broken careers and will no longer be taken seriously by qualified professionals.
It has been said that Kenyans are not committed to the war on corruption and EACC appointments are merely windowdressing for the outside world. The joke now is that the person who will serve longest on the EACC chair is he/she who does absolutely nothing save reading the daily newspapers and collecting a monthly salary.
The job description is inaction. That is because any action may step on the toes of the powerful who will initiate action in Parliament or elsewhere for removal from office. This should inform us that even a foreigner would be unsuitable. T he remaining option is to abolish the office of the EACC when the constitution is next amended.
It has failed and currently only serves to drain public resources. They have not secured a single conviction of the “big fish “since the formation of the Kenya Anti-Corruption Commission in 1997. All their efforts have been directed mainly towards incidental or petty corruption against junior public officials.-Daudi Mwenda.
Protests against the reelection of Gabon’s President Ali Bongo
As Gabon is rocked by violence following the contested re-election of President Ali Bongo, experts says electoral fraud in Africa is becoming harder, thanks to civil society vigilance and spread of mobile technology.
Opposition leader Jean Ping on Friday declared himself the rightful president of Gabon and called for a recount, following Bongo’s claim of victory with a razor-thin margin of just under 6,000 votes in the August 27 election.
But recent elections in Nigeria, Ivory Coast, Benin and Burkina Faso have all been held largely without dispute, overseen by engaged citizens who assured careful monitoring of the process, said Mathias Hounkpe, Political Governance Programme Manager for the Open Society Initiative for West Africa (OSIWA), which promotes greater government transparency. “It is more and more difficult to commit fraud,” he said.
Preventing fraud with ballot papers was down to a clear legal framework for organising elections, electoral bodies “in a position to respect the rules”, independent figures such as international election observers and a free press and active social media users who would guarantee a fair vote, according to Hounkpe. For Aboubacry Mbodji, secretary-general of the African rights group RADDHO, west and central African countries such as Senegal, Ghana and the Atlantic island of Cape-Verde have shown Africa how a successful democracy holds an election.
A strong civil society and the combination of free media and citizens with access to new technology to disseminate information was “extremely important”, he told AFP. Senegal, where RADDHO is based, saw “a change at the top” in 2000 when liberal candidate Abdoulaye Wade challenged the socialist regime that had held power for 40 years, and was elected president for two terms. Government fightback But Wade himself was booted out in 2012 after angering voters with attempts to stay on for a third stint in power, showing the maturity of the electorate, Mbodji said. “(The 2000 election) was in large part thanks to the use of mobile phones, but also the internet,” he added.
Any party members tempted to tamper with ballots had to face the large numbers of Senegalese who remained in place at voting stations to ensure it passed off peacefully, he said, and reporters who called in the results to media from mobile phones, especially radio stations, covering the event. The last 15 years have seen organisations such as “Y en a marre” (We are sick of it) in Senegal, “Balai citoyen” (Citizen sweep-up) in Burkina Faso and “Lutte pour le changement” (Fight for change) in the Democratic Republic of Congo appear, intent on pressing governments to be less opaque.
Despite the trend towards more transparent elections, heavy handed government reactions have not entirely vanished, with internet and social media shutdowns during presidential elections in Uganda in February and in Congo-Brazzaville in March, and now in Gabon. “The African Union observers couldn’t even communicate properly to complete their tasks,” Mbodji said, referring to the Congo election that returned longtime leader Denis Sassou Nguesso to power. But even the continent’s most entrenched leaders couldn’t escape the effect of the tidal wave of information the internet made possible, said Hounkpe. “Those in power have less and less capacity to manipulate the process.”
Kenya is also another example where in the previous elections of 2013 done on a Biometric technology, allegations from the opposition were that it was a sham. Judiciary is what prevented the country from going up in flame by playing intermediary in solving the dispute.
As we head to another fierce elections in 2017, concerns have been raised over the quality of elections with electoral body being restructured. The government is accused of scheming in with social media restrictive regulations through amendments acts now before parliament. This is seen as a gag motive as vigilant society stays top awake in the gear up to the next elections.
Beyond its extensive connections in Kenya’s government and political class, Safaricom also has a war chest full of cash reserves, and one of the largest advertising budgets in Kenya. You will not find the truth about Safaricom on mainstream media.
TV, radio and newspaper print editor’s cannot publish stories portraying Safaricom negatively because it is one of the media’s biggest advertiser. They risk losing a lucrative budget worth in advertising across their multiple media channels. Instead, they dance to Safaricom’s tune.
What is often buried and left out in staged media campaigns, is Safaricom’s reputation of stealing ideas from young companies, bullying and using its connections to lock out competitors? Safaricom’s monopoly has had negative ripple effects on the Kenya’s competitive landscape by locking out innovation. Ask any young computer geeks of Nairobi.
