from Judy Miriga
dateMon, Jan 25, 2010 at 7:43 AM
Folks,
We want to know:
1. How this deal was made?
2. Why Kenyan professionals did not play a role?
3. Why Kenyans were not notified or informed?
4. Why Local Community were not employed to do the manual road work?
5. Why Chinese prisoners were imported to do the job Kenyans can do?
6. Why Kenyan’s security is compromised by importing dangerous criminals
7. Why Kenya is importing substandards commodities which consumes our
economy putting an edge to our GDP
8. Why Parliament did not approve this deal
9. Under the road reserves the Chinese are constructing, there are a lot of Mineral
soil, we want to know, who did feasibility study, who surveyed and mapped the
report, and why it was not made public before an investor is invited
10. Why the exported minerals and soil were not inspected by Kenyan Authority
before they are shipped or airlifted out – who gave the mandate of Kenyan’s
natural soil to be shipped stealthily to China?
11. We want to know why the Kenyan Parliament is quite when Kenya is rapped by
foreigners……
12. Who is supervising the work of this foreign Company to confirm Kenyans
standards are maintained
Cheers!
Judy Miriga
Diaspora Spokesperson
Executive Director
Confederation Council Foundation for Africa Inc.,
USA
http://socioeconomicforum50.blogspot.com
– – – – – – – – – – –
China’s march in Kenya upsets local firms
Officials of a Chinese company on site of a road construction project near Isiolo town in July 2008. The road will join Isiolo town and Ethiopia. Photo/FILE
By DAVID OKWEMBAHPosted Saturday, January 23 2010 at 21:00
In Summary
Contractors say the Chinese get big easy deals and could drive them out of business
Days after a visit by the Chinese Foreign minister Yang Jiechi, the Moi International Sports Centre, Kasarani in Nairobi was closed down for a Sh1 billion renovation.
Shengli Engineering, a Chinese firm, was awarded the lucrative tender to refurbish the country’s biggest stadium that was built by the Chinese government for the All Africa Games in 1987.
It also transpired that the Chinese official had confirmed his country’s support for plans to build a multi-billion dollar sea port in Lamu.
Once constructed, the port would serve as a key entry into southern Sudan, Ethiopia and Rwanda via a new rail network.
While the government is receiving the windfall from the China, many local companies are questioning the easy way in which Chinese firms seem to access major capital projects and key sectors of the Kenyan economy.
Major projects
Cheap and often sub-standard Chinese goods have also found their way onto the shelves of Kenyan supermarkets and kiosks.
From 44 companies in 2001, the presence of Chinese firms has increased to more than 200 operating as trading companies, restaurants and clinics.
The Cninese Embassy in Nairobi says there are 12 major Chinese companies in Kenya, including Huawei Telecommunications, Sinohydro Corporation, China Road and Bridge and Shengli Engineering.
Also in the country is China National Offshore Oil Corporation (CNOOC), which is involved in the exploration for oil in northern Kenya.
Chinese companies are already involved in various other sectors in Kenya, including telecommunications, infrastructure and energy.
The projects in different parts of the country run into billions of shillings.
The construction sector – housing and roads – has attracted the highest number of Chinese companies with key roads in the country under rehabilitation or construction by them.
Among the major projects undertaken by the Chinese firms are the expansion of the Kisumu airport, rehabilitation of the Moi International Sports Centre, expansion of Thika-Nairobi highway, the Sondu Miriu power plant interface and oil exploration in northern Kenya.
The acting permanent secretary in the ministry of Roads, Hyslop Ipu, defended the award of tenders to Chinese firms saying most of the tender had been floated internationally while others had restricted conditions for the bidders.
But local traders and firms involved in construction are questioning the rationale of shifting towards China when the balance of trade is tilted towards the Chinese.
While none of the local companies is questioning the quality of the Chinese projects, they are concerned that many of them may be forced to close down or lay off staff due to unfair competition.
Roads minister Franklin Bett is on record as praising the Chinese firms for their quality and timely completion of projects.
According to last year’s Economic Survey, Kenya’s exports to China stood at Sh2 billion while imports from China were at an all-time high of Sh63 billion.
