America Speaks at American Chamber of Commerce

This is a powerful speech by USA. It throws down some amazing challenges that we Kenyans need to face up to-and also highlights some substantial issues we should deal with; and soon. Answers to the questions asked are especially relevant if Kenya is to move beyond the rut we seem to be stuck in as regards doing whats right, and getting our country beyond the shadow of politically instigated violence, corruption, impunity and lack of national leadership

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Reform, Partnership, and the Future of Kenya

Speech by U.S. Ambassador Michael Ranneberger,

American Chamber of Commerce, Nairobi

January 26, 2010

Good afternoon.  Thank you for the invitation to address the American Chamber of Commerce at this pivotal time in Kenya’s history.

The Reform Process and Kenya’s Future

2010 will be a decisive year for Kenya’s future.  It is the sincere hope of the U.S. Government that 2010 will be the year in which Kenyans bring about fundamental change in order to set their country on the path to a secure democratic and prosperous future governed by the rule of law.  I want to emphasize the unwavering determination of the United States to push for and support implementation of the reform agenda.  President Obama and Secretary Clinton believe strongly that Kenya must seize this historic opportunity to bring about fundamental change.  That message was highlighted in their recent calls to President Kibaki and Prime Minister Odinga urging a greater commitment to reform and development of a consensus position on a new constitution.

Achieving implementation of the reform agenda is the central objective of U.S. policy in Kenya.  Success in implementing key reforms will help ensure future democratic stability and prosperity.  Failure to implement significant reforms will greatly enhance prospects for a violent crisis in 2012 or before, which might well prove worse than the last post-election crisis.  Such an outcome is directly counter to both Kenyan and American interests.  Although most Kenyans understand what is at stake, real reform threatens the entrenched political class and the system of impunity that it has created.  That culture of impunity has contributed to inter-ethnic tensions, but real reform will help foster reconciliation.

It is impossible to talk about prospects for development and economic growth without clear indications that these reform issues will be addressed.  There are direct links between implementation of the reform agenda, corruption, and economic development.  The post-election violence reversed years of economic gains, destroyed the Kenyan people’s confidence in their government and leaders, and greatly tarnished Kenya’s international image.

In 2008, GDP growth was just 1.7 percent, down from 7.1 percent in 2007.  In 2008, the agriculture sector (which accounts for 24 percent of GDP and 70 percent of the work force) declined 5.4 percent compared to 2.2 percent growth in 2007.  And in 2008, tourism earnings declined almost 20 percent.  More than 20,000 tourism-related employees were laid off in coastal tourist areas. Although drought and the international financial crisis have also affected Kenya, the lingering impact of the post-election crisis is one of the main reasons why Kenya’s GDP growth is expected to be barely 2 percent this year. Without fundamental changes in the way in which Kenya operates, this country will never reach its true potential.  In his speech at the University of Nairobi in August 2006, then Senator Obama emphasized this point and warned of the perils of failure to address corruption and the other problems facing the Kenyan nation.  Regrettably, those prescient warnings nearly four years ago have yet to be fully heeded.

The United States Supports Implementation of the Reform Agenda

The signing of Agenda 4 of the National Accord, which lays out a comprehensive reform agenda, was not driven primarily by the United States, but rather by the fact that in the aftermath of the disputed election, the Kenyan people in unprecedented fashion made known their desire to bring about fundamental change.  Formation of the coalition government and the signing of Agenda 4 gave Kenyans a new sense of hope.  Thus the formation of the coalition government with its stated commitment to reform opened a pivotal chapter in Kenya’s history.  Most Kenyans agree that the window to achieve significant reforms will close by the end of this year, so the coalition leaders must act decisively and with a much greater sense of urgency.

In doing this leaders must partner with civil society, the private sector, religious communities, the media, and youth.  The old political culture in which politicians are the unaccountable dispensers of patronage must be dismantled and replaced with a new ethic of service to the people.

In the face of much scepticism about the reform process and cynicism about politicians, it is important to make an objective assessment of where the reform process stands.  Some significant progress has been made.  Among other steps, the old Electoral Commission has been disbanded; the Independent Interim Electoral Commission has been set up and has overseen two credible by-elections; the Truth, Justice, and Reconciliation Commission is beginning its work; anti-money laundering legislation has been passed and signed into law; and the constitutional review process is well underway.  The government’s stated commitment to police reform is welcome.  The government’s initiative to save the Mau Forest is also a positive commitment to reform. We are providing political and financial support for these reform steps.  The U.S. Government, at the highest levels, is committed to providing additional assistance to support reforms as they are undertaken.

U.S. support for the reform process should be seen in the context that the United States is by far Kenya’s largest and most important partner. The United States maintains in Nairobi its largest diplomatic mission in sub-Saharan Africa, and over 10,000 Americans call Kenya their home.  More than 300,000 Kenyans live in the United States, and about 7,000 Kenyan students are studying in the U.S. — the largest contingent of African university students.  The United States is contributing approximately $3 billion annually to Kenya’s economy and development through official assistance, trade, American private sector investment, remittances, humanitarian assistance, and private projects being carried out by thousands of American citizens. Our $560 million program to fight HIV/AIDS is the largest that we have with any country in the world.

Specifically related to the reform agenda, we continue not simply to remind the Kenyan Government of its own commitments to change, but to work directly with the Kenyan government and people to support implementation of the reform agenda.

