COMPENDIUM OF PUBLIC INFORMATION ON THE 2ND EAC INVESTMENT CONFERENCE

Kenyatta International Conference Centre, Nairobi, Kenya 29th – 31st July 2009

I. PRESS RELEASE

2nd EAC Investment Conference, Kenyatta International Conference Centre, Nairobi, Kenya

29th- 31st July 2009

The 2nd EAC Investment Conference will be held at the Kenyatta International Conference Centre in Nairobi, Kenya from 29 to 31 July 2009. The Conference is organized by the EAC Secretariat in collaboration with the government of Kenya, the African Business Council and the Investment Promotion Agencies (IPAs) of the East African Community Partner States.

The EAC Investment Conference is an annual event held in rotation in the EAC Partner States since the inaugural one that was held in Kigali, Rwanda in June 2008. It is the premier forum for the EAC and the Partner States to promote the region as a single market and investment area.

The 2nd EAC Investment Conference is expected to bring together policy makers, business leaders and the regional and international investment community to review the investment outlook of the EAC region and discuss investment opportunities.

Rationale and theme for the Investment Conference

The 2nd EAC Investment Conference comes at a time when the EAC countries have moved closer to the establishment of the EAC Common Market and are involved in other initiatives to consolidate the regional integration process. The process of regional Integration in the East African Community is intensifying and the five Partner States of Kenya, Uganda, Tanzania, Rwanda and Burundi are determined to marshal their resources, capacity and political will to create one Community, and more importantly, a vibrant trade and investment hub.

The Investment Conference also comes at a time when the global economy is undergoing a major downturn. Giants of the business world are going into recession and turning to governments for bailouts or stimulus packages. In the face of these challenges, the EAC is maintaining a strategic posture towards stronger political and economic business environments to weather the storm. Indeed, the EAC countries remain on a rapid growth path and, with a number of other African countries, are in the middle of the strongest economic recovery in the past 40 years.

As more and more international businesses turn to this region with a curiosity to test the investment opportunities in East Africa, a stronger and more vibrant investments and trade platform is emerging . It is clear that through strengthening relations with the leading industrialized countries as well as forging partnerships with the Emerging markets such as China and India amongst others, the EAC region can quickly move into a more flexible business arena, open to cross-border trade and investment as well increased competitiveness with the international market.

The EAC region’s share of Agricultural exports in the international markets is set to grow. With the heightened increase in global food prices, there is increased demand for investment in agricultural development in East Africa. The aim is to make East Africa not only a self-sufficient food production region, but also a supplier to Sub-Saharan Africa and an international net exporter. Opportunities also abound in other areas such as tourism, infrastructure, ICT, Financial services, telecommunications and energy show rapid growth and development.

It is with these considerations that the 2nd EAC Investment Conference has been organized under the theme, Invest in East Africa Where Challenges are Opportunities. The 2nd EAC Investment Conference is thus structured to provide the investor community with the opportunity to critically survey potential areas of investment through the various platforms in:

Public –Private Dialogue with the Five Heads of State-Kenya, Rwanda, Uganda, Burundi and Tanzania, where policy and advocacy issues will be extensively discussed and the concept of regional and international competitiveness will be re-instated as the way forward for East African businesses.

Sector/issue- specific Round Table discussions with the top businesses in East Africa, regional, emerging and international business markets and the world’s leading economists, where potential investors will be able to meet ideal business contacts and make partnerships that will not only enhance existing businesses, but also open a new door to stronger and more successful returns on investments; and

Further, the dates for the EAC Investment Conference were carefully chosen to just precede the AGOA Economic Forum which will be held at the same venue just two days after the EAC Investment Conference.

Targeted Audience/Participants

A record number of participants, estimated at over 2000, are expected at the Conference, representing key regional and international trade and investments actors. Over 30 countries are expected to participate in the Investment Conference with the republic of India participating as a platinum partner. EAC and the government of India have an existing collaboration agreement where trade and investment are key features. The EAC and Kenya Government have approached leading East African corporates to sponsor various programmes and activities of the Conference. Among the targeted audience and participants of the Investment Conference are:-

Regional entrepreneurs and potential investors

Regional producers looking for new markets

Regional domestic businesses.

Regional Government Officials

Regional Industrialists and Merchandise Traders

Representative of Multinational Corporations

Commercial and Development Bankers

IT Practitioners

Agricultural specialists

Construction Companies

Infrastructure Specialists and businesses

Regional and international Businesses- Energy, Mining, Tourism, Telecommunications, Agriculture.

National and International Business Development Consultants and specialists.

Business communities from the emerging markets- India, South Korea, Japan, Indonesia, Singapore and others.

