Former Prime Minister Raila Odinga is working on an elaborate political power strategy ahead of the 2017 general elections in a bid that is bound to shake up the country’s political terrain and send shivers down the spine of the political divide and ruling Jubilee government.
Part of the strategy is putting into serious considerations the current happenings at the International Criminal Court and its subsequent ramifications at the end of the trials facing President Uhuru Kenyatta and his deputy William Ruto over crimes against humanity as a result of the violent chaos that erupted in the country after the disputed 2007 presidential elections.
First, the assumption is that Ruto’s case is likely to get complicated. If that happens, Raila is of the opinion that it will be the beginning of the end of Jubilee alliance, creating a vacuum that Raila is likely to capitalise on. Ruto’s Rift Valley vote block will feel betrayed and hence a need to work on a fresh alliance with new faces from the region.
Political pundits say that without the DP in the Rift Valley political limelight, the man to watch in the region is Bomet governor Isaac Ruto. It is against this background that Raila and Ruto who happen to be the chairman of governors’ council are now in a cordial working relationship. When Ruto lost his daughter recently, Raila was the mourner-in-chief during the burial ceremony which was also attended by the deputy president.
At the burial of Senator Otieno Kajwang on Saturday at his Waondo home in Homa Bay, Ruto by virtue of his position as chairman of Council of Governors was given an opportunity to address the mourners and was among the last speakers. Within URP ranks is the notion that Governor Ruto is out to control the influential Kipsigis vote and use it to bargain either with Raila or even Uhuru’s TNA in case the deputy decides to run for presidency in 2017 or is nailed by the ICC.
A section in URP even says the Bomet governor has links with State House and the person acting as go- between is Joshua Kuttuny, a political adviser of the president together with Nancy Gitau. Gitau is a marked woman within URP circles.
Insiders within Jubilee aver, just as Raila is keenly following the unfolding events at The Hague, so are Uhuru handlers with both camps preparing for any eventuality. His calculation is that the fall of Ruto would mean that the Kalenjin would opt out of the ‘Tyranny of Numbers’ arrangement with TNA and perhaps even return to his side. Failing in this, Raila’s strategists reckon that once the “Mountain and the Valley” part political ways, he can finally prevail and galvanise support from the rest of the country.
Ruto’s removal can happen in a variety of ways, including an act of God. Raila is therefore watching the unfolding situation at The Hague extra closely, particularly now that the eight reluctant witnesses against the DP have been compelled by the court to testify via video link from a secret location in Nairobi.
Like the president and deputy president, Raila is surrounded by prominent lawyers - particularly in his own party, ODM, and the opposition alliance, Cord. They are Senator James Orengo and even Kalonzo Musyoka and Moses Wetang’ula. In private, the trio has been heard stating that Ruto’s case at the ICC is more complex than that of Uhuru.
Aware of the Raila scheme, Jubilee has been pushing to change the constitution in order to keep Raila out of the race on the basis of age limit (he will be an overripe 72 in 2017) and the ruling alliance wants to cap the presidential eligibility at age 65.
Raila and his closest strategists and legal advisers are said to be hoping that Ruto meets with the judges’ full-throttle wrath that would ultimately result into a head-on collision. They are praying that one day the DP’s lawyers and entourage are suddenly, in the near-future, ordered by ICC judges to leave The Hague without him and that he is convicted not on the PEV atrocities but on witness interference and sabotaging the ICC case facing him.
In fact, it is said, if Ruto is out of the scene, Raila will certainly run for presidency in 2017. It is this political thought that has led to his allies start pushing for his last bid come 2017. They argue his co-principals, Kalonzo and Wetang’ula will easily back him on grounds he will be a one-term president.
Then we have the second scenario where in case Uhuru and Ruto are acquited. Here, Raila is said will back out of the race and support another person with Kalonzo emerging the preferred candidate with Wetangula his running mate to teach Jubilee a political lesson. The last time Raila endorsed a candidate other than himself was in October 2002 when he backed Kibaki and seriously disappointed Simeon Nyachae and Kalonzo, two egoistic leaders who imagined that the others would agree and propel them into post-Moi State House. The man he backed was former president Mwai Kibaki who came to defeat then Moi project Uhuru now president. It is waited to be seen if the man Raila will back will repeat history and make Uhuru a one-term president.
In fact, Raila is said to be reaching out to other faces who opposed his presidential bid in 2013 to knock Uhuru out. Notable one are Martha Karua, who ran for presidency and Bonny Khalwale who backed Musalia Mudavadi in 2013. Suprisingly, Vihiga senator George Khaniri is gradually also orbiting towards Raila, if recent political pronouncements are anything to go by. In senate on UDF ticket, the Hamisi senator is said to be reaching out to Mudavadi to join Raila for future political dealcutting.
It is argued that in case the deputy president is rendered irrelevant in 2017, Uhuru will be comfortable with Gideon Moi as his running mate and not Mudavadi. It is on these grounds that Ruto has declared war on the small Moi in Baringo county politics. He is said to be grooming new faces to take on the Gideon camp. The DP is said to have been bitter with the recent function where Kabarak University linked to Moi family honoured Uhuru with a doctorate degree in leadership. Ruto skipped the occasion without apologies despite the fact he was officially invited. But what raised eyebrows is that after the Kabarak fete, Uhuru flew with Gideon from Moi’s private airstrip to Jomo Kenyatta International Airport where he met the presidential staff waiting and connected to Saudi Arabia to watch a Formula One race with Gideon.
The kind of intense focus that is being kept on Raila by the opposition fraternity and the realignment inside ODM as he apparently seeks to solidify zonal support across the country in his strongholds has favoured Western, Coast, Eastern and North-Eastern frontiers.
The rebellion factor in South Nyanza is being treated as a sideshow, but it is actually a sign that the times are changing, even in the Luo Nyanza epicentre of the politician who has the distinction of scoring the second highest number of votes in a presidential race in the history of electioneering in Kenya.
However, Raila is actually rolling out an intricate political strategy, engineered to be the gamechanger of the 2017 presidential contest.
This multi-pronged strategy has the aim of isolating the Mt Kenya region using “Never Again” tactics. The narrative is that 2017 is the last lawful chance of ending Kikuyu political hegemony and the head lock on State House by ushering in the first non-Kikuyu head of state and government since Moi called it a day in 2002.
The next presidential poll will be exactly 15 years since Moi went home and his preferred candidate Uhuru was buried in a landslide defeat by Kibaki. Fifteen years is also the total period that Uhuru’s father, the late Mzee Jomo Kenyatta was in office as both Kenya’s first PM and first president.
The ultimate maneuver Raila has for 2017 is keeping the focus on himself by pretending that he is actually the candidate and the man to beat, only to step aside at the last minute and pass the ball to another player, most likely, but not assuredly, a Westerner.
When Raila last stood down and threw his weight behind another candidate, that man was Kibaki in October 2002 and the tactic worked. It served to prevent Uhuru from entering State House on a first attempt although there are those who believe Kibaki already had it in the bag with the backing of Wamalwa Kijana and Charity Ngilu in the Nak party that was to join hands with LDP to form Narc. By trying the same game changer a second time 15 years later, Raila will have an uphill, but not impossible, task – that of an Odinga trying to eject a Kenyatta from State House. It will be a titanic struggle but it has a major catch.
Raila’s accommodation of the Young Turks is suspicious because it is motivated by massive appeasement. To seasoned political analysts, the history of political appeasement has always involved shabby compromises that are merely the lull before the storm.
Raila is playing a game of political diplomacy with his appeasement card. The American comedian Will Rogers once observed that if you are confronted by a huge and fierce dog that is snarling at you, “Diplomacy is the art of saying ‘nice doggie’ until you can find a rock”.
The coming gamechanger is going to be Raila’s multi-purpose “rock”, it will deal with party rebels of more than one type (both alleged moles and self-professed loyalists) as well as redraw the ODM Cord line-up.
By pulling out of contention and backing someone else, Raila will be playing the ultimate 41-against-one political chess move in Kenyan politics.
The son of the late Jaramogi Oginga Odinga is aware it demands a huge price from Kenyans in order to organise the ejection from State House of the president in power.
What could that price be? It is with this in mind that analysts aver that in order to make the ultimate political sacrifice, which is that Kenya’s second biggest vote-getter ever (10 million votes in two consecutive races) steps aside for someone who has never attracted even 1.5 million votes, Raila will demand, and in all probability get a new national leadership layer at the top that is like the Iranian Ayatollahs and supreme leaders who have the powers to reshuffle presidents.
This means that if Raila’s machination to remove Uhuru from power in 2017 is attained, the Kenyan presidency will be much weaker for good.
But long before he can hope for the success of this gamechanger, Raila needs a game realignment inside ODM, where the rebellion against his new handpicked line-up is now well under way after he made a surprise tactical move and gave the Young Turks what they had wanted since February but without the expedient of party polls.
The elevation of Budalang’i MP Ababu Namwamba to ODM secretary general shocked observers across the political divide and shook some ODM loyalists to the bone marrow.
Raila took the opportunity of Kajwang’s burial to emphasise that the Namwamba team is in office to stay, whatever the forces led by Funyula MP Paul Otuoma and Orengo do or say with their counter-rebellion. He expressed confidence in the team led by Namwamba and chairman John Mbadi, saying it is made up of youthful leaders who would revamp the party ahead of the 2017 general election.
“There have been claims that I prefer Old Guards for the leadership of the party; that is why I brought the young turks to spearhead the agenda of the party. It is a strong team that will strengthen the party. Are they able or not?” Raila asked thousands of attentive mourners who roared back affirmatively.
Kalonzo urged ODM members to accept the leadership change and hailed Raila for making what he termed a “bold move to restore sanity in the party”.
“I want to ask other members who were not elected into the leadership positions that all of us cannot be secretary general or party leader at the same time,” said Kalonzo.
Political affairs designate secretary Opiyo Wandayi has tactically appealed to the Otuoma brigade to wait for the National Governing Council meeting on December 5 at Bomas of Kenya to raise their concerns. When the ODM faithful gather at Bomas, perhaps they will observe a minute’s silence in honour of Kajwang since that was the arena of their last defeat on March 4 2013, when Uhuru was declared winner of the presidential contest.
Also on the political radar will be ODM’s financial backers, one of whom, Suna East MP Junnet Mohammed, are not at all happy with the rise of Namwamba.
There are political party funders in all countries and systems. In the US, both the Republicans and Democrats rely heavily on donors who consider a variety of issues in calibrating the costs and benefits of elections. There are top individual contributors, top organisation contributors including corporate, celebrity contributors and committee contributors. In ODM, it is Nairobi governor Evans Kidero and Mombasa’s Hassan Joho who the party relies on when it comes to funding hence they cannot be isolated as key players in Raila fundraising team.
In 2007, ODM benefited a lot from key donors such as Zakayo Cheruiyot and Joshua Kulei. In 2013 the two funded URP.
Raila has studied the American way of doing things closely in the time he has been out of government. If Raila sticks with Namwamba and focuses on the youth vote all the way to 2017, he would pose a major problem on all sides, not only Jubilee. Among his major donors, if he sacrificed his fourth bid and backed a young and vibrant newcomer to the presidential race would be South African billionaire Cyril Ramaphosa, a man who has given to Raila before.
Back to ODM rebellion, the anti-Namwamba forces are coalescing around Nicholas Gumbo, Otuoma and Simba Arati and want the party secretariat positions filled by professionals and not legislators.
The leaders of the ODM counter-rebellion said they felt short-changed as each missed out on the positions they contested for. Namwamba and Joho got what they wanted at the botched ODM polls in the latest appointive line-up.
But even as he strategises for 2017 to take on the ruling Jubilee, a number of things are planned. First, is to disband the current Independent Electoral and Boundaries Commission. Cord MPs and senators have agreed to sponsor a motion to have an internationally recognised body to be in charge of the next election. If the move fails and Isaak Hassan team is in charge, it is said, they will boycott the elections and call for mass action.
Kenya's Most Authoritative Political Newspaper
Sunday, 30 November 2014
CO-OP BANK ENGAGES MCKINSEY TO STRATEGISE
The Co-operative Bank of Kenya has engaged the services of McKinsey and Company, the globally recognised management consulting firm, to advise the bank on their 2015-2019 Corporate Strategic Plan.
The bank intends to draw up a Transformational Strategy that gives fresh impetus that will sustain the growth momentum that the bank has attained so far. Co-op Bank has achieved remarkable turnaround against significant odds to become the third largest and also one of the most profitable banks in Kenya, with an asset base of Sh270 billion and a profit before tax of Sh9.13 billion for the nine months of 2014.
Meanwhile, the Weekly Citizen has since independently confirmed that a former managing director of the bank and also a former MP for OlKalou Erastus Mureithi has allegedly been behind the anonymous hate mail/blogs on the bank. Mureithi was retired early by the bank’s board of directors in 2001 following huge losses wherein the bank was on the verge of collapse with a huge Sh2.3billion loss. Mureithi is in court with the bank on various matters that have been in the media. In one case, Civil Suit No 175 of 2003 before Justice JB Havelock, Mureithi has been ordered by the High Court to refund the bank various unpaid taxes to Kenya Revenue Authority which now are in excess of Sh25million. Clearly, he would have an axe to grind with his former employer.
Upon leaving the bank, Mureithi joined politics, where he served as MP for OlKalou for one term and lost following an abysmal performance, having garnered a paltry 2,000 votes in the last general elections.
As the saying goes, when it rains it pours. His multibillion flower empire Suera Flowers has recently ground to halt, plagued by gross mismanagement and irreconcilable marital differences. He used to be one of the largest flower exporters in Kenya, but is now facing severe challenges of survival. It reminds one of the deathbed status he left the co-operative movement in when forced out in 2001.
Co-op Bank listed in 2008 to raise additional capital, in a process that was fully approved by shareholders and all the necessary government regulatory agencies that included the ministry of Finance, the Central Bank of Kenya, the Nairobi Securities Exchange and the Capital Markets Authority. Full disclosures were done vide a detailed information memorandum dated October 27 2008, as provided for in rules governing IPOs.
The IPO was even cleared to progress by the ParliamentaryFinance, Planning and Trade Committeethen chaired by Chris Okemo on September 23 2008.
Coming just months after the 2008 post-election violence, the Co-op Bank IPO nonetheless succeeded to raise Sh5.4billion, which helped the bank to substantially boost its capital. It was perhaps because of this success against such significant headwinds that the IPO was recognised with the award of ‘Best IPO in Africa 2008’ by the Africa Index Awards.
Co-op Bank is predominantly owned by the 8,000,000 member co-operative movement, that is the largest in Africa with over 12,000 co-operative societies, cutting across all sectors of the economy. The shareholders approved a strategic vehicle – Co-op Holdings Co-operative Society - that holds a block shareholding of 64.5pc on behalf of co-operatives, to safeguard the co-operative identity of the bank. Individual directors’ holdings in the bank as per published audited accounts are an aggregate total of only 3pc.
Majority of Kenyans may not be aware that other countries in Africa used to have their own co-operative banks, but which ceased to exist for various reasons, chief among them being collapse on account of mismanagement. This regrettable trend was however defied by the Co-operative Bank of Kenya, which survived this threat in 2001 and is today the largest co-operative bank in Africa.
As Africa and indeed the world seeks to establish new economic models that deliver inclusive growth, the co-operative model is increasingly looking attractive in this respect. It is for this reason that many African countries continue to visit Kenya, to learn how they may replicate Kenya’s successful co-operative model. Co-op Bank on its part also continues to host many delegations from various other countries that are keen to replicate the co-operative banking model.
With a firm foothold in Kenya and expansion to the region notably with presence already in South Sudan, Co-op Bank is on track to beat the odds once more and continue to deliver great service and returns to the co-operative movement and shareholders.
The bank intends to draw up a Transformational Strategy that gives fresh impetus that will sustain the growth momentum that the bank has attained so far. Co-op Bank has achieved remarkable turnaround against significant odds to become the third largest and also one of the most profitable banks in Kenya, with an asset base of Sh270 billion and a profit before tax of Sh9.13 billion for the nine months of 2014.
Meanwhile, the Weekly Citizen has since independently confirmed that a former managing director of the bank and also a former MP for OlKalou Erastus Mureithi has allegedly been behind the anonymous hate mail/blogs on the bank. Mureithi was retired early by the bank’s board of directors in 2001 following huge losses wherein the bank was on the verge of collapse with a huge Sh2.3billion loss. Mureithi is in court with the bank on various matters that have been in the media. In one case, Civil Suit No 175 of 2003 before Justice JB Havelock, Mureithi has been ordered by the High Court to refund the bank various unpaid taxes to Kenya Revenue Authority which now are in excess of Sh25million. Clearly, he would have an axe to grind with his former employer.
Upon leaving the bank, Mureithi joined politics, where he served as MP for OlKalou for one term and lost following an abysmal performance, having garnered a paltry 2,000 votes in the last general elections.
As the saying goes, when it rains it pours. His multibillion flower empire Suera Flowers has recently ground to halt, plagued by gross mismanagement and irreconcilable marital differences. He used to be one of the largest flower exporters in Kenya, but is now facing severe challenges of survival. It reminds one of the deathbed status he left the co-operative movement in when forced out in 2001.
Co-op Bank listed in 2008 to raise additional capital, in a process that was fully approved by shareholders and all the necessary government regulatory agencies that included the ministry of Finance, the Central Bank of Kenya, the Nairobi Securities Exchange and the Capital Markets Authority. Full disclosures were done vide a detailed information memorandum dated October 27 2008, as provided for in rules governing IPOs.
The IPO was even cleared to progress by the ParliamentaryFinance, Planning and Trade Committeethen chaired by Chris Okemo on September 23 2008.
Coming just months after the 2008 post-election violence, the Co-op Bank IPO nonetheless succeeded to raise Sh5.4billion, which helped the bank to substantially boost its capital. It was perhaps because of this success against such significant headwinds that the IPO was recognised with the award of ‘Best IPO in Africa 2008’ by the Africa Index Awards.
Co-op Bank is predominantly owned by the 8,000,000 member co-operative movement, that is the largest in Africa with over 12,000 co-operative societies, cutting across all sectors of the economy. The shareholders approved a strategic vehicle – Co-op Holdings Co-operative Society - that holds a block shareholding of 64.5pc on behalf of co-operatives, to safeguard the co-operative identity of the bank. Individual directors’ holdings in the bank as per published audited accounts are an aggregate total of only 3pc.
