Surprise rains hit Nairobi amidst growing hunger

A heavy downpour today surprised the city of Nairobi as the Kenyan government launched an international appeal for food aid to save millions of Kenyans.

Nairobi city seen at dawn. Picture by Tobias Buckell

Nairobi city seen at dawn. Picture by Wikipedia

The rains were welcomed by a populace grappling with water rationing and rising food prices following months of dry weather. Rains were reported in Mombasa as well.

In spite of this reprieve from a harsh summer, the rains come too late to save food crops. Most of the maize has withered in farms across the country, especially east of the Great Rift Valley.

With at least 10 million people in danger of starvation, President Mwai Kibaki today led an international appeal for food aid. Currently, the Government and World Food Programme are feeding 1.4 million people under the emergency operation programme. Another 1 million people are also fed through direct Government interventions.

The government needs 37 billion Kenya Shillings (US$468 million) for emergency food requirements, support to schools and for agricultural and livestock interventions.

Meteorologists warn that this off-season rain is temporary since January and February are normally dry months. Incidentally, it was just a few day ago that meteorologists told Kenyans not to expect rains any time soon.

Kenya is suffering the vagaries of climate change. Weather patterns have become erratic, moving from extremes of drought and flooding. Destruction of the country’s forests has worsened the situation. Forests help attract rain clouds, protect soil from erosion and contribute to the flow of rivers.

Currently, forest cover in Kenya has declined to less than 1.5% of the country’s land mass compared to the minimum 10% recommended by the United Nations.

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Odinga family in corrupt deals

Article extracted from the Weekly Citizen newspaper of Nairobi:

Towards the end of 2008, Kenyans were forced to grapple with an unreliable supply of fuel and artificial rise in its pricing.

On more than one occasion, the Managing Director of the National Oil Pipeline Mr George Okungu gave widely televised interviews to reassure Kenyans that there was no fuel shortage or crisis as such in the country. But between December 28 and 29th 2008, most filling stations upcountry had no fuel. Workers returning from holiday, particularly those travelling from Western Kenya back to Nairobi got stranded in Kisumu and other towns.

During the same period, a medium sized oil firm called Triton Limited, which is run by a Kenyan of Asian origin, Mr Yagnesh Devani, and another trader Mr Pankaj Somaia, became legally bankrupt.

Yagnesh Devani and Prankaj Somaia have their roots in Kisumu and it is in Chemelil area within the Nyanza sugar belt, where the first Triton fuel outlets were set up. What was most intriguing is that in-spite of its definite inability to source and service the largest oil order in the country, Triton Ltd, is alleged to have secured a government tender to purchase national oil supplies for a six month quota through the alleged intervention of the Prime Minister Raila Odinga, who is said to have personal and family interests in the oil industry as a major player. Triton Ltd beat all other seasoned firms such as OilLibya (formerly Mobil) and Shell/BP.

Triton had no capacity to deliver such a huge consignment of oil to the nation, and immediately after securing the government tender, they set upon sub-contracting to rivals at a profit without any actual direct importation.

To compound the saga, Afri Global Ltd, a firm belonging to Raila Odinga’s elder brother Dr. Oburu Oginga, who is the Finance Assistant Minister, and which is run by Dr. Oburu’s son – a pint sized fellow called Elijah Abonyo Oburu – was one of the key beneficiaries.

After this scam Elijah Oburu bought a brand new showroom Mercedes Benz limousine valued at Kshs 24 million (US$320,000) which he now drives around Kisumu City.

Another firm, African Oils Ltd, which belongs to the Prime Minister’s son Fidel Castro Odinga also profitted from the scandal.

And not to be out done was the Prime Minister himself with his company Bakri Ltd, operated by one Mr. Mike Njeru who joined the list of compliant firms that allegedly benefited from the tender pool sharing and in turn selling the same to the highest bidder.

Raila Odinga’s younger sister Adhiambo is the managing director of Petro Plus, a firm involved in bulk oil sales in the high seas, thanks to the closeness of the Prime Minister with former Nigerian ruler Gen. Olusegun Obasanjo.

So entrenched is the Odinga family in the oil industry that players advise it is practically impossible to do serious oil business in Kenya without roping in a family member.

It is widely rumoured that Devani heavily funded last year’s 2007 general campaign for ODM team and that those who benefited from Devani were only returning a favor.