They will tell you, Mpesa, the widely used local payment system, is strictly controlled on how who and when it can be accessed. Collecting payments are limited to them, and they get to decide the rules. Complaints abound of Safaricom’s failure to offer simple APIs for tech developers and small businesses to link Mpesa payment applications to their process. For a company as big as they are, what they provide is low quality compared to industry standards. What is ideally supposed to be a natural process of applying for APIs (typically free and easy to access), is a nightmare at best.
Kariuki Marima, one of Silicon Savannah’s bright minds is frustrated and says Safaricom’s API Integration is a nightmare. Kariuki and other highly experienced developers from Banking and telecommunications admit they have not faced a more painful process than integrating to M-PESA. It is hard to believe a company with $150 million in reserves cannot develop simple, accessible APIs for Kenya’s technopreneurs.
It is no secret Safaricom has had numerous Intellectual Property cases brought against it in courts. Budding internet entrepreneurs have been victims of Safaricom’s devious tactics. Safaricom has been accused of stealing intellectual property ideas from young Kenyan companies, after luring with closed door session pitch.
Steve Ngethe came up with Manyatta rent in 2012. A mobile payment application that allowed landlords and real estate agents to aggregate rental payments. Steve got into talks with Safaricom’s Business Development Department on a potential partnership. Months later, Safaricom launched a rival product dubbed Lipa Kodi that resembled his original idea, Lipa Rent.
Faulu Kenya Microfinance Bank also had qualms with the Safaricom over its product concept, Kopa Chapaa. Faulu claimed they pitched Safaricom on the idea of a mobile money service in 2011 that would let users save, borrow loans and earn interest on their mobile phones. Faulu
“ had proposed to enter into a partnership with Safaricom to deploy a similar product and says it presented a prepared concept paper detailing how the platform was going to operate.” – business daily
Faulu Kenya’s case was heard before the High Court on December 2012. Judge Jonathan Havelock dismissed the application for an injunction by Faulu seeking to temporarily freeze the launch of M Shwari. Today, that product is and belongs to Safaricom and Commercial Bank of Africa.
Another case of Dr Dedan Maina Warui vs. Safaricom Ltd. sought an injunction against Safaricom on allegations of a breach of copyright and intellectual property. Dr Dedan claimed to have pitched Safaricom’s Enterprise Unit on the idea of a medical dispenser in March 2011. Warui had heard of Safaricom’s crooked methods. He smart enough to register his Med Dispenser concept paper with the Kenya Copyright Board as a literary work, no. CR 000712 on March 8, 2011. Safaricom later launched a similar product, Safaricom Healthcare Presence without notifying Warui. He found out through the Daily Nation newspaper and sought redress in court. Again, the High Court dismissed his application. In his ruling. Judge Gikonyo agreed that Warui concept paper was copyrightable.
These are just but a few example. Safaricom’s reputation has been soiled amongst Kenyan entrepreneurs and technologists. It is so bad, and that young companies are hesitant to take up investment rounds from the firm’s $1 million Spark Fund kitty set aside for startups.
Even large Kenyan corporations have locked horns with Safaricom over its monopolistic, anti-competitive, dishonest tactics. Airtel and Equity Bank have had over ten court battles with Safaricom over its anti-competitive behaviour. The status quo is intent on perpetuating the cash cow at whatever cost.
The latest court case in December 2015, was a spat between a payment start up BitPesa and Safaricom. BitPesa Limited and Lipisha Consortium Limited (the petitioners) took Safaricom (the respondent) to court for abruptly shutting down their services.
President Uhuru Kenyatta presents Safaricom CEO Bob Collymore (left) with an award
Why Safaricom is Kenya’s Untouchable
This is the second issue of our eight parts investigative series on Safaricom. On its May issue, edition, the Nairobi Law monthly ran with the title ‘Why Safaricom is Kenya’s Untouchable’. No truer words have been spoken on Kenya’s ongoing mass brainwash by a foreign company and closely tied group of Kenyan elite. Safaricom has since sued writers of NLM for defamation. Nation Media Group have also had their adverts contracts with Safaricom terminated when they went ahead to highlight the KPMG audit report that unearthed multi million heist within the teleco.
Safaricom is today the highest tax payer, makes $380 million dollars in profit and employs 5000 Kenyans. Mpesa is a cash cow for Kenya’s political architects. The mobile money unit rakes in 30% of the company’s revenue, 41 billion in 2016, a figure that has gone up consistently over 9 years.