Majority of Kenyans may not be aware that other countries in Africa used to have their own co-operative banks, but which ceased to exist for various reasons, chief among them being collapse on account of mismanagement. This regrettable trend was however defied by the Co-operative Bank of Kenya, which survived this threat in 2001 and is today the largest co-operative bank in Africa.
As Africa and indeed the world seeks to establish new economic models that deliver inclusive growth, the co-operative model is increasingly looking attractive in this respect. It is for this reason that many African countries continue to visit Kenya, to learn how they may replicate Kenya’s successful co-operative model. Co-op Bank on its part also continues to host many delegations from various other countries that are keen to replicate the co-operative banking model.
With a firm foothold in Kenya and expansion to the region notably with presence already in South Sudan, Co-op Bank is on track to beat the odds once more and continue to deliver great service and returns to the co-operative movement and shareholders.
SHARKS WANT CBK BOSS OUT TO FEAST ON SH25B NEW CURRENCY TENDER
Unscrupulous businessmen, political wheelerdealers and power brokers in the corridors of power are said to be burning the midnight oil plotting how to hound out of office Central Bank of Kenya governor Njuguna Ndungu before the expiry of his tenure.
According to high value sources, the bone of contention is the mouth-watering Sh25 billion tender for printing of new currency notes.
The team planning to topple Njuguna is the same that was opposed to renewal of his term by then president Mwai Kibaki.
Ndung’u was first appointed CBK governor on March 4 2007 after serving as director of training at the African Economic Research Consortium, where he had been a researcher.
But it is emerging that local politically connected cartels and foreign multinationals are locked in a vicious battle to ensure Ndungu leaves office prematurely before the tender reaches the final stage. Already, two firms from France and Britain have tendered.
The cartel is now said to be again lobbying within the corridors of the Treasury to have the budgetary allocation for the contract increased. It is claimed that one cartel is canvassing to have the tender awarded to the French firm and to have the contract increased to Sh34.5 billion. The lobbying is so intense that the contract has created animosity so much so that some officers no longer see eye to eye.
The plan was first hatched when Njuguna was fixed in the Sh1billion security tender, a case which has been dragging in court. In what now appears to be a well-calculated move, those behind the scheme used the Sh1b security tender to nail him in mcahinations calculated to see him resign and sent to jail afterward.
In a well-orchestrated move, the wheelerdealers had plotted that once charged with corruption, he would have to vacate his position at the helm of Kenya’s monetary policy organ, making him the third governor in a row to unceremoniously exit the bank.
To embarrass and shame Njuguna, the plotters had ensured that his warrant of arrest was made when he was out of the country on official duty to Paris and was to fly back on a Friday.
Had the scheme worked, he was to be arrested at JKIA on Friday and driven to police cells until Monday when he was to be arraigned in court. The powerbrokers knew once charged with abuse of office which is a criminal offence, the law demands that one must vacate public office until the matter is concluded.
With that in mind, the game plan was to have the deputy governor Aron Sirma to take over in an acting capacity. Sirma enjoys the backing of the said wheelerdealers, it is claimed. In the Jubilee power sharing deal, Treasury falls under William Ruto and CBK falls under Treasury. Had the deal gone as planned, Sirma would have been confirmed governor by now.
The plan again was to remove Ndungu whom the wheelerdealers say is not easy to manipulate. With Sirma, it is said, they are most likely to have their way and influence the award of the tender.
What is raising eyebrows is that whereas Njuguna’s term is to end in March 2015, the award of the tenders is expected to be awarded by end of this year. It is for this reason that the elite crooks are racing against time to beat a constitutional requirement to phase out old generation notes by August 2015. The constitution requires that by August next year, all notes should bear Kenya’s physical features and not the image of the first president Jomo Kenyatta, as is today.
Trouble for Ndungu began when it was alleged that he had played a role in the award of a Sh1.2 billion tender to a private company and in which the government lost Sh400 million.
If finally charged with corruption, Ndung’u will follow in the footsteps of his predecessor Andrew Mullei who left the position following a controversy involving procurement of forensic services to investigate alleged illegalities at Charterhouse Bank.
Dr Mullei’s predecessors Philip Ndegwa, Eric Kotut, Nahashon Nyagah also left office in controversial circumstances that appear to have defined the method of exit for future governors.
Ndungu’s charges arise from the award of a Sh1.2 billion tender for the installation of security software at the Central Bank to Horsebridge Ltd.
Horsebridge is an international IT company and is among six firms that participated in the software tender for the installation of an integrated security management system for the CBK.
Ndungu has, however, appealed against a decision by the High Court sanctioning his arrest and prosecution over alleged irregular award of the tender.
According to high value sources, the bone of contention is the mouth-watering Sh25 billion tender for printing of new currency notes.
The team planning to topple Njuguna is the same that was opposed to renewal of his term by then president Mwai Kibaki.
Ndung’u was first appointed CBK governor on March 4 2007 after serving as director of training at the African Economic Research Consortium, where he had been a researcher.
But it is emerging that local politically connected cartels and foreign multinationals are locked in a vicious battle to ensure Ndungu leaves office prematurely before the tender reaches the final stage. Already, two firms from France and Britain have tendered.
The cartel is now said to be again lobbying within the corridors of the Treasury to have the budgetary allocation for the contract increased. It is claimed that one cartel is canvassing to have the tender awarded to the French firm and to have the contract increased to Sh34.5 billion. The lobbying is so intense that the contract has created animosity so much so that some officers no longer see eye to eye.
The plan was first hatched when Njuguna was fixed in the Sh1billion security tender, a case which has been dragging in court. In what now appears to be a well-calculated move, those behind the scheme used the Sh1b security tender to nail him in mcahinations calculated to see him resign and sent to jail afterward.
In a well-orchestrated move, the wheelerdealers had plotted that once charged with corruption, he would have to vacate his position at the helm of Kenya’s monetary policy organ, making him the third governor in a row to unceremoniously exit the bank.
To embarrass and shame Njuguna, the plotters had ensured that his warrant of arrest was made when he was out of the country on official duty to Paris and was to fly back on a Friday.
Had the scheme worked, he was to be arrested at JKIA on Friday and driven to police cells until Monday when he was to be arraigned in court. The powerbrokers knew once charged with abuse of office which is a criminal offence, the law demands that one must vacate public office until the matter is concluded.
With that in mind, the game plan was to have the deputy governor Aron Sirma to take over in an acting capacity. Sirma enjoys the backing of the said wheelerdealers, it is claimed. In the Jubilee power sharing deal, Treasury falls under William Ruto and CBK falls under Treasury. Had the deal gone as planned, Sirma would have been confirmed governor by now.
The plan again was to remove Ndungu whom the wheelerdealers say is not easy to manipulate. With Sirma, it is said, they are most likely to have their way and influence the award of the tender.
What is raising eyebrows is that whereas Njuguna’s term is to end in March 2015, the award of the tenders is expected to be awarded by end of this year. It is for this reason that the elite crooks are racing against time to beat a constitutional requirement to phase out old generation notes by August 2015. The constitution requires that by August next year, all notes should bear Kenya’s physical features and not the image of the first president Jomo Kenyatta, as is today.
Trouble for Ndungu began when it was alleged that he had played a role in the award of a Sh1.2 billion tender to a private company and in which the government lost Sh400 million.
If finally charged with corruption, Ndung’u will follow in the footsteps of his predecessor Andrew Mullei who left the position following a controversy involving procurement of forensic services to investigate alleged illegalities at Charterhouse Bank.
Dr Mullei’s predecessors Philip Ndegwa, Eric Kotut, Nahashon Nyagah also left office in controversial circumstances that appear to have defined the method of exit for future governors.
Ndungu’s charges arise from the award of a Sh1.2 billion tender for the installation of security software at the Central Bank to Horsebridge Ltd.
Horsebridge is an international IT company and is among six firms that participated in the software tender for the installation of an integrated security management system for the CBK.
Ndungu has, however, appealed against a decision by the High Court sanctioning his arrest and prosecution over alleged irregular award of the tender.
PARLIAMENTARY REPORT ON THE CRISIS FACING THE SUGAR INDUSTRY
Correspondent
The crisis in the sugar industry in Kenya Western belt is as a result of political intrigues, business wheeler dealings by vested parties mostly out of the region.
Surprisingly, a number of politicians from the region have been sucked into the crisis. According to sources, a number of MPs and governors are key players in the mess.
Ben Washiali, the Mumias East legislator features prominently among the MPs whose business dealings with Mumias Sugar are suspect, it is alleged. Insiders claim Washiali is being used by culprits of the sugar scandal to scuttle efforts being made to revive Mumias Sugar factory.
As Mumias prepares to hold its annual general meeting, sugar farmers are accusing Washiali of being a traitor. They question why for all these years Washiali has been an MP, he never raised issues to do with the ill-happenings at Mumias. Reports say Washiali’s firm was involved in the clearing and forwarding business with Mumias.
Local voters complain, it is during the tenure of Washiali as the local MP that Mumias started facing serious management crisis. Unconfirmed reports say shareholders have resolved not to allow Washiali at the AGM or his allies. They are bitter Washiali has been fighting the current management led by chief executive Coutts Otolo and chairman Dan Ameyo.
But even as Mumias is set to hold an AGM, Weekly Citizen has a report of the Departmental Committee on Agriculture, Livestock and Co-operatives. It was prepared by legislators with Adan Mohammed Nooru the chairman. It is dated November 2014.
Titled, “The Crisis facing the Sugar industry in Kenya,” with its terms of reference by investigate and inquire the current state of sugar industry in the country, investigate and inquire into the issue of cheap sugar imports and smuggling.
Others were to investigate and inquire into the alleged exports by Mumias Sugar Company between 2006 and 2012. Look into the glut in the sugar market, which has, among other causes contributed to the current crisis in the industry and report on the findings of the committees inquiry.
The report has made a number of recommendations after receiving evidence and submissions from sugar companies and other witnesses.
Your favourite Weekly Citizen will from this week start serialising the full report from chapter 2 to chapter 4, on the committee recommendations.
CHAPTER 2
2.0 EVIDENCE AND SUBMISSIONS FORM SUGAR COMPANIES AND OTHER WITNESSES
2.1 Submissions by Western development Initiative Association (WEDIA)
31. Appearing before the Committee on 16th October, 2013, WEDIA made the following submissions:
a)WEDIA was registered as an association in 2010 and that it represents development interests of sugarcane farmers and other sectors in western Kenya;
b)It was among the first entities to raise the issue of cane poaching and was also at the forefront in stopping the attempted disposal of land belonging to deduct Busia Sugar Company (BSC).
c)Sugarcane poaching started about the year 2000 after the establishing of Butali Sugar Mills in Kakamega county.
d)Sugar factories in western Kenya including Mumias Sugar Company, Nzoia Sugar Company and Butali Sugar Mills, have signed contracts with their cane farmers except West Kenya Sugar Factory;
e)To date, West Kenya Sugar Factory does not have any single contracted sugarcane farmer but has since inception been buying cane from farmers contracted by other millers, hence promoting poaching;
f)West Kenya Sugar factory does not have cane development programmes for farmers but harvests cane from farmers in Western Kenya. The factory has continued to buy cane from Busia Sugar Zone (contracted by Mumias Sugar Company), Nzoia Sugar Zone and Butali Sugar Mills farmers even when they (West Kenya) have no contracted farmers in those zones;
g)West Kenya has gone ahead to construct a weighbridge at Tangakona area in Busia County where all the poached cane is collected for transportation to the factory in Kakamega County;
h)The presence of the weighbridge has led to disputes and conflicts among the surrounding local communities/millers and at one point a tractor transporting sugarcane for Nzoia Sugar Company was burnt and six tractors belonging to West Kenya impounded by Nzoia Sugar Company;
i)Kenya Sugar Board has allowed West Kenya to operate in Western Kenya despite the company failing to honour the licence issued to it to construct a factory in Kimilili area of Bungoma County way back in 2008;
j)Kenya sugar Board gave west Kenya a two-year reprieve under questionable circumstances even after failing to construct a factory in Kimilili and continued harvesting cane from farmers contracted by other factories;
k)In some cases, cane is harvested by agents of West Kenya Sugar factory without the consent of the owners.
2.2 Submissions by Mumias Sugar Company.
32 Appearing before the committee on 29th October, 2013 the former managing director of Mumias sugar company, Peter Kebati, submitted as follows;
i)MSC was established 40 years ago and is the largest sugar producer in Kenya and is currently an integrated factory with installed capacity of 270,000 MT sugar plant, 38MW Co-generation Plant, 22 million-litre ethanol distillery and 15 million – litre Water Bottling Plant;
ii)The company is listed on the Nairobi Stock Exchange and there are over 145,000 shareholders including Kenyan investors and the government of Kenya which holds a 20pc stake in the Company, pays approximately Sh 2.5 billion in taxes and remits Sh500,000 million to the sugar development fund (SDF) annually;
iii)MSC supports a population of 2 million people directly and over 5 million indirectly and the company has a workforce of 1,896 permanent employees and 40,000 seasonal and contracted workers.
iv)The company operates an outgrowers Cane Development scheme within Kakamega, Bungoma, Busia and Siaya counties and spends over Sh2.8 billion to provide services for land preparation, fertilisers/input supply, extension support, harvesting and transport to over 110,000 farmers;
v)MSC signs cane farming contracts with the farmers committing them to supply their cane to MSC to enable recovery of what the company has invested in cane development expenses to contracted farmers;
vi)MSC appreciates fair completion in the sector and wants emerging issues to be addressed as a policy intervention to restore sanity and fair practices in the industry;
vii)There is no fair competition in the sugar sector and unless the emerging issues are addressed from both policy and legislative fronts, then the industry is headed for collapse as rightfully observed by the petitioners. There is urgent need to restore sanity and the rule of law in the industry.
2.3 Submissions by Nzoia Sugar Company
33 Appearing before the committee on November 5 2013, the managing director for Nzoia Sugar Company made the following submissions;
i)NSC was established in 1975 under the company’s Act cap 486 of the Laws of Kenya with the government as the majority shareholder owning 98pc shares while fives call Babcok (FCB) and Industrial Development Bank owning the remaining.
ii)MSC serves over 67,000 farmers in larger Bungoma, Kakamega, Lugari and Malava districts;
iii)NSC produces sugar and supports cane production through the provision of extension services to farmers through extensive Company Nucleus Estate covering 3600ha;
iv)NSC provides cane development services including supply of fertilisers and provision of extension services to out-grower cane farmers contracted by it;
v)West Kenya was poaching cane from farmers contracted by Nzoia Sugar, Mumias Sugar and Butali Sugar factories;
vi)There were individuals acting as cane poaching brokers based at various points within Bungoma and Busia counties;
vii)NSC sensitizes farmers on obligations of signed contracts with them and other millers and campaigns against cane poaching;
viii)In 2008, NSC set an anti-poaching unit comprising of NSC and the Kenya police officers that used to monitor cane poaching and alter in 2010 and ad hoc committee of the board was set up to help manage cane poaching which was at an all time high;
ix)NSC has instituted court proceedings against west Kenya Sugar factories (WKSF) in 20123 on the matter of cane poaching; and
x)NSC has not been able to pay farmers in good time due to low sales as a result of a depressed sugar market.
xi)NSC has lobbied the government not to allow cheap sugar into the country as it negatively affects sales, payment to farmers and other obligations.
2.4 Submissions from Butali Sugar Mills (BSM)
34Appearing before the committee on 5th November 2013, the managing director for BSM submitted as follows:
i)BSM was founded in 2010 by sugar power consulting which is a consultancy firm in engineering after securing a license to build a sugar mill from Kenya guar board \(KSB)l. the firm has branches in India, Syria, Mauritius, Kenya, Tanzania and Uganda was not aware of any poaching of cane and no legal action had been instituted against it in regard to cane poaching;
ii)Kenya sugar Board should come up with regulations in respect contractual obligations on the parts of contracted farmers and respective millers;
iii)The creation of too many weighbridges had contributed to cane poaching;
iv)West Kenya sugar company pays farmers after seven days.
v)BSC received funding from Kenya sugar board for construction of weigh bridges and cane development.
2.5 Submissions by Kenya Sugar Board (KSB)
35. Appearing before the Committee on 7th November, 2013 and 28th March 2014, the Kenya Sugar Board made the following submissions;
i)KSB was established by an Act of Parliament, the sugar Act of 2001, with the main f unction of regulating and facilitating growth of the sugar industry in the country. The sugar Act 2001 is subject for repeal with the commencement of the Crops Act, 2013 and the implementation of the AFA Act, 2010;
ii)KSB is charged with the role of developing regulations to guide the sugar sub-sector and the issuance of licences to import or export sugar and sugar by-products and manages jointly with the KRA any restrictions on imports and exports of sugar and sugar by-products
iii)KSB also licenses the establishment of sugar mills and defines zones with which they operate;
iv)KSB identified West Kenya Sugar Factory as the main sugarcane poacher in Western Kenya and had received complaints from neighbouring millers;
v)KSB identified Kenafric Industries as one of the manufacturers that repackage imported industrial sugar in locally manufactured branded sugar packages for sale of able sugar;
vi)KSB issues licenses for importation and the role of verifying n quality, quantities and values as specified in the KSB permit rests with KEBs and KRA before the consignments are released into the market;
vii)That KSB issued the licence to import 10,000 MTs of sugar in 2012 to MSC and it was unprocedural for the Permit to have been used by a Third Party, Dantes Peak Ltd since the permit was non transferable; (annex II)
viii)While it was the resolution of the Ministries of agriculture and Finance to allow millers to import sugar, there were no justifiable reasons for Mumias Sugar Company to import the 10,000 MTs from Kenana Sugar Company from Sudan in 2012;
ix)KSB was tracking some 14 containers of imported sugar that had been traced to Nairobi, a consignment of sugar where no documents for its release could be traced in KRA and KPA yet KSB had not licenced its importations. Each container carries 21-25 tones totaling to 301,000 metric tons for the 14 containers which translates into 6020 (50kg) bags worth of Sh24 million;
x)That KSB needs to be empowered with investigatory and prosecutorial powers independent of Kenya Police and KRA in terms of sugar imports and transit sugar;
xi)If there was sugar from India being traded in the Kenyan market, KSB submitted that it had not licenced the importation of table sugar from India in the last five years; and
xii)KSB has weak surveillance capacity and therefore it cannot effectively handle the issue of sugar smuggling through our porous borders; and KSB had been informed that Rising Star Commodities Ltd was repackaging imported sugar in its go-downs in Mombasa in Mumias Sugar Company branded bags and selling it as locally manufactured sugar.