A report by 14 universities in Africa under the aegis of the African Economic Research Consortium (AERC) released two months ago warned that increasing investment, foreign aid and diplomatic ties with China would hurt Kenya.
“Fears have been raised about threats to engineering talent and skills and the collapse of local construction companies due to invasion of Chinese construction firms,” says the report.
The researchers feel that Chinese firms are undercutting local companies and that the latter may collapse.
They estimate that more than 50 per cent of construction activities in Nairobi, both private and state-sponsored, have been captured by Chinese construction firms usually preferred for projects ranging from roads, water systems, power generation and hospitals.
“Increasingly, the structure of employment is changing, with an increasing proportion of foreign employees in Chinese enterprises,” says the report by the University of Nairobi’s Institute for Development Studies.
However, these findings are disputed by the Chinese press attaché in Kenya Liu Bo and Mr Ipu.
Mr Bo told the Sunday Nation that Chinese were not involved in any underhanded deals to get the lucrative tenders.
“We strictly adhere to all tender regulations, but it is because of the workmanship that Chinese companies are awarded the tenders,” Mr Bo said.
While agreeing that some tenders were restricted, the press attaché said most tenders were advertised internationally and open to all companies including those in Kenya.
Quality of products
He also defended the quality of products imported from China, saying his country was very strict about standards.
“There is low quality and counterfeit. Kenyans should separate the two because China does not encourage counterfeit while we have quality standards for all our goods for export,” he added.
Mr Ipu defended Chinese companies, saying Kenyan firms could benefit from technology transfer from their Chinese counterparts.
“We are building the capacity of local firms so that they can compete with other international firms,” the acting Roads PS said.
But a leading local contractor in the road sector, who can’t be named without jeopardising his business, accused the government of favouring Chinese firms.
He said while the government gave local firms 10 per cent of the total cost of the project when it was awarded a contract, the Chinese were paid 50 per cent.
On signing the contract, the Chinese contractors are given a further 40 per cent of the total cost, but nothing is extended to local firms, he said.
“How do you expect us to compete when the ground is not level?” the contractor asked.
Barely surviving
While the Chinese make their money, Kenyan firms claim to be barely surviving on small projects awarded by local authorities and the Constituency Development Funds (CDF).
Peter Musango, managing director of Kirinyaga Construction, one of the leading road contractors in the country, was not available for comment as fortunes of the firm are said to have dwindled due to the stiff competition from Chinese firms.
At one time the company owned by the Mathira MP Ephraim Maina controlled major contracts in the road sector as well as construction.
Mr Ipu said Kenyan firms might be losing out on some of the major capital projects because of the conditions set by donors that blocked local firms.
The latest edition of London-based African Confidential cautions African countries, Kenya included, to tread carefully when dealing with China.
“For now, because of their richness in natural resources and as a nod to South-South solidarity, African countries may at times punch above their weight in China’s strategic considerations.
Yet China’s relations with Africa are just a small piece of its foreign policy when seen in a global context, and African countries would do well to remember that,” the magazine notes.
frompeter ndemi
dateMon, Jan 25, 2010 at 9:59 AM
subjectRe: China’s march in Kenya upsets local firms- How Can One Define
Corruption?
Hi Judy
You raise some excellent arguments in your article but what I would like to ask is whether the Kenyan companies which in the past were involved in road building can be said to have built roads half as good as we are currently seeing built by the chinese can you remember roads being built by our local contractors developing potholes even before they had finished laying the tarmac and consider the huge capital expenditures involved. That is why we have super millionaires in Kenya who are cowboy contractors on top of that our own professionals approved the said completed roads and gave certificates of completion, therefore its’ better the chinese build our roads now as we struggle to retrain the so called professionals in the roads sector.
Peter.
fromTim Arnold
dateTue, Jan 26, 2010 at 7:15 AM
subjectRe: China’s march in Kenya upsets local firms- How Can One Define Corruption?
Hello Judy,
You raise some genuine concern but alot sounds like witch hunting. Coz if you live out the chinese in you statement and ask the same questions including the local contractors then they will fail even more miserably. First i have worked for a number of former local road contractors actually 4 and they all collapsed and thank God for Kenyas they did.