But, behind the veils of Safaricom’s shareholder structure, lies powerful political and corporate vested interest. Their intention is to perpetuate the dance and charade, while siphoning off profits for their fat pockets. Watu wamekuwa wajanjez!
Kenya’s Corruption 2.0 is nothing like the yester years of the Moi Era. Today, corruption is all about well positioned publicly listed companies to milk Kenyans of every coin.
Half of every transaction fee on your Mpesa transactions goes abroad to Vodafone PLC UK. 5% of airtime commissions via Mpesa also go to Vodafone as part of a license agreement. 40% of all profits made by Safaricom go to Vodafone UK Plc as shareholder of 40% of Safaricom’s shares. We, the public only get to own 25%, while the Government of Kenya holds 35% via Treasury.
2 weeks ago, Safaricom announced a special dividend, worth 28 billion. Close to half will be repatriated to the UK’s British Vodafone. The timing of this ‘special dividend’ is suspect, with Kenya’s upcoming elections.
Over and top of profits, there are royalties owed to Vodafone. Vodafone collects annual fees for the contractual licensed use of Mpesa. Vodafone Sales and Services Ltd (VSSL) owns the intellectual property to Mpesa.
“As the inventor of the globally acclaimed mobile money payments service, Vodafone is entitled to licence fees from Safaricom, calculated as a fraction of M-Pesa’s annual turnover. Vodafone Sales and Services Ltd (VSSL) owns proprietary rights to the M-Pesa platform and earns service fees accrued from the use of the mobile money transfer solution.” Business Daily
The terms of the contract stipulate quarterly payments as royalties annually amounting to between 11% – 25% of all Mpesa revenues. So now Kenya and all the services in Kenya that rely on Mpesa tied to a perpetual license owned by Vodafone. The country’s crucial infrastructure – SACCOs, Micro finance institution, Banking, Utility payments, Taxi service, Lipa na Mpesa and the KRA are tied to a licensed product.
This contract is a sham, just like the much-hyped Homecoming of Mpesa Servers from Germany back to Kenya. This was another masquerade to the country into believing there was a fair exchange. The plot was to shift the servers to a new G2 Platform as a guise for siphoning money via the Chinese, and restructure Mpesa intellectual property under new terms. Documents show Agreements were made by Safaricom and G2 Platform supplier under the VPC (Vodafone Procurement Company) 3rd party, a Chinese company Huawei was roped in to facilitate syphoning 30 billion into shell accounts in Luxembourg. (Source: Nairobi Monthly Magazine June edition.)
Needless to say, the timing of these events just before elections is suspect.
Friends in High Places
Not many people are aware of the strong link between Safaricom, Mpesa and State House. It’s a circle of regulators and Kenya’s top elites designed to shield the cash cow from interference. The cow must be milked!
Together, they pull strings to entrench the green brand that has now become culture. A conspiracy at high government levels took all the powers of the Communications Authority. Virtually, every regulator has been secured in Safaricom’s back pocket – the Competitions Authority of Kenya, the Central Bank of Kenya and the ICT Ministry.
Effectively, no institution in Kenya has the teeth or commitment to rope in Safaricom’s excessive sway in Kenya.
The roots of Safaricom are deep rooted in the political figures of the 90s. Ex-President Moi, Nicholas Biwott and unknown associates were linked to owning 12.5% of Safaricom via the infamous Mobitelea. “Its [Mobitelea] owners include politicians from the former government who may have used their influence to facilitate Vodafone’s original $20m investment in Safaricom in 2000. At that stage, Kenya’s regime had become a byword for corruption, with politicians amassing vast wealth.”
Today, the mantle has been passed on to their ilk. The children continue to eat and the dance is kept on.
Like, Ex-Safaricom executive Waita, a learned lawyer who rose through the ranks of Safaricom. He is now firmly set at State House as Deputy State House Chief of staff and head of Public Service. This broad mandate puts him in charge of the President’s Delivery Unit, Office of Budget Management, Performance Contracting and Oversight Office and State Corporations Oversight Office.
President Kenyatta, Nzioka Waita and Bob Collymore promoting an Mpesa product.
Until recently, Mshwari, a mobile lending facility, was the only product allowed on Safaricom’s Mpesa Menu. Commercial Bank of Africa accounts went up from 34,884 in 2011 to 10 million accounts. M-shwari single-handedly propelled the bank from a mid-tier bank in 2013, to a Tier 1 bank all through billions of mobile loan sharking via Mpesa. Yesterday, CBA expanded into Uganda to offer MoKash, a Ugandan version of Mshwari. CBA has the same product in Tanzania with Vodafone.