2.6Submission by West Kenya Sugar Factory (WKSF)
36. Appearing before the Committee on 5th November 2013, the Managing Director for West Kenya Sugar Factory submitted as follows;
i)West Kenya Sugar Factory was the second largest Miller in Kenya and had grown from 500 Tons Crushed Daily (TCD) in 1979 to its current crushing capacity of 5000 TCD and employs 2000 workers apart from indirect employment to harvesters, loaders and transporters;
ii)Until 2005 when the Kenya sugar board licensed Butali Sugar Mill Limited in controversial circumstances, the then existing millers sourced cane from their clearly demarcated zones and each miler was able to invest in cane development within their respective zones;
iii)When Kenya sugar licensed Butali Sugar Miller Limited and supported its commissioning in the name of free competition in a liberalized market, cane zones were hitherto respected;
iv)A miller who buys cane from a farmer in an area presumed to belong to another miller cannot be deemed as either stealing or poaching cane;
v)The cane farmer has the right to sell his or her cane to a miller of his or her choice as guaranteed by article 40 of the Constitution and the Sugar Act 2001, which specifies that the farmer is the owner of the cane on his farmer;
vi)West Kenya Sugar denied it was engaged in cane poaching activities and had taken legal action against the ministry of Agriculture and the Kenya Sugar Board and Butali Sugar Mills Limited on the licensing on the mill against existing laws and regulations;
vii)The sugarcane crisis in western Kenya was occasioned by the licensing of Butali Sugar Mills Limited and the commencement of its operation in 2011, which has increased the number of millers competing for decreasing cane;
viii)West Kenya sugar company pays farmers after seven days with competitive prices and it chargers them a flat rate of Kshs 390 per tonne irrespective of the distance with the option of the farmer using own transport; and
ix)West Kenya Sugar Company operated with the involvement of local communities, the provincial and county administration and champions the rights of farmers as regards correct tonnage, better prices, prompt payments and efficient extension services.
2.7 Submission by the Former Managing Director MSC Evans Kidero
37 Appearing before the committee on 19th May 2014, the former managing director for Mumias Sugar Company made the following submissions;-
i)At the time of retirement from MSC, the company had initiated the process of importing 10,000MT from Kenana Sugar Factory in Sudan;
ii)That between the years 2006 and 2012 MSC exported sugar to Ethiopia, Uganda, Sudan, Democratic Republic of Congo and Rwanda and the EU especially Italy and United Kingdom;
iii)That he did not have any documents to corroborate his submissions but that he believed the current management should furnish the committee with the necessary documents available on the exports;
iv)That during his tenure at MSC, the company was making good profits, paying farmers in good time and even the value of its shares at the Nairobi Stock Exchange was reasonable.
2.8 Submission by the director general – National Environment Management Authority.
38. Appearing before the Committee on 7th November, 2013, the director general for NEMA made the following:
i) That National Environment Management Authority (NESMA), was established under the Environmental Management and Co-ordination Act No. 8 of 1999 (EMCA) as the principal instrument of Government for the implementation of all policies relating to environment;
ii) That EMCA 1999 was enacted against a backdrop of 78 sectoral laws dealing with various components of the environment, the deteriorating state of Kenya’s environment, as well as increasing social and economic inequalities, the combined effect of which negatively impacted on the environment. The supreme objective underlying the enactment of EMCA 1999 was to bring harmony in the management of the country’s environment;
iii) That there was mandated authority to exercise general supervision and coordination over all matters relating to the environment and to be the principal instrument of the Government of Kenya in the implementation of all policies relating to the environment;
iv) That the role of NEMA in the establishing of a weighbridge at Tangakona in Busia County was to coordinate the various environmental management activities undertaken by the lead agency, West Kenya Sugar Factory (WKSF);
v) That due diligence environmental assessment test was done on the land at Tangakona in Busia County and a report issued to West Kenya Sugar Factory to go ahead with the intended development on the said land;
vi) That NEMA is not involved in the issuance of Permits of Licences for trade;
vii) NEMA also establishes and reviews land use guidelines examines land use patterns to determine their impact on the quality and quantity of natural resources and carries out surveys, which assist in the proper management and conservation of the environment.
2.9 Submission by Commissioner General – Kenya Revenue Authority (KRA)
39. Appearing before the Committee on 24th April, 2014, the Commissioner General of KRA made the following submissions;
i) KRA was established by an Act of Parliament, Chapter 469 of the Laws of Kenya, which became effective on 1st July 1995 was aware of the presence of contraband sugar in the country, which had seriously affected the local industry.
ii) KRA was aware Mumias Sugar Company imported 10,00MT of sugar in 2012 through a third party called Dantes Peak Limited and that Mumias paid all the duty for the consignment which was cleared in 2013; (Annex IV).
iii) The commissioner-General admitted that KRA did not have the capacity to verify all containers of commodities imported but does random verification and scanning of the cargo before release;
iv) The Commissioner-General was aware Mumias Sugar Company exported sugar to various countries between n 2006 and 2012 but was not in a position to confirm if the sugar had indeed left the country as that would require confirmation from border officers and counterparts in countries of destinations;
v) The Commissioner-General said if indeed the sugar never left the country then Mumias Sugar Company is duty bound to pay the equivalent of Value Added Tax (VAT) exempted;
vi) KRA does not have infrastructure at all borders of our country especially in Eastern and North Eastern where smuggling is rampant but they have formed a joint team with the Kenya police service and the Kenya sugar board to address the issue of illegal sugar entering the country unregulated and untaxed;
vii) Sugar imports into Kenya is restricted under the 2nd schedule part B (1) of the East African Community Customs management Act of 2004 where any import into Kenya must therefore first get approval from Kenya sugar board through a non-transferable permit containing details of the importer, tonnage, origin of sugar and other relevant details, information which is used during clearance;
viii) The revenue or duty collected and paid is determined by the type of sugar whether it is industrial or table sugar and also the origin of the sugar. Sugar from COMESA region are exempted from duty while non-COMESA sugar attracts 100% duty,
ix) KRA has created special units to address non-compliance with KSB sugar import regulations and it was through such a unit that the case of non-compliance of the Mumias Sugar Company sugar import of 10,000 MT of 2012 was detected leading to a delay in clearance;
x) In 2011 KRA noted increased importation of industrial sugar from Egypt as a result of which joint investigations were conducted that revealed most of the said sugars were tran-shipments from brazil. Thereafter, KRA in consultation with KSB implemented restrictions on industrial sugar imports from Egypt’s by imposing 10% duty as it the case with non-COMESA imports;
xi) KRA has made several sugar seizures leading to several court cases, one in point is that of Matt International who has since challenged KRA’s decision to impose 10% duty on industrial sugar imported from Egypt (the matter was still pending in Court).
2.10 Submissions by Kenya Ports Authority (KPA)
40. Appearing before the Committee on 28th march, 2014, Managing Director for Kenya Ports Authority informed the Committee that:-
i) KPA’s mandate was to handle inbound and outbound cargo once they have been cleared by relevant authorities.
KPA handled 40 x 20ft containers of sugar belonging to Mumias Sugar Company but imported through Dantes Peak Ltd,
KPA waived a total of 15 million shillings in demurrage charges that accrued following delay of clearance the cargo after anomalies were detected by KRA and the interventions of Mumias Sugar Company accepted;
KPA works in collaboration with KRA and KSB in monitoring the flow of sugar through the port.
2.11 Submissions by the Inspector General of Police (IG).
41. Appearing before the Committee on 29th April 2014, the Inspector General of Police made the following submissions:-
i) National Police Service was established by Act of Parliament and mandated to enforce the law which includes surveillance of all goods, including sugar, entering or being traded within but some borders are extensive, porous and some areas may not be manned;
ii) the Kenya police service, immigration department, Kenya revenue authority, Kenya ports authority and Kenya airports authority work together in manning the borders and to ensure that the necessary taxes and duties are paid;
iii) the Kenya police escorts all the transit goods including sugar and ensure that KRA’s main interest (tax) is paid and all other laws are adhered to;
iv) the Kenya police has managed to arrest and prosecute suspects in sugar smuggling although often courts release the suspects, especially cases concerning sugar through Kismayu and Kenya’s boarder with Somalia;
v) legislation regulating the sugar industry is very weak and there is need for strengthening it;
vi) the national police service does not protect criminals and is not aware of a ware-house in Mombasa that is protected by police where even Kenya Sugar Board personnel denied access to the premises but promised to investigate the matter following complaints from the principal secretary department of Agriculture and report to this Committee;
vii) the IG acknowledged that some police officers had lost their lives while tackling contraband sugar which somehow abets insecurity terrorism in the country since all entries are not ascertained that it is sugar;
viii) the IG acknowledged that the capacity in terms of resources is lacking at our borders and that there is need to develop a policy where a particular officer can several a station for only three years per station;
ix) officers are regularly appraised on the required documentation for importation of any goods in the country, however the service was dealing with isolated cases of integrity among the officers as and when they arise;
x) the Kenya police service had signed agreement memorandum with Kenya sugar board and Kenya Revenue Authority toe establish anti-smuggling unit to deal with cases of smuggling;
xi) the Kenya Police Service has been underfunded for a long time but there is noted improvement in the allocation of resources to the police service;
xii) police Officers are routinely seconded to the Kenya Revenue Authority to oversee operational matters including revenue collection and compliance to statutory requirements; and
xiii) The various government agencies at the boarder points need to appreciate security as a cross-cutting issues and an important aspect of our national development.
2.12 Submission by Kenya Bureau of Standards (KEBS)
42. Appearing before the Committee on 14th May, 2014 the Managing Director for Kenya Bureau of Standards submitted as follow:-
i) Kenya bureau of standards (KEBS) was established in July 1974 under CAP 496 of the laws of Kenya. It offers several services including standards development and harmonization, testing, measurement (Calibration), enforcement and standards, product inspection, education and training in standardization, metrology and conformity assessment, management systems certification and product certification;
ii) KEBs analyses sugar imports coming into the country on request and notification of arrival of the same by Kenya Ports Authority and Kenya Revenue Authority;
iii) Since 2012; seven consignments of sugar had been recommended for destruction by KEBS and other government agencies for non-conformance to quality specifications and KEBs is among the state agencies charged with destruction of goods that do not conform to the standards;
iv) KEB was aware of the impounding of a consignment of sugar that had been imported by Mumias Sugar Company although the IDF was reading Dantes Peak Limited;
v) KEBS was facing the challenge of determining the importers of industrial sugar meant for manufacturing but which was being repacked for domestic consumption against the regulations;
vi) KEBs does not have up-to-date equipments and infrastructure for analysis of various commodities imported and exported. KEBs also lack capacity for enforcement of standards and market surveillance and therefore cannot cope with demands like single window and 24 hour operations at the port of clearance or entry /exit.
2.13 Submissions by Management and Board of Directors for Mumias Sugar Company
43. Appearing before the committee on27th May, 12th June, 10th July and 17th July, 2014, the Board of Directors of Mumias Sugar Company submitted as follows:
i) The Board and management were aware that the company exported sugar to several European and African countries between 2006 and 2012 and concerns that the sugar may not have left the country and that revenue in the form of VAT payable could have been lost;
ii) the Board and management were also aware that certain information regarding the exports was missing from the Company’s records and promised to institute forensic audit of all MSC exports in view of the fact that some of the key managers had since left the company and would report the findings to this Committee;
iii) the company was in a crisis a result of serious management short fallings and the company was unable to meet its obligations including payment to farmers;
iv) the company was on a restructuring process to address serious management bottlenecks and disciplinary measures had been taken against some mangers following the findings of the forensic audit on sugar imports and other management shortfalls;
v) The Board and management were not involved in the decision to import the consignment of the 10,000 MT of sugar in 2012 and there was an ongoing Board investigation on the same and undertook to submit the outcome of the investigations to the committee within two months. The Board had asked KPMG to investigate into whose accounts money from the imports went. The final KPMG report would also shed light on exactly how much monetary loss MSC incurred through fraudulent activities.
vi) The preliminary report of the Forensic Audit by KPMG on sugar imports by Company could not be released to the Committee at the stage because there were certain transaction details that had been captured in the report and the Board undertook to submit the report in two months when those aspects had been addressed;
vii) The Board admitted that it was having challenges from neighbouring Companies that had taken advantage of delay in payments for sugarcane by MSC to poach cane from its contracted farmers.
viii) The Board admitted that there was massive corruption and lack of clear management direction in MSC in the past, to this effect some officers had been sent home pending investigation; and
ix) The Board also affirmed that there were reforms going on at MSC to clean the mess and also to recover the money lost. The company did not have an internal audit department and the chairman promised to have a new department reconstituted;
2.14 Submission by the Director General of the National Intelligence Services (NIS)
44. Appearing before the Committee on 10th July, 2014, the Director General of NIS made the following submissions:-
i) That the function of MIS was to gather intelligence and compile reports on the same for action by the relevant authorities;
that NIS has no prosecutorial powers;
The sugar industry was crippled by among other issues, high cost of production and absolete technology hence Kenya was a very lucrative market for the commodity and that has been a catalysts for sugar smuggling in the country.
45. The committee expressed disappointment over the information presented by the Director General and informed him that Kenyans had very high expectations of his office. The DG expressed his appreciation of the Committee’s need to deal with the sugar issue and requested that the Committee details out of information they required from him and he would respond within two weeks.
46. The Committee acceded to his request and outlined the required information as follows:
I. provide information on illegal sugar importation, exportation and smuggling;
II. Provide the name of the illegal importers and smugglers and their local partners within and outside government institutions;
III. Provide information in the custody of national intelligence service if any concerning smuggling of sugar into the country through Kismayu and along Kenya’s boarder with Somalia;
IV. The names of companies, traders, dealers, transporters’ and any other persons involved in the alleged sugar exports by Mumias sugar company to regional countries and in particular owners of the trucks that ferried the sugar for export from Mumias Sugar warehouses; and
V. The circumstances under which sugar meant for industrial use ended up being used as table sugar and the persons involved in the repackaging of the sugar for domestic consumption.
A letter detailing the above was sent for action however this has not been done to date.
2.15 Submissions by the cabinet Secretary Ministry of Agriculture, Livestock and fisheries.
47. Appearing before the Committee on Tuesday 9th September, 2014, the Cabinet Secretary made the following submission on the status of the sugar sector in the country and other matters affecting the industry:-
2.15.1 On the Status on the sugar Sector in Kenya the cabinet Secretary informed that:-
i) The sugar subsector plays a major role in Kenyan economy and was a source of income for million in citizens. The country was producing about 600,000MT of sugar against the annual domestic requirements of 800,000MT running a deficit of about 200,000MT.
ii) There were 11 operational sugar mills in the country, 1 additional new mill was to be commissioned in Kwale while 2 other mills (Muhoroni/Miwani) were under receivership.
iii) The combined installed crushing capacity of operational mills was about 29,990Mt of cane per day. The current capacity was sufficient to produce about 1 million tons of sugar per annum. The target was to expand this capacity to approximately 50,000MT in order to produce 1,250,000MT to make Kenya a sugar surplus producer.
iv) The sugar closing stocks held by the factories at the start of the year 2013/12 was at 27,392 MT up from 19,205 MT at the end of 2012/12. The stock level increased to a high of 42,845 MT in February, 2014 against optimal level of 9,000MT.
v) The Ministry embarked on the strategy to decrease the sugar stock to an acceptable level of 8,478MT, which was achieved by 20th August 2014.
vi) The increased sugar stock was attributed to;
· Sustained high sugar production;
· Carrying forward huge stocks from the previous year;
· Surplus balances in the world market and depressed prices; and
· Increased presence of uncostumed sugar in the country attracted by high cost of production
vii) The Kenya sugar industry has the potential to generate up to 120MW of electricity for export to the National grid without major investments’. However, it is only Mumias Sugar Company that is currently generating 38MW out of which 26MW is exported to the National grid. The rest of the factories generate electricity for their own use but do not export to the national grid.
viii) All 5 Government owned sugar factories are earmarked for privatization program. The program received Cabinet approval in 2008 and debt writes off has been approved by parliament as a precursor to Government divestiture. This aims at;
· Transforming the industry towards commercial orientation; and
The crisis in the sugar industry in Kenya Western belt is as a result of political intrigues, business wheeler dealings by vested parties mostly out of the region.
Surprisingly, a number of politicians from the region have been sucked into the crisis. According to sources, a number of MPs and governors are key players in the mess.
Ben Washiali, the Mumias East legislator features prominently among the MPs whose business dealings with Mumias Sugar are suspect, it is alleged. Insiders claim Washiali is being used by culprits of the sugar scandal to scuttle efforts being made to revive Mumias Sugar factory.
As Mumias prepares to hold its annual general meeting, sugar farmers are accusing Washiali of being a traitor. They question why for all these years Washiali has been an MP, he never raised issues to do with the ill-happenings at Mumias. Reports say Washiali’s firm was involved in the clearing and forwarding business with Mumias.
Local voters complain, it is during the tenure of Washiali as the local MP that Mumias started facing serious management crisis. Unconfirmed reports say shareholders have resolved not to allow Washiali at the AGM or his allies. They are bitter Washiali has been fighting the current management led by chief executive Coutts Otolo and chairman Dan Ameyo.
But even as Mumias is set to hold an AGM, Weekly Citizen has a report of the Departmental Committee on Agriculture, Livestock and Co-operatives. It was prepared by legislators with Adan Mohammed Nooru the chairman. It is dated November 2014.
Titled, “The Crisis facing the Sugar industry in Kenya,” with its terms of reference by investigate and inquire the current state of sugar industry in the country, investigate and inquire into the issue of cheap sugar imports and smuggling.