No project from the Chinese companies have stalled or incomplete hate them or not they produce good quality roads, drainage, buildings to the highest quality on time and under budget. Mombasa Road, Nakuru dual highway, Kericho to Kisumu testify to that. they work day and night employ local workers and get their government to fund the whole project by concessionary loans and grants that do have any conditions.
Why local companies are locked out was due to the Cowboy contractors who have been paid for none existence roads or shoddy work. They cant even make the first round of tendering which has been been used by the Ministry and supervised by the world bank.
Judy to get the details of how, which and why this contacts and given just visit the minisrty of roads website and look and the volumes of criteria and rules push onto us by donors to get anything done and you will understand why is hard for local companies.
As kenyans we want transparency both ways with our own and the foreigners not just chinese, european n the rest just because they are feeling the heat from the emerging asian power.
You will need a miracle or be really good to convince us that the previous contractors (kirinyaga and the likes) can do a better job. First let them finish their current contracts or repay what they stole.
fromgwada ogot
dateWed, Jan 27, 2010 at 5:16 AM
subjectRe: China’s march in Kenya upsets local firms- How Can One Define Corruption?
Kenya has a fair share of local criminals who can be condemned to labor for the nation- importing criminal elements for whatever purpose rings poor.
frommwangi
dateWed, Jan 27, 2010 at 5:04 AM
subjectRe: China’s march in Kenya upsets local firms- How Can One Define Corruption?
The issue of China’s influence in Kenya’s and indeed africas and the whole world business can not be wished away.This is a huge country that has over the years was quetly ploting how to infiltrate the world.THey thrived by reverse engineering until now they are at the pedestal of business deals
In Kenya they seem to have completly overtaken the old cowboys in the infrastructure deals who are now crying foul.It is important that we grow our industries ,proffessionals and other key positions.There is therfore the need to balance the needs of the consumer with patriotic actions on the part of awarding these contracts.
Having said that it is also imperative that i mention that as a consumer all i care is the fact that i can drive ,walk on passerbal roads devoid of crater like potholes.Our contractors have over the time thrived on ripping us off by enriching themselves yet do not do a good job on the works given.Roads have taken years on end to finish.And by the time they are finishing where they started is peeling off.They have only themselves to blame and i would rather have the chineese get the money and leave the road net work working than giving the work to my fellow country man who will not only get the money but who will not finishing the work
Finally we may need the chinese to be required to employ the services of our engineers for transer of technology.we should get it either by stealing or coping it ,otherwise we will continue complaning untill cows back home
Mwangi
fromKENNEDY KORIR
dateWed, Jan 27, 2010 at 8:23 AM
subjectRe: China’s march in Kenya upsets local firms- How Can One Define Corruption?
In 2002 Kirinyaga Construction Company (owned by MP Ephraim Maina) won a government tender to construct/rebuild the Sagana – Nyeri road. 8 years later the road is not complete in particular the shoulders and the storm water drainages. Due to very poor workmanship this road now is full of potholes and during heavy mid-day heat the bitumen melts creating bumps that are dangerous to motorists.
Litein – Bomet road is another one constructed a local entity (Patel & Company ) one of the Moi Asian tycoons, this was the period when the late Kipkalia Kones was the Minister of Roads in the late 90s. Exactly 2 years after completion one would have thought there was a major earthquake around the region for there were so many lateral cracks along the road, today even the local tractor owners would not use this road.
Research has shown that poor road planning, engineering and proper construction is the leading cause of road accidents.
These are the local companies that we are advocating for, the crooks who have corruptly stolen road resources and has resulted in many Kenyans being killed on the roads……….if your kin has been maimed or killed on the Kenyan roads you know now who to blame.
I WELCOME THE PROFFESSIONALS FROM CHINA …..let the locals learn from them for the next 20 years
Judy,
Please be fair! Kenyan companies have shown a special thievery and deceit that is of execeptional nature. I can not trust them, not even your own Presisdent! can I trust! Even God can not make me believe him if He tells me do!