Development Partners

Representatives of regional IPA and chambers of commerce and Industry

Expected outcomes/benefits to participants

Among the expected outcomes and benefits of the Investment Conference are:

Opportunity to showcase the potential and profitable investment opportunities that the EAC has to offer;

Opportunity to network with local and foreign participants so as to build bridges for greater business using EAC as critical launch pad in the region;

Opportunity to engage potential investors in the EAC in business promotion within the region

Opportunity to project the image of EAC as one market and one destination ideal for investment; and

Opportunity to sensitize the world on the latest strides made in advancing the economic integration front at the East Africa Community

Conference focus and format

The Conference sessions will have a focus on major areas, topical issues and sectors of growth opportunity in banking and finance, manufacturing, agriculture and agro-processing, ICT, tourism and other hospitality industries; infrastructure and energy, especially hydro, geothermal, methane and natural gas; roads and railways.

The Conference will proceed on plenary sessions, panel discussions, debates, and live on stage interviews with leading authorities in the key issues..

Among the major topics to be discussed is the investment environment, addressing the challenges of the global liquidity and credit crunch, corporate finance in challenging conditions; achieving regional competitiveness, fighting counterfeits, investing in food security and exports through improved agricultural practices, and achievements of the EAC economic integration agenda.

Exhibition and Networking

An international exhibition of products and services will run parallel to the plenary sessions at the Kenyatta International Conference Centre –KICC (the venue of the conference). EAC Partner States and other country delegates will exhibit their products and services showcasing priority sectors. The last day of the Conference (31st July 2009) will be devoted to networking opportunities and country tours which have been carefully programmed to just precede the AGOA Economic Forum which the Country is also hosting at the same venue just two days after the conference ends.

Background

The 2nd EAC Investment Conference follows the first one which was held in Kigali, Rwanda in June 2008. It was at the Kigali Conference that the EAC Investment Conference Forum was launched as an annual event to be held on rotation in the EAC capitals.

The inaugural event was itself very successful. The Kigali Conference was attended by all the five EAC Heads of State. It brought together over 1200 participants from the region and the international community. It attracted 15 countries from outside the region. A lot of business was transacted during the conference and important business contacts were made. Reports from the national IPAs indicate that a sizeable number of projects have been registered arising from the 1st EAC Investment Conference.

The 2nd EAC Investment Conference is therefore being held against the favourable background of the encouraging success and achievement of the inaugural Conference. It has incorporated vast improvements in terms of its organization, and expected levels of participation and impact.

II. INVESTMENTS PROMOTION IN EAC

Institutional arrangements in investment promotion for the region

The EAC Partner States have established statutory agencies that promote and facilitate investments in the region. The agencies are Investment Authority (KenInvest), Tanzania Investment Centre (TIC) o, Zanzibar Investment Promotion Authority (ZIPA), Uganda Investment Authority (UIA), and the Rwanda Development Board (RDB). In Burundi, investment activities are coordinated by the National Investment Commission under the Ministry of Planning. Currently, Burundi is in the process of establishing an Investment Promotion Agency which is expected to be operational in 2009. These investment promotion agencies (IPAs) were established by respective Acts of Parliament in each Partner State and follow similar basic requirements for promotion of investments.

Role of investment promotional agencies

The role of the IPAs of the Partner States is to promote and facilitate investment activities. Facilitation is carried out by providing a set of incentives as provided for in the countries’ respective investment codes. The incentives provided range from waiver of customs duties and VAT on imported capital goods related to the submitted investment proposals, the facilitation for obtaining of administrative formalities to corporate taxes reduction.

Investment policy harmonization framework

Since the re-launching of the EAC and the setting up of the EAC Secretariat, harmonization of investment policies, incentives and laws of the Partner States has been going on under the auspices of the EAC Secretariat. Some aspects have been harmonized and include investment approval requirements, export processing zones and free zones regulations, corporation tax and other incentives.

However, there still exist some variations on the minimum capital threshold requirement among the Partner States. For instance, in Kenya, the minimum threshold is US$100,000 for foreign investors and US$12,800 for domestic investor. For Tanzania the minimum threshold is US$300,000 for foreign investors and US$100,000 for domestic investors; while in Uganda the minimum threshold is US$100,000 for foreign investors and US$50,000 for domestic investors.

On the other hand, Zanzibar maintains a different approach that focuses on sectoral thresholds for investment capital per project. For example, investment in hotels requires a minimum of capital US$4 million for foreign investors and US$300,000 for local investors. In Rwanda, the minimum threshold for foreign investors is US$250,000 while for local and COMESA investors it is US$100,000. These and other variations related to offered incentives are being identified and further harmonized to bring about a more favourable investment climate in the EAC region.

