Building an agro-commodity exchange in Kenya

The government should seriously rethink its strategies for revitalizing agriculture. It is saddening that despite Kenya having an agro-based economy, has citizens who continue to experience food supply shortages.The problem has led to high incidence of hunger, malnutrition and, in some extremes, starvation. While the efforts that have produced the Agricultural Sector Development Strategy are commendable, a lot needs to be done to revamp agricultural production and development.
As part of the efforts to revitalize agriculture, Kenya urgently needs to set up a formal Commodity Exchange.This shall significantly help in the trade and marketing of agricultural products.
What therefore is a Commodity Exchange? It is a market organized to allow for the selling and buying of commodities.
These may be traded in three types of markets: cash, futures and options. Maize, Cocoa, crude oil, and gold are some of the commodities traded across the world. Anybody may trade through member firms. The organisation itself regulates the trading practices of its members while prices are determined by supply and demand.
The organisation provides the rules, procedures and infrastructure for commodity trading, oversees trading practices while gathering and disseminating marketplace information.
Transactions take place on the floor — the pit — and must be effected within certain time limits.
Floor traders, floor brokers and futures commissions merchants working on the floor must be registered by a regulator.
The goal of the exchange would be to promote efficient markets and boost price discovery while enhancing risk management hence protecting players like farmers.
In the Kenyan context, agricultural products to be traded include items like maize, wheat, beans, barley, sugar, cotton and fertilizers.
Contracts based on the same products may also be sold at the exchange.
The concept is not a novelty in Kenya. The Nairobi Coffee Exchange has a long history dating back to the 1940s while the Mombasa Tea Auction which serves East Africa and parts of Southern Africa has gained prominence as a major tea auctioneer and is currently the second largest in the world after Colombo in Sri Lanka.
These two commodity exchanges have not only provided a centralized and organized export platform for the two cash crops but also ensured effective competition among buyers and sellers.
The Kenya Agricultural Commodity Exchange Limited which was established in 1997, is the first major attempt to establish a commodity exchange for agricultural products other than Coffee and Tea in Kenya and in the East African Community (EAC) region.
SAFEX of South Africa is one of the most active commodity exchanges in Africa that deals in grains among other products.
The Chicago Board of Trade in the USA, with its origins in 1848, is perhaps one of the oldest commodity exchanges in the world.
However, for a Commodity Exchange to grow and flourish and serve its purpose effectively, it requires a legal and regulatory framework.
With the implementation of the Vision 2030 under way, the establishment of an effective Commodity Exchange for agricultural products should be made a priority for Kenya and the wider EAC region.
A successful commodity exchange is dependent on the availability of tradable volumes of commodities, a big market, sound infrastructure and an effective telecommunication network.
Financial services
It also relies on sound financial services, the existence of strong players, a network of secure and reliable warehouses and the existence of a sound legal and regulatory framework for a commodity exchange and for warehouses. Most of these building blocks are already in place.
The National Cereals and Produce Board alone has 110 depots and silos with a combined storage capacity of 1,890,000 metric tonnes.
Other institutions including the Private Sector have warehouses mainly located in major urban centres.
A Commodity Exchange will create a market for tradable documents generated by this huge Warehousing Network and their respective derivatives.
It will also attract participants from the region.
The ongoing effort by the Eastern Africa Grain Council (EAGC) for the promotion of structured grain trading in the EAC Region have already initiated the establishment of a Warehouse Receipt System recognized by the stakeholders in the grains industry.
Due to the improved co-operative movement, many Kenyan Farmers, Millers, Traders and other stakeholders have formed associations that advance their business interests.
These structured groups will use the exchange and the Warehouse Receipt System as the best instruments for consolidating their products into marketable volumes and marketing them efficiently and profitably.
Both local and international financial institutions have introduced products that recognize the use of warehouse/warrants as collateral for accessing credit and are ready to support structured trade through regulated exchanges.
There is the presence of internationally recognized and experienced collateral management companies interested in the professional management of warehouses for the Warehouse Receipt System.
The East African Community provides a large population and hence a market of nearly 130 million people.
The grain market in East Africa is ready to support initiatives that would market grain quantities surpassing 10,000,000 metric tonnes, which represents a minimum total production of maize, beans and rice annually.
These commodities are traded at various open markets and across borders within the EAC Region.
The Strategic Grain Reserve function of the Kenyan Government can be well served and managed, for instance by the Government purchasing commodities and holding warehouse receipts while releasing them through the Exchange at an appropriate time.
This gives the Government the instrument and power to effectively intervene during times of shortages and surpluses, thus providing stability
Also, an Exchange provides vital information that assists stakeholders to keep in constant touch with market trends especially in commodity prices through regular publications and dissemination of the information.
Lastly, it regulates trading activities by monitoring performance of authorized players.
Kenya currently needs a vibrant all inclusive Commodity Exchange to improve and promote agricultural trade in domestic, regional and international markets for her commodities.
This will improve agricultural growth and food security, enabling the agricultural sector to contribute more effectively to the success of Vision 2030 for the country.
While stakeholders in the agricultural sector are actively addressing the critical issues that need to be addressed for this noble idea is to be realized, the Government should put in place sound legal and regulatory frameworks in terms of a Commodities Exchange Act to support the initiatives.