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Top govt officials on the spot over maize importation saga (article extracted from the Kenya Times)

Even as the country stands on a brink of starvation more twists are emerging in the maize importation deal that has shifted from an intervention measure to what appears to be a mega scandal.

Prime Minister Raila Odinga is the latest victim of the emerging saga. Legislators accuse the PM of favouring a member of his family in the maize importation process that is becoming more of a financial scandal than crisis solving mechanism.

The latest hint that taxpayers in Kenya are losing billions to corrupt elements in the government was dropped by Justice Minister Martha Karua who blamed some cabinet colleagues for the looming food crisis stopping short of calling it artificial. An estimated Sh2 billion could have already been lost in the corrupt deals involving maize importation.

Though Agriculture minister William Ruto has banned all exports of maize, rogue middlemen are still getting away with it. Once in Southern Sudan, the commodity goes for more than three times the cost compared to Kenya.

While NCPB sells the maize to millers and middlemen at a price of Sh1750 (US$23) per 90 kilogramme bag, the middlemen repackage the commodity and export it to Southern Sudan where it goes for about Sh6000 ($80) for the same quantity.

The situation is compounded by the fact that thousands of maize bags valued at over Sh150 million ($2 million) have been allocated to questionable millers in what is fast developing into a huge scandal in the wake of a seemingly divided government. Middlemen and brokers that the Prime Minister and Agriculture minister William Ruto promised to eliminate in the maize importation deal are reported to be on the loose and more vicious than before.

More on this story from the Kenya Times >>

Kenyans angered by out of touch leaders

As the year 2008 draws to a close, the problems afflicting the Kenyan people continue to mount by the day, resulting in rising anger that could be a danger to stability.

There are alarmingly frequent shortages of basic consumer commodities, such as food, sugar and fuel. Price hikes are the natural result of shortages, further putting pressure on an economy that is still recovering from the post election violence.

The worst thing about the current shortages is that they are caused by politicians, a rapacious taxation regime and lack of co-ordination within government. The commodities are stockpiled in warehouses and depots but they simply cannot get to retail outlets.

Apart from scarcity in essential commodities, Kenyans are still reeling in shock at how they were manipulated by politicians into butchering their neighbours on ethnic grounds. Today, the same politicians are in bed with each other, sometimes in the strictest sense of the term.

A recent road accident involving Prime Minister Raila Odinga’s son and a grandson of founding president Jomo Kenyatta, opened Kenyan’s eyes to the treachery of politicians. While ethnic groups are up in arms against each other, the children of big-shots were busy partying at 3am on a week day.

The mishandling of internally displaced persons (IDPs) has contributed greatly to discontent with the Kenyan government. After the post elections violence and the formation of the Grand Coalition between President Mwai Kibaki and Prime Minister Raila Odinga, it was generally assumed that all efforts would be made into getting the displaced back to their homes. Unfortunately, divisions within the giant coalition prevent this from happening.

Prime Minister Raila Odinga and his ODM party is opposed to the return of mostly Kikuyu settlers into the Rift Valley. Whereas most of the Luo, Kalenjin and Luhya who fled the Kikuyu heartland are back to their old jobs, it is still too dangerous for the Kikuyu to return to ODM strongholds. Some have reportedly been killed in the Rift Valley when they went back to their homes. Others gave up and are resettling themselves elsewhere – with little government help.

One IDP committed suicide in Nairobi’s Dagoretti area after his meat hawking business was shut down by the National Environment Management Authority for alleged pollution of the environment. Another IDP took up a taxi business in Kerugoya but was shot by police who mistook him for a criminal. IDP women, frustrated at the government’s apathy, demonstrated in Nairobi and were clobbered by riot police. Many such tragic cases have been reported.

The indecision of the government over implementation of the Waki and Kriegler Reports has proved beyond doubt that Kenya is a ship without a captain. Though legislators are congratulating themselves for ‘sending’ the Electoral Commission of Kenya home, it still took almost a year to accomplish. Besides, serious constitutional challenges lie ahead in the wake of the last minute decision which, in reality, was meant to protect politicians from the International Criminal Court.

Indeed, Vice President Kalonzo Musyoka came to ECK’s defence. Could it be because the ECK’s Chair, Samuel Kivuitu, is from the same ethnic group as Kalonzo?

The refusal of government officials to pay tax has surprised both local and international observers, while the Kenya Communications Bill 2008 is an anachronism in the 21st century.