Key policy leap among IPAs: The One Stop Shop (OSS)

Since 2001, most EAC countries have established and implemented the One Stop Centre concept which consists of providing almost all needed facilitation under one roof. The One Stop Shop Concept is an investment facilitation strategy where relevant government agencies are brought to one location, coordinated and streamlined to provide prompt, efficient and transparent services to investors. It is aimed at simplifying and shortening of procedures and guidelines for issuance of business approvals, permits and authorizations thereby removing bottlenecks faced by investors in establishing and running businesses. The One Stop Shop concept is based on four principles namely: Convenience, Efficiency, Simplicity, Speed and Transparency.

The type of services offered under One Stop Shop include: business incorporation and registration; instant granting of approvals in principles, permits and licenses; provision of investment information. The One Stop Shop concept is good for both the investor and the government in that it:

? Substantially reduces the cost of doing business.

? Ensures that FDI, DDI are properly tracked.

? Ensures close and professional working relationship among

government agencies to meet the needs of investors.

? Triggers and fast tracks public sector reform which would

ultimately result in structurally more attractive investment

environment.

III. PRESS NOTICE

THE 2ND EAST AFRICAN INVESTMENT CONFERENCE, KENYATTA INTERNATIONAL CONFERENCE CENTRE, NAIROBI, KENYA, 29TH – 31ST JULY 2009

The East African Community Secretariat in collaboration with the Regional Investment Promotion Agencies (IPAs) and the East African Business Council is organizing the 2nd edition of the East African Investment Conference, scheduled to take place at the Kenyatta International Conference, Nairobi from 29th to 31st July 2009. The 2nd EAC Investment Conference is designed to showcase the economic potentials and opportunities of the East African region under the theme, “Invest in the EAC: Where Challenges are Opportunities”.

The Investment Conference will feature High Level presentations and panel discussions by leading regional and international trade and investment actors, policy makers, experts and business leaders, focusing on investment opportunities across the following key sectors: Mining, Infrastructure development, roads and railways; Telecommunications, Leather goods production, Energy (hydro, geothermal, methane and natural gas); Tourism, ICT, Banking and Financial Services, Manufacturing, Agriculture and Agro-processing

Participants, key business organizations and entrepreneurs, are also encouraged to take the opportunities for exhibiting their products and services at an international exhibition that will run parallel to the plenary sessions of the Conference. The last day of the Conference (31st July) will be devoted to networking opportunities.

For more information on the 2nd East African Investment Conference, please visit the Website, http://www.eac.int/invest . Participants are requested to confirm their participation electronically by filling a registration form available at the Website, sending a fax, phone and/or register their participation (for those in East Africa) to the Investment Promotion Agencies/Authorities in the respective EAC countries, Burundi, Kenya, Rwanda, Tanzania and Uganda. It would be appreciated if confirmations of participation are received by latest 20th July, 2009.

Clare Akamanzi

Deputy Chief Executive Officer

In-charge of Business Operations and Services

Rwanda Development Board

P.O. Box 6239

Tel: +250-510-248

Fax: +250-510-249

Mob: +250-0788-301661

E-mail: info@rwandainvest.com

cakamanzi@rwandainvest.com

Ms. Maggie Kigozi

Executive Director

Uganda Investment Authority (UIA)
The Investment Centre

Plot 22B, Lumumba Avenue, TWED Plaza

P.O. Box 7418

Kampala

Fax: +256-414-342-903

E-mail: info@ugandainvest.com

Mr. Emmanuel Ole Naiko

Executive Director

Tanzania Investment Centre (TIC)

Shaaban Robert Street

P.O. Box 938

Dar es Salaam

Fax: +255-22-211-8253

E-mail: information@tic.co.tz

Ms. Susan Kikwai

Managing Director

Kenya Investment Authority (KenInvest)

Kenya Railways Headquarters

P.O. Box 55704-00200

City Square

Nairobi

Fax: +254-20-22243862

E-mail: info@investmentkenya.com

Mr Toussaint Nkurunziza

Chamber De Commerce et de L’industrie du Burundi

BP 313

Bujumbura

Tel: + 257 22222280/ 257 79492323

E-mail: nkurutus@yahoo.fr

Mr. Salum K. Nassor

Executive Director

Zanzibar Investment Promotion Agency (ZIPA)

P.O. Box 2286

Zanzibar

Tel: +255-787-857338

Fax: +255-24-223-2737

E-mail: zipa@zanzine.com

Mr. Alloys Mutabingwa

Deputy Secretary General

(Planning and Infrastructure)

East African Community

P.O. Box 1096

Arusha

Tel: +255 27 2504253 -8

Fax: +255 27 2504253

E-mail: Mutabingwa@eachq.org

Mr. Charles Mbogori

Executive Director

East African Business Council

P.O. Box 2617

Arusha

Tel: + 255 788790711

Fax: + 255 27 2509997

IV. MESSAGE BY THE SECRETARY GENERAL OF THE EAST AFRICAN COMMUNITY AMB. JUMA MWAPACHU

The 2nd East African Investment Conference comes at a historic time for the East African Community when we are closer than ever to our goal of regional economic integration. The success of the Customs Union is a singular pointer to the systematic achievement and progress of the EAC integration process. Between 2004 and 2007, the volume of intra-EAC trade increased by 22% while the total EAC trade with the rest of the world rose by 26.8 % up from 22.8% in 2006.