In Kenya And Africa At Large Poverty Rules

A kenyan mother

 “I know poverty because poverty was there before I was born and it has become part of life like the blood through my veins. Poverty is not going empty for a single day and getting something to eat the next day. Poverty is going empty with no hope for the future. Poverty is getting nobody to feel your pain and poverty is when your dreams go in vain because nobody is there to help you. Poverty is watching your mothers, fathers, brothers and sisters die in pain and in sorrow just because they couldn't get something to eat. Poverty is hearing your grandmothers and grandfathers cry out to death to come take them because they are tired of this world. Poverty is watching your own children and grandchildren die in your arms but there is nothing you can do. Poverty is watching your children and grandchildren shade  tears in their deepest sleep. Poverty is suffering from HIV/AIDS and dying a shameful death but nobody seems to care".  " Poverty is when you hide your face and wish nobody could see you just because you feel less than a human being. Poverty is when you dream of bread and fish you never see in the day light. Poverty is when people accuse you and prosecute you for no fault of yours but who is there to say something  for you? Poverty is when the hopes of your fathers and grandfathers just vanish within a blink of an eye.  I know poverty and I know poverty just like I know my father's name. Poverty never sleeps. Poverty works all day and night. Poverty never takes a holiday"            (One Poor Kenyan)

Brew-'Natural Family planner Among the Poor In Kenya'

It is indeed ironic that in a country where the population has almost doubled after a decade, there exists a place in central Kenya (Mukurwe-ini) where women are given monetary incentives to give birth; a place where the sound of children playing and laughing is as rare as rain in the Sahara, big padlocks greet one at the gates of primary schools which have been closed down because there are no little ones to teach.

Roles in the families have reversed as women take on responsibilities as bread winners and residents stare blankly into the future, wondering whether there is a future for them as both the young and the old men channel their energy to their now worst enemy, the beer bottle.
While this frothy stuff has always been part of the social life in our country, the renewed enthusiasm with which it is consumed, especially among the youth in Kenya would cause our forefathers to turn in their graves. Sadly, this has brought about scenarios like the one above and much worse. Regardless of its alias - relieving stress, drowning sorrows, passing time and bonding with age mates… the drinking culture in Kenya cannot be ignored or wished away.
The effects of alcohol consumption on the society are far reaching - affecting families’ older and current generations, destroying individuals and draining resources. Just where are we headed if this boozing trend continues? Is there a threat to the future proper functioning and operations of our society as we know it?
“People often deceive themselves that they will walk out of the trap at will. It’s like a self imposed jail sentence,”. “What starts harmlessly as ‘social drinking’ soon turns into an addictive habit that spirals out of control,”, This trend can be attributed to factors such as the level of poverty, high stress levels occasioned by the performance culture at work, peer pressure among the youth and a feeling of hopelessness among both the young and old.
The current generation of young people is cynical, and thus are not keen on saving for the future. Their disposable income is therefore likely to be spent on feeding their drinking habits. “Their interpretation of their surrounding – political, social or economic- seems to tell them that nothing is going to change for the better anytime soon. They thus have a ‘live it best now mentality,”

This addiction to alcohol paves way for other ills such as drug abuse and sexual immorality. “In order to sustain the high that results from alcohol, some will opt for illegal drugs such as cocaine. When under the influence of alcohol or drugs, it is easier for an individual to engage in casual sex, thus risking sexually transmitted diseases such as HIV,”.