Meanwhile, the government is attacking private corporations for ‘exploiting’ consumers. This is seen as an attempt to deflect public anger over rising prices and shortages in commodities. However, private entreprise is being blamed for conditions not of its own making. Doing business in Kenya is extremely challenging as companies struggle to break even amidst poor infrastructure, corruption and arbitrary laws. It costs more to transport cargo between Nairobi and Mombasa than it costs to ship similar cargo between Japan and Mombasa.

Blaming private enterprise for exploiting Kenyans sounds more and more like the rumblings of a communist-style purge against ‘exploiters.’ Price controls will create worse shortages and spark off the rise of a black market. Unfortunately, Kenyan leaders will be the driving force in a brutal black market that will rival Zimbabwe’s. Members of Parliament have already been implicated in creating maize shortages.

The problems in Kenya, to paraphrase a Nigerian writer, are first and foremost a failure of leadership. Kenya’s leadership is disconnected from its people through the lack of ideology, short-sighted deeds and insulting words. Kenya’s leadership lacks the vision to drive the country forward and instead is regressing towards infantile politics of chest-thumping and group orgies.

The description of Kenya’s leadership used here should not be construed to mean a particular individual. The problems with Kenya’s leadership are bigger than the personalities involved for they all exhibit the same qualities. For instance, replacing President Kibaki with Raila Odinga will not bring about any changes. Removing Kibaki, Raila and Kalonzo then replacing them with Mudavadi, Ruto and Balala will simply be a game of musical chairs. All these people are part of the problem and can never be the solution.

Kenya’s leadership and its government has lost touch with its own people. The government does not know what the aspirations of the people are, it does not know the challenges that ordinary people face in daily life and neither does it care for the future. National leaders seem to think that increasing salaries, creating commissions and sub-dividing districts will placate the anger of Kenyans.

Already, the money for such tactics is running out. What then?

Fuel crisis sign of failed government

Corruption, negligence, poor management and harsh taxes are to blame for the ongoing fuel crisis, say oil industry workers.

Public transport vehicles (matatus) at a Nairobi fuel station.

Public transport vehicles (matatus) at a Nairobi fuel station.

For many years, there was little expansion of storage and oil transmission networks. At Kipevu oil terminal in Mombasa, storage tanks built more than 20 years ago have not been extended.

Over the past five years, heavy demand from Kenya, Uganda, Rwanda, Southern Sudan and the Democratic Republic of Congo has stretched storage capacity to its limits.

Oil shortages have become so bad that unless remedial action is taken, flights at the Jomo Kenyatta International Airport will soon be grounded.

The oil pipeline from Mombasa to Nairobi, managed by the state-owned Kenya Pipeline Corporation (KPC), was recently upgraded at a cost of billions of shillings. The upgrade was supposed to enhance capacity from 440,000 cubic metres to 880,000 cubic metres. President Kibaki himself commissioned the upgraded system just weeks ago.

Its now been revealed that in spite of the billions spent on the upgrade, KPC only manages 550,000 cubic metres on a good day. Rampant power blackouts, system breakdown and vandalism of the pipeline means that the maximum 880,000 cubic metres flow is unlikely to be achieved.

A section of oil workers who talked to the Nairobi Chronicle say that the statutory requirement that oil companies process crude oil at the Changamwe Oil Refinery is a major contributor to fuel shortages. The colonial era facility is so derelict that major oil companies have pulled out, leaving their stake to the government. Changamwe is prone to breakdowns, and it cannot process unleaded petrol and low-sulphur diesel.

“Kenyans don’t know that they are buying leaded fuel mixed with imported unleaded fuel because our refinery cannot produce unleaded,” discloses an oil worker. And because Changamwe produces diesel with high sulphur content, its product has to be ‘blended’ with imported diesel in order bring down sulphur to acceptable levels.

“This refinery should be shut down and a new one built from scratch,” concludes the oil worker.

But the government insists that Changamwe is viable and has invited Libyan investors to rehabilitate the refinery. Apparently, the government lacks the massive funds needed for upgrading.

The oil industry says the imposition of advance tax by the Kenya Revenue Authority has worsened a bad situation. KRA introduced advance tax as a means of curbing the dumping of duty free fuel meant for export into the local market. With this measure, KRA collects taxes at the port of Mombasa before fuel is distributed to consumers.

In effect oil companies must pay billions of shillings to the KRA before they are allowed to sell. Consequently, they must borrow to pay the tax. When advance tax was introduced, the price of fuel immediately shot up by Shs3 a litre due to interest payments for tax loans. In a global financial environment where credit is hard to come by, oil companies will find it challenging to borrow to pay advance tax. Already, one oil company – Triton Petroleum – fell into receivership this December.