Others were to investigate and inquire into the alleged exports by Mumias Sugar Company between 2006 and 2012. Look into the glut in the sugar market, which has, among other causes contributed to the current crisis in the industry and report on the findings of the committees inquiry.
The report has made a number of recommendations after receiving evidence and submissions from sugar companies and other witnesses.
Your favourite Weekly Citizen will from this week start serialising the full report from chapter 2 to chapter 4, on the committee recommendations.
CHAPTER 2
2.0 EVIDENCE AND SUBMISSIONS FORM SUGAR COMPANIES AND OTHER WITNESSES
2.1 Submissions by Western development Initiative Association (WEDIA)
31. Appearing before the Committee on 16th October, 2013, WEDIA made the following submissions:
a)WEDIA was registered as an association in 2010 and that it represents development interests of sugarcane farmers and other sectors in western Kenya;
b)It was among the first entities to raise the issue of cane poaching and was also at the forefront in stopping the attempted disposal of land belonging to deduct Busia Sugar Company (BSC).
c)Sugarcane poaching started about the year 2000 after the establishing of Butali Sugar Mills in Kakamega county.
d)Sugar factories in western Kenya including Mumias Sugar Company, Nzoia Sugar Company and Butali Sugar Mills, have signed contracts with their cane farmers except West Kenya Sugar Factory;
e)To date, West Kenya Sugar Factory does not have any single contracted sugarcane farmer but has since inception been buying cane from farmers contracted by other millers, hence promoting poaching;
f)West Kenya Sugar factory does not have cane development programmes for farmers but harvests cane from farmers in Western Kenya. The factory has continued to buy cane from Busia Sugar Zone (contracted by Mumias Sugar Company), Nzoia Sugar Zone and Butali Sugar Mills farmers even when they (West Kenya) have no contracted farmers in those zones;
g)West Kenya has gone ahead to construct a weighbridge at Tangakona area in Busia County where all the poached cane is collected for transportation to the factory in Kakamega County;
h)The presence of the weighbridge has led to disputes and conflicts among the surrounding local communities/millers and at one point a tractor transporting sugarcane for Nzoia Sugar Company was burnt and six tractors belonging to West Kenya impounded by Nzoia Sugar Company;
i)Kenya Sugar Board has allowed West Kenya to operate in Western Kenya despite the company failing to honour the licence issued to it to construct a factory in Kimilili area of Bungoma County way back in 2008;
j)Kenya sugar Board gave west Kenya a two-year reprieve under questionable circumstances even after failing to construct a factory in Kimilili and continued harvesting cane from farmers contracted by other factories;
k)In some cases, cane is harvested by agents of West Kenya Sugar factory without the consent of the owners.
2.2 Submissions by Mumias Sugar Company.
32 Appearing before the committee on 29th October, 2013 the former managing director of Mumias sugar company, Peter Kebati, submitted as follows;
i)MSC was established 40 years ago and is the largest sugar producer in Kenya and is currently an integrated factory with installed capacity of 270,000 MT sugar plant, 38MW Co-generation Plant, 22 million-litre ethanol distillery and 15 million – litre Water Bottling Plant;
ii)The company is listed on the Nairobi Stock Exchange and there are over 145,000 shareholders including Kenyan investors and the government of Kenya which holds a 20pc stake in the Company, pays approximately Sh 2.5 billion in taxes and remits Sh500,000 million to the sugar development fund (SDF) annually;
iii)MSC supports a population of 2 million people directly and over 5 million indirectly and the company has a workforce of 1,896 permanent employees and 40,000 seasonal and contracted workers.
iv)The company operates an outgrowers Cane Development scheme within Kakamega, Bungoma, Busia and Siaya counties and spends over Sh2.8 billion to provide services for land preparation, fertilisers/input supply, extension support, harvesting and transport to over 110,000 farmers;
v)MSC signs cane farming contracts with the farmers committing them to supply their cane to MSC to enable recovery of what the company has invested in cane development expenses to contracted farmers;
vi)MSC appreciates fair completion in the sector and wants emerging issues to be addressed as a policy intervention to restore sanity and fair practices in the industry;
vii)There is no fair competition in the sugar sector and unless the emerging issues are addressed from both policy and legislative fronts, then the industry is headed for collapse as rightfully observed by the petitioners. There is urgent need to restore sanity and the rule of law in the industry.
2.3 Submissions by Nzoia Sugar Company
33 Appearing before the committee on November 5 2013, the managing director for Nzoia Sugar Company made the following submissions;
i)NSC was established in 1975 under the company’s Act cap 486 of the Laws of Kenya with the government as the majority shareholder owning 98pc shares while fives call Babcok (FCB) and Industrial Development Bank owning the remaining.
ii)MSC serves over 67,000 farmers in larger Bungoma, Kakamega, Lugari and Malava districts;
iii)NSC produces sugar and supports cane production through the provision of extension services to farmers through extensive Company Nucleus Estate covering 3600ha;
iv)NSC provides cane development services including supply of fertilisers and provision of extension services to out-grower cane farmers contracted by it;
v)West Kenya was poaching cane from farmers contracted by Nzoia Sugar, Mumias Sugar and Butali Sugar factories;
vi)There were individuals acting as cane poaching brokers based at various points within Bungoma and Busia counties;
vii)NSC sensitizes farmers on obligations of signed contracts with them and other millers and campaigns against cane poaching;
viii)In 2008, NSC set an anti-poaching unit comprising of NSC and the Kenya police officers that used to monitor cane poaching and alter in 2010 and ad hoc committee of the board was set up to help manage cane poaching which was at an all time high;
ix)NSC has instituted court proceedings against west Kenya Sugar factories (WKSF) in 20123 on the matter of cane poaching; and
x)NSC has not been able to pay farmers in good time due to low sales as a result of a depressed sugar market.
xi)NSC has lobbied the government not to allow cheap sugar into the country as it negatively affects sales, payment to farmers and other obligations.
2.4 Submissions from Butali Sugar Mills (BSM)
34Appearing before the committee on 5th November 2013, the managing director for BSM submitted as follows:
i)BSM was founded in 2010 by sugar power consulting which is a consultancy firm in engineering after securing a license to build a sugar mill from Kenya guar board \(KSB)l. the firm has branches in India, Syria, Mauritius, Kenya, Tanzania and Uganda was not aware of any poaching of cane and no legal action had been instituted against it in regard to cane poaching;
ii)Kenya sugar Board should come up with regulations in respect contractual obligations on the parts of contracted farmers and respective millers;
iii)The creation of too many weighbridges had contributed to cane poaching;
iv)West Kenya sugar company pays farmers after seven days.
v)BSC received funding from Kenya sugar board for construction of weigh bridges and cane development.
2.5 Submissions by Kenya Sugar Board (KSB)
35. Appearing before the Committee on 7th November, 2013 and 28th March 2014, the Kenya Sugar Board made the following submissions;
i)KSB was established by an Act of Parliament, the sugar Act of 2001, with the main f unction of regulating and facilitating growth of the sugar industry in the country. The sugar Act 2001 is subject for repeal with the commencement of the Crops Act, 2013 and the implementation of the AFA Act, 2010;
ii)KSB is charged with the role of developing regulations to guide the sugar sub-sector and the issuance of licences to import or export sugar and sugar by-products and manages jointly with the KRA any restrictions on imports and exports of sugar and sugar by-products
iii)KSB also licenses the establishment of sugar mills and defines zones with which they operate;
iv)KSB identified West Kenya Sugar Factory as the main sugarcane poacher in Western Kenya and had received complaints from neighbouring millers;
v)KSB identified Kenafric Industries as one of the manufacturers that repackage imported industrial sugar in locally manufactured branded sugar packages for sale of able sugar;
vi)KSB issues licenses for importation and the role of verifying n quality, quantities and values as specified in the KSB permit rests with KEBs and KRA before the consignments are released into the market;
vii)That KSB issued the licence to import 10,000 MTs of sugar in 2012 to MSC and it was unprocedural for the Permit to have been used by a Third Party, Dantes Peak Ltd since the permit was non transferable; (annex II)
viii)While it was the resolution of the Ministries of agriculture and Finance to allow millers to import sugar, there were no justifiable reasons for Mumias Sugar Company to import the 10,000 MTs from Kenana Sugar Company from Sudan in 2012;
ix)KSB was tracking some 14 containers of imported sugar that had been traced to Nairobi, a consignment of sugar where no documents for its release could be traced in KRA and KPA yet KSB had not licenced its importations. Each container carries 21-25 tones totaling to 301,000 metric tons for the 14 containers which translates into 6020 (50kg) bags worth of Sh24 million;
x)That KSB needs to be empowered with investigatory and prosecutorial powers independent of Kenya Police and KRA in terms of sugar imports and transit sugar;
xi)If there was sugar from India being traded in the Kenyan market, KSB submitted that it had not licenced the importation of table sugar from India in the last five years; and
xii)KSB has weak surveillance capacity and therefore it cannot effectively handle the issue of sugar smuggling through our porous borders; and KSB had been informed that Rising Star Commodities Ltd was repackaging imported sugar in its go-downs in Mombasa in Mumias Sugar Company branded bags and selling it as locally manufactured sugar.
2.6Submission by West Kenya Sugar Factory (WKSF)
36. Appearing before the Committee on 5th November 2013, the Managing Director for West Kenya Sugar Factory submitted as follows;
i)West Kenya Sugar Factory was the second largest Miller in Kenya and had grown from 500 Tons Crushed Daily (TCD) in 1979 to its current crushing capacity of 5000 TCD and employs 2000 workers apart from indirect employment to harvesters, loaders and transporters;
ii)Until 2005 when the Kenya sugar board licensed Butali Sugar Mill Limited in controversial circumstances, the then existing millers sourced cane from their clearly demarcated zones and each miler was able to invest in cane development within their respective zones;
iii)When Kenya sugar licensed Butali Sugar Miller Limited and supported its commissioning in the name of free competition in a liberalized market, cane zones were hitherto respected;
iv)A miller who buys cane from a farmer in an area presumed to belong to another miller cannot be deemed as either stealing or poaching cane;
v)The cane farmer has the right to sell his or her cane to a miller of his or her choice as guaranteed by article 40 of the Constitution and the Sugar Act 2001, which specifies that the farmer is the owner of the cane on his farmer;
vi)West Kenya Sugar denied it was engaged in cane poaching activities and had taken legal action against the ministry of Agriculture and the Kenya Sugar Board and Butali Sugar Mills Limited on the licensing on the mill against existing laws and regulations;
vii)The sugarcane crisis in western Kenya was occasioned by the licensing of Butali Sugar Mills Limited and the commencement of its operation in 2011, which has increased the number of millers competing for decreasing cane;
viii)West Kenya sugar company pays farmers after seven days with competitive prices and it chargers them a flat rate of Kshs 390 per tonne irrespective of the distance with the option of the farmer using own transport; and
ix)West Kenya Sugar Company operated with the involvement of local communities, the provincial and county administration and champions the rights of farmers as regards correct tonnage, better prices, prompt payments and efficient extension services.
2.7 Submission by the Former Managing Director MSC Evans Kidero
37 Appearing before the committee on 19th May 2014, the former managing director for Mumias Sugar Company made the following submissions;-
i)At the time of retirement from MSC, the company had initiated the process of importing 10,000MT from Kenana Sugar Factory in Sudan;
ii)That between the years 2006 and 2012 MSC exported sugar to Ethiopia, Uganda, Sudan, Democratic Republic of Congo and Rwanda and the EU especially Italy and United Kingdom;
iii)That he did not have any documents to corroborate his submissions but that he believed the current management should furnish the committee with the necessary documents available on the exports;
iv)That during his tenure at MSC, the company was making good profits, paying farmers in good time and even the value of its shares at the Nairobi Stock Exchange was reasonable.
2.8 Submission by the director general – National Environment Management Authority.
38. Appearing before the Committee on 7th November, 2013, the director general for NEMA made the following:
i) That National Environment Management Authority (NESMA), was established under the Environmental Management and Co-ordination Act No. 8 of 1999 (EMCA) as the principal instrument of Government for the implementation of all policies relating to environment;
ii) That EMCA 1999 was enacted against a backdrop of 78 sectoral laws dealing with various components of the environment, the deteriorating state of Kenya’s environment, as well as increasing social and economic inequalities, the combined effect of which negatively impacted on the environment. The supreme objective underlying the enactment of EMCA 1999 was to bring harmony in the management of the country’s environment;
iii) That there was mandated authority to exercise general supervision and coordination over all matters relating to the environment and to be the principal instrument of the Government of Kenya in the implementation of all policies relating to the environment;
iv) That the role of NEMA in the establishing of a weighbridge at Tangakona in Busia County was to coordinate the various environmental management activities undertaken by the lead agency, West Kenya Sugar Factory (WKSF);
v) That due diligence environmental assessment test was done on the land at Tangakona in Busia County and a report issued to West Kenya Sugar Factory to go ahead with the intended development on the said land;
vi) That NEMA is not involved in the issuance of Permits of Licences for trade;
vii) NEMA also establishes and reviews land use guidelines examines land use patterns to determine their impact on the quality and quantity of natural resources and carries out surveys, which assist in the proper management and conservation of the environment.
2.9 Submission by Commissioner General – Kenya Revenue Authority (KRA)
39. Appearing before the Committee on 24th April, 2014, the Commissioner General of KRA made the following submissions;
i) KRA was established by an Act of Parliament, Chapter 469 of the Laws of Kenya, which became effective on 1st July 1995 was aware of the presence of contraband sugar in the country, which had seriously affected the local industry.
ii) KRA was aware Mumias Sugar Company imported 10,00MT of sugar in 2012 through a third party called Dantes Peak Limited and that Mumias paid all the duty for the consignment which was cleared in 2013; (Annex IV).
iii) The commissioner-General admitted that KRA did not have the capacity to verify all containers of commodities imported but does random verification and scanning of the cargo before release;
iv) The Commissioner-General was aware Mumias Sugar Company exported sugar to various countries between n 2006 and 2012 but was not in a position to confirm if the sugar had indeed left the country as that would require confirmation from border officers and counterparts in countries of destinations;
v) The Commissioner-General said if indeed the sugar never left the country then Mumias Sugar Company is duty bound to pay the equivalent of Value Added Tax (VAT) exempted;
vi) KRA does not have infrastructure at all borders of our country especially in Eastern and North Eastern where smuggling is rampant but they have formed a joint team with the Kenya police service and the Kenya sugar board to address the issue of illegal sugar entering the country unregulated and untaxed;
vii) Sugar imports into Kenya is restricted under the 2nd schedule part B (1) of the East African Community Customs management Act of 2004 where any import into Kenya must therefore first get approval from Kenya sugar board through a non-transferable permit containing details of the importer, tonnage, origin of sugar and other relevant details, information which is used during clearance;
viii) The revenue or duty collected and paid is determined by the type of sugar whether it is industrial or table sugar and also the origin of the sugar. Sugar from COMESA region are exempted from duty while non-COMESA sugar attracts 100% duty,
ix) KRA has created special units to address non-compliance with KSB sugar import regulations and it was through such a unit that the case of non-compliance of the Mumias Sugar Company sugar import of 10,000 MT of 2012 was detected leading to a delay in clearance;
x) In 2011 KRA noted increased importation of industrial sugar from Egypt as a result of which joint investigations were conducted that revealed most of the said sugars were tran-shipments from brazil. Thereafter, KRA in consultation with KSB implemented restrictions on industrial sugar imports from Egypt’s by imposing 10% duty as it the case with non-COMESA imports;
xi) KRA has made several sugar seizures leading to several court cases, one in point is that of Matt International who has since challenged KRA’s decision to impose 10% duty on industrial sugar imported from Egypt (the matter was still pending in Court).
2.10 Submissions by Kenya Ports Authority (KPA)
40. Appearing before the Committee on 28th march, 2014, Managing Director for Kenya Ports Authority informed the Committee that:-
i) KPA’s mandate was to handle inbound and outbound cargo once they have been cleared by relevant authorities.
KPA handled 40 x 20ft containers of sugar belonging to Mumias Sugar Company but imported through Dantes Peak Ltd,
KPA waived a total of 15 million shillings in demurrage charges that accrued following delay of clearance the cargo after anomalies were detected by KRA and the interventions of Mumias Sugar Company accepted;
KPA works in collaboration with KRA and KSB in monitoring the flow of sugar through the port.
2.11 Submissions by the Inspector General of Police (IG).
41. Appearing before the Committee on 29th April 2014, the Inspector General of Police made the following submissions:-
i) National Police Service was established by Act of Parliament and mandated to enforce the law which includes surveillance of all goods, including sugar, entering or being traded within but some borders are extensive, porous and some areas may not be manned;
ii) the Kenya police service, immigration department, Kenya revenue authority, Kenya ports authority and Kenya airports authority work together in manning the borders and to ensure that the necessary taxes and duties are paid;
iii) the Kenya police escorts all the transit goods including sugar and ensure that KRA’s main interest (tax) is paid and all other laws are adhered to;
iv) the Kenya police has managed to arrest and prosecute suspects in sugar smuggling although often courts release the suspects, especially cases concerning sugar through Kismayu and Kenya’s boarder with Somalia;
v) legislation regulating the sugar industry is very weak and there is need for strengthening it;
vi) the national police service does not protect criminals and is not aware of a ware-house in Mombasa that is protected by police where even Kenya Sugar Board personnel denied access to the premises but promised to investigate the matter following complaints from the principal secretary department of Agriculture and report to this Committee;
vii) the IG acknowledged that some police officers had lost their lives while tackling contraband sugar which somehow abets insecurity terrorism in the country since all entries are not ascertained that it is sugar;
viii) the IG acknowledged that the capacity in terms of resources is lacking at our borders and that there is need to develop a policy where a particular officer can several a station for only three years per station;
ix) officers are regularly appraised on the required documentation for importation of any goods in the country, however the service was dealing with isolated cases of integrity among the officers as and when they arise;
x) the Kenya police service had signed agreement memorandum with Kenya sugar board and Kenya Revenue Authority toe establish anti-smuggling unit to deal with cases of smuggling;
xi) the Kenya Police Service has been underfunded for a long time but there is noted improvement in the allocation of resources to the police service;
xii) police Officers are routinely seconded to the Kenya Revenue Authority to oversee operational matters including revenue collection and compliance to statutory requirements; and
xiii) The various government agencies at the boarder points need to appreciate security as a cross-cutting issues and an important aspect of our national development.
