KENYA: THE MUGO REPORT 7-8/2012

From: Mugo Muchiri
Los Angeles, CA
August 11, 2012

Q: Habari Bwana Mugo, how’ve you been this past month?

Mugo: Quite well, asante. I hope you’ve been enjoying great health.

Q: Indeed. Our aim is to look at some of the challenging, uplifting or unfortunate developments in Kenya this past month. What would you first like to share with our readers?

Mugo: An important quality-of-life issue that’s been affecting some Kenyan communities, and that is human-wildlife contact. Sometime in July, six lions were put to death by Maasai morans in Kitengela. The pride had ventured out of their Nairobi National Park home and killed cows, goats and sheep. You know most Maasai folks live off of their flock. So you can understand their rage and desire for vengeance. However, we lose as a nation because the lion is so identified with Kenyan tourism. Not to forget that it is part of God’s creation and needs to live out its alloted term.

Q: True. These types of contacts always seem to end up as lose-lose situations, don’t them?

Mugo: Precisely. And I think this is where Kenya Wildlife Services (KWS) needs to show leadership.

Fortunately this is a problem that can be fixed. I see it as a resource issue with Parliament needing to allocate more funds beyond death compensation, in order to cover destruction of crops and livestock.
For now, Director Kipng’etich needs to expedite plugging the holes in the fence in order to completely segregate the wildlife. But there’s the public component too. I am a Kenyan living in America. I feel concerned about how the government responds to what are very legimate concerns of the Kitengela Maasai. I’m guessing there’s literally hundreds of thousands of Kenyans like me. They want to see a government moving for its people, while at the same time protecting a vital national economic interest.

Q: So what would you advise Bwana Kipng’etich?

Mugo: It’s not like the man doesn’t know what needs to be done. He does, better than any arm-chair commentator or spectator ever will.

But he needs to move in a fast and determined way to restore peace among the Maasai plus those impacted in Taita-Taveta, Lamu and so forth.

Q: Hope we get good news soon on that front. What other areas concern you currently?

Mugo: There’s been a really giant coup for corporate governance in just this past week which Kenyans need to know about. Those of us who follow Kenyan news are familiar with the CMC Holdings saga. This is a mega company in the EA regional motor industry. It’s been dogged by huge financial scandals. One of its largest shareholders was found to have overcharged CMC for logistics services provided by a separate company he owns. There’s also been scandal associated with siphoning company money to overseas safe havens. If you wanted to write a thesis on the most convoluted form of cronyism capital, you couldn’t find a better case study.

Q: You’d think that this would reach the ears and eyes of the Capital Markets Authority (CMA)?

Mugo: You’d be right because it did. The result is that six CMC directors – Charles Njonjo, Jeremiah Kiereini, Martin Forster, Sobakchand Shah, Peter Muthoka, Richard Kemoli – have been banned from ever sitting on the boards of any listed companies in Kenya. In addition, two of the directors will be the targets of efforts to recover twice the amount of benefits that accrued to them with respect to the fraudulent offshore transactions I mentioned earlier. This has never happened before in Kenya, at least not to my knowledge. It’s an important milestone. (CMA Chairman) Gatabaki and his team are sending all the right signals for overall investor protection and confidence.

Q: Been long coming, if you asked me. Meant to ask your thoughts about Nancy Barasa, the deputy CJ. Seems like she’s on her way out, right?

Mugo: I think so. The President has to wait 10 days before making a decision. This is to allow her time to appeal the tribunal’s decision which she’s indicated she will. Ordinarily, the matter would then go to the Supreme Court for review. She’s probably banking on having Mutunga and Wanjala recused as they sit on the JSC which adjudicated the matter prior to it going to the tribunal. It’s a long shot. Her goose is basically cooked, I’d say.

Q: What lessons do we learn here?

Mugo: The enemy of humility is hubris. The latter suffocates the former. When you feel you’re more special than others, that you deserve more, yaani umefika, well that is the beginning of your problems. A brief incident could torpeodo a whole career spanning many years. Do you remember General Stanley McCrystal and his Vanity Fair interview? Cost him his job what to say of the loss of clout and prestige associated with serving your country at the highest levels. Fortunately he got rescued by Yale. It’ll be interesting to see where Baraza lands.