Incidentally, Triton is said to have hogged up more than half the storage capacity at Kipevu even though the company has a meagre 4% market share. The hogging of space has denied other oil companies storage, forcing oil-laden ships arriving at Kilindini to drop anchor in the high seas while waiting for the Kipevu tanks to be emptied. Of course, the shipping companies impose delay surcharges on oil companies and this cost is passed to consumers in the form of high fuel prices.

Arbitrary enforcement of standards by the Kenya Bureau of Standards (KEBS) and the KRA are adding to the woes afflicting the oil industry. In November, KEBS turned away a gas ship claiming that the gas was, “below standard.” The move, which caught importing oil companies unaware, resulted in a month long shortage of LPG in the country. Industries cut production as households turned to charcoal for their cooking needs.

“Nobody knows which standards KEBS and KRA are imposing,” says an oil industry insider, “the rules change everyday. What is legal today may become illegal tomorrow without any communication or consultation. Its a very unpredictable working environment.”

Corruption is a major cause of the worsening oil shortages. Like everything else at the port of Mombasa, shady deals are common during the import clearing process.

The management of KPC is influenced by political horse-trading, meaning that top executives at the corporation may not be fully conversant with the dynamics of the international oil market. As the industry struggles with shortages, KPC is busy investing in offices and gymnasiums.

The fact that importation of oil is managed by a committee in the Ministry of Energy doesn’t make matters any better. A fully, liberalized environment perhaps would improve efficiency instead of the current regimen of a half-liberalized, half state-controlled industry. As though that were not enough, some major oil companies are owned by politicians.

In spite of the bad situation, the government plans to micro-manage the oil industry. From January 2009, price controls may be imposed to “protect consumers from exploitation by multi-nationals.” The government is also encouraging state-owned National Oil Corporation of Kenya (NOCK) to expand its operations in retailing and distribution of fuel though its prices are the same as those of multinationals.

As Kenya’s oil industry gets chaotic, multinationals are deciding to leave. The ruling elite are reportedly salivating at the prospects of grabbing huge chunks of the lucrative oil market but it is the ordinary consumers who will pay through the nose for scarce fuel.

Indeed, as Kenya’s second president used to say, “bad politics equals bad life.”

Root causes of Kenya’s problems

Kibaki at State House, Nairobi.

Kibaki at State House, Nairobi.

While President Mwai Kibaki will be remembered as the man who bungled an election so badly that the winner will never be known, Prime Minister Raila Odinga has the dubious distinction of inciting ethnic cleansing in full view of the media.

The 2007 elections were the first under a Kibaki presidency. The 2002 polls that got him into power were organized under the tenure of former president Daniel arap Moi. The maladministration of the 2007 elections by Kibaki makes former president Moi look like a Swiss democrat – which he is not.

President Kibaki lost his supporters for failing to protect them from marauding ethnic militias. According to the Commission of Inquiry into Post Election Violence, chaired by Justice Philip Waki, the government knew in advance that ethnic violence would erupt in parts of Kenya regardless of who won the 2007 elections. No action was taken and the result is at least 1,000 dead and hundreds of thousands unable to return home.

But then, this was not the first of Kibaki’s blunders and neither will it be the last. Kibaki won the 2002 elections under the National Rainbow Coalition (NARC), a movement uniting most of Kenya’s politicians. Within one year, NARC was dead thanks to his moribund leadership. A politician who turns hope into despair can hardly be described as inspirational.

The disappearances and killings of thousands of Kenyans especially in the past two years is another cause of anger among Kenyans. Thousands of men and women have been grabbed from their homes in Nairobi, Central Province, Mount Elgon, Mandera and the Coast. The youths were tortured, killed and their bodies dumped in the bushes to be devoured by wild animals.

At the coast, Kenyan citizens were abducted from their homes by security forces and secretly flown to Ethiopia allegedly for sponsoring terrorism. Even the Ethiopians admitted that there was no evidence against the Kenyans but it took over a year for the Kenyan government to facilitate their return to the country.

Prime Minister Raila Odinga shares responsibility with Kibaki for Kenya’s woes. His personality-based battle for the presidency directly and indirectly led to the deaths of thousands of Kenyans.