In January 2010, the fully fledged Customs Union comes into effect with zero customs duty applicable to all goods traded among the EAC Partner States. This is a significant milestone in the road to EAC integration and will greatly impact trade, investments and revenues of the Partner states.

Last June, during the 1st East African Investment Conference in Kigali, the EAC Heads of State adopted strategic plans for accelerated implementation of projects under the infrastructure sector. The result was the commencement of construction works on the Arusha-Namanga-Athi River road project; the commencement of the Power Interconnection Project between Kenya and Tanzania at the Namanga border point and many other similar achievements in rail transport, civil aviation, communications, energy and development of the Lake Victoria Basin.

In addition, regarding barriers to trade and investment in the region, the EAC is working with the Partner States to strengthen the capacity building of their governments, improve the transparency of regulation and administration. EAC has actively worked to promote the implementation of the Protocol for the establishment of the EAC Common Market, which will create an economic bloc that will have a combined population of 125 million people and a total gross domestic product of 55 billion US dollars.

Though the 2nd EAC Investment Conference comes at a time of a global financial and economic crisis whose effects have been felt not only in the Northern hemisphere but also here in the EAC region and other parts of Africa, the Conference will provide an opportunity to showcase the commitment and achievements of the Community as well as the potential it has to nurture and serve as a new hub of regional global trade and investments.

It is in this framework that we look forward to the successful 2nd East African Investment Conference which is being held under the appropriate theme , Invest in East Africa, Where Global Challenges are Opportunities. Among others, the Conference will focus its attention on creating a viable and vibrant regional economic bloc, and also addressing Non Tariff Barriers (NTBs) under the rubrics of entrenching a conducive investment climate.

The efforts of many individuals and institutions have gone into the realization of the Investment Conference and I thank them all for this major contribution which will promote our region as we step into a new era of greater competitiveness and achievement. In particular, I thank the government and people of Kenya for the warm welcome and hospitality extended to the delegates who will be attending the Conference from all parts of the world.

V. EAC REACHES OUT AS NEW HUB OF GLOBAL TRADE AND INVESTMENT OPPORTUNITIES

– Major EA Investment Conference to be held in Nairobi, Kenya, 29th -31st July 2009 –

Introduction

The East African Community (EAC) is planning a major re-launch of its position in the global markets with an international investment conference that will be held in Nairobi on 29th – 31st July. Key to the event is the leveraging later this month of a regional bloc of 120 million people and a combined GDP of $ 57 billion, into a vibrant market and a new hub of global trade and investment opportunities.

The 2nd EAC Investment Conference, organized by the EAC Secretariat in collaboration with the East African Business Council and the Investment Promotion Agencies of the EAC Partner States is expected to have an attendance of over 2000, representing key regional and international trade and investments actors, policy makers, business leaders, to review the investment outlook of the EAC region and discuss investment opportunities.

Conference focus

The Investment Conference will focus on major areas and key sectors of growth opportunity in banking and finance, manufacturing, agriculture and agro-processing, ICT, tourism and other hospitality industries; infrastructure and energy, especially hydro, geothermal, methane and natural gas; roads and railways. The Conference will feature plenary sessions and panel discussions as well as an international exhibition of products and services that will run parallel to the plenary sessions.

The EAC Investment Conference is an annual event that is held in rotation in the EAC Partner States since the inaugural one that was held in Kigali, Rwanda in June 2008. It is the premier forum for the EAC and the Partner States to promote the region as a single market and investment area. The inaugural event was successful, attended by all the five EAC Heads of State and brought together over 1200 participants from the region and the international community, attracting 15 countries from outside the region.

The 2nd EAC Investment Conference is therefore being held against the favourable background of the encouraging success and achievement of the inaugural Conference. It has incorporated vast improvements in terms of its organization, and expected levels of participation and impact. The EAC Secretary General, Ambassador Juma Mwapachu, has said the Investment Conference will project “a renewed determination to move the EAC region from a largely agriculture and primary produce economy to an industrial based economy and status of a middle income economy”.