One significant result of this drinking culture is the change in society’s dynamics. In areas where the problem of alcoholism has affected many men, women are forced to become breadwinners, and take over the role of men. “Some men abdicate their roles and even fail to fulfil their conjugal responsibilities in favour of the bottle. The continuity of society is thus at risk. The women are not spared nowadays, and the number of women drinkers is steadily rising as they also turn to the bottle to deal with stress,”
The children suffer silently from trauma as they witness the abusive habits that result from alcohol. Children from such family settings are more likely than not to be alcohol abusers later in their lives, in addition to having an aggressive and violent predisposition. The cycle of alcoholism will more likely continue through generations.

So where are we headed as a society if this trend continues?

“Drinking culture is destroying the great minds of this generation who are looked at as the future of the country. Some eventually become a burden to their families and prolong the cycle of dependency. This eventually has an impact on the economic and social development of the country,”,destinies are cut short, individuals live in selfish pursuits of pleasing themselves and suffer from depression when they realize that the problems and pressures they were escaping still exist after their high is over. They then drink again to escape reality and the cycle continues.


“At this rate, I fear that the end result will be an Economic crisis due to  breakdown of families and society’s values if this trend is not checked,”.

WHY IS KENYA STILL POOR?

 ‘Kenya  is not  poor because its poor’, Kenya is poor and  will continue to be poor if we  Kenyans are not ready to change and make her rich.

There is poverty  and there is hunger everywhere. HIV/AIDs continues to kill Kenyans in record numbers. The question is not why Kenya is poor but may be how we can make Kenya rich. What  can we do as individuals or groups to help change Kenya?.

There is abject  poverty in Kenya but it’s a country that  has almost all it takes to be the richest country in Africa, from its natural resources to  human resource . The major problem facing Kenya today is corruption and poor leadership.  There are greedy people in Kenya including our leaders who don't care about their poor mothers, fathers, brothers and sisters.

Some people are too greedy and that is why Kenya remains poor. People are killing their own brothers, sisters, mothers and fathers just to make money. People didn't care about yesterday and people don't even care about tomorrow. All they care about is money and money and that is why Kenya remains poor.

All Kenyan leaders I know are corrupt in one way or the other. They come as saints and leave as devils.. A Kenyan president is a president for a few selected people. A Kenyan president is a president for only the educated and a president for only those in the higher class from His community. A Kenyan president sees no poverty. A Kenyan president sees no hunger. A Kenyan president sees no HIV. A  Kenyan president knows no orphan.

 A Kenyan president shows no mercy. An Kenyan presidents sees only money and money and nothing but money.. Not just the Kenyan president but also the  Kenyan prime minister, the Kenyan Member of parliament , the Kenyan Doctor,  the Kenyan Judge, the Kenyan lawyer, the Kenyan PC,DC’s,DOs, and even the Kenyan Pastor. And that is why Kenya is still poor and continues to wallow in abject  poverty."                           

Greed to amass more wealth through counties

 We should be careful on who we elect as our  Governors and Senators. The mad rush by current MPs, former MPs and Ministers to abandon  MPship and turn to the counties is borne out of greed to control and amass more wealth through the counties' Ksh.1.5-2 billion budget. the future MPs can be left to eat the CDF money which is only 7% of the national budget. With less opportunity to eat through the Parliamentary Service Commission, which MPs controlled and increased their salaries at will, our current leaders and former eaters are dying to be Governors and Senators. What Kenyans need to do is  not to elect people who have been MPs/ Ministers before. We look for a new generation of leaders, not recycled old and tired fellows. There is however no guarantee that the new generation will not be as greedy as the old. But what can we do.

The Constitutional Referendum was rigged

How can you explain a situation where you are sure you voted a NO in  a polling station and your view is not factored in the final tally or Turns out a YES???,there might be ‘errors’ in a system but why the duplication of my case in other different stations all over the country??