Q: Kenyans have seen some very senior Judges shown the door lately. Bosire, Nyamu, O’Kubasu have all been declared unsuitable to continue serving. The winds of change aren’t getting tired, are they?

Mugo: I love Chief Justice Willy Mutunga because he’s the pace-setter, with Sharad Rao following closely. You remember earlier, we talked about the public being starved for good governance. It’s a great lesson for us, to choose the right people in the very top public positions. People who value their oaths of office. Despite the challenges they confront, they remain true to their aspirations and goals. If you don’t fit that bill, then you must be shown the door irrespective of who you are. This is how Kenya goes back to Kenyans.

Q: I can’t let you go without asking about Miguna Miguna and his book ‘Peeling off the Mask…’ What are your thoughts?

Mugo: I agree with Prime Minister Raila Odinga’s sentiments expressed in Kibera the other day where he said that Miguna Miguna is a madman. In my opinion, Kenya needs madmen, a whole lot of them. Even Moody Awori thought so when he was VP. To me, Miguna is a hero. He’s no Dedan Kimathi for sure, but when the history of the advent of good governance in Kenya is written AS IT SURELY WILL, I’m convinced that Miguna will have a special place in that narrative. The question is, Can Kenyans peel back his anger and interrogate the substance of his claims?

Q: Do you think us capable of just that?

Mugo: It remains to be seen but I have serious reservations. On the one hand, you have the Luo in general and ODM in particular who see this effort in terms of attempts to erect obstacles to a Raila presidency. Then you have ODM political opponents who view the book as fodder for their ambitions. What’s missing is that cool, clear, sober, rational analysis of the merits (or lack thereof) of the very serious claims Miguna rightfully raises. He’s made a sterling effort and you only wish intellectuals such as Professor Kibutha Kibwana can match Miguna, pound for pound.

Q: Well that’s almost top billing. Why do you accord Miguna such high marks?

Mugo: Because he’s done the Unthinkable. First, he has given us a close-up view of the extremely opaque world of high-level politics in Kenya. This is an extremely closeted world. Second, he is a Luo who has taken on the Jakom of the Luo. You have to understand that in Luo society, this act alone is like putting a gun to your head. It’s simply not done! So it takes a whole of…..I don’t even know if courage is the appropriate word, but you get what I’m saying. Finally, in one fell swoop, Miguna has succeeded in deflating the credentials of a man whose entire image and persona has revolved around the reform agenda. And exposed him for the very troubling persona that I now suspect Raila is.

Q: You’re right about the world of high-level politics and vagueness? They seem to go together like ugali and sukuma wiki, don’t they?

Mugo: Not quite because ugali na sukuma wiki is nourishing to the body; high-stakes politics drains Kenyans of vital resources and ultimately saps the nation’s spirit. There’s a huge opportunity cost. What the public hears or reads is ‘Sh1.8billion was lost in a De la Rue currency deal’, or ‘billions lost in Maize scandal’, or ‘forensic audit reveals staggering loss of FPE funds’, or ‘company registered in Cayman Islands wins billion shilling contract’, ‘NHIC disbursements to company despite non-existent clinics,’ or ‘Cabinet minister makes Sh800million on Turkana land sale’, or ‘they want to kill you’. There are no consequences on the part of the instigators. It’s a daily onslaught but all under the cover of darkness.

And then comes a beautifully executed master stroke of the surgeon Miguna. And what he reveals is the extent of the rot inside. This glow that you see on the outside is anything but. If anything, it hides a virulent cancer has metastasized into the offices, family and close collegues of a person who’s prided himself as being ‘as clean as cotton.’ The surgeon’s methods have furthered exacerbated the anger against him owing to their relative ease of verification. To a fault, Miguna’s been detailed, meticulous, and fairly exhaustive, providing events, dates, time, cell phone numbers, etc. He’s made it rather easy to refute the validity of his statements by being very generous on details. Instead of doing just that, the Prime Minister has cowered into a corner under the guise of ‘protecting democratic space that he’s so vallantly fought for.’ I think Kenyans should stop drinking the Coolade and start celebrating this rare gem of insight that could only come from the ‘closeness’ perch that Miguna’s previous work provided.