With its theme, Invest in the EAC: Where Challenges are Opportunities, the 2nd EAC Investment Conference comes at a time when the global economy is experiencing a downturn unprecedented since the 1930s. It also happens that the Investment Conference is coming at a time when the EAC countries, along with a number of other African countries, are experiencing their strongest economic recovery since the 1980s.

Global context

The IMF predicts an overall 1.3% decline in global economic activity in 2010 particularly of the economies of the industrialized countries, while some of the EAC countries, and a number of African countries are projected to grow by between 5% and 7%. It is indeed a rare moment as they come in global development trends, however into the scenario, the EAC is determined to stake a claim and foster a strong economy and competitive business environment.

EAC is buoyed by the great interest and positive appreciation it is attracting among an international trade and investment community that is turning to East Africa where they perceive that a new, vibrant investments and trade platform is emerging. In August 2006, just over one year after the launch of the EAC Customs Union in January 2005, the EU delegation at the WTO meeting in Geneva declared that the EAC was “the most successful illustration of regional integration on the African continent”.

From Customs Union to Common Market

In its 5th year of implementation, the EAC Customs Union has realized a great stimulus on the region’s trade, investments and revenue earnings. On 1st July this year, Rwanda and Burundi, the new entrants, in 2007, into the EAC, acceded to the Customs Union. A few months to go, on 1st January 2010, the Customs Union will reach its threshold when goods imported from Kenya by other EAC Partner States will start attracting zero customs duty; and a fully fledged EAC Customs Union will spring forth.

The countdown to the full fledged EAC Customs Union has been systematic and fast paced, featuring mainly the phase down to zero tariff for Kenyan exports, elimination of non tariff barriers, strengthening the institutional framework for the Customs Union and promoting investment flows.

EAC joint trade negotiation

Already, EAC has put in place an export promotion strategy and the EAC Competition Act came into operation last February. In April 2008, the EAC launched the negotiations for the Common Market protocol and contrary to earlier fears that they would be bogged down or finally scuttled, the negotiations of the Common Market Protocol proceeded smoothly and swiftly. The stage is now set for finalization and signing of the Protocol in November 2009. The enactment of the EAC Trade Negotiations Act in 2008 came as a major breakthrough and boost to the EAC Partner States’ longstanding search for agreement to negotiate as a bloc in the multilateral trade fora.

In November 2007, EAC initialed the EAC-EU Framework Economic Partnership Agreement (FEPA). The negotiations of the economic partnership agreement (EPA) with the European Union (EU) are progressing well with the EAC negotiating as a bloc. EAC’s participation at the forefront of the Tripartite EAC-COMESA-SADC Arrangement that seeks to establish a larger Free Trade Area and later Customs Union of 26 African countries, stretching from Cape Town to Cairo, has followed the same pattern of the EAC’s growing confidence in trade expansion.

Investment promotion

With this confidence and determination, during 2008/2009, EAC held or participated in a record number of major investments and trade promotion events. These included the small to medium scale industries in Kigali, the EAC Investment Conference in London, the 4th EAC Petroleum Conference in Mombasa, the EAC investment promotion in Canada and the 1st EAC/EABC Energy Conference in Dar es Salaam as well as the Berlin International Tourism Fair (ITB) and the London World Travel Market (WTM).

Strategic posture

The EAC economy prides itself of a strategic central location and link to the wider eastern and central African market, encompassing the Great Lakes Region, including the vast Democratic Republic of Congo and South Sudan. This provides the region with a great growth and expansion potential with vast natural resources and great potential to transform into an area and space of peace, stability, economic opportunity and prosperity.

Based on this realization, EAC has steered a steady course to broaden its world outreach and outlook. Since concluding a Trade and Investment Framework Agreement (TIFA) with the USA in August 2008, EAC has stepped up the search for similar focused trade and investment arrangements with other strategic partners in the world markets, including India, China, Eastern Europe, Far East and Latin America.

Focus on infrastructure

Together with the trade promotion activities, EAC has focused on regional infrastructure development with a determination to get a number of regional infrastructure projects off the ground. Breakthroughs have been made in the implementation of the East African Road Network Project with the upgrading of the Arusha-Namanga- Athi River road, a vital regional link, which commenced in July 2008 and is expected to be completed in 2011.

Similar developments and breakthroughs were realized in the railways sub-sector. Although the concessions for the central railway line of Tanzania and the Kenya-Uganda Railway have faced challenges, the EAC Partner States are actively pursuing the implementation of the East African Railways Development Master Plan. The stage is now set for the development of the feasibility studies and preparations are underfoot for holding an East African Railways Investors’ Conference in the last quarter of 2009. The EAC Partner States have made substantial provisions for expenditures on the development of railways and other regional projects in their budgets of the current financial year.