But I can trust the Chinese, their work is there for all to testify! Further more, the Chinese companies does not represent themselves, they represent the people of China and the government of China.
They are there fore, expected of them to do a superb Job! Which Kenyans does not care!
In China, I lived there for years, in Sheny’ang, ( Mugden ) Near the frontier of North Korea, Shanghai and Hong Kong. I witnessed corrupt officials being hanged, and shot! All in public for all to see!
Now ask yourself, why the minister of Education stole all the money for the Schools, and nothing was done? Why nothing has been done about the Golden berg? We were Anglo-leased just yesterday, has Kibaki done anything? No!
In China, the Minister of Education would be facing execution! Therefore no monkeying around in China. Any Chinese that causes blemish to China’s image he shall for sure get it. Not like the thieves and robbers in Kenya, who operate at the zenith of the government!
Who are you to trust? a proven, Chinese track or Charlatans of Kenya? I will bet my life on Chinese before Kibaki or Raila!
Yesterday, Otieno Kajwang robbed Kenyans of 80 000 000.00/= And told every one he had to deport the Jamaican, why was he, the ( Jamaican ) not left in Jail, and if his government wanted to save him they would have send an air plane to take him back home to Jamaica!
Are there not Kenyans homeless now? why no one has ever come up to rescue them? What is the Kenyan priorities? Last year a mother in Yatta , gave birth to Twins, she starved to death! yet there were 80 million shillings to deport some wanderer?
I would rather stop here, I am in a mode, where I want to rip off some peoples’ heads!
TEKERE JELULE
It is rather interesting that Judy doesn’t talk about other foreigners like the British, the French, the Italians, the Americans and Israielis who are keeping looted Kenyan money. China doesn’t seem keen on keeping looted Kenyan money. The West, which Judy, implies are better, keeps this loot.
The other thing, why is it that Judy claims Chinese goods are of poor quality. Poor quality compared to which ones? American ones? American ones are made in China!!! Or are the Chinese spacecraft which have safely taken their cosmonauts into space and back poor quality?
I suspect, that Judy is not an engineer or a physicist. If she were she would not make statements which shows whe is a very ignorant person just like the people who seek political office or NGO type who seek public office to uplift their insignificant/inferiority-induced profiles.
Hear this, “First they shipped manufacturing to us. Then they added development of their invention/research. Then they shipped research, development and manufacturing to us!!!”. This was a very amazed Chinese talking. That is what American companies did. That is why they don’t manufacture anything anymore apart from military and police equipment. haven’t you heard that Americans are now looking for jobs in China? may be they are telling you Chinese goods are bad so that YOU don’t go looking for jobs in China. You might compete!!
Please, spare us statements which sound like you are trying to ingratiate yourself with Americans. Stand up on your own feet and be proud.
Prof. Chunga Nyamburaka.
judy is raising a very sound arguement
wheather chinese are doing a good job or no is not the issue, the issue is that we have contractors and thou they could not have come of age, we must support them and the only way is by letting them build roads in their country
and that is why there is a badly slopen trade imbalance between kenyas 2billion and chinas 63 billion.
any fool can see who is milking who
the strong chinese economy is sucking kenya dry in a liberalised market
if you have a child who is shaggy and a neigbours child who is neat and well groomed, whom would you choose?
your answer is as good as mine, you choose your shaggy child
okay iam not saying that we should give the bad ones but thre are fairly nice once and thay can be be tried.
we must believe in ourselves before anybody else believes in us
sorry , i also forget to mention that chinese are 30 billion, kenyans are 40 million, give these chinese an inlet to flood here, and kenyan wont know what hit them, everything will be chinese and they will outnumber us in virtually every thing
have a nice day
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CAPITAL OIL & GAS INTERNATIONAL
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could u please comment on somethin without dissin eachother coz realyy it sounds and seems sad…world peace
So Judy and William,…
Because we have a negative balance of trade with China, we shouldn’t let them serve us in a sphere where their technical expertise and cost effective structures far exceed ours? That is twisted logic!! Who do you suggest we partner with? Our ex-colonial masters and current economic subjugators no doubt.