Q: I wouldn’t exactly say Nyando has been exultant?

Mugo: This is perhaps one of the poorest regions in Kenya. Look at what the elders there did. One has to be really disappointed at the Luo.

Remember this is a community that’s prided itself with being a driver of positive societal change since independence. I like to think of the Luo as akin to ‘the Massachusetts of the American Revolution’. Many of their sons and daughters have borne the brunt of the Kenyatta-Moi oppressive rules. Their prominent sons have been murdered, detained, denied jobs, business opportunities and other avenues of progress. But I have to admit to you that this is a community that I have some difficulty understanding.

Q: Why?

Mugo: It’s complicated, bwana! Raila is known in Kenya and overseas as a champion of reform. He fought Moi and has the scars – including several stints in detention – to show for it. You’d expect that someone so passionate about pluralism, about expanding democratic space, about improving governance, you’d expect such a person to welcome these same qualities in his community. After all, isn’t what’s good for the goose good for the gander too? But history shows that Luo Nyanza hardly brooks any dissent from the Leader. I don’t need to tell you about the Tujus, Orengos, Nyong’os, Omamos, etc. A 17-year old boy brought down a machette and killed his 19-year brother in 2007 in Luoland. Why?
Because his brother contended that Kibaki had won the election, while he himself knew Raila was the victor.

So you end up with a figure who’s seen as championing democracy, freedom of expression everywhere (including Ivory Coast) except in his own backyard. It’s this sense of contradiction that befuddles me. No one can stand up to Raila. This is wrong, wrong, wrong. Even Kenyatta had to contend with a menace called JM. And how can you forget Charles Rubia who would not cower under Kenyatta’s might. Or the Bildad Kaggias. But here mazee. So you just shake your head. It’s a troubling state of affairs.

Q: Every tribe has its idiosyncrasies, does it not? Maybe it’s a cultural thing among the Luo?

Mugo: I can’t quite put my finger on it, to be honest. A culture that stifles removes the markers of progress along its way. I mean people get appointed to the Cabinet and decline it because it doesn’t sit well with so and so. That’s stifling. A Wanjiru or Nyagah can still be part of ODM and get elected in largely Kikuyu constituencies. You see my point? This attitude boils down to one thing: the hyacinth in Lake Victoria cannot be solved unless through the Leader or his blessings; cooling facilities cannot be provided for Lake Victoria fish unless you have a thumbs-up from the Leader. I think you’re right about each community having its spots. But there has to be a common thread. For example, anyone will tell you that the most grievous exploitations of religions happen among the Kikuyu. There’s a ‘one-shot’ pastor who’ll ‘un-twist’ your mouth through prayer, for example. What he and the Kikuyu business magnate have in common is allegiance to pesa, that’s the common thread. What’s the common thread in Luo Nyanza? Some needs to educate me. But I think blind allegiance to the Leader should not be it.

Q: Do you think the Prime Minister was right in choosing to ignore Miguna’s allegations?

Mugo: Well he really didn’t ignore them but rather chose to respond by proxy, through Sarah Elderkin, a longtime ally. But of course this is not enough. I think Raila’s credibility, especially internationally, will be assailed IF HE FAILS CONFRONT THIS THING HEAD-ON. It will be like Romney with his tax returns, although much more serious. Any sense of dodginess on the part of the Prime Minister will only serve to heighten the sense that he has something to hide. This will be bad for him, and bad for his potential to lead the country.

Q: So what should he do?

Mugo: Basically provide exculpatory evidence. This should be easy. I have said before that Miguna has provided excrutiating details. This lays the ground for easy rebuttal if you are the ‘owner’ of the truth. I’ll just give you a few areas Raila should address, although this is by no means exhaustive.