                 We were  duped into signing into law a constitution that protects the existing politicians and their cronies, but made to believe that the  citizens spoke. They will soon take up all the major seats in the counties  and the national government using the same old methods, and wananchi will be  made to feel it is right. For now, there is very little to do because all  the windows of intervention are already closed. However, there is only one  small opening left. This is the opportunity for we as professionals to immediately vie for all the positions of leadership and ensure that none of  the current leaders goes back into government. It is hard to do because they  are still the ones implementing the constitution, since we trusted them  with the task. However, we can try. Do not expect fair elections in 2012 or whenever they happen next, if the  same leaders we have now remain in power. Since most of you were not open to contrary opinion, it was hard for me to discuss in this forum how the  referendum was rigged. Some of you are so blind as to think that electronic  voting is devoid of rigging. As a matter of fact, it is the easiest to rig. My point, though, is that the IIEC is not to be trusted to conduct any more  elections. It is constituted as is for a reason and is too protected for audit. Most crucially, brothers and sisters, please ensure that someone (especially you computer experts and university students) query and audit  how the tallying was done. You will be shocked. If you still doubt, just  check what has happened to other countries that have used electronic  tallying in elections. You will remember me one day. Please stick close to the lawyers and look for every opportunity to work  with them on dealing with blatant impunity even within the implementation  process. Note that most of the leaders know they may be going home. In the real sense of the term, this is really their "turn to eat." In a  sense, this implementation process is really the most dangerous in the whole  transition, because laws will be abused given the chasm between the old and  the new dispensations. Just like Raila was sworn in at the promulgation of a  constitution that has no prime minister's post, anything may be defended and  justified. This transitional point between the two dispensations is partly  what made it possible for El Bashir to be sneaked in and out of Kenya with  the belief that everyone is too excited to think that there can be mischief not to mention the two insensitive appointments of the CID boss and   the NACADA chairman(refer to the past blog) . We  have made this government believe that it is popular in that it has  delivered a constitution that evaded us  for many years, and that we can trust it. The 27th as a date of promulgation was wrong, but none wanted to hear a contrary opinion. All we wanted was the promulgation. Now, you will see and hear things that will shock you and make you realize that  this was not the will of Kenyans; things will unfold before your very eyes(The provincial admistration debate for example), but it may be a little late. The only remedy is  to  stick with one another and work very closely  with lawyers, since we do not want the voice of the clergy. 

Don't fix what isn't broken In An Economy

We have an economy marked by faltering growth and mass unemployment. ¾ of Kenyan youths  are looking for full-time work. Poverty is rising. Companies are sitting on cash, unwilling to hire with no customers in sight. Families are  reeling from the loss of in savings and rising rents. Rising trade deficits sap job growth. There are only four sources of demand in the economy—consumers, business, exports and government. With the first three nearly comatose, the fourth must act.

Everyone agrees that we have an decrepit and aging infrastructure. Leaking sewers, falling bridges, shorted train stations, schools dangerous to the health of the children—we suffer it all around us. Much was built in the 1930s-1980s or earlier and has simply has worn out. There will never be a better opportunity to rebuild. Construction workers are idled and in need of work. Government can borrow at near record low interest rates. Anyone with a whit of business sense would see this is an extraordinary opportunity to rebuild Kenya with the passage of a new constitution which is investment friendly.

            But it is critical to focus on what is broken and not on what works. We do not have an "entitlements crisis" despite all blather to the contrary. We have a broken health care system. Virtually the entire terrifying long term debt projections come from soaring health care costs(HIV/AIDS,TB,Malaria drugs etc). If we spent what the Europeans spend per capita on health care (with better health care results), we would project surpluses as far as the eye can see right now. Fix health care, and you fix any long term debt concerns. Fail to fix health care, and you can sack the government, we'll still go bankrupt in debts.

Social Security, on the other hand, isn't broken. It hasn't contributed to the deficits—in fact, it has amassed billions in surpluses to prepay for Atwolis men retirement. 

None of this is radical. Even the market fundamentalists at the IMF are warning East Africa against a premature turn to deficit reduction. Any honest investor would agree that this is a great opportunity to rebuild Kenya. No one with any familiarity with the Treasury  budget would disagree that it is health care costs that drive long-term deficits and terrifying debt projections.

With the renewed  optimism for Kenyans, the  belief that we can forge our own future. Have we become so timid or confused that we will now lower our sights, concentrate on balancing our books, and forgo making the reforms vital to creating an economy the works?, only forecasting on the new political dispensation at the county governments?,  I don't think so. It is a measure of how distorted our political debate has become that common sense is so so rare. We must all forge a new Kenya and ensure that common economic sense should not be uncommon.