Other developments in regional infrastructure development include ongoing harmonization of civil aviation safety and security regulations in the EAC under the EAC Civil Aviation Safety and Security Oversight Agency (CASSOA). In the area of communications, The East African Marine System (TEAMS) and the East African Sub Marine Cable System (EASSy), both projects being private sector-led are on course. The TEAMs Project is expected to be in service by end of 2009, while the EASSy network is expected to be ready for commercial service in 2010.

Conclusion towards food security and energy self sufficiency

To complete the picture of a region that has set its sights on a major turn round, the EAC has prioritized programmes in agriculture and food security; and the East African Power Master Plan under the current EAC Development Strategy (2006-2010).

The implementation of the EAC Agricultural and Rural Development Strategy will be launched this year. Agriculture is an area in which the EAC countries have significant comparative advantage and offers great scope for investments in food production to meet both domestic and export demand. The East African Power Master Plan, on the other hand, envisages energy sufficiency to support increased productivity and industrial development; and is a major underpinning of investments promotion in the region.

DIRECTORATE OF CORPORATE COMMUNICATIONS

EAC SECRETARIAT

ARUSHA

JULY 2009

– – –
from Leo Odera Omolo Jul 21
date Jul 21, 2009 7:17 AM
subject Fw: RE: COMPENDIUM OF PUBLIC INFORMATION ON 2ND EAC INVESTMENT CONFERENCE

A YES-YES REFERENDUM NOT PROSECUTIONS OF PEV SUSPECTS THE ROUTE TO KENYA’S NATIONAL SALVATION: A COMMUNIQUE TO THE NATION ON THE 19TH SABA SABA.

CYPRIAN NYAMWAMU

July 7, 2009 marks the 19th Saba-Saba. Saba Saba is the day to reflect on the reform Agenda and since 1997; NCEC has acted as the custodian of this important day in the reform agenda calendar. On this Saba Saba day I wish to share a perspective I have taken a year and half to develop. I am of the conviction that Kenya can only move forward if we have a sincere conversation on the future survival of the nation and its prosperity. We should lead ourselves out of the confusion and suffering that PNU and ODM have sunk us into. We can not get out of a perilous situation by being led by the same people who authored our downfall and by using the same methods we used to plunge into the conflict and slow disintegration of the nation that we are in today. Our nation should come to terms that PNU and ODM ran ethnic campaigns in 2007 and therefore committed the original sin. I do not agree that Kenya can rescue and renew itself by using mechanisms like the local tribunal or The Hague (ICC), the National Cohesion Commission, boundaries commission, and most of the placebo mechanisms that are being touted in the republic today. I even find the Obama-Annan recommendations ill informed. In fact they will not work.

We made a major mistake last year when we agreed to give the PNU and ODM a 5-Year license to plunder the nation. The National Convention Executive Council (NCEC) recommended to the Civil society Congress and the Annan mediation process that Kenya should have a transitional arrangement for only 2 years after which a fresh election would be conducted for Kenyans to elect a clean, lean, effective, accountable and responsive (CLEAR) government. It is only such a government that can facilitate reforms, reconstruction and reconciliation.

The Americans and the Europeans wanted coalition government for 5 years. Some Ambassadors started to act as if they were more interested in Kenya’s success more than Kenyans themselves. They even said that the size of the government was not important. On forming a bloated cabinet that is top-heavy with corrupt politicians, we were not going to have an accountable, effective and responsive government and consequently we logically resigned ourselves to five years of plunder, corruption, poverty, elite enrichment and missed opportunity for reforms, reconstruction and reconciliation. The National Accord government took away the incentives for reforms. That is why the reform agenda is stuck in the mud.
Ambassador Johnnie Carson’s proposals are therefore unrealistic and un-researched. The Grand coalition shall not deliver on the National Accord next year or indeed in the coming years. Why? The simple explanation is that the assumptions of the National Accord are simply flawed. The Assumptions of the National Accord are that; Kenya is a cohesive nation, with functioning institutions, and that there is a leadership called “Principals” that supersedes ethnicity, the patronage system and that overrides their corrupt parties and their kitchen cabinets. It is also assumed that there exists a leadership in civil society and in the religious and business and professional sectors that has the ability to seriously sanction the thugs who “trouble the Principals” in their pursuit of national interest. These assumptions are false. The two principals do not care about the country and its future. The only thing they care about is their wealth and power. The maneuvers we see in Parliament, in their Political Parties, cabinet and in the countryside are all about their wealth and power. The APRM report that preceded the National Accord made it clear what Kenya’s Achilles heels are and specifically found out that Kenya does not have a transformative leadership.