Now, what most people do not know is that Commercial Bank of Africa is partly owned by the Kenyatta family and close associates. It has reaped enormous benefits from the success of Mpesa and Safaricom. President Kenyatta’s former lawyer Desterio Oyatsi is at the helm of the board as chairman. The president’s younger brother, Muhoho is the Deputy Chairman of Commercial Bank of Africa.
With all these powerful people with ties to Safaricom, no wonder it is untouchable.
Back in London, Vodafone executives are happy cheer on the show.
Former Devolution CS Ann Waiguru who has also declared interest in Kirinyaga Gubernatorial Seat.
When integrity of an individual should be of the greatest concern before they are trusted with the public office, Kenyan politics presents a different scenario. Looters are coming back to contest County top jobs where there is more to loot and impoverish the electorate. The former devolution and planning CS Ann Waiguru who left the office due to public pressure after she was adversely mentioned in the infamous NYS scandal for swindling shs 791 million has announced that she will be running for Kirinyaga gubernatorial seat. When it was all clear she quit her job for misconduct, Waiguru maintained she was innocent and only a whistle blower.
She cited health reasons for her resignation and requested the president to assign her lighter duties, but immediately resorted to numerous consultations to vie for Nairobi seat. She has since shelved her interest in Nairobi gubernatorial seat after sensing defeat in good time. Nairobi seat has attracted big names like Mike Sonko, Water CS Eugene Wamalwa, Former Speaker of National Assembly Kenneth Marende and former Raila aide, Miguna Miguna.
Kenya is a place where people who commit economic crimes are never punished. The heavily connected individuals steal from public coffers; step aside to clear their names at the EACC then return to vie for elective positions with the stolen money.
Waiguru was hurriedly cleared of any wrong doings at the EACC and her case ‘disappeared’ even after the affidavit by one Josephine Kabura linked her to the scam. But like they say in entertainment, any publicity is good publicity. People who are known for looting public funds take that as being popular enough to vie for any seat and steal more. Look at people who eying political seats in the 2017 elections.
Former lands CS Charity Ngilu who is facing corruption charges has also formerly announced her interest in Kitui’s top job. She made her announcement in her mother tongue asking the electorate of Kitui to support her bid saying she was the answer to the long time problems they are facing. She blamed the incumbent, Julius Malombe for allegedly failing to meet needs of the people as the community is still struggling with food insecurity and water shortage. A classic case of a pot calling the kettle black, Ngilu has headed the water docket in the previous regimes but she can only be remembered for nepotism.
Ngilu who said she will run on a NARC Party ticket was at some point one the strongest female politicians in the country when she competed against the powerful Moi in the 1997 presidential elections. She then diluted her status and became a political bootlicker making pre-poll pacts with other presidential candidates who came after her. She had a pact with current regime of the day where had a short stint stained with corruption as minister for lands after failing to clinch senatorial seat in 2013. She lost her bid to one term MP, David Musila who is also in the race for Kitiui gubernatorial seat.
Danson Mungatana, another long time failed politician who was rescued from poverty by his friend by appointing him to the Ports Authority Board that he grossly mismanaged leading to his abrupt duty termination, is tipped to by vying for Tana River Gubernatorial seat. His magisterial skills that’s expected of a governor has been tested and gave pathetic results.
Another failed leadership scenario is that of Ole Lenku, the Security CS who is famed for being the SI unit of incompetence and utter floor flat perfomer in the Jubilee administration. His mom performance in his docket, prompted for his dismissal by the president following consistent public’s outcry. The mediocre proven Lenku has unfortunately launched his bid for Kajiado gubernatorial seat.
What cursed as Kenyans, while in other mature democracies, corruption is punishable by death and in lenient situations, lifetime jail term. I’m Kenya, they loot from the public and same public turn around to worship,glorify them and rewarding them with even bigger political posts and in return expect better service delivery and even more psychopathic a corruption free zone from the same criminal elements.
Elections in Kenya require good financial capital and if the recent IEBC rules to cap campaign expenditures are anything to go by then looters of public funds are better placed to ‘buy’ positions they are eyeing. The public has been forced to believe that the bank of justice is bankrupt; the corrupt selectively apply law to favour them. Ngilu and the likes cannot be barred from contesting any position because they will claim they are innocent until proven guilty and these cases never end. More looters will still launch their bids.
Just when you thought extrajudicial killings by the police would cease with the brutal murder of lawyer Willie Kimani who was killed alongside his client and the taxi driver, more terror continue to be unleashed by the same force.
A 27-year-old deceased man identified as Ngandi Malia Musyemi was being treated of gunshot wounds sustained earlier on Wednesday night at around 8 pm when the officers reportedly followed him to the hospital and finished him off at 3 am.
Two police officers have since been arrested in this respect. One of the officers is reported to have laid wait outside as his colleague accomplished the mission, sending panic at the hospital where other patients were admitted.