2.12 Submission by Kenya Bureau of Standards (KEBS)
42. Appearing before the Committee on 14th May, 2014 the Managing Director for Kenya Bureau of Standards submitted as follow:-
i) Kenya bureau of standards (KEBS) was established in July 1974 under CAP 496 of the laws of Kenya. It offers several services including standards development and harmonization, testing, measurement (Calibration), enforcement and standards, product inspection, education and training in standardization, metrology and conformity assessment, management systems certification and product certification;
ii) KEBs analyses sugar imports coming into the country on request and notification of arrival of the same by Kenya Ports Authority and Kenya Revenue Authority;
iii) Since 2012; seven consignments of sugar had been recommended for destruction by KEBS and other government agencies for non-conformance to quality specifications and KEBs is among the state agencies charged with destruction of goods that do not conform to the standards;
iv) KEB was aware of the impounding of a consignment of sugar that had been imported by Mumias Sugar Company although the IDF was reading Dantes Peak Limited;
v) KEBS was facing the challenge of determining the importers of industrial sugar meant for manufacturing but which was being repacked for domestic consumption against the regulations;
vi) KEBs does not have up-to-date equipments and infrastructure for analysis of various commodities imported and exported. KEBs also lack capacity for enforcement of standards and market surveillance and therefore cannot cope with demands like single window and 24 hour operations at the port of clearance or entry /exit.
2.13 Submissions by Management and Board of Directors for Mumias Sugar Company
43. Appearing before the committee on27th May, 12th June, 10th July and 17th July, 2014, the Board of Directors of Mumias Sugar Company submitted as follows:
i) The Board and management were aware that the company exported sugar to several European and African countries between 2006 and 2012 and concerns that the sugar may not have left the country and that revenue in the form of VAT payable could have been lost;
ii) the Board and management were also aware that certain information regarding the exports was missing from the Company’s records and promised to institute forensic audit of all MSC exports in view of the fact that some of the key managers had since left the company and would report the findings to this Committee;
iii) the company was in a crisis a result of serious management short fallings and the company was unable to meet its obligations including payment to farmers;
iv) the company was on a restructuring process to address serious management bottlenecks and disciplinary measures had been taken against some mangers following the findings of the forensic audit on sugar imports and other management shortfalls;
v) The Board and management were not involved in the decision to import the consignment of the 10,000 MT of sugar in 2012 and there was an ongoing Board investigation on the same and undertook to submit the outcome of the investigations to the committee within two months. The Board had asked KPMG to investigate into whose accounts money from the imports went. The final KPMG report would also shed light on exactly how much monetary loss MSC incurred through fraudulent activities.
vi) The preliminary report of the Forensic Audit by KPMG on sugar imports by Company could not be released to the Committee at the stage because there were certain transaction details that had been captured in the report and the Board undertook to submit the report in two months when those aspects had been addressed;
vii) The Board admitted that it was having challenges from neighbouring Companies that had taken advantage of delay in payments for sugarcane by MSC to poach cane from its contracted farmers.
viii) The Board admitted that there was massive corruption and lack of clear management direction in MSC in the past, to this effect some officers had been sent home pending investigation; and
ix) The Board also affirmed that there were reforms going on at MSC to clean the mess and also to recover the money lost. The company did not have an internal audit department and the chairman promised to have a new department reconstituted;
2.14 Submission by the Director General of the National Intelligence Services (NIS)
44. Appearing before the Committee on 10th July, 2014, the Director General of NIS made the following submissions:-
i) That the function of MIS was to gather intelligence and compile reports on the same for action by the relevant authorities;
that NIS has no prosecutorial powers;
The sugar industry was crippled by among other issues, high cost of production and absolete technology hence Kenya was a very lucrative market for the commodity and that has been a catalysts for sugar smuggling in the country.
45. The committee expressed disappointment over the information presented by the Director General and informed him that Kenyans had very high expectations of his office. The DG expressed his appreciation of the Committee’s need to deal with the sugar issue and requested that the Committee details out of information they required from him and he would respond within two weeks.
46. The Committee acceded to his request and outlined the required information as follows:
I. provide information on illegal sugar importation, exportation and smuggling;
II. Provide the name of the illegal importers and smugglers and their local partners within and outside government institutions;
III. Provide information in the custody of national intelligence service if any concerning smuggling of sugar into the country through Kismayu and along Kenya’s boarder with Somalia;
IV. The names of companies, traders, dealers, transporters’ and any other persons involved in the alleged sugar exports by Mumias sugar company to regional countries and in particular owners of the trucks that ferried the sugar for export from Mumias Sugar warehouses; and
V. The circumstances under which sugar meant for industrial use ended up being used as table sugar and the persons involved in the repackaging of the sugar for domestic consumption.
A letter detailing the above was sent for action however this has not been done to date.
2.15 Submissions by the cabinet Secretary Ministry of Agriculture, Livestock and fisheries.
47. Appearing before the Committee on Tuesday 9th September, 2014, the Cabinet Secretary made the following submission on the status of the sugar sector in the country and other matters affecting the industry:-
2.15.1 On the Status on the sugar Sector in Kenya the cabinet Secretary informed that:-
i) The sugar subsector plays a major role in Kenyan economy and was a source of income for million in citizens. The country was producing about 600,000MT of sugar against the annual domestic requirements of 800,000MT running a deficit of about 200,000MT.
ii) There were 11 operational sugar mills in the country, 1 additional new mill was to be commissioned in Kwale while 2 other mills (Muhoroni/Miwani) were under receivership.
iii) The combined installed crushing capacity of operational mills was about 29,990Mt of cane per day. The current capacity was sufficient to produce about 1 million tons of sugar per annum. The target was to expand this capacity to approximately 50,000MT in order to produce 1,250,000MT to make Kenya a sugar surplus producer.
iv) The sugar closing stocks held by the factories at the start of the year 2013/12 was at 27,392 MT up from 19,205 MT at the end of 2012/12. The stock level increased to a high of 42,845 MT in February, 2014 against optimal level of 9,000MT.
v) The Ministry embarked on the strategy to decrease the sugar stock to an acceptable level of 8,478MT, which was achieved by 20th August 2014.
vi) The increased sugar stock was attributed to;
· Sustained high sugar production;
· Carrying forward huge stocks from the previous year;
· Surplus balances in the world market and depressed prices; and
· Increased presence of uncostumed sugar in the country attracted by high cost of production
vii) The Kenya sugar industry has the potential to generate up to 120MW of electricity for export to the National grid without major investments’. However, it is only Mumias Sugar Company that is currently generating 38MW out of which 26MW is exported to the National grid. The rest of the factories generate electricity for their own use but do not export to the national grid.
viii) All 5 Government owned sugar factories are earmarked for privatization program. The program received Cabinet approval in 2008 and debt writes off has been approved by parliament as a precursor to Government divestiture. This aims at;
· Transforming the industry towards commercial orientation; and
NOW MWAKWERE SAYS DP RUTO IS A THANKLESS MAN
Kenyan High Commissioner to Tanzania Chirau Mwakwere has hinted that he will give United Republican Party and deputy president William Ruto a hard time in Coast politics come 2017.
Mwakwere who held a secret meeting with former Coast URP aspirants in his Golini home, Kwale county claimed he has been mistreated and ignored by the deputy president after he lost in the last general elections.
He said had it not been for President Uhuru Kenyatta who appointed him High Commissioner to Tanzania he would still be languishing in the political cold.
Mwakwere said inspite of all the efforts he put up to host and campaign for Ruto in a hostile political zone, the deputy president had decided to give him a cold shoulder when he made appointments that saw some of his juniors in politics rewarded.
“For instance, you saw for yourselves how Ruto picked someone like Mwalimu Digore from Matuga here and appointed him chair of Kenya Maritime Authority in order to humiliate me since people kept on asking me what wrong did I commit as they had seen me host Ruto several times,” a source at the meeting quoted Mwakwere as saying.
He said a few weeks ago, he invited the deputy president to a wedding of his son held at Windsor Hotel in Nairobi, but that Ruto snubbed the event, a clear indication that he did not want anything to do with him. The wedding was graced by among others former President Mwai Kibaki and ex Transport minister Amos Kimunya.
During the last general elections, even though a URP member, he was reported making flattering comments about the deputy president. He at one time held a meeting with then Kwale councillors at the late Njenga Karume’s hotel in Diani and emphasised that he had never left Narc for any other party. He said he did not know what URP meant. He later denied the allegations.
Mwakwere who held a secret meeting with former Coast URP aspirants in his Golini home, Kwale county claimed he has been mistreated and ignored by the deputy president after he lost in the last general elections.
He said had it not been for President Uhuru Kenyatta who appointed him High Commissioner to Tanzania he would still be languishing in the political cold.
Mwakwere said inspite of all the efforts he put up to host and campaign for Ruto in a hostile political zone, the deputy president had decided to give him a cold shoulder when he made appointments that saw some of his juniors in politics rewarded.
“For instance, you saw for yourselves how Ruto picked someone like Mwalimu Digore from Matuga here and appointed him chair of Kenya Maritime Authority in order to humiliate me since people kept on asking me what wrong did I commit as they had seen me host Ruto several times,” a source at the meeting quoted Mwakwere as saying.
He said a few weeks ago, he invited the deputy president to a wedding of his son held at Windsor Hotel in Nairobi, but that Ruto snubbed the event, a clear indication that he did not want anything to do with him. The wedding was graced by among others former President Mwai Kibaki and ex Transport minister Amos Kimunya.
During the last general elections, even though a URP member, he was reported making flattering comments about the deputy president. He at one time held a meeting with then Kwale councillors at the late Njenga Karume’s hotel in Diani and emphasised that he had never left Narc for any other party. He said he did not know what URP meant. He later denied the allegations.
VACANT ODM SEATS SPARK FRESH INTRUGUES IN KISII
Kitutu Masaba MP Timothy Bosire’s nomination by ODM as the national treasurer has not gone down well with a section of Abagusii leaders who now claim they have been shortchanged. ODM leader Raila Odinga now seems to be sending mixed signals to ODM leaders in the region who have technically ditched the party and are now dancing and dining with Jubilee.
The seat of national treasurer has been vacant after Omingo Magara left it and the Kisiis have always maintained that the seat is their preserve and true to their words, it went back to them.
Analysts now say Raila has used the new list to stamp his authority by leaving out those he now perceives to have switched loyalty. Bomachoge Borabu MP Simon Ogari who has been lobbying to take the slot is a disappointed man. The problem with Ogari is that he has of late been very close to Jubilee leadership something Raila and his allies have never liked.
Kisii county deputy governor Joash Maangi is equally a disappointed man. He has been lobbying for the seat and according to well-placed sources, at a given time, he was a close Raila ally and even his naming as running mate to Governor James Ongwae was on Raila’s intervention.
Maangi and Raila have been close buddies and in the run-up to 2013 elections, Raila had wanted Maangi to hold his horses and not to contest the Bomachoge Chache seat against his cousin Ogari. By that time Ogari was Raila’s trusted ally.
It was after negotiations that Raila and Maangi struck a deal to armtwist Ongwae to accept him as running mate as there were threats of rebellion against Ongwae from both Bomachoge Chache and Borabu.
Those who brokered the deal to have Bosire take the slot say Maangi has since his election switched camps and is perceived to be a Jubilee sympathiser. It is against such fears that ODM leaders claimed he cannot be relied on since he is more Jubilee than ODM.
Apart from deserting his party ODM, Maangi has also fallen out with boss Ongwae whom he has been secretly campaigning against as he eyes governorship in 2017. Sources say he is plotting to be CIC chairman Charles Nyachae’s running mate on Ford-People ticket.
To tame rebellion in Kisii, Raila has tactically appointed Bosire who comes from Nyamira county and to counter Maangi, he has also appointed former ODM executive director Janet Ongera who is now nominated senator to the position of secretary for parliamentary affairs (Senate). Ongera comes from Kisii county and contested the Ksii senatorial seat and lost to Chris Obure during ODM primaries.
By appointing Ongera, it is now being whispered that Raila could be preparing her to be Ongwae’s running mate 2017 since Maangi is widely believed to be on his way out of ODM. One school of thought has it that should Maangi find going getting tougher, he is likely to go back to the Bomachoge Chache seat as rumours are rife that Ogari is doing his final term as age is not on his side. There have been talks that Manson Nyamweya could also be lobbying to be Ongawe’s running mate in 2017.
The seat of national treasurer has been vacant after Omingo Magara left it and the Kisiis have always maintained that the seat is their preserve and true to their words, it went back to them.
Analysts now say Raila has used the new list to stamp his authority by leaving out those he now perceives to have switched loyalty. Bomachoge Borabu MP Simon Ogari who has been lobbying to take the slot is a disappointed man. The problem with Ogari is that he has of late been very close to Jubilee leadership something Raila and his allies have never liked.
Kisii county deputy governor Joash Maangi is equally a disappointed man. He has been lobbying for the seat and according to well-placed sources, at a given time, he was a close Raila ally and even his naming as running mate to Governor James Ongwae was on Raila’s intervention.
Maangi and Raila have been close buddies and in the run-up to 2013 elections, Raila had wanted Maangi to hold his horses and not to contest the Bomachoge Chache seat against his cousin Ogari. By that time Ogari was Raila’s trusted ally.
It was after negotiations that Raila and Maangi struck a deal to armtwist Ongwae to accept him as running mate as there were threats of rebellion against Ongwae from both Bomachoge Chache and Borabu.
Those who brokered the deal to have Bosire take the slot say Maangi has since his election switched camps and is perceived to be a Jubilee sympathiser. It is against such fears that ODM leaders claimed he cannot be relied on since he is more Jubilee than ODM.
Apart from deserting his party ODM, Maangi has also fallen out with boss Ongwae whom he has been secretly campaigning against as he eyes governorship in 2017. Sources say he is plotting to be CIC chairman Charles Nyachae’s running mate on Ford-People ticket.
To tame rebellion in Kisii, Raila has tactically appointed Bosire who comes from Nyamira county and to counter Maangi, he has also appointed former ODM executive director Janet Ongera who is now nominated senator to the position of secretary for parliamentary affairs (Senate). Ongera comes from Kisii county and contested the Ksii senatorial seat and lost to Chris Obure during ODM primaries.
By appointing Ongera, it is now being whispered that Raila could be preparing her to be Ongwae’s running mate 2017 since Maangi is widely believed to be on his way out of ODM. One school of thought has it that should Maangi find going getting tougher, he is likely to go back to the Bomachoge Chache seat as rumours are rife that Ogari is doing his final term as age is not on his side. There have been talks that Manson Nyamweya could also be lobbying to be Ongawe’s running mate in 2017.
KNUT ASSISTANT TREASURER'S POST CAMPAIGN RACE TAKE TWO-HORSE SHAPE
The race for the coveted Knut national assistant treasurer is now hitting the homestretch with two candidates emerging as the probable occupants of the seat to be left vacant by retiring Richard Kibagendi. The two, Samuel Nyairo who is the Gucha executive secretary and John Matiangi who is the Borabu executive secretary are now sparing no effort in wooing delegates ahead of December 9 D-day.
But even as the two emerge as the stronger candidates in a race that also has Margaret Obiri, the tag of a government project is threatening to work against Matiangi who is the brother of cabinet secretary Fred Matiangi. According to teachers, Matiangi is being fronted by the government so that he can take care of the government interests in Knut against the teachers’ interest.
Those who say Matiangi is the government candidate cite the fact that he has suddenly become flush with money. Matiangi has reportedly been dishing Sh10,000 to all top branch officials across the country who number 380 in total. He has also given Sh1000 each to the 1650 BEC members in the 110 branches making teachers suspect his suddenly deep pockets yet his salary is known.
Another factor complicating the race is the fact that the two come from Kisii county yet the seat should ideally have gone to Nyamira county because Nyamira should have produced the NEC to replace Geoffrey Mogire who will be retiring in 2016 which will leave Nyamira without a NEC. Mogire had initially declared that he was going to run for the national assistant treasury post but chickened after he saw the writing on the wall that he was going to lose the contest which would have left him empty-handed as then he would have by the time of contesting relinquished his BEC position. He is a BEC without a branch which made him more vulnerable.
Because he did not go for it create space for a BEC from Nyamira, Nyamira now has no candidate and will also lose the NEC when he retires.
According to those who are closely following the campaigns, Nyairo who is seen as the teachers’ project is penetrating Central and Eastern and controlling Nyanza and Rift Valley as Coast tilts towards him. With Rift Valley bringing 538 delegates and Eastern 409, Nyanza 342 Nyairo needs only top this up with Central and he is home and dry in the fight for the 2038 delegates.
But even as the two emerge as the stronger candidates in a race that also has Margaret Obiri, the tag of a government project is threatening to work against Matiangi who is the brother of cabinet secretary Fred Matiangi. According to teachers, Matiangi is being fronted by the government so that he can take care of the government interests in Knut against the teachers’ interest.
Those who say Matiangi is the government candidate cite the fact that he has suddenly become flush with money. Matiangi has reportedly been dishing Sh10,000 to all top branch officials across the country who number 380 in total. He has also given Sh1000 each to the 1650 BEC members in the 110 branches making teachers suspect his suddenly deep pockets yet his salary is known.
Another factor complicating the race is the fact that the two come from Kisii county yet the seat should ideally have gone to Nyamira county because Nyamira should have produced the NEC to replace Geoffrey Mogire who will be retiring in 2016 which will leave Nyamira without a NEC. Mogire had initially declared that he was going to run for the national assistant treasury post but chickened after he saw the writing on the wall that he was going to lose the contest which would have left him empty-handed as then he would have by the time of contesting relinquished his BEC position. He is a BEC without a branch which made him more vulnerable.
Because he did not go for it create space for a BEC from Nyamira, Nyamira now has no candidate and will also lose the NEC when he retires.
According to those who are closely following the campaigns, Nyairo who is seen as the teachers’ project is penetrating Central and Eastern and controlling Nyanza and Rift Valley as Coast tilts towards him. With Rift Valley bringing 538 delegates and Eastern 409, Nyanza 342 Nyairo needs only top this up with Central and he is home and dry in the fight for the 2038 delegates.