When the Kofi Annan Foundation invited me to represent the National Civil society Congress in Geneva at a forum to assess how far Kenya had come in implementing the National Accord, I kept away. I asked myself this question: What can the parley in Geneva achieve for Kenya without a cohesive democratic movement at home that shall take the responsibility for leading Kenya to peace, justice, cohesion and progress? It was my view then and it still is that we are like a person who is in denial trying to be superstitious about reforms and ending impunity in Kenya. So we do not interrogate the assumptions upon which we want to carry out reforms and transform the nation. So we keep doing a thing or two hoping that the Lord will touch Kibaki and Raila to change their motives of power and wealth and work for the national interest. It is the reason we have failed to get a new constitution for twenty years and it is the attitude that will finally lead us to greater suffering.

I am of the view that we should set in place a national democratic Process with the following components;
A Democratic Dialogue Facilitator (DDF) should be set up to spearhead the process. A Multi-sectoral Council in the form of a National Convention of Kenyans who have demonstrated their steward credentials would be competent to play this role.
Center line issues and principles should be articulated and agreed upon. We should outline the expected outcomes of the process upfront so that every one is assured that they will not be destroyed and shattered; issues such as how land should be reformed to address issues of land ownership and historical injustices should be addressed upfront by the DDF. We must assure the current ruling class that they will not face assured destruction when it is found through a TJRC process that they have sponsored the violation of rights and economic crimes in the past. If we do not assure these guys that the worst they shall suffer is to be denied the right to hold public office, we will never make progress because they will never let Kenya reform and be free. We will never be a free nation. The fact that we never dealt with the Kenyatta and Moi years of atrocities and violations has led to the current situation where Moi and the Kenyatta era politicians are the ones in control of the state and the future of Kenya. If we do not negotiate with them, this country will never be transformed and it will never know peace, justice nor prosperity. In Poland, the Solidarity movement had to assure the then communist era President that his future was secure for him to initiate talks with the Solidarity Movement. Right now Kenya’s future is important than get some ten or twenty guys jailed or hanged especially when these guys are in office today. Democratic transitions have never been secured using the Kenyan model that has failed for twenty years. Zimbabwe seems to do better because of gaining credible advice from experts in democratic transition management which seems to lack in Kenya.

Identifying the Referee of the negotiations is necessary. Without a competent team that acts as referee, parliament, the executive and tribunals shall lead the country into adversarial contests that will never give Kenya a chance to dialogue.

Audit of skills for the work of the National Democratic process is important so that where there is need for international expertise, this should be planned for.

The referees and the DDF should begin by outlining the fears of the powerful interests and aspirations and grievances of the excluded citizens and citizens’ groups including ethnic groups.
The DDF should Schedule the process of moving forward so that the what and the How is planned appropriately. For me the what entails five tasks in this order;
a)Constitution reforms process
b)A fresh elections
c)TJRC
d)Institutional reforms
e)Delivery on the development agenda for Kenya’s prosperity under a legitimate government.

Once the schedule of work is agreed upon, laying the negotiating table that is inclusive becomes the next important step to ensure that the schedule work is delivered upon. The constitution review process should be moved from the strangle-hold of Parliament to a Constituent Assembly or a Multi-sectoral forum. The reason we failed in 2005 is because parliament controlled the content and process of review. What have we improved on in this process? We have not improved the process but instead made it more elitist and exclusive to the guys in power. The ruling class has not intention to have a dialogue with the people of Kenya but to monopolize the state and the political process with a sense of entitlement that reeks of cynicism and contempt for the Kenyan nation. So long as the Committee of Experts is headed to handing over its work to parliament, this process shall expectedly turn awry and therefore fail. Should we wait until we fail to know this? How come we are a country that believes that the same people who drove Kenya into the hole shall pull us out of it?

The DDF must ensure that there is cessation of war- because wars are persistently raging;
Between the people and people
People and the state
State terrorism is evident all over Kenya

Insecurity threats posed by Kenya’s neighbours should also be factored into the National Democratic Process.

Financing the negotiations: Who pays for the National Democratic Project? Who pays for the work of the DDF, the referees, the Laid-table of negotiations; the activities, research and intellectual resources that shall go into the process? If it is the tax payers then the law should empower the DDF and the referees to access these resources in a manner that Parliament and the Executive do not use resources to stifle the reform agenda.

I am of the view that we should put aside the prosecution of post election perpetrators from the national Agenda for now. Kenya missed the opportunity to nail the guys who sponsored the crimes against humanity in the wake of the discredited 2007 presidential election when the ceasefire document junked electoral truth and electoral justice. The day the Kriegler Commission declared that we did not know who won the last election we reinforced the logic of the National Accord which was that we better have a government and restore peace rather than pursue the truth and justice for the victims. We went on to give the guys five years in office even as we did not know who had won the election. Where do we stand now to ask these guys to remove each other from power and dispatch bits of the gang that committed the original sin to a local tribunal and or to The Hague? We must as a nation craft a new Roadmap and end the syndrome of issuing one another with ultimatums that we know no one is going to respect. We must stop step down the demand activity and map out a strategy for enhancing the supply side of reforms, reconstructions and reconciliation.