“The deceased had earlier recounted to police how he was hijacked at Majengo area in Kitui, blindfolded and taken to a thicket at Sosoma junction where he was shot in the head and left ribs,” a senior police officer said of the incident that occurred off the Mwingi-Garissa Highway.
An investigation has since shown that it is the two police officers who had hijacked him earlier and shot him, leaving him in a critical condition before he was assisted to hospital by passers-by, according to police.
“He is accused of being a robber and was under investigation for some murder cases, including a police officer’s child,” a detective said, but could not confirm if the child belonged to any of the two officers arrested or if there was any conspiracy to have the suspect killed.
Ngandi Musyemi, 26, was admitted to the facility on Wednesday with bullet injuries after he was carjacked in Majengo, Kitui town at 8.30am while in the company of a female friend.
The attackers claimed they were police officers and forced him into their white car.
“He was blindfolded and forced to sleep facing down, driven to Ukasi area where they shot him several times,” Musyemi’s sister said.
“They then left thinking that he was dead, only for him to struggle to the main highway and call for help from good Samaritans who took him to Ukasi health centre. From there, the police took him to Mwingi general hospital,” she added.
She said the family is yet to understand why his brother was not guarded by police, despite the fact that he was a patient nursing gunshot wounds.
Musyemi – a second-hand shoes dealer in Kitui – was hospitalised after he was shot at the back of the head and at the left cheek, as well as the left ribs.
The sister said the assailants were permitted to enter the hospital at 8pm, which is past the authorised visiting hours.
“They hid in the hospital until 3am when they completed their mission,” she said.
“Though he was in great pain he was conscious since he was talking,” Musyimi’s sister said.
Meanwhile, Musyimi’s sister Sharlyne Malia who witnessed his brother being shot dead in his hospital bed has claimed that the men who killed her brother are after her.
On Saturday morning, she slithered out of a family meeting at Kathiani village in Kitui West, after claiming that two men came looking for her.
Mr Musyimi’s family claims he is a victim of extrajudicial killings.
“My brother was picked up by police from his house and was first taken to Kitui Police Station. Later he was brutally killed. They must tell us why they killed him,” said Nicholas Mukando.
The officers thought to have killed Musyimi and in realising he wasn’t dead, followed him to the hospital where they pumped 17 bullets to his body allt these in the full glare of the sister. Being a crictical witness, the sister need to be put on witness protection immediately.
Extrajudicial Killings have heightened in recent times and it’s high time theDCI Muhoro who’s heading the killer unit to take responsibility and resign since he’s unable to stop the senseless killings. The killing of this gentleman must cost as much concerns as that of Willie and rest of police brutality. There need to be a stop into this madness.
The United State’s Secretary of States was in the Country from 22nd August meeting with the President, opposition and sections of the Civil Society. The need to improve business relations, boost counter-terrorism measures, increased corruption in the government, a highrise in drug trafficking to the US from Kenya and stabilise the region from civil war are the key reasons Kerry was in town.
While the President was hosting Kerry in Statehouse, Nairobi, his counterpart DP Ruto was forced to change his plans last minute by travelling to Mombasa. According to a diplomatic source talking to Kenya Insights, Kerry had given clear instructions to the protocol handlers and the US Ambassador that they must ensure the DP doesn’t get anywhere close to him given his reputation.
US Secretary of State John Kerry (back to camera centre) when he met Opposition chiefs led by Cord principal Raila Odinga in Nairobi on August 22, 2016. Mr Odinga was accompanied by his co-principals, Mr Kalonzo Musyoka and Mr Moses Wetang’ula, Amani Coalition leader Musalia Mudavadi and Narc Kenya’s Martha Karua.
On giving his conditions, Statehouse was told were forced to find a quick way to hide the dark cloud hanging and to avoid embarrassment, decided that instead, Ruto tour Mombasa where the President was scheduled to travel in the next days.
According to the source confiding in Kenya Insights, the Secretary of State, didn’t want to be pictured or see near him the DP citing his corruption links, “the DP is named in most if not all graft cases and the boss didn’t want to get close to him and ordered that we ensure he’s kept as far away from him at all costs.”
This was a last minute communication prompting the unplanned trip by the DP who went on an extensive Coast tour ahead of Kerry’s visit in a strategic move to dupe the sceptical public. This isn’t the first time protocol was having hitches when the US President Obama visited Kenya last year, and there were speculations that DP was ordered to keep away and had to take the intervention of the President who insisted Ruto had to be on the table and delegation receiving and seeing him off.
Ruto’s impromptu visit to Coast coincided with Mr Odinga’s starts his tour in Taita-Taveta County on Wednesday. President Uhuru was slotted to visit Mombasa on Thursday to open a Law Society of Kenya conference.