FEAR OF DEATH AT MACHAKOS LEVEL FIVE HOSPITAL
Machakos Level Five Hospital in Machakos town is on its deathbed due to poor management.
Unconfirmed reports indicate that there is fear that infants might have died due to lack of vital facilities.
Weekly Citizen has since established that breakage of the main power generator has raised the eyebrows of all stakeholders.
When there is no power supplied by the Kenya Power, then patients and nurses are forced to use torches since the generator has failed.
Nurses who sought anonymity decried the acute shortage of medicine and other essential supplies in the hospital.
According to residents, the health and emergency services department is lacking officers with the right managerial skills required in providing quality health services to the public
“The county government should check the acute shortage of qualified health workers, shortage of drugs and medical supplies in public health institutions and unaffordable health services,” one of the residents said.
Residents said for years, the media and various interest groups have exposed the rot in the health sector.
Investigations show that lack of sufficient human resources and deficient budgetary allocation of funds to government hospitals lead to inadequate facilities, drugs and equipment.
Recently, residents of Matuu led by the business community gave county government a two- week ultimatum to reopen the Matuu Level Four Hospital.
The hospital was closed after the contractor who had been contracted by the county government to do a facelift of the ward units pulled out before the work was completed.
The Matuu chairman Chamber of Commerce and Industry Judas Ndawa said that the closure of the hospital has completely paralysed delivery of health services in the region.
Ndawa said that the nurses and clinical officers in the hospital have been left with no option than to always refer the serious cases to other hospitals like Thika Level 5.
He said that the hospital only operates on an outpatient policy despite being the only major hospital that serves the whole of Yatta.
Ndawa said that the business community in Matuu will lead the residents into a peaceful demonstration if no action will have been taken by the end of the two weeks.
“We are saying that if the county government does not act, we will march to the streets to demand for our rights,” he said.
In his recent tour to the hospital, the Machakos governor Alfred Mutua admitted in a post in his Facebook wall that the hospital was in a sorry state.
In his post, Mutua blamed the state of the hospital on the poor information he has been getting from his government officials.
“Contrary to reports that I have always been given by my government officials, I was shocked to find that the hospital lacks water and medicines. There is painful inefficient service delivery,” Mutua posted in his wall.
Mutua wrote that following the situation, he will soon be making radical changes in the department of health and emergency services so as to ensure service delivery to the people.
Unconfirmed reports indicate that there is fear that infants might have died due to lack of vital facilities.
Weekly Citizen has since established that breakage of the main power generator has raised the eyebrows of all stakeholders.
When there is no power supplied by the Kenya Power, then patients and nurses are forced to use torches since the generator has failed.
Nurses who sought anonymity decried the acute shortage of medicine and other essential supplies in the hospital.
According to residents, the health and emergency services department is lacking officers with the right managerial skills required in providing quality health services to the public
“The county government should check the acute shortage of qualified health workers, shortage of drugs and medical supplies in public health institutions and unaffordable health services,” one of the residents said.
Residents said for years, the media and various interest groups have exposed the rot in the health sector.
Investigations show that lack of sufficient human resources and deficient budgetary allocation of funds to government hospitals lead to inadequate facilities, drugs and equipment.
Recently, residents of Matuu led by the business community gave county government a two- week ultimatum to reopen the Matuu Level Four Hospital.
The hospital was closed after the contractor who had been contracted by the county government to do a facelift of the ward units pulled out before the work was completed.
The Matuu chairman Chamber of Commerce and Industry Judas Ndawa said that the closure of the hospital has completely paralysed delivery of health services in the region.
Ndawa said that the nurses and clinical officers in the hospital have been left with no option than to always refer the serious cases to other hospitals like Thika Level 5.
He said that the hospital only operates on an outpatient policy despite being the only major hospital that serves the whole of Yatta.
Ndawa said that the business community in Matuu will lead the residents into a peaceful demonstration if no action will have been taken by the end of the two weeks.
“We are saying that if the county government does not act, we will march to the streets to demand for our rights,” he said.
In his recent tour to the hospital, the Machakos governor Alfred Mutua admitted in a post in his Facebook wall that the hospital was in a sorry state.
In his post, Mutua blamed the state of the hospital on the poor information he has been getting from his government officials.
“Contrary to reports that I have always been given by my government officials, I was shocked to find that the hospital lacks water and medicines. There is painful inefficient service delivery,” Mutua posted in his wall.
Mutua wrote that following the situation, he will soon be making radical changes in the department of health and emergency services so as to ensure service delivery to the people.
KITALE DISTRICT HOSPITAL IN SORRY STATE AS OFFCIERS FIGHT
More radical changes are expected in the Kitale District Hospital following its sorry state compounded by lack of drugs despite the county government efforts to purchase more drugs last month. The situation that worsened recently forced nurses to refer patients to Kapenguria and to private hospitals in Kitale due to lack of drugs.
By last week, the hospital pharmacy shop was empty with no drugs as residents transferred their beloved ones to private hospitals for proper medication.
Two camps have emerged at the hospital with one supporting the chief in charge of health Maurice Wakwabubi and another group opposing him. Sources say those against Wakwabubi and the county executive in charge of health John Ndombi allege the two had locked drugs in the government building at Mea Ltd in town and were transported later to the hospital after the information spread everywhere up to social media with pictures on how the hospital was looking questioning the duo for poor service delivery in Governor Patrick Khaemba’s government.
The group supporting Wakwabubi and John Ndombi say there were enough drugs in the hospital but the drugs were hidden somewhere in the hospital building by the enemies of the two officers so that Khaemba sees the duo as nonperformers. Wakwabubi and Ndombi blamed the county pharmacist and his team for hiding drugs and sabotaging them with Khaemba government wondering why these enemies were hiding public drugs meant for patients. Speaking to press, nurses who had found it difficult to work wondered why the officers where not disbursing drugs saying they had begun to refer patients to private hospitals.
Efforts to get Ndombi did not bear fruits as his chief officer said it was the plan of his enemies to hide the drugs from the hospital pharmacy shop making patients to buy everything from outside the hospital that they should receive freely. “When it comes to health issues we don’t compromise people’s lives. We are asking Khaemba to sit down in a round table with his officers and crack the whip. For us juniors to get and inform him on drugs issue is hard. It’s like seeing God since one of us was restricted from seeing the governor by those who surrounds him,’’ a nurse claimed.
In maternity ward women were being sent to purchase gloves, cotton, spirit among other items needed for them to deliver as richer women look for private health facilities to deliver. Why drugs were not disbursed or were hidden leaving patients in danger is now the question. Sources said Khaemba held a meeting without Ndombi to discuss the health issues that had sent wrong signals to people of Trans Nzoia that Khaemba is leading. Wakwabubi refuted claims that he was the one who did not disburse the said drugs worth Sh29million saying his enemies are the ones doing this evil plans against him. “We disbursed drugs that the county government had procured so I’m wondering the game that my fellow colleagues are playing but it will backfire as we get the truth,’’ lauded Wakwabubi.
Residents now want the governor with his executive in charge of health to come out and clear the rumours that might cost his politics in the county and explain why the hospital that serves patients from Kapenguria, Bungoma and even Uganda was said to lack drugs while thecounty government had procured drugs worth Sh29million to be disbursed to various health facilities in the county.
Residents want Khaemba to reshuffle Ndombi and county pharmacist from health. Deputy governor Stanely Kenei Tarus said they are not aware that the hospital had no drugs adding that the county had procured drugs last month and was astonished how drugs were unavaailable. There must be something wrong with our officers. We need to act on this immediately,’’ he paused in a phone.
Political analyst in the county Joseph Masta says if Khaemba will not wake up somebody some sleep.
Masta says that health issue does not need politics or tribalism adding that any nurse or doctor is entitled to work everywhere asking leaders in the county to play with politics outside the health sector. The shortage of drugs in the district hospital brought different reactions in the county as some say it was deal for the public to see that Khaemba has found difficult to deliver while he is working hard to deliver. Recently Khaemba signed an MoU with industrial and commercial development cooperation that will see Trans Nzoia have a milling plant same to MoU that was signed two weeks ago with Indian government to have Soil Testing Centre that will serve the East Africa Communities that include Uganda, Rwanda, Burundi and Tanzania and irrigation project that will benefit residents of Trans Nzoia and China MoU.
Masta says if the named projects above take place it will boost Khaemba’s politics and he will have a high chance to remain in power come 2017. Another group says it was a county deal so that the public can see the importance of having a referral hospital.
By last week, the hospital pharmacy shop was empty with no drugs as residents transferred their beloved ones to private hospitals for proper medication.
Two camps have emerged at the hospital with one supporting the chief in charge of health Maurice Wakwabubi and another group opposing him. Sources say those against Wakwabubi and the county executive in charge of health John Ndombi allege the two had locked drugs in the government building at Mea Ltd in town and were transported later to the hospital after the information spread everywhere up to social media with pictures on how the hospital was looking questioning the duo for poor service delivery in Governor Patrick Khaemba’s government.
The group supporting Wakwabubi and John Ndombi say there were enough drugs in the hospital but the drugs were hidden somewhere in the hospital building by the enemies of the two officers so that Khaemba sees the duo as nonperformers. Wakwabubi and Ndombi blamed the county pharmacist and his team for hiding drugs and sabotaging them with Khaemba government wondering why these enemies were hiding public drugs meant for patients. Speaking to press, nurses who had found it difficult to work wondered why the officers where not disbursing drugs saying they had begun to refer patients to private hospitals.
Efforts to get Ndombi did not bear fruits as his chief officer said it was the plan of his enemies to hide the drugs from the hospital pharmacy shop making patients to buy everything from outside the hospital that they should receive freely. “When it comes to health issues we don’t compromise people’s lives. We are asking Khaemba to sit down in a round table with his officers and crack the whip. For us juniors to get and inform him on drugs issue is hard. It’s like seeing God since one of us was restricted from seeing the governor by those who surrounds him,’’ a nurse claimed.
In maternity ward women were being sent to purchase gloves, cotton, spirit among other items needed for them to deliver as richer women look for private health facilities to deliver. Why drugs were not disbursed or were hidden leaving patients in danger is now the question. Sources said Khaemba held a meeting without Ndombi to discuss the health issues that had sent wrong signals to people of Trans Nzoia that Khaemba is leading. Wakwabubi refuted claims that he was the one who did not disburse the said drugs worth Sh29million saying his enemies are the ones doing this evil plans against him. “We disbursed drugs that the county government had procured so I’m wondering the game that my fellow colleagues are playing but it will backfire as we get the truth,’’ lauded Wakwabubi.
Residents now want the governor with his executive in charge of health to come out and clear the rumours that might cost his politics in the county and explain why the hospital that serves patients from Kapenguria, Bungoma and even Uganda was said to lack drugs while thecounty government had procured drugs worth Sh29million to be disbursed to various health facilities in the county.
Residents want Khaemba to reshuffle Ndombi and county pharmacist from health. Deputy governor Stanely Kenei Tarus said they are not aware that the hospital had no drugs adding that the county had procured drugs last month and was astonished how drugs were unavaailable. There must be something wrong with our officers. We need to act on this immediately,’’ he paused in a phone.
Political analyst in the county Joseph Masta says if Khaemba will not wake up somebody some sleep.
Masta says that health issue does not need politics or tribalism adding that any nurse or doctor is entitled to work everywhere asking leaders in the county to play with politics outside the health sector. The shortage of drugs in the district hospital brought different reactions in the county as some say it was deal for the public to see that Khaemba has found difficult to deliver while he is working hard to deliver. Recently Khaemba signed an MoU with industrial and commercial development cooperation that will see Trans Nzoia have a milling plant same to MoU that was signed two weeks ago with Indian government to have Soil Testing Centre that will serve the East Africa Communities that include Uganda, Rwanda, Burundi and Tanzania and irrigation project that will benefit residents of Trans Nzoia and China MoU.
Masta says if the named projects above take place it will boost Khaemba’s politics and he will have a high chance to remain in power come 2017. Another group says it was a county deal so that the public can see the importance of having a referral hospital.
LOCALS NOW WANT MALAVA BOYS TURNED UNIVERSITY
The future of Friends School Malava Boys Kakamega North district of Kakamega county hangs in the balance after a stakeholders committee resolved that it gives way to an establishment of a university.
In a stakeholders’ meeting held at Friends Malava Primary the committee that was chaired by John Teka resolved that the school’s location was best suitable for the setting up of a university.
The members also resolved that former district commissioner Fred Mutsami be the chairman of a nine member sub-committee that will sit and discuss the fate of the school.
The call for an establishment of a university comes in after the Masinde Muliro University of Science and Technology vice chancellor Fred Otieno showed willingness to set a branch in the area.
Otieno who was accompanied by Prof Achola and Prof Wasike during their recent visit at Friends School Malava Primary where he started his education said there was need to establish a university in the area so as to satisfy the rising need for higher education from the region.
He said they will meet political and other government leadership to brainstorm how to set up a branch of Masinde Muliro in Malava.
At the same time the vice chancellor Fred Otieno announced that plans were underway between Mmust and Knut to start offering special learning programmes for teachers through direct attendance and e-learning.
They noted that Malava Boys having performed just like any other school was not of much use staying there and the location was superb for a university.
“We have 43 secondary schools and they all perform like Malava Boys and the extinction of this school will have no impact on the students as they will be accommodated in the remaining 42,” said Fundi Lucheli, a former high school principal.
Lucheli also noted that the need for a university in the area surpasses those of Malava Boys and therefore the residents and the management should have no objection giving way for this wonderful idea.
Board chairman Malava Boys George Malumasi said this was a wise idea and he would represent the high school chairmen in the committee which he said will soon see the birth of a university in the area.
Malava Boys lies on an approximately over 20 acres of land and its location was seen as ideal for the university.
In a stakeholders’ meeting held at Friends Malava Primary the committee that was chaired by John Teka resolved that the school’s location was best suitable for the setting up of a university.
The members also resolved that former district commissioner Fred Mutsami be the chairman of a nine member sub-committee that will sit and discuss the fate of the school.
The call for an establishment of a university comes in after the Masinde Muliro University of Science and Technology vice chancellor Fred Otieno showed willingness to set a branch in the area.
Otieno who was accompanied by Prof Achola and Prof Wasike during their recent visit at Friends School Malava Primary where he started his education said there was need to establish a university in the area so as to satisfy the rising need for higher education from the region.
He said they will meet political and other government leadership to brainstorm how to set up a branch of Masinde Muliro in Malava.
At the same time the vice chancellor Fred Otieno announced that plans were underway between Mmust and Knut to start offering special learning programmes for teachers through direct attendance and e-learning.
They noted that Malava Boys having performed just like any other school was not of much use staying there and the location was superb for a university.
“We have 43 secondary schools and they all perform like Malava Boys and the extinction of this school will have no impact on the students as they will be accommodated in the remaining 42,” said Fundi Lucheli, a former high school principal.
Lucheli also noted that the need for a university in the area surpasses those of Malava Boys and therefore the residents and the management should have no objection giving way for this wonderful idea.
Board chairman Malava Boys George Malumasi said this was a wise idea and he would represent the high school chairmen in the committee which he said will soon see the birth of a university in the area.
Malava Boys lies on an approximately over 20 acres of land and its location was seen as ideal for the university.
NAROK MPS NOW JOIN ANTI-TUNAI FORCES AS BATTLELINES DRAWN
After one year of political bickering pitting Narok county governor Samuel Ole Tunai and Narok North MP Moitalel Ole Kenta, finally the battle line has been drawn.
Based on a political scenario witnessed in Narok town last Monday when the two camps paraded who is who in their camps during two charged rallies held in different venues within the town it was evident that only divine intervention will probably help reconcile the two groups and return sanity in the area.
The Kenta camp has managed to bring to its fold Narok senator Stephen ole Ntutu, three other area MPs Korei ole Lemein, Patrick ole Ntutu and Johana Ng’eno.
Other powerful political giants from the county drumming for the ouster of the Governor Tunai and attending the curtainraiser rally included former ministers Julius ole Sunkuli and William ole Ntimama, retired President Daniel Moi property manager and very influential politician Andrew ole Sunkuli who landed at the venue in a chopper, former TLB chairman Hassan ole Kamwaro, Maa community development mobiliser Silvester ole Ntutu, Maa community lands rights activist Meitamei ole Dapash, Educationist Ladema ole Kina, more than 20 reps and tens of high-ranking civil servants among the endless list.
Thousands of Kikuyu community living and doing business in Narok county have found themselves between a rock and hard surface and are yet to declare their position in the emerging political scenario between Kenta and Governor Tunai who they allegedly voted for as block in the last general elections. Kenta won the seat on TNA ticket while Tunai and four other MPs in the county won on URP tickets. Johanah Ngeno the Emurua Dikirr constituency MP won the seat on KSC ticket.
The major accusation against the governor is that for the last two years he allegedly mismanaged huge amount of money earmarked for development projects, failure to consult with other stakeholders during implementation of projects in the county thus turning the activities into one man show.
Other issues against the governor is unfair distribution of available job opportunities thus an indicator most favoured are allegedly his close political allies
Governor Tunai was also accused of awarding his own company tender to collect revenue from the Mara Game Reserve after cancelling a previous tender he found operating signed by the former Narok county council and the Equity Bank.
Tunai entry to office the Kenta team claimed saw tens of revenue clerks who were deployed in the Masai Mara Game Reserve entry gates were removed after his company introduced e-ticketing method of revenue collection.
Tunai in quick rejoinder almost immediately dismissed the Kenta camp as power hungry, selfseeking out to advance their political mileage using unorthodox method.
Tuanai claimed that most of the issues raised by Kenta camp were total falsehoods meant to deflect his development agenda to concentrate on imagined defensive propaganda.
Tunai a security intelligent officer who served during the Moi era is known ally of Deputy President William Ruto whom its rumoured is his only saviour in this war if political survival is to go by.
Those in his camp include two MPs namely Ken Kiloku and Gideon Konchella, others are the county women representative Soipan Kudate and at least more than 30 reps led by majority leader Stephen ole Kudate and Kipsigis community who have largely benefited from Tunai leadership among others.