A five year presidential campaign based on agitation against the Kikuyu ethnic group largely contributed to the violence that rocked the country after the 2007 elections. Between 2003 and 2007, Raila blamed the Kikuyu for his problems with President Kibaki. Diplomats, free from the delusion of reform espoused by the Orange Democratic Movement (ODM), say the party was mostly an anti-Kikuyu alliance.

At the Coast, Rift Valley and Western provinces, Raila’s and ODM blamed poverty on the presence of Kikuyu settlers and business people. Unfortunately, poor rural youth believed the propaganda and voted for ODM in large numbers expecting to get land, shops, jobs and business opportunities. During the 2007 campaigns, Raila referred to the Kikuyu as ‘the enemy.’

As Raila was busy lighting ethnic fires, his first born son got engaged to a Kikuyu woman. Another son of Raila’s is close to a grandson of the late President Jomo Kenyatta and buddies with the son of a former top detective – all Kikuyu. Raila Odinga has gone into joint business with prominent Kikuyu personalities.

The other characters who comprise Kenya’s ruling elite are not any better. Most of them are linked to corruption scandals and ethnic incitement. Others are afflicted by poor character. Vice President Kalonzo Musyoka supported ODM’s ethnic-based campaign until he left the party a few months to the election. William Ruto has been implicated in ethnic violence and could easily find himself at the International Criminal Court. Musalia Mudavadi is widely viewed as a spineless politician whose claim to glory is his family name.

Uhuru Kenyatta, son of founding president Jomo Kenyatta, has also been blamed for ethnic violence and could end up alongside William Ruto at The Hague.

Politicians who wanted to form an Opposition to challenge President Kibaki and Prime Minister Raila have been accused of hoarding millions of bags of maize, thereby driving up prices for the staple food. Incidentally, the politicians got approval from the Agriculture Ministry – headed by William Ruto.

Its not enough for legislators to decide to pay taxes and assume that Kenyans will be happy. The tax issue is a mere manifestation of a much bigger problem of impunity and lack of respect for the people. Even if the politicians succumbed to pressure and paid taxes, they will find another means of exploiting Kenyans.

Kenya does not have credible leaders at the current moment. The nation needs a complete change in leadership. None of the current crop of leaders should ever be allowed to hold any position anywhere in the republic. Kenyan leaders have reached the end of their usefulness: they cannot produce new ideas, but will merely recycle ethnic garbage to divide and conquer Kenyans.

Kenyan leaders are not for the prosperity of the people but are interested in pursuing the status quo of privilege for the few. That explains why government appointments only benefit their family and friends. The President, Prime Minister and cabinet ministers have filled the government with their brothers, sisters, wives, girlfriends, cousins and grand children.

Discontent on the rise as greedy politicians steal state maize

Kenyan politicians have lost all shame as they out-do each other in squeezing the last drop of blood from the country’s long-suffering citizens.

It is now emerging that politicians and their allies are putting pressure on the state-owned National Cereals and Produce Board (NCPB) to stop selling staple grains to milling companies.

Instead, the NCPB is forced to sell to the politicians at low prices so that they can demand hefty profit margins from millers.

As a result, consumer prices for maize meal have risen from Kshs85 (US1.1) to Kshs120 ($1.5) within a week. The price increase is disastrous in a country where more than half the population is surviving on less than $1 per day.

Kenya’s supermarket shelves are empty, an eerie resemblance to the situation in Zimbabwe. As a result of this unprecedented state of affairs, massive discontent is brewing among the Kenyan populace, as a greedy ruling elite plots the next orgy of rape, murder and ethnic cleansing.

In recent weeks, Kenyan legislators and judges have resisted paying taxes even as manual labourers earning a few dollars a day bear the burden of financing a bloated 42 member cabinet.

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Below are excerpts of the story from the Daily Nation (click here for the full story).
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A racket involving senior politicians and businessmen has been blamed for the artificial shortage of maize and maize flour that has hit many parts of the country.

Investigations by the Nation indicate that the politicians have been buying maize from the cereals board and selling it to millers at exorbitant prices.

Letters from the Ministry of Agriculture are being used by the cartel to authorize the purchase of maize from the National Cereals and Produce Board. The cartel later resells the maize to millers at a higher price.

The shortage of maize has seen the price of the staple maize meal shoot from an average Sh85 a week ago to Sh120 for the two-kg packet.

Sources have revealed that those in the cartel, including a number of MPs, have made millions of shillings from the dubious deals.