Kenya Insights has embarked on an in-depth investigation into the underworld operations of Kenya’s biggest telecom, Safaricom, in the first episode of the eight series of investigative pieces, we look into Bitpesa. BitPesa, a promising company, founded in 2013 was first to market using a groundbreaking global payments transfer technology, the Bitcoin Blockchain. Bitcoin blockchain technology, is completely open source, threatens Safaricom’s cross-border money transfer partnerships. A Citi Bank report came out last month citing this technology as highly disruptive in African cross-border payments. Again, Safaricom took to its tried and tested dirty tricks to move fast and shut down the service before it gained traction.
BitPesa’s business model allows customers (businesses and individuals) from both abroad and in Kenya, to send and receive money internationally instantly from your mobile phone. The company chose to use Bitcoin blockchain. Customers based overseas and in Kenya would send bitcoin to Bitpesa and Bitpesa would pay out Mpesa. Or Customers would send Mpesa to Bitpesa, and they received Bitcoin.
A brilliant idea! Joe Mucheru, a renowned successful tech entrepreneur and current ICT Cabinet Secretary was the first investors in the company board. The man has seen it all. From his vast experience building Wananchi, a million dollar Internet Service Provider, and later as a top boss at Google. He immediately saw the value in leveraging an emerging technology to capture the $1.2 billion remittance market now dominated by foreign companies. He put in 40 million KES, 50% of BitPesa’s 70,000,000 seed capital.
All was going well.
Lipisha Consortium Limited, a payment gateway service firm, was contracted by BitPesa to automate the in and outs of Mpesa. For this purpose, it was necessary to sign up for Safaricom’s PayBill API service. The lack of proper APIs in Kenya highlighted earlier, means running a payment gateway is a tightly controlled affair for a privileged few. For example, few companies get all the contracts and are wholly dependent on Safaricom for revenue. This is what Safaricom to have a tight grasp of who, how and when technology companies can access the platform. Lipisha is one of these few privileged companies.
ICT Principal Secretary Sammy Itemere, CS Joe Mucheru with Safaricom chief executive Bob Collymore
Over one and half years, the company began getting outstanding traction. BitPesa went on to raise another $1.2 million to expand its operations in Tanzania, Uganda, Ghana and Nigeria. It immediately got attention from numerous publications on. A Citi Bank report hailed BitPesa for using blockchain technology, for solving Kenya’s poor cross-border payments infrastructure problem. According to sources, by December 2015, the company was moving as much as $400,000 in volumes monthly.
Safaricom could not help but notice BitPesa’s high volumes moving in and out. From its internal servers, Safaricom could see BitPesa’s transactions on customers’ Mpesa accounts. Volumes were going up, and the number of customers was growing.
Safaricom had good reason to worry. The company’s partnerships with foreign money transfer operators earn them a tonne of fees and entrenches Mpesa the brand. Xoom, PayPal, Skrill, Western Union and Worldremit currently have arranged partnerships. So, it was only a matter of time before Safaricom swooped in once more as they have done in the past.
Using its muscle, Safaricom demanded an urgent meeting with SpotCash, a partner company that relies 100% on business from Mpesa. SpotCash had signed up BitPesa Ltd. on its PayBill services via Lipisha Consortium Ltd. The company called insubordinate employees at Spot Cash’s service desk and immediately threatened to cut off ongoing services to the enterprise if the matter was not handled promptly. Sources reveal the tone was harsh and threatening.
Spot cash could do little but oblige. The company immediately shut off the service, triggering what would wind up in High court as a lawsuit for improper termination of services. Safaricom’s sway and monopoly had reared its ugly head again.
Is Bitcoin a Threat to Safaricom’s Mpesa Cash Cow?
For Safaricom, shutting down BitPesa was an attack on a potential threat, and had little to do with any existing law. Asking to see a license from CBK, of which none existed was conniving. BitPesa had not broken any Kenyan law and had taken all prudential measures to align itself with the law.
As a young potentially disruptive start-up company grows up, it begins to get noticed by established companies. This is always a great milestone in any young company’s life. Should the established companies partner with the start-up? Should they copy it? Should they close their eyes and wait to see if the start-up withers? Or, should they try and squash it?
Safaricom’s argument in court, against Bitpesa, was the same argument made by Kenyan Banks to stop Mpesa when it was launched in 2006. Back then, Kenyan Banks argued Safaricom was operating as a bank without appropriate licenses. They called for Mpesa to be banned from operating.
“Banks were publicly grumbling for some time that the playing field was not level for them and that Safaricom was taking on banking business without the appropriate license.”