The issue of the Mau Forest also dominated the two warring parties with the governor who has been accused of delaying the eviction of the alleged squatter in water catchment pointing an accusing finger at the Senator Ntutu.
The governor said senator allegedly masterminded the encroachment into the forest using fake boundaries of the neighbouring group ranches lands.
The governor accused Ntutu of playing dirty politics instead of using factual information to acuse him and using falsehood to oust him from office.
After a daylong rally held Illmasharian grounds the Kenta camp resolved to name in two weeks time their preferred candidate for governor’s seat if their mission to oust Tunai succeeds.
Speaker after speaker said they will resort to jungle rule to remove Tunai from office top of the public protests until he succumb to pressure.
“If Hosni Mubarak, Idi Amin and latest Blaise Compaore have been shown exit door through public protests what is a governor in county?’’ posed MP Ngeno amid thunderous applause in support from the crowd.
Senator Ntutu who was among the key speakers during the rally vowed to ensure the governor whom they were elected on the same URP ticket was removed from office.
The governor and the senator are rumoured to have parted ways after the two failed to honour their campaign MOU.
Senator Ntutu had pushed for employment of his two brothers in key county positions one as a county clerk and the other as assembly speaker.
Two Narok MPs are allegedly lined up by the Kenta and Senator Ntutu camp as possible immediate replacement for Tunai and his deputy. They are Patrick Ntutu (governor) and Johana Ngeno (deputy governor ) while Francis ole Nkoitoi will replace Patrick Ntutu as Narok West MP. Shopping for replacement of Emurua Dikirr MP is in top gear.
President Uhuru Kenyatta is coming to Narok on December 4 most to open a road in Nairegia Enkare a mission view as last effort to save the embattled Governor Tunai from possible ouster.
As we went to press political temperature in Narok county was at it maximum as return match is waited after expiry of the 14 day ultimatum for the governor to voluntarily pack or face public humiliation.
Based on a political scenario witnessed in Narok town last Monday when the two camps paraded who is who in their camps during two charged rallies held in different venues within the town it was evident that only divine intervention will probably help reconcile the two groups and return sanity in the area.
The Kenta camp has managed to bring to its fold Narok senator Stephen ole Ntutu, three other area MPs Korei ole Lemein, Patrick ole Ntutu and Johana Ng’eno.
Other powerful political giants from the county drumming for the ouster of the Governor Tunai and attending the curtainraiser rally included former ministers Julius ole Sunkuli and William ole Ntimama, retired President Daniel Moi property manager and very influential politician Andrew ole Sunkuli who landed at the venue in a chopper, former TLB chairman Hassan ole Kamwaro, Maa community development mobiliser Silvester ole Ntutu, Maa community lands rights activist Meitamei ole Dapash, Educationist Ladema ole Kina, more than 20 reps and tens of high-ranking civil servants among the endless list.
Thousands of Kikuyu community living and doing business in Narok county have found themselves between a rock and hard surface and are yet to declare their position in the emerging political scenario between Kenta and Governor Tunai who they allegedly voted for as block in the last general elections. Kenta won the seat on TNA ticket while Tunai and four other MPs in the county won on URP tickets. Johanah Ngeno the Emurua Dikirr constituency MP won the seat on KSC ticket.
The major accusation against the governor is that for the last two years he allegedly mismanaged huge amount of money earmarked for development projects, failure to consult with other stakeholders during implementation of projects in the county thus turning the activities into one man show.
Other issues against the governor is unfair distribution of available job opportunities thus an indicator most favoured are allegedly his close political allies
Governor Tunai was also accused of awarding his own company tender to collect revenue from the Mara Game Reserve after cancelling a previous tender he found operating signed by the former Narok county council and the Equity Bank.
Tunai entry to office the Kenta team claimed saw tens of revenue clerks who were deployed in the Masai Mara Game Reserve entry gates were removed after his company introduced e-ticketing method of revenue collection.
Tunai in quick rejoinder almost immediately dismissed the Kenta camp as power hungry, selfseeking out to advance their political mileage using unorthodox method.
Tuanai claimed that most of the issues raised by Kenta camp were total falsehoods meant to deflect his development agenda to concentrate on imagined defensive propaganda.
Tunai a security intelligent officer who served during the Moi era is known ally of Deputy President William Ruto whom its rumoured is his only saviour in this war if political survival is to go by.
Those in his camp include two MPs namely Ken Kiloku and Gideon Konchella, others are the county women representative Soipan Kudate and at least more than 30 reps led by majority leader Stephen ole Kudate and Kipsigis community who have largely benefited from Tunai leadership among others.
The issue of the Mau Forest also dominated the two warring parties with the governor who has been accused of delaying the eviction of the alleged squatter in water catchment pointing an accusing finger at the Senator Ntutu.
The governor said senator allegedly masterminded the encroachment into the forest using fake boundaries of the neighbouring group ranches lands.
The governor accused Ntutu of playing dirty politics instead of using factual information to acuse him and using falsehood to oust him from office.
After a daylong rally held Illmasharian grounds the Kenta camp resolved to name in two weeks time their preferred candidate for governor’s seat if their mission to oust Tunai succeeds.
Speaker after speaker said they will resort to jungle rule to remove Tunai from office top of the public protests until he succumb to pressure.
“If Hosni Mubarak, Idi Amin and latest Blaise Compaore have been shown exit door through public protests what is a governor in county?’’ posed MP Ngeno amid thunderous applause in support from the crowd.
Senator Ntutu who was among the key speakers during the rally vowed to ensure the governor whom they were elected on the same URP ticket was removed from office.
The governor and the senator are rumoured to have parted ways after the two failed to honour their campaign MOU.
Senator Ntutu had pushed for employment of his two brothers in key county positions one as a county clerk and the other as assembly speaker.
Two Narok MPs are allegedly lined up by the Kenta and Senator Ntutu camp as possible immediate replacement for Tunai and his deputy. They are Patrick Ntutu (governor) and Johana Ngeno (deputy governor ) while Francis ole Nkoitoi will replace Patrick Ntutu as Narok West MP. Shopping for replacement of Emurua Dikirr MP is in top gear.
President Uhuru Kenyatta is coming to Narok on December 4 most to open a road in Nairegia Enkare a mission view as last effort to save the embattled Governor Tunai from possible ouster.
As we went to press political temperature in Narok county was at it maximum as return match is waited after expiry of the 14 day ultimatum for the governor to voluntarily pack or face public humiliation.
AIDS NUMBER ONE KILLER OF KITUI WOMEN
Forty five per cent of the deaths for women in Kitui county are caused by the HIV/AIDS related diseases. This is according to Kitui county AIDS and sexually transmitted infections coordinator Felistus Vuku. Vuku said women are the ones who carry the highest burden of the AIDS pandemic.
“This is due to their nature,” she said. Vuku said that Homa Bay, Kisii, Kisumu, Siaya, Turkana and Migori are the six top counties that have the highest burden of the AIDS scourge in Kenya. The expert was lecturing participants from Kitui county during a one-day consultative forum on HIV/AIDS organised by the National AIDS Control Council where the Kitui county governor, Julius Malombe’s wife Edith was the chief guest.
Vuku said that the maternal deaths are associated with poverty. “We in Kitui county are waiting for funds that we are going to be given by the Global Fund towards the elimination of the HIV/AIDS infections in the region,” he said. Kitui county health and sanitation minister Ruth Koki said that cancer diseases are now killing more people in the world than AIDS. Koki said that Kitui county government is undertaking a range of measures towards improving the health services in the county.
“Our ultimate goal is to change the people’s lives. We are going to do more than what we are doing for our people in the county. We need mothers to deliver at the health facilities and not at homes. Experts save them from deaths during the delivering time,” the county minister said.
A senior official with the Aphia Plus non governmental organisation Patience Ziro said that no woman should die because of delivering. “No woman should die because of delivery related condition which is within our reach,” the non governmental organisation official said.
“This is due to their nature,” she said. Vuku said that Homa Bay, Kisii, Kisumu, Siaya, Turkana and Migori are the six top counties that have the highest burden of the AIDS scourge in Kenya. The expert was lecturing participants from Kitui county during a one-day consultative forum on HIV/AIDS organised by the National AIDS Control Council where the Kitui county governor, Julius Malombe’s wife Edith was the chief guest.
Vuku said that the maternal deaths are associated with poverty. “We in Kitui county are waiting for funds that we are going to be given by the Global Fund towards the elimination of the HIV/AIDS infections in the region,” he said. Kitui county health and sanitation minister Ruth Koki said that cancer diseases are now killing more people in the world than AIDS. Koki said that Kitui county government is undertaking a range of measures towards improving the health services in the county.
“Our ultimate goal is to change the people’s lives. We are going to do more than what we are doing for our people in the county. We need mothers to deliver at the health facilities and not at homes. Experts save them from deaths during the delivering time,” the county minister said.
A senior official with the Aphia Plus non governmental organisation Patience Ziro said that no woman should die because of delivering. “No woman should die because of delivery related condition which is within our reach,” the non governmental organisation official said.
KAKAMEGA AFRICAN DIVINE PASTOR BEAST IN AFTER DEFILING SIX-YEAR-OLD
An African Divine Church pastor is in police custody in Likuyani Kakamega county on allegations of defiling and injuring a six-year- old minor and also infecting her with sexually transmitted desease.
According to the victim’s father, his two daughters aged four and six years were playing by the road near their home compound at Lugulu village, Mawe Tatu sub-location when the preacher ProtusMasika dressed in African Divine Church attire tricked them into an abandoned neighbour’s house pretending that he wanted to pray for them.
The man then sent the young sister to go and see her mother who was working in their farm and later defiled the girl inflicting serious injuries. The father said the young girl rushed to inform her mother that there was a pastor who wanted to pray for them and was holding her sister in their neighbour’s house. The mother rushed to the scene but the damage had already been done and the man of clothe dashed out of the house. The mother raised alarm that attracted a crowd that pursued the priest as he tried to flee.
The crowd managed to catch him and descended on him with all manner of crude weapons before he was rescued by security personnel and takento Matunda Police Station. The victim was rushed to Matunda Subdistrict Hospital where it was confirmed that she had been defiled and infected with virus.
According to the mother, the medical officer who carried out the exercise refused to fill a P3 Form to have the culprit prosecuted in court demanding to be paid Sh1,000 of which he could not afford a move he says seems to deny her daughter justice.
Speaking to press the area children officer Maurice Okiru complained over cases of medical officers demanding payment for defilement cases which is against law. He said all children who are victims of defilement are supposed to be treated and given P3 Form free of charge and promised to intervene and ensure the culprit faces the law.
Mawe Tatu sublocation assistant chief Wycliffe Masinde said the suspect is a resident of Makutano in the neighbouring Sango sublocation and he has been moving in the area claiming to collect money ahead of a fundraising in aid of their Sango ADC church. “This man is not a resident of my sublocation. He comes from outside but for the past two days he has been moving from door to door in my area collecting money for church construction. We did not know he had ill motive,” said Masinde.
According to the victim’s father, his two daughters aged four and six years were playing by the road near their home compound at Lugulu village, Mawe Tatu sub-location when the preacher ProtusMasika dressed in African Divine Church attire tricked them into an abandoned neighbour’s house pretending that he wanted to pray for them.
The man then sent the young sister to go and see her mother who was working in their farm and later defiled the girl inflicting serious injuries. The father said the young girl rushed to inform her mother that there was a pastor who wanted to pray for them and was holding her sister in their neighbour’s house. The mother rushed to the scene but the damage had already been done and the man of clothe dashed out of the house. The mother raised alarm that attracted a crowd that pursued the priest as he tried to flee.
The crowd managed to catch him and descended on him with all manner of crude weapons before he was rescued by security personnel and takento Matunda Police Station. The victim was rushed to Matunda Subdistrict Hospital where it was confirmed that she had been defiled and infected with virus.
According to the mother, the medical officer who carried out the exercise refused to fill a P3 Form to have the culprit prosecuted in court demanding to be paid Sh1,000 of which he could not afford a move he says seems to deny her daughter justice.
Speaking to press the area children officer Maurice Okiru complained over cases of medical officers demanding payment for defilement cases which is against law. He said all children who are victims of defilement are supposed to be treated and given P3 Form free of charge and promised to intervene and ensure the culprit faces the law.
Mawe Tatu sublocation assistant chief Wycliffe Masinde said the suspect is a resident of Makutano in the neighbouring Sango sublocation and he has been moving in the area claiming to collect money ahead of a fundraising in aid of their Sango ADC church. “This man is not a resident of my sublocation. He comes from outside but for the past two days he has been moving from door to door in my area collecting money for church construction. We did not know he had ill motive,” said Masinde.
KIAMBU DEPUTY GOVERNOR FINDS SCAPEGOAT
Kiambu deputy governor Gerald Githinji has blamed the Kenya Urban Roads Authority for the poor state of roads in the county.
He said many roads in the region’s urban centres which fall under Kura were in a bad shape, a situation made worse by the ongoing grains.
The official singled out Thika town as the worst hit yet it generates 40pc of the county’s revenue. He expressed concern that investors may shy away.
Githinji was officially opening the Thika Trade Fair at Mama Ngina Grounds. It is organised by the Thika District Business Association.
“It is unfortunate that the county government is being unfairly blamed for the sorry state of infrastructure in our towns yet this is the work of Kura,” he said.
The deputy governor said regional governments have not been allocated money for repair of roads in towns within their jurisdiction and accused Kura of letting down taxpayers.
The association secretary Joseph Nyoike said the three-day event offers local institutions, manufacturers, traders and agro-businesses a chance to showcase their products and services.
The chairman Waweru Nderitu asked the county government to address the perennial traffic jams and lack of parking space in Thika town.
He said many roads in the region’s urban centres which fall under Kura were in a bad shape, a situation made worse by the ongoing grains.
The official singled out Thika town as the worst hit yet it generates 40pc of the county’s revenue. He expressed concern that investors may shy away.
Githinji was officially opening the Thika Trade Fair at Mama Ngina Grounds. It is organised by the Thika District Business Association.
“It is unfortunate that the county government is being unfairly blamed for the sorry state of infrastructure in our towns yet this is the work of Kura,” he said.
The deputy governor said regional governments have not been allocated money for repair of roads in towns within their jurisdiction and accused Kura of letting down taxpayers.
The association secretary Joseph Nyoike said the three-day event offers local institutions, manufacturers, traders and agro-businesses a chance to showcase their products and services.
The chairman Waweru Nderitu asked the county government to address the perennial traffic jams and lack of parking space in Thika town.
THIKA CHILDREN'S HOME FACE NEW HURDLE
The government canceled the certificate of a charitable organisation for allegedly being involved in child trafficking. The cancellation came in the wake of claims that Thika Advisory Committee on Children Affairs cancelled the operations certificate for Karibuni Organisation Children’s home after suspicions that the foreign proprietors were involved in illegal trafficking of children.
During a heated committee meeting at the Thika DC’s boardroom the committee led by the Kiambu county director of Children Affairs Mwambi Mongare, the committee further ordered for the immediate investigation and repatriation of the organisation’s manager Luke Kincaid for what they termed as gross violation of the set regulations guiding the formation and operations of children’s homes.
Committee members led by Mwambi reported that the organisation has deliberately circumvented procedures guiding the running of a Child Rescue Centre creating room for mischief and suspicious activities including unrecorded adoptions being carried in the home.
The committee supported the government effort to scrutinise activities of NGOs which get money from abroad but are reluctant in accounting for funds. Mwambi said that the organisation was conducting its activities in a shrewd manner. He said the organisation had been in existence for the past three years. presented to the area monitoring and evaluation committee documents indicating the names of the proprietors, the structural design of the organisation and the number of staff to run the rescue centre but immediately after they were awarded the certificate they fired all the employees and brought in others from the United States.
Mwambi further revealed that attempts by the area audit committee to access the rescue centre as required by the Children’s Act for assessment and general evaluation of how the home is run has been futile as the proprietors have been hostile to the government officers making it impossible to give any report on how the home was being ran.
The director said that the Thika West area advisory committee in liaison with the area security officers were planning on how to rescue the children from the home adding that unspecified reports indicate that the directors of the home were clandestinely organising for international adoptions of children from the home without following the laid down procedures.
“I’m afraid that Kenyan children have been trafficked to other countries without our knowledge and we are therefore left with no option than to cancel the certificate and rescue the remaining children under their care,” he concluded.
Mwambi warned other children rescue centres that anyone trying to craftily use the children to make money at the expense of the innocent vulnerable children that their days were numbered and that the law will catch up with them and due diligence would be applied.
He reminded owners of children homes who have not re-applied for a certificate of operation as required by the recent audit report to do so failure to which the centres would be closed and the children moved to other centers.
Mwambi said that there were over 250 children’s home in Kiambu county and only 80 have applied for the new operations certificate.
During a heated committee meeting at the Thika DC’s boardroom the committee led by the Kiambu county director of Children Affairs Mwambi Mongare, the committee further ordered for the immediate investigation and repatriation of the organisation’s manager Luke Kincaid for what they termed as gross violation of the set regulations guiding the formation and operations of children’s homes.
Committee members led by Mwambi reported that the organisation has deliberately circumvented procedures guiding the running of a Child Rescue Centre creating room for mischief and suspicious activities including unrecorded adoptions being carried in the home.
The committee supported the government effort to scrutinise activities of NGOs which get money from abroad but are reluctant in accounting for funds. Mwambi said that the organisation was conducting its activities in a shrewd manner. He said the organisation had been in existence for the past three years. presented to the area monitoring and evaluation committee documents indicating the names of the proprietors, the structural design of the organisation and the number of staff to run the rescue centre but immediately after they were awarded the certificate they fired all the employees and brought in others from the United States.
Mwambi further revealed that attempts by the area audit committee to access the rescue centre as required by the Children’s Act for assessment and general evaluation of how the home is run has been futile as the proprietors have been hostile to the government officers making it impossible to give any report on how the home was being ran.
The director said that the Thika West area advisory committee in liaison with the area security officers were planning on how to rescue the children from the home adding that unspecified reports indicate that the directors of the home were clandestinely organising for international adoptions of children from the home without following the laid down procedures.