Ecoke: Fiscal Balance path - A painful ‘Capsule’ For Pol...

Ecoke: Fiscal Balance path - A painful ‘Capsule’ For Pol...: "Wyclife kiprutoThere are two alternative paths to long-term fiscal balance in LDC’s, if MDGs and other long term economic goals are to be fe..."

Fiscal Balance path - A painful ‘Capsule’ For Policy makers

Wyclife kipruto

There are two alternative paths to long-term fiscal balance in LDC’s, if MDGs and other long term economic goals are to be feasible.
 
The less desirable path is austerity economics: government sharply cuts spending long before full employment is reached; production stagnates; revenues decline. We might reach budget balance but at a lower level of economic output, with increased taxes on working Kenyans and reduced public services.
 
The alternative high road path would increase public spending financed by deficits for a year or two, until unemployment is definitely on a downward trend and GDP is rising rapidly. We then collect more revenues from a stronger economy.  By identifying investments vital to our future, and paying for them with targeted spending cuts and progressive tax reforms, our country provides the basis for new private-sector investments that help fuel growth, generating greater revenues while reducing the deficit.  The benefit of this second path is that government moves towards a reduction in annual deficits and a lowering of the debt-to-GDP ratio, at a higher level of economic output, while building a new basis for long term prosperity.

We Are Humans Not Squirrels

If there are any animals that are lucky to be a live, then they must be squirrels. Every single day, I have witnessed some of them narrowly and miraculously missing death.  Where I live, there are so many of these squirrels. So every time I walk or drive around guess what I see! Squirrels everywhere; crossing the road, chasing each other or climbing the trees. These little creatures risk their lives by crossing busy roads. There are times that I have found myself closing my eyes or screaming at them to be careful. Not willing to kill them some motorists slow down or stop while others make it by God's grace. Whether these squirrels are able to think and make wise decisions, I do not know. What I do know is that there are many of us who ought to know better and yet every single day, we go about doing certain things that endanger our precious lives. How do you mean? 1.  Some young people  indulge in drinking alcohol that has been a killer drink. Many are they      who have fallen victims of alcoholic drinks. Many have lost their jobs and families, quit school, driver’s license confiscated, and some end up becoming homeless. 2.  Some have chosen to abuse drugs that have reduced them to zombies. 3. Some of us are not careful as regards what we consume. We eat anything, all the time, and   end up suffering due to our uncontrolled appetites. Lord have mercy! We need to remind ourselves that life is too precious to play around with. Let us avoid making unwise decisions that we will live to regret or that will shorten our life on earth

A Truly Rational Person Is An Economist

A recent episode of NBC’s 30 Rock provided a wonderful insight into thinking like an economist.

So yes, we economists always advocate for rationality, and that’s  thinking with your ‘HEART’

But by this, I  mean the acronym for:

Hard

Equations

And

Rational

Thinking.

A truly rational person wouldn’t be able to decide anyways – they’d get bogged down in multitudes of minor details, trapped in a spiral of intractable calculus, much like those with a damaged orbit frontal cortex.

Dowry,doesn't mean you are ‘buying a wife’

            The idea of paying dowry from my point of view or rather from my community's angle was an act of appreciation by the guy seeking to marry to the parents who raised the lady to be married. You might say the guy was also raised by his parents, but this can be countered by the fact that it is the lady who will leave her Parents and joint another family as a full member of that family.

            It is a tradition and a cultural practice which I believe should not be discarded just because some people commercialized it, we should stick to the original meanings and symbolism that this practice represented. We should never equate it as a price, because human beings are priceless, we can never attach a price to a human being, and it should be practiced within the confines of the original intentions. Myself am yet to  pay dowry and I am sure it is a good thing to do. It is a sign to my in-laws that I love and respect their daughter and not even dowry can stand in my way of getting her!!

            Strictly speaking, nobody will force you to pay dowry, and it is not a must that you should clear it before you get married, those parents who insist on clearing it before you are given the bride are those who have commercialized it and they don't understand the meaning and what it represented traditionally.