At the time, Mpesa was unregulated. There was also no regulatory precedence to look up to. The Central Bank of Kenya gave a nod to proceed while monitoring.
Today, the same Banks that argued against it, now depend on it for their operations.
Fast forward to 2016 and the tables have turned. Safaricom is like the Kenyan Banks of yesteryears and now wants to shut down another budding technology, Bitcoin Blockchain.
“Safaricom claimed that Bitpesa had failed to obtain authorization for bitcoin transfers from Kenya’s central bank. Bitcoins are not regulated in Kenya, but Safaricom insists that it produces a licence to that effect.”
Bitcoin drastically lowers the cost of sending money anywhere in the world for free. There are no hidden or varying charges on Bitcoin like Mpesa. There is no license fee required to use the Bitcoin Blockchain like with Mpesa. Any company, big or small can tap into its open technology. Because it is highly disruptive, it potentially eats up what would be Mpesa’s market. Vodafone executives and Safaricom recognised this and came down hard on BitPesa.
In fact, this is not the first time Safaricom has clamped down on a Bitcoin Blockchain company.
Kipochi, another Bitcoin Blockchain company, set up in Kenya in February of 2013. Their plan was to enable interoperable payments between vendors using blockchain. Headed by CEO Pelle Braendgaard, the company set out on developing a prototype, Kipochi Pay.
Kipochi first integrated with Mpesa for testing out the product among a limited set of user, in-house staff. The prototype worked well enough to show the Central Bank of Kenya and local Telecommunication companies what was possible with the technology. It solved the interoperability problem that plagued Kenyan Banks and Mobile money operators. It did not matter that you were on Airtel, Orange, Mpesa or a bank. You could send money for the same price to anyone.
Just like Bitpesa, the company had to partner with a local Mpesa payment gateway. Kopo Kopo was one of the few payments gateways that had permission from Safaricom. Again, like BitPesa, Kipochi got massive coverage from the global press.
Elizabeth Rossiello, BitPesa CEO
The events that followed were all too familiar. Within a week or two, Kipochi’s connection with M-Pesa through Kopo Kopo was shut down abruptly without notice. It took Pelle more than a week to find out that Safaricom had forced Kopo Kopo to shut them down. Sources later revealed that the order to choke them off came from Vodafone in London. Vodafone Executives were up in arms over the attention the company was getting.
Speaking to Pelle and Kipochi, they revealed they had informal meetings with the Central Bank of Kenya, who called them in to find out who they were, what they were up to and what the hell Bitcoin was. Officials at the CBK seemed knowledgeable and gave them an informal green light to continue as long as they partnered with existing financial institutions or Telcos.
Despite Central Bank regulators being wide open to new money transfer and online payments technology, Safaricom would hear none of it. They stifled the project by essentially cutting off the channel access to customers. Kipochi’s USSD Bitcoin wallet required access to servers in racks at local telcos. The approval process took months, as Safaricom dragged out the affair.
In a well-documented documentary film titled ‘Mpesa has no Competition’ on Bitcoin and Mpesa’s clash in Kenya, Pelle cited Safaricom pressured regulators.
Kipochi was eventually forced to close shop after operating in Kenya for more than a year. In his last interview with a local newspaper detailing Safaricom and Mpesa’s dominance, Pelle said “digital currencies can help drive financial inclusion and inter-link mobile money platforms for easy access anywhere around the world. Bitcoin can solve interoperability between mobile money providers both within Kenya and throughout the world.”
As for Petition 502 of 2015, BitPesa and Lipisha Consortium Ltd. lost the case. On 14th December At Milimani Law Courts, Justice Joseph Onguto ruled in favour of Safaricom, saying
“The Commercial Agreement between Lipisha Consortium and Safaricom reveals that Safaricom could suspend, not terminate the services it offers to the plaintiff, even without notice and for any valid reason.”
In the weeks that followed, the Central Bank of Kenya issued a public notice on Bitcoins in Kenya. The CBK clarified bitcoin and virtual currencies in Kenya were not illegal, and Kenyans were free to choose to buy, sell or hold Bitcoin. But the damage had been done. It was too late.
Corruption and impunity are the greatest economic progress that Kenya is faced with in recent history. Incompetence in office has seen our athletes embarrassed and suffered in Rio during the Olympics, thankfully, the useless Noc-K has been disbanded.
For the past weeks, Kenya Insights has been highlighting the fraud story of one Steven Githaiga, MD Tana and Athi River Authority(TARDA) a parastatal that is being run down the drain by this selfish and arrogant figure. He did not only change his birthdates from 1953 to 1958 but also forced rather self-appointed himself to the MD position without undergoing the normal recruitment process of public office. According to information we’ve gathered, Githaiga was the acting MD since 2009 until 2013 when Jubilee got into power and him liaised with Uhuru’s Cousin Muigai, Githaiga forged around and forced himself into the office without the usual competitive process, this is illegal in all terms.