“I’m afraid that Kenyan children have been trafficked to other countries without our knowledge and we are therefore left with no option than to cancel the certificate and rescue the remaining children under their care,” he concluded.
Mwambi warned other children rescue centres that anyone trying to craftily use the children to make money at the expense of the innocent vulnerable children that their days were numbered and that the law will catch up with them and due diligence would be applied.
He reminded owners of children homes who have not re-applied for a certificate of operation as required by the recent audit report to do so failure to which the centres would be closed and the children moved to other centers.
Mwambi said that there were over 250 children’s home in Kiambu county and only 80 have applied for the new operations certificate.
MOLASSES BUSINESSMEN WITH NZOIA SUGAR LAMENT BITTERLY
Businessmen licensed by Kenya Sugar Board to buy molasses business with Nzoia Sugar Company have accused some managers in the marketing department of frustrating their efforts through a well woven corruption syndicate.
The businessmen under the umbrella Green Hope Molasses Traders said that the cartel has always blocked them from buying the commodity and has been on the forefront of perpetuating corruption and favouritism.
“We want to know why the procedure for selling molasses is not always followed at Nzoia Sugar Company yet we are the genuine and authorised people who should buy the commodity because we are licensed by KSB? They are going for rich businessmen who can part with money yet they are not licensed,” he said.
They have disclosed that they will hold a mother of all demonstrations this week to protest the alleged favouritism being carried out by a few firm managers who are ready to enrich themselves through dubious means and have also called on the firm managing director Saul Wasilwa to transfer the alleged officer.
Simiyu said that their efforts to petitioned the firm MD to transfer the said officer to allow openness in buying of molasses because has always been frustrated because they have not yielded any fruits.
Simiyu says that Nzoia Sugar Company produces 12 trucks of molasses daily and the marketing officer Peter Mukoya has been demanding for Sh60,000 per lorry daily and the money collected ends in some individuals pockets.
“Some employees are making a lot of money from the molasses deal and those who do not heed the manager are always reprimanded and denied entry to the factory by armed police officers who act under the instructions of the marketing officer,” said Simiyu.
The trader’s secretary Peter Mapesa and treasurer George Kituyi accused the management of transferring the accused officer to another department and recently was returned to the department under dubious means to perpetuate the corruption syndicate.
The traders have called on the ethics and anti-corruption officers to investigate the ongoings in the marketing department at Nzoia Sugar Company.
“We are authorised and entitled to work with the company in terms of molasses business but the management is working with outsiders who are not authorised by KSB to transact any business with the company which is contrary to the law,” claimed Mapesa.
Contacted, Mukoya threatened the writer with legal implications if the story appears.
“Go ahead with the story because I have already informed your bosses and also understand that the legal implications involved,” read the short message from Mukoya’s phone number.
Contacted over the issue, Nzoia Sugar MD Saul Wasilwa could not be reached on his mobile phone.
The businessmen under the umbrella Green Hope Molasses Traders said that the cartel has always blocked them from buying the commodity and has been on the forefront of perpetuating corruption and favouritism.
“We want to know why the procedure for selling molasses is not always followed at Nzoia Sugar Company yet we are the genuine and authorised people who should buy the commodity because we are licensed by KSB? They are going for rich businessmen who can part with money yet they are not licensed,” he said.
They have disclosed that they will hold a mother of all demonstrations this week to protest the alleged favouritism being carried out by a few firm managers who are ready to enrich themselves through dubious means and have also called on the firm managing director Saul Wasilwa to transfer the alleged officer.
Simiyu said that their efforts to petitioned the firm MD to transfer the said officer to allow openness in buying of molasses because has always been frustrated because they have not yielded any fruits.
Simiyu says that Nzoia Sugar Company produces 12 trucks of molasses daily and the marketing officer Peter Mukoya has been demanding for Sh60,000 per lorry daily and the money collected ends in some individuals pockets.
“Some employees are making a lot of money from the molasses deal and those who do not heed the manager are always reprimanded and denied entry to the factory by armed police officers who act under the instructions of the marketing officer,” said Simiyu.
The trader’s secretary Peter Mapesa and treasurer George Kituyi accused the management of transferring the accused officer to another department and recently was returned to the department under dubious means to perpetuate the corruption syndicate.
The traders have called on the ethics and anti-corruption officers to investigate the ongoings in the marketing department at Nzoia Sugar Company.
“We are authorised and entitled to work with the company in terms of molasses business but the management is working with outsiders who are not authorised by KSB to transact any business with the company which is contrary to the law,” claimed Mapesa.
Contacted, Mukoya threatened the writer with legal implications if the story appears.
“Go ahead with the story because I have already informed your bosses and also understand that the legal implications involved,” read the short message from Mukoya’s phone number.
Contacted over the issue, Nzoia Sugar MD Saul Wasilwa could not be reached on his mobile phone.
TOO MANY EXPATRIATES AS LOCAL STAFF SUFFER AT SAROVA HOTELS
Sarova Hotels is famous for having some of the most coveted hotels and finest camps in the country such as Sarova Stanley and Sarova Panafric in Nairobi, Sarova Whitesands Beach Resort and Spa in North Coast, Sarova Lion Hill in Nakuru, Sarova Taita Hills and Sarova Salt Lake Game Lodge all in Taita Taveta, without forgeting Sarova Mara in Maasai Mara.
However, it is said the way it is treating its senior managers after arrival of an Indian expatriate known as Kuljit Reki four years ago has led to high staff turnover of senior staff with those unable to bear his highhandedness and incompetence opting to look for greener pastures in other hotels.
Disillusioned staff cannot understand why the hotel chain is on hiring spree of Indian expatriates who add little or no value to the hotel group.
“They have hired more than 14 senior managers whom they are paying thousands of shillings in salaries to oversee work in house keeping, pastry, finance, engineering, food and beverage production and banqueting yet locals who have even better academic papers and vast experience are always overlooked,” said a who requested anonymity.
The group which is owned by Vohra and Kanyotu families is headed by Jaideep Vohra, commonly known as JS Vohra as the managing director, but staff feel he is too soft, has lost the plot and is easily influenced by Kuljit whom he has given free reign to run the multi-billion minting hospitality group.
Staff say Kuljit who is easily irritated when giving instructions to Kenyans has overstayed his mandate in the country. He frustrates senior managers and those who stand on the platform of truth are arbitrarily fires or asked to silently resign. This is the fate that befell one Anthony Ngunga, who was general manager of Sarova Panafric.
“He came here four years ago as DOO but he has refused to leave yet he came on a short work permit which by now should be expired,” said Daniel. “He should have handed over to a Kenyan as his successor,” a worker insists, adding that this is the law on expatriates.
Daniel recalls that it was only four months ago when two general managers of Sarova Stanley and Whitesands Beach Resort and Spa were unceremoniously replaced with an Indian and Italian known as Paolo Marro. “Marro is particularly very arrogant when dealing with Africans. A snobbish and arrogant manager. Staff hate him and he knows that,” said a worker.
He says his workmates are unhappy and are on a go-slow and feel overlooked by Vohra management in promotions. “No wonder last year, Mohammed Hersi, the general manager of the Whitesands Beach Resort and Spa and regional manager Coast for Sarova Hotels, also overseeing the two safari lodges Taita Hills and Salt Lick, resigned to become managing director of Voyager Hotels
He was the star of Sarova for 10 years the reason for the remarkable transformation of the resort into a true five-star. “I am sure Hersi left after he was frustrated by the influx of powerful expatriates. Vohra also never listened to him anymore like he never to senior african managers,” said the worker.
“It is disheartening that we are the ones doing the donkey work but our pay is meagre compared to these expatriates who take home 1/3 of the entire group payslip,” disclosed a frustrated Daniel, adding that he and his fellow workers have no one to run to, since all channels of communication have been closed on them by Kuljit.
Daniel says apart from using abusive language against junior staff, the expatriates know nothing about their work and depend on excellence and creativity of Kenyans to impress the senior bosses and gullible Vohra.
“Take for example Sarova Group director of food and beverage Shailender Singh who earns a million plus in salary and a raft of other benefits. What’s so special in what he does- managing the kitchens, developing new menus and stewarding functions that a Kenyan cannot do?”
The staff are calling upon Phyllis Kandie, cabinet secretary ministry of East African Affairs, Commerce and Tourism to come to their rescue and lift the rot that is being swept under Sarova carpet by series of global awards and massive profits which in essence camouflage the suffering of staff.
However, it is said the way it is treating its senior managers after arrival of an Indian expatriate known as Kuljit Reki four years ago has led to high staff turnover of senior staff with those unable to bear his highhandedness and incompetence opting to look for greener pastures in other hotels.
Disillusioned staff cannot understand why the hotel chain is on hiring spree of Indian expatriates who add little or no value to the hotel group.
“They have hired more than 14 senior managers whom they are paying thousands of shillings in salaries to oversee work in house keeping, pastry, finance, engineering, food and beverage production and banqueting yet locals who have even better academic papers and vast experience are always overlooked,” said a who requested anonymity.
The group which is owned by Vohra and Kanyotu families is headed by Jaideep Vohra, commonly known as JS Vohra as the managing director, but staff feel he is too soft, has lost the plot and is easily influenced by Kuljit whom he has given free reign to run the multi-billion minting hospitality group.
Staff say Kuljit who is easily irritated when giving instructions to Kenyans has overstayed his mandate in the country. He frustrates senior managers and those who stand on the platform of truth are arbitrarily fires or asked to silently resign. This is the fate that befell one Anthony Ngunga, who was general manager of Sarova Panafric.
“He came here four years ago as DOO but he has refused to leave yet he came on a short work permit which by now should be expired,” said Daniel. “He should have handed over to a Kenyan as his successor,” a worker insists, adding that this is the law on expatriates.
Daniel recalls that it was only four months ago when two general managers of Sarova Stanley and Whitesands Beach Resort and Spa were unceremoniously replaced with an Indian and Italian known as Paolo Marro. “Marro is particularly very arrogant when dealing with Africans. A snobbish and arrogant manager. Staff hate him and he knows that,” said a worker.
He says his workmates are unhappy and are on a go-slow and feel overlooked by Vohra management in promotions. “No wonder last year, Mohammed Hersi, the general manager of the Whitesands Beach Resort and Spa and regional manager Coast for Sarova Hotels, also overseeing the two safari lodges Taita Hills and Salt Lick, resigned to become managing director of Voyager Hotels
He was the star of Sarova for 10 years the reason for the remarkable transformation of the resort into a true five-star. “I am sure Hersi left after he was frustrated by the influx of powerful expatriates. Vohra also never listened to him anymore like he never to senior african managers,” said the worker.
“It is disheartening that we are the ones doing the donkey work but our pay is meagre compared to these expatriates who take home 1/3 of the entire group payslip,” disclosed a frustrated Daniel, adding that he and his fellow workers have no one to run to, since all channels of communication have been closed on them by Kuljit.
Daniel says apart from using abusive language against junior staff, the expatriates know nothing about their work and depend on excellence and creativity of Kenyans to impress the senior bosses and gullible Vohra.
“Take for example Sarova Group director of food and beverage Shailender Singh who earns a million plus in salary and a raft of other benefits. What’s so special in what he does- managing the kitchens, developing new menus and stewarding functions that a Kenyan cannot do?”
The staff are calling upon Phyllis Kandie, cabinet secretary ministry of East African Affairs, Commerce and Tourism to come to their rescue and lift the rot that is being swept under Sarova carpet by series of global awards and massive profits which in essence camouflage the suffering of staff.
KISUMU REPS BAY FOR THE BLOOD OF SCRIBES
Drama unfolded at Kisumu county assembly after angry MCAs threw out members of the press from the chambers to prevent them from covering a heated debate.
Kolwa rep John Olum led the MCAs in chasing away journalists saying they were discussing a sensitive matter and that they did not want the press to misquote them. Olum’s social life and alleged demands for bribes from those out to do business at the county is at the centre os discussion. The MCAs tore into Seme MCA Aggrey Ogosi calling him a traitor. The MCAs had been accused of contempt of court. The MCAs traded bitter accusations claiming that some of them were traitors. Acting Speaker Gabriel Omollo bowed to pressure from the MCAs and ordered the scribes to leave the chambers.
Kolwa rep John Olum led the MCAs in chasing away journalists saying they were discussing a sensitive matter and that they did not want the press to misquote them. Olum’s social life and alleged demands for bribes from those out to do business at the county is at the centre os discussion. The MCAs tore into Seme MCA Aggrey Ogosi calling him a traitor. The MCAs had been accused of contempt of court. The MCAs traded bitter accusations claiming that some of them were traitors. Acting Speaker Gabriel Omollo bowed to pressure from the MCAs and ordered the scribes to leave the chambers.
POT CALLING KETTLE BLACK AS KIBUGUCHY FAULTS OPARANYA
Kakamega governor Wycliffe Oparanya has been accused of reneging on his 2013 campaign pledges and putting in place financial policies that are non-beneficial to the residents.
The governor and his county administration are also accused of killing the principle of devolution by centralising tendering and procurement services at his office instead of allowing the process be undertaken at the subcounties for easy monitoring purposes.
Likuyani MP Enoch Kibunguchy, a former ally of Oparanya now turned ardent political critic further lashed out at Oparanya administration for denying locals a chance to benefit from the county funds and instead awarding contacts to ‘outsiders’.
He cited his Likuyani subcounty as the most affected where even small contract works had been awarded to traders from outside the area. He said most of the contractors came from as far as Kakamega town and neighbouring Bungoma county. He said the county government had denied locals a chance to do business with the county government.
He was speaking at Moi Girls High School Nangili in his constituency during the award of Uwezo Fund cheques to 100 beneficiary groups worthy Sh18.5milllion.
Our own investigations also showed that contract for construction of Matunda Market in Nzoia ward worthy over Sh30 million has been awarded to contractor from Wajir.
There are also unconfirmed claims that the county officials and MCAs could be the ones doing the contracts in their respective wards but through proxies.
Kibunguchy said there was need for the Kakamega county government to pass laws that would reverse the centralised procurement process by the county government which he said was denying locals the benefit of the devolution. He said funds meant for a given area must be allowed to circulate within that area.
On Oparanya campaign pledges, Kibunguchy claimed that Oparanya had failed on all pledges two years down his rule. He said during his campaigns Oparanya had pledged to construct a maize mill at Likuyani, a dairy and the give one cow per household as a means of helping alleviate poverty among residents but up to now nothing has been forthcoming, lamented Kibunduchy.
The MP claimed that projects meant for Likuyani subcounty including the said unga mill and dairy project had been diverted to Malava subcounty, the home turf to Kutima who is Kakamega deputy governor.
“What is the rationale of putting a maize mill in Malava which grows sugarcane and not maize and further, a dairy project in the same area which will end up being a white elephant just because it’s the home of a senior politician at the county,” asked Kibunguchy.
The legislator said the subcounty had been shortchanged in health funds. He said the Sh70million promised for elevation of Likuyani subcounty hospital, Sh69million meant for Matunda Hospital and a further Sh5 million promised to Kongoni Health Facility had not been allocated despite promises by the governor in person.
The MP said he would ensure that the subcounty gets its share of resources from the county government including employment and allocation of other resources.
He said the subcounty roads were in a pathetic state, markets lacked basic facilities including water, toilets and stalls.
The MP has been lately embroiled in bitter fights with reps from his constituency for allegedly failing to show how they spent the Sh11 million allocated to their wards.
Those who have had it rough with the MP are Timothy Mulanda, Timothy Ingosi and Timothy Tali. Likuyani subcounty deputy county commissioner John Ayienda called on MCAs to exercise transparency by displaying information on projects.
The governor and his county administration are also accused of killing the principle of devolution by centralising tendering and procurement services at his office instead of allowing the process be undertaken at the subcounties for easy monitoring purposes.
Likuyani MP Enoch Kibunguchy, a former ally of Oparanya now turned ardent political critic further lashed out at Oparanya administration for denying locals a chance to benefit from the county funds and instead awarding contacts to ‘outsiders’.
He cited his Likuyani subcounty as the most affected where even small contract works had been awarded to traders from outside the area. He said most of the contractors came from as far as Kakamega town and neighbouring Bungoma county. He said the county government had denied locals a chance to do business with the county government.
He was speaking at Moi Girls High School Nangili in his constituency during the award of Uwezo Fund cheques to 100 beneficiary groups worthy Sh18.5milllion.
Our own investigations also showed that contract for construction of Matunda Market in Nzoia ward worthy over Sh30 million has been awarded to contractor from Wajir.
There are also unconfirmed claims that the county officials and MCAs could be the ones doing the contracts in their respective wards but through proxies.
Kibunguchy said there was need for the Kakamega county government to pass laws that would reverse the centralised procurement process by the county government which he said was denying locals the benefit of the devolution. He said funds meant for a given area must be allowed to circulate within that area.
On Oparanya campaign pledges, Kibunguchy claimed that Oparanya had failed on all pledges two years down his rule. He said during his campaigns Oparanya had pledged to construct a maize mill at Likuyani, a dairy and the give one cow per household as a means of helping alleviate poverty among residents but up to now nothing has been forthcoming, lamented Kibunduchy.
The MP claimed that projects meant for Likuyani subcounty including the said unga mill and dairy project had been diverted to Malava subcounty, the home turf to Kutima who is Kakamega deputy governor.
“What is the rationale of putting a maize mill in Malava which grows sugarcane and not maize and further, a dairy project in the same area which will end up being a white elephant just because it’s the home of a senior politician at the county,” asked Kibunguchy.
The legislator said the subcounty had been shortchanged in health funds. He said the Sh70million promised for elevation of Likuyani subcounty hospital, Sh69million meant for Matunda Hospital and a further Sh5 million promised to Kongoni Health Facility had not been allocated despite promises by the governor in person.
The MP said he would ensure that the subcounty gets its share of resources from the county government including employment and allocation of other resources.
He said the subcounty roads were in a pathetic state, markets lacked basic facilities including water, toilets and stalls.
The MP has been lately embroiled in bitter fights with reps from his constituency for allegedly failing to show how they spent the Sh11 million allocated to their wards.
Those who have had it rough with the MP are Timothy Mulanda, Timothy Ingosi and Timothy Tali. Likuyani subcounty deputy county commissioner John Ayienda called on MCAs to exercise transparency by displaying information on projects.
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