            I am not of the idea of discarding our traditions just because we are becoming westernized, we will do this to our own peril!! you can see for yourself what is happening to those communities who have departed from their traditions. There is a breakdown of almost everything, kids no longer respect adults, kids used to be raised by the community but now it is an individual thing!! look at the rate of pregnancies we are witnessing, look at the rate of sons killing their parents!! look at the rate of divorce!!! look at the rate of single parents!! look at the rate of homosexuality and lesbianism!!,look at the number of street children !!! these were unheard of sometimes back,but because we have discarded most of our cultures and traditions, these things are rampant and they are of no good to the society.

Have you realized almost everything communities did as a cultural and tradition has been baptized with scary names? i.e.;

Dowry renamed - Bride price

Circumcision  renamed - FGM!!

Stroke discipline renamed – Corporal punishment

and many more, this is a way discouraging people from sticking to their traditions.

Its ‘Kikuyu’ scramble and partition for Kenya

After  kibakis’  appointment of Ndegwa muhoro and  Frank Njenga to head the CID and the later as the  chairman of National Campaign Against Drug Abuse advisory board(NACADA) whose news was eclipsed by the Promulgation of the new Constitution and the fragrance Omar al Bashir left, after the August 27 fete.
 I now truly agree with you, there is tribalism  and also  nepotism is high  in Kenya. Do you remember when Kimunya was appointed to act as the Transport minister? what was his first act? he appointed a kikuyu the MD KAA even when it was clear his selection by the board was riddled with irregularities!! he also went ahead to appoint another Kikuyu to head KPA. Which brings me to question why such a thing is allowed to happen at the present Kenya. It is tribalism at its highest especially by these leaders from Central province.
I know some people here will want to lynch me for saying that, I welcome
 them to do so, and I will unleash more information to prove this.
Kenya belongs to all of us, and all of us who love Kenya should come out and fight this with all our energy. We need to go with people who can buy our vision and objective rather than having people who do not share the same ideology. America is what it is today because of its focus on economic empowerment , they focused on what they wanted in future and they have it now. 

Youths and Morality...

Hi good people,

You walk around Kenya of today and you are left dumbfounded on what exactly is going on.
Is it that the youths around cannot exercise self restraint or something?

Most of the youths, and am saying the youths because that is where I belong, are so adamant when it comes to matters of morality and faith.
Cant we spare even some few seconds and reflect on our lives and our moral being in the society?
It is true that a higher percentage of the young people are either engaged in immoral behavior or are getting influenced towards the same direction.

Can we at least have some voice of reason standing up for the truth and help change the direction and our moral being for a better society???
Cant we afford to spare sometime and get even into our churches and doing something for God???

JUST WONDERING ALOUD????

IT’S VISION 2030 NOT ‘3020’

The unveiling of Kenya Vision 2030 marked an important milestone in
our country's development as it came soon after the successful
implementation of the "Economic Recovery Strategy for Wealth and
Employment Creation" (ERS) over the period 2003 to-2007.The economic, social and political pillars of Kenya Vision 2030 are anchored on the
Following foundations: macroeconomic stability; continuity in
governance reforms;
Enhanced equity and wealth creation opportunities for the poor;
infrastructure; energy;
Science, technology and innovation (STI); land reform; human resources
development;
Security; and public sector reforms.

I'll address the last point which is public sector reforms. If Kenya
is to attain this vision then we need to radically change and improve
public sector performance. This can be done by embracing innovative
reforms-everything from making services like motor vehicle
registration, business registration, and tax filing less cumbersome to
privatizing transportation, energy etc.

Despite the widespread commitment to change, many reform initiatives
have not lived up to expectations. In some cases, external
constraints, such as new administration or shifting legislative
priorities, have created obstacles that have stifled progress.
Meanwhile, internal constraints-such as skill gaps, resistance to
change, time-consuming processes and inadequate technologies-have also
undermined many well-intentioned reforms.
Organization and Process Design
what should the government do? At the outset, they should eliminate
functions that fail to contribute to their core mission. They should
streamline operations; redesign processes and use new technologies
deliberately to stimulate new ways of working. For example, the
Government can go On-Line on Business registration and make it a
single, integrated task that can be completed over the Internet.
Businesses can also manage their postal accounts fully online.
Top-performing parastatals and departments can also design their
organizational structures to be flexible, and establish pilot programs
to test new ideas and innovations. Structurally, they are often
decentralized, empowering employees at all levels of the organization
to take personal responsibility for the processes and activities in
which they are engaged-thus stimulating a culture of
entrepreneurship.
High performers not only design organizations and processes
progressively; they relentlessly change them to improve outcomes and
value for their constituents. This way attainment of Kenya vision 2030
will not be a mirage but a continuous improvement process we should
all think and do something about it.