1. Is Raila a nepotist? Would it be proper for Ministers to follow his example and use their vast powers to appoint or cause to be appointed their brothers, sisters, cousins, in-laws and other close relatives to key, powerful public service positions?

2. What is the nature of Raila’s relationship, business or otherwise, with South African business magnate Antonio Texeira?

3. Was Mr. Texeira involved in the importation into Kenya of the maize that was subsequently declared unfit for human consumption, but still released for domestic consumption. What was the extent of the PM’s office influence with the NCPB in respect of these maize imports?

4. Does Raila have mining and energy interests in Zambia & DRC? If so, how were these financed?

5. Heron Court Hotel: Is the Prime Minister privy to the knowledge that his Chief of Staff, Caroli Omondi, who earns Shs. 300,000 per month bought the Shs.800m hotel? In the event that Omondi’s proprietorship is confirmed, was the PM concerned enough to enquire how the financing of this transaction was done.

The basic point is that Raila needs to engage the Kenyan public. Power derives from the people. It is the Kenyan public that made me who he is today. It is the Kenyan public that can also un-make the Prime Minister.

Q: Well, let’s wrap it up now. Finally, tell us something about the coming elections in 2013. Who excites you in the race for President?

Mugo: Well, first March 2013 is now settled law. This means we have about 7 months to go.

Q: Who are you routing for?

Mugo: None of the above. None of these choices really excites me. I hope Kenyans look elsewhere for good leadership.

Q: Like where?

Mugo: There’s one individual that I really like. He’s name’s Martin Oduor-Otieno. Oduor-Otieno as you may know is the current CEO of Kenya Commercial Bank. Interestingly, his contract comes up in 2013. Does this dovetail well with…., well let’s see.

Q: Yes, a formidable business leader.

Mugo: With outstanding credentials I might add. Otieno joined KCB in 2005 as Group deputy CEO. Two years later, he was appointed CEO. He has solid education, having graduated from the University of Nairobi with a BCom Accounting. He has an MBA from ESAMI/Maastritch in the Netherlands and has received Advanced Management training at Harvard University. The thing I admire about Otieno is his vast business experience and how he’s translated that into great growth for the businesses he’s been associated with.

Q: What’s his background?

Mugo: Well, he started out as an auditor for Panel Bellhouse & Mwangi in 1979. Then it was on to BAT where he spent the next 10 years strengthening distributor accounting reporting systems and distributor education. Barclays Bank came calling and this turned out to be a 13-year engagement, culminating in an appointment as Head of Reporting & Compliance at Barclays’ African regional office in South Africa.

Q: Sounds like he’s had great international exposure?

Mugo: Yes. But home too. In 1999, Oduor-Otieno was appointed Permanent Secreatry, Ministry of Finance as part of (Head of Civil Service and Secretary to Cabinet) Dr. Richard Leakey’s dream team.
instituting a highly skilled team to lead key government departments with one of the pre-conditions the World Bank and the IMF placed upon Moi in order to resume eligibility for loan facilities. He was there for 2 years before returning again to Barclays. So, long and short of it all, this is a relatively young man with very robust credentials to lead Kenya.

According to Mr. Joseph Kinyua, the Finance PS, Kenya loses over 30% of government expenditure – in excess of Shs. 270billion per year – to corruption and governemnt wastage.

The nation’s CEO must be one who has a thorough knowledge of the world of accounting, finance and banking, but have top private sector turnaround skills. Otieno’s career can be summed up with one word: turnaround. His results at KCB speak for themselves; it’s the largest Kenyan banks with a regional presence in more than 5 countries.
I hope Kenyans give this father of two sons and two daughters a really close look. If you don’t go for a results-oriented type of leader, then we’ll be in the hole for another 5 years. Just think of what an Otieno-Mugo Kibati administration would look like. Up to you, wananchi.

Q: Haya asante sana Bwana Mugo. It’s a tall order, all the points we’ve touched and I hope Kenyans and lovers of Kenya will enjoy and havetheir thoughts provoked in a creative fashion.

Mugo: Mimi pia nasema asante sana. God bless Kenya (BELIEVE ME, WE NEED IT) and God bless America.

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