Abuse of office has become the norm of Githaiga from open and disturbing tribal appointments. On getting into office, he appointed his entire family and clan and just like how he got into office, they were irregularly recruited without any interview let alone advertisement and there wasn’t Boards approval. It’s said, he holds the public office by the balls and anyone who dares coughs is squeezed.
Masinga Dam Project which is to be constructed at a tune of Sh.6B has been Gitthaiga’s latest fraud scheme, and tragedy has rocked his plans since Treasury has refused to approve funds. With his embezzling nature, Githaiga had already approached Chinese Construction Cartel for the construction of his dam. They even bribed him with his current V8 car as a tip to be awarded the tender. Talking of cars, Githaiga stole from TARDA a LandRover Discovery Reg No. KAD 266D which he sold to current National Assembly Speaker, Justin Muturi who doubles as his closest friend.
Githaiga’s relationship with Muturi explains why the unresolved issues on audited accounts for TARDA F/Y 2013/2014 have never been handled despite having been tabled to the Public Investment Committee several times with latest being this year, 30th March. It were unfortunate that the speaker could have used his position to block out the petition and opted to protect his friend and if anything, Muturi himself is a beneficiary of the Githaiga’s looting since he sold him the car.
His original and faked ID
The charlatan MD boasts of high places protection, walks around town shoulders high that despite all the glaring discrepancies and fraud deals he’s running, nothing will ever happen to him amplifying the impunity levels he operates on. Githaiga from our moles boasts to his peers that the Deputy President, William Ruto who’s office was recently polled as the most corrupt in Jubilee Government is his partner in crime and that they’ve together cut some dirty deals. He says Ruto will protect him whichever way and will stay in office despite the magnitude of accusations raised against him.
TARDA was initially under Environment Ministry but has since been moved to the Devolution Ministry under Mwangi Kiunjuri who again happens to be a buddy to the muddy MD Githaiga, and he also boasts to his peers that Kiunjuri has promised him security and gave him go ahead to embezzle as much as he can but play smart. Githaiga loud to his friends that his boss Mwangi Kiunjuri who inherited a scandals marred ministry has promised him security what type of system is this that promotes thuggery. The CS should be ashamed for associating himself with such a fraudulent character who is looting in his name. He therefore, must move with speed to weed out criminal elements like Githaiga frauding in his office, Kenya Insights will be committed to see action come from this office.
Githaiga, we gather has not been in his offices in the last two weeks since Kenya Insights started exposing him. You know they say the guilty are restless, well, the cornered MD has been operating between City Hotels like a typical City wheeler-dealer. He has deployed security men guarding his office for fear of being thrown out. Security officials nearly arrested him and escaped by a whisker. How can a government office be shut for that long? This is undermining service delivery and incompetence of the highest order. State offices should be open and accessible to offices throughout the official hours. Why then should Githaiga be allowed to run a government’s body just the way he so wishes?
A security sleuth has confided to Kenya Insights, that the disturbed MD has resorted to spying on his staff working with criminal officers, tapping their phone communications. He’s desperate to find out who amongst them released the confidential documents to Kenya Insights wasting his energy forgetting the files are publicly available at the Parliament’s Premises. You really can’t blame a man who faked his birth dates to increase years in employment, forged his ways to be a lecturer at USIU without standard credential(USIU has since responded to our previous issue that Githaiga didn’t meet lecturer standards, they’ve confirmed he was there but has since left, Faculty is following up on the issue, and we’ve also forwarded his name to MATIANGI AS ONE OF QUACK lecturers FLOCKING THE uNIVERSITIES)
Mr. Steven Githaiga Ruimuku. Managing Director TARDA
As Government gears to do a clean sweep on corruption as said by the principals, all parastatals need to be investigated as it seems, they’re bedrocks of corruption and impunity, and Jubilee has nothing to lose other than integrity by retaining open frauds as Githaiga in public office. He’s not only illegally in his position but also receiving the pension from the same government from his previous job, what kind of madness is this. He has perfectly silenced EACC(whose CEO Waqo is a cousin to TARDA Chairman) CID, ODPP. This madness of jungle ruling needs to come to an end. Kenya Insights will continue following the issue till an impeachable solution which is getting the fraud officer from the public office and a competitive process launched to get a competent director.
TARDA is on the brink of collapsing, and President jumps to the rescue. Its trouble was trusting such a high office that needs exquisite managerial skills with someone who has only a P1 Certificate from Mosoriot Teachers College and forged the rest of his credentials.