Celebrate If You Must But We Are Not In Canaan Yet

On 8^th August, Prime Minister Raila Odinga said “We are now in Canaan, the bigger task of building Canaan now begins” – conquering the Amelekites and Canaanites and taking over their lands and cities!

This statement implies Kenyans must work hard to realize Canaan which is a figurative for freedom and prosperity. Simultaneously and falsely, it claims new constitution has overnight frog-leaped Kenyans from the desert to Canaan, from old to new Kenya, from Third World to First, from poverty to wealth.

While promulgation of new constitution is important, I disagree with the implication that those who will go to bed poor on 27^th August, will wake up rich on 28^th. We must be truthful in our optimism and not be victims of the culture of living on falsehoods and false hopes, even for purposes of feeling good and buoying up our spirits. We must not celebrate being in Canaan when we are not, or we rest on our laurels when we must not.

For many years, we compared ourselves with the worst like Somalia and Sudan , felt great about it and forgot to catch up with the best, moving only slightly ahead of the worst and that’s why we are where we are today.

But Raila’s claim that the new constitution will catapult Kenyans into Canaan is not entirely without merit. But only a few more Kenyans will land in Canaan . Majority will remain exactly where they are in the desert.

After all, the rich of Kenya have always been in Canaan . Some were taken there by Kenyatta, others by Moi and now Kibaki, Raila and the new constitution will take there a few more as new MPs, senators, governors, members of commissions, new judges, ambassadors and political women. These are the people for whom the rain of the new constitution will fall, not IDPs, poor workers, unemployed youths and poor farmers that will be taxed heavily to mollify ethnic elites for political stability.

Canaan of Kenya is Canaan of the rich, not of the poor or everybody.

Millions will never forget 12^th December 1963, the day of our independence. We went to bed convinced that on 13^th December, we would wake up in heaven. Despite our celebrations which were greater than Christmas, colonial hell is yet to die. However, independence did land newly created African elites into Canaan , almost immediately.

But it was the failure of independence and then Narc-Kibaki regime to take all into Canaan that gave birth to the struggle for second liberation and new constitution. But now we have the new constitution, are we in heaven or Canaan ?  How can someone be in heaven and not feel it? Maybe some feel it, but almost all I see don’t look it.  Instinctively, Kenyans seem to fear yet another betrayal but why?

The new constitution is a set of promises that leaders may or not honor. If Kenyan leaders continue to enjoy impunity, they will betray and sabotage the new constitution and render it still born. But the million dollar question is why Kenyans trust bad leaders to midwife, baby sit and look after the new constitution. Are we reckless, hopeless or don’t care?

After giving Israelis a new constitution of the Ten Commandments, God barred Moses and his generation from entering Canaan because it was too corrupt for Canaan . Only the courageous and untarnished generation of Joshua and Caleb was allowed into Canaan . Can we sincerely say our leaders are better than Moses and more allowable into Canaan ? If our rich have unfairly entered and contaminated Canaan , can God not bar us from it?

If independence was a false start that largely failed because of its reliance on capitalism to deliver to people what it could only deliver to a few, why will the new constitution not also fail because of its reliance on the same capitalism and its monsters of poverty, detention, majimbo, negative ethnicity and corruption?

Capitalism mothers poverty, not wealth. While the new constitution promises food and other economic rights, capitalism will not deliver because it is not its nature to do so.  Unless it is amended to address capitalism, new constitution will not be a roadmap to salvation but a signpost to self-destruction.

Sudan – Kenya Eying A ‘Juicy’ Morsel,Al-bashir Is A Passing Cloud

For record, i personally believe that if one truthfully study the
 genesis of Darfur Conflict devoid of NGOs sensationalism and Western
 interests the conclusion would be that the Arrest Warrants by ICC for
 Al-Bashir are malicious. Second, Kenya should pursue her own interests FIRST. Regional and
 African
interests NEXT, and lastly the so called international law/interests. In
and reconciliation in the Sudan, it would have defeated that goal by
arresting Al-Bashir. Also there is AU Stand that ICC should go to hell.
 Kenyan interests in the Sudan are vital; a number of Kenyan institutions
are
 investing in the Sudan (mostly South), a good number of Kenyans are
 working
 there etc etc... WHY jeopardize that for malicious ICC Warrants?