We should know when we have missed an opportunity and be brutally honest with ourselves as a nation. Moi is still roaming the country unperturbed even with reports full in stores showing his regime perpetrated crimes against humanity for decades. I am clear in my mind that Kenya is a failing state that is captured by cynical interests that will rather all institutions collapse rather than them losing advantage to power and wealth. These are the men and women we want to give the opportunity to spearhead the process of transforming the state. With Wako, Ali, Saitoti, Muthaura and other high ranking officials remaining in office and the culture of impunity remaining entrenched in all facets of public life in Kenya; the Tribunal shenanigans shall at best be used to fertilize politics of succession and nothing more than that.

Kenya should instead proceed as follows;

a.Prepare two constitutional proposals and hold a YES-YES referendum next year. One of the drafts should establish a Parliament system of government and the other a Presidential system of government. As a nation, we should avoid the route of a hybrid system where we have an elected president and a Prime-minister who heads government or coordinates it. This proposal is only to ensure that the country does not fix its fundamental governance problem of lack of accountability, blurred separation of powers and weak checks and balances. The drafts should avoid all the policy issues that can be outlined in ordinary legislation or left to political party manifestos. These include issues such as chapters and provisions on culture, the environment and issues of reproductive health. Parliament should therefore be guided by the political parties to amend the Constitution of Kenya Review Act to provide for a YES-YES referendum to provide an opportunity for the nation to make a clear break with the current constitutional dispensation.

b.The Democratic Dialogue Facilitator (DDF) should ensure that a fresh election is held next year on the basis of the new constitution. All those who have been named in various reports since independence including the Mwangale, Akiwumi, Goldenberg, Anglo-leasing, Nyayo torture Chambers reports, the Ndung’u Land report, the PAC and PIC reports, the Artur brothers report, the Kriegler and the Waki reports (including those in the envelope) should not run be permitted to run in that election. At least Kenyans should be urged to reject these saboteurs who have hurt our nation for so long with impunity.

c.Upon the passage of a new constitution, Kenya should operationalize its Truth, justice and Reconciliation Commission next year so that we can bring to the surface the Truth about our past and document this truth so that we do not repeat this tragic and heinous legacy. Justice must be given to the victims who suffered violations and historical injustices must be addressed so that we come together as one nation as we move forward to the future. This is the only viable strategy to national cohesion and healing that Kenya needs more than anything else. As President Kagame advise recently

d.The new government should implement policies that address Kenya’s governance priorities outlined in the National Accord. Particularly, the new government should ensure that a progressive National Budget is prepared that ensures a 60% allocation to the development budget and 40% to the recurrent budget. These resources should be invested in the citizens to ensure that each of the regional governments delivers services to the people to address the regional inequalities, food poverty and lack of infrastructure and power that is required to revolutionize economic performance.

These steps are important to save the Kenyan nation from disintegrating. These assignments can be accomplished if a National Convention is convened by men and women of good will who enjoy wide respect among the people of Kenya. These men and women include the following Pheroze Nowrojee, Njeri Kabeberi, Mwalimu Mati, Muthoni Wanyeki, Kepta Ombati, Willy Mutunga, Betty Murungi, John Githongo, PLO Lumumba, Gladwell Otieno, Ann Njogu, Ndung’u Wainaina, Bethuel Kiplagat, Rev. Bishop Korir, Abdullahi Abdi, Yash Ghai, Mwambi Mwasaru, Hussein Khalid, Tirop Kitur, Paul Muite, Onyango Oloo, Kithure Kindiki, Khalif Khelefa, Gacheke Gachihi, Caro Ruto, Joshua Nyamori, Davinder Lamba, Duncan Okello, Maina Kiai, Rev. Timothy Njoya, Collins Odote, Okoiti Omtatah, Matunda Nyanchama, Hassan Omar, Vimal Shah among others.

The National Convention Assembly should see to it that all democratic forces participate in the process of delivering the National Democratic Agenda of ensuring democratic governance presided over by democratic leaders, establishing and ensuring democratic institutions and entrenching a democratic culture in Kenya. September this year is an appropriate time for convening the National Convention Assembly where in the words of our fallen comrade and Panafricanist Tajudeen Abdul-Raheem we may stop agonizing and start organizing seriously.

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Date: Mon, 6 Jul 2009 02:59:01 -0700 [07/06/2009 04:59:01 AM CDT]
From: orina Nyamwamu
Subject: SABA SABA 2009 MESSAGE