On Monday, Prime Minister Raila Odinga held a crisis meeting with a Cabinet sub-committee on food security where they decided that middlemen be pushed out of the maize business.

Fears are also emerging that the cartel has been engaging in similar dealings for sugar and fertiliser, whose prices have been on the increase since the beginning of the year.

The politicians and businessmen are said to be buying a 90-kg bag of maize at Sh1,700 ($21.8) and selling it to the millers at between Sh2,200 and Sh2,700 ($28.2 – $34.6).

It is, however, believed that the politicians are not using their money in the shady deals. Instead, they have been acting as brokers. According to one reliable source, several associates of the politicians showed up three weeks ago at the cereals board depots with letters authorizing them to buy 25,000 bags of maize each.

After the dubious deal, each of the politicians earned between Sh12.5 million and Sh25 million ($160,000 – $320,000) depending on the price at which they sold the maize.

The price of maize flour has shot up by up to 50 per cent in the recent past to retail at Sh120. Millers have warned of an acute shortage of the product that was selling at between Sh80 and Sh85 only a week ago.

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What are your comments regarding the conduct of leadership in Kenya?

Food, fuel shortages worsen Kenyan life

As though life for the ordinary Kenyan wasn’t hard enough, inefficiencies in government are causing shortages in maize, petrol and LPG gas.

What makes it painful is that the products are in the country but are unable to reach the shops thanks to political interference intended to create lucrative business opportunities for well-connected personalities.

Unreasonable taxation by the Kenya Revenue Authority has impeded the movement of fuel from the Mombasa port into the interior. The harsh measures are intended to increase government revenue and pay high salaries for the President, Prime Minister, Cabinet ministers and Members of Parliament.

At the moment, President Mwai Kibaki earns almost as much as US President George W. Bush even though Kenya is at the rear end in terms of economic, social and political indicators.

Kenyans will, thus, have to pay more for food and fuel because of an artificial shortage designed to line the pockets of a corrupt ruling elite already wallowing in ill-gotten wealth.

According to the Saturday Nation, maize millers are unable to obtain supplies from the National Cereals and Produce Board (NCPB), which is a state organization. The millers say they are forced to negotiate with brokers, who buy the maize from the NCPB then sell it to millers at 26% commission. The brokers are likely to be people with high level connections.

As a result, consumers are buying a packet of the 2kg Jogoo maize flour at Shs87 (US$1.2). With Christmas holidays just a month away and demand expected to soar, the price of maize flour is bound to break the Shs100 barrier. As always, the poor will be hardest hit. Consumer inflation will exceed the 31% recorded in the middle of this year.

The obvious solution to such a crisis would be to import from regional countries, especially Tanzania and Malawi. However, the Ministry of Agriculture is making it cumbersome to import foodstuffs, arguing that Kenyan farmers need to be protected. The gains of a liberalized market are slowly being reversed for the benefit of a few.

Shortages in LPG gas are inflicting major losses on hotels and restaurants. 5-star restaurants now resemble rural kiosks as they resort to using firewood and charcoal to prepare meals. Of course, the results are nothing to boast about and customers are turning away in droves. The use of firewood and charcoal is extremely expensive on a large scale. The gas shortage has been attributed to inefficiencies at the Changamwe Oil refinery and tax measures.

Interruptions in the supply of petrol have become alarmingly frequent in the past year. A decade ago, Kenya’s oil industry prided itself on its efficient distribution network that made it easier to buy fuel than to find clean water. That is no longer the case. Multinational oil companies, fed up with a short sighted government, are deserting the country.

In a move that only a Kenyan politician can dream of, the government wants to create a new oil monopoly in the form of National Oil Corporation of Kenya (NOCK). The government has 100% shares in NOCK and multinationals leaving the country are being pressured to sell to NOCK. It is feared that, in the next few years, shares in NOCK will be sold to highly placed individuals disguised as “strategic partners.”

At the same time, individuals close to the centre of power have their eye on departing multinationals. They took over the operations of Mobil Kenya by creating a new company called Oil-Libya. The deal was sealed following shuttle diplomacy between Kenya and Libya.

What does this mean for Kenyans? More fuel shortages and higher prices for the little that is available.

In addition to supply shortfalls in food and fuel, Kenya is currently experiencing shortages in electricity and water supply. Utility companies – all owned by the state – have failed to keep pace with a growing population. Industries are worst hit and must maintain expensive fuel-powered generators just to keep going. Now, even their generators may grind to a halt because fuel does not arrive on time.