 Third, I thought ODM is part and parcel of Kenyan Government. WHY does
is
 that ODM is impotent while being in Government? Also Minister Najib
Balala
 of ODM accompanied Al-Bashir, so why does ODM claim now that they had no
 idea? Isn't Balala part of the so called Pentagon of ODM?

If its true that even Raila had no idea that Al-Bashir was invited, then
 it can only be read that their current "rapprochement" with Kibaki is
over.
 If that is the case, then we can argue that since Kibaki has secured his
 legacy by promulgating a New Constitution, he has no need of Raila
 anymore.
 It has happened before!
 In short, who is fooling who?

Kenyas' Inflation figures 'deflated'

Doubt as to the veracity of these figures has actually persisted since last September when the national statistician re-engineered the weightings of the various components of the Consumer Price Index (CPI) and changed the methodology of calculating inflation from arithmetic to geometric formula.


By a stroke of the pen that was the official launch of the new methodology, the rate of inflation fell from a high of 17 per cent in September last year to about five per cent.

The KNBS has maintained the official line that its processes and standards are in tune with the international practices.

But that alone will never take away the glaring realities that consumers confront in the retail shops on a daily basis.

These doubts gain credence when the official figures are so glaringly incongruent with what everyone’s experience has been in any given month of the year and the KNBS’ explanation of the changes.

Take last month for instance. The reality is such that petroleum and kerosene prices went up by an average of Sh5, electricity prices rose on account of upward adjustment of the fuel cost segment of the monthly bills, prices of wheat products were up, one litre of milk now costs Sh6 more than it did at the end of July.

But the official figures released on Thursday show that inflation was down by a margin of 0.4 per cent to 3.6 per cent on account of the recent cuts in mobile phone tariffs and a drop in the price of maize.

From a lay person’s viewpoint people would need to meet basic needs first before going for secondary ones such as buying airtime – hence energy or milk would have more weighting.

The frequency at which these items are bought would also matter.

An average consumer would probably buy airtime twice or three times a week, but has to spend on basics such as energy, milk and bread daily.

Going by the latest inflation data, significant changes in the prices of five key consumer goods can be completely neutralised by a three shilling drop in mobile phone airtime and an equally marginal drop in the price of maize is rightly raising eyebrows among consumers of the data.

It must be stated here that doubts over the authenticity of inflation figures are not unique to Kenya.

The more fundamental question is the fact that crafters of the new CPI index have contrary to the global practice completely blurred the distinction between headline and underlying inflation that reflects the performance of monetary policy.

In an environment like ours where monetary policy is increasingly being ignored by private sector players and targeted at facilitating government borrowing, phasing this figure out has only eased pressure of probity from the Central Bank of Kenya – an advantage that its peers elsewhere do not enjoy.

It may be irritating that these questions continue to arise nearly a year after the new inflation figures were introduced, but the KNBS must know that this is a subject whose examination can only intensify especially under the new constitutional dispensation in which citizens have been granted the right to know.

MOI - 'SLAPPED' BY HIS CHILD'

The promulgation of the new Constitution was one of the greatest events ever witnessed in the annals of Kenyan history.

The display of our military power, our cultural dances, the presence of Heads of States and a host of dignitaries from the international community and the participation of Kenyans from all walks of life made for a worthy spectacle.

But one guest who grabbed my attention was Moi. His arrival was received with mixed reactions by the crowd, with those who were not amused going as far as jeering him.

The media also ignored him. While we were reminded from time to time about the presence of visiting retired Heads of States from Tanzania, Ghana, and Nigeria, Moi was rarely mentioned. Even at the end of the occasion, I expected Moi’s motorcade to be treated with the urgency it deserves. This was not to be; instead, Moi was kept waiting for his transport for a long time.

Moi’s detractors should know that no matter how much they may disrespect the former President, one cannot deny him his rightful place in history. History has it that Moi was Kenya’s second president, and deserves his due respect regardless of what he may have done while in office.

Disrespecting him will not change that fact. Instead, it portrays us as people who are intolerant and unforgiving, contrary to the spirit of the new Constitution