On electoral reform, we have made available $600,000 to support the work of the Interim Independent Electoral Commission.  During the next 12 months the USG will spend more than $2 million to strengthen the role of political parties and civil society in electoral reform.  Our efforts will support party compliance with the new Political Party Act; bolster the roles of women and youth in parties; assist in the development of a national domestic monitoring network; and facilitate dialogue between the major parties and the Electoral Commission at the national and regional levels. An effective and transparent process of voter registration is also extremely important because without it, there can be no fair election.  This is why census results should be clear and correct.

The United States is supporting activities valued at more than $3 million annually aimed at promoting reconciliation and mitigating future conflict. At the national level, this includes technical support to the National Steering Committee tasked with overseeing peace building and conflict management. At the grassroots level, we are working to strengthen institutions such as District Peace Committees, civil society groups, and networks of community leaders – including women and youth – that have been trained in conflict mitigation and resolution.

We are providing $1 million to support the ongoing process of constitutional reform, including providing technical assistance to the Committee of Experts for international legal expertise; research, drafting, and mediation are available as required.  In an effort to increase the voice of citizens, the United States is providing $1.5 million to civil society to support civic education about the constitutional reform process and upcoming referendum.   We are providing support to Parliament on the constitutional review process, including assistance to the Parliamentary Select Committee and the parliamentary Caucus on Reforms.

We are committed to providing assistance to the Kenyan government as it begins the essential tasks of developing its financial intelligence unit and implementing the anti-money-laundering act.

Formulation and implementation of a national land policy is a critical aspect of the reform agenda. In December 2009, Kenya took an important step forward through the adoption of the first national land policy by the Parliament. The United States has created a $1.5 million program to support the Government of Kenya to implement policy and actions that will address some long-standing irregularities and inequities, mitigate land conflicts, restore the condition of natural resources, and diversify rural economies through secured land tenure and property rights regimes.  We will soon announce a major new program to support efforts to save the Mau Forest.

On police reform, ongoing U.S. assistance of over $14 million for training and equipment will support the Government of Kenya’s implementation of police reform.  The United States will provide increased support as actual implementation takes place.

More Must Be Urgently Done to Implement Reforms

While some significant steps have been undertaken, I want to emphasize that much more must be done – and done urgently — to implement the reform agenda.  We help push and provide support, but Kenyans must lead this process and make changes for themselves.

Specifically, the United States Government supports the Kenyan people in urging the following actions.

  • President Kibaki and Prime Minister Odinga should resolve contentious issues with respect to the draft constitution and bring about development of a single draft acceptable to the Kenyan people
  • Second, bold and decisive steps need to be undertaken to counter corruption.
  • Third, perpetrators of post-election violence must be held accountable.
  • Fourth, judicial reform, reform of the Attorney General’s office, and rapid implementation of police reform should be carried out.
  • Fifth, concerted efforts should be made to promote national reconciliation.

President Obama and Secretary Clinton each recently called both the President and Prime Minister to urge them to reach a compromise over contentious issues surrounding the new draft constitution.  Though we have not put forward any specific proposals, it is important that whatever draft is agreed upon, first, ensures a coherent government system which limits power though a system of checks and balances and, second, ensures full participation and fair representation of all the people of Kenya.  The progress which is reportedly being made in the PSC deliberations is encouraging.  It is essential that the new constitution will end the longstanding “winner take all” approach in Kenyan politics, will help reassure all Kenyans that their interests will be protected, and will thus serve to de-emphasize  the importance of ethnic electoral alliances. The President and Secretary made clear that tough compromises need to be made on the constitution and that implementation of the reform agenda must be greatly accelerated.

Reaching agreement on a consensus draft of a new constitution would be a major positive step forward.  That would pave the way to hold a non-divisive referendum that would help unify the Kenyan people and set the stage for a constructive electoral process in 2012.  Thus, taken together, the development of a consensus draft and the holding of a successful referendum would constitute a very significant watershed for reforms.  My government, at the highest levels, would respond very positively to this.

The constitution is, in many respects, the sine qua non of the reform process.  Without a new constitution, implementation of other reforms will not prove sufficient to steer the country in the right direction.  If a new constitution is put in place, then implementation of other reforms, along with the new constitution, will help ensure future democratic stability and prosperity.

Corruption must be addressed. The United States shares the deep concern of Kenya’s development partners and the Kenyan people regarding the continuous revelations of large-scale corruption, most recently within the Ministry of Education.  The United States government has suspended a planned five year, $7 million capacity building program for the Ministry of Education that was scheduled to begin in 2010 until there is a credible, independent audit and full accountability.  Those culpable for the fraud should not merely be sacked; they should be prosecuted and put behind bars.

With regard to post-election violence, the United States firmly believes that the organizers, financiers, and perpetrators must be brought to justice.  There is no more glaring example that impunity is alive and well in Kenya than the fact that two years after the events there has been no accountability for the over 1,000 lives lost and 350,000 people displaced in the violence that swept Kenya.  Those who organized, financed, and perpetrated the violence must be brought to justice, preferably through a local tribunal, but through international investigation and prosecution in the absence of a credible local tribunal.

Strong leadership is needed across the political spectrum to promote national reconciliation.  At a time when ethnic tensions remain high, talk of ethnic alliances is frankly irresponsible.  Such talk fuels tensions, foments division, and undercuts the reform process.

Accountability – Key Questions

In the spirit of candor among friends, I want to raise some very serious concerns I frequently hear from Kenyans, and which are directly relevant to the reform agenda.

  • Kazi Kwa Vijana has been plagued with accusations of non-payment to youth and misappropriation of funds.  Will there be clear transparency and accountability?
  • Due to the post-election crisis and the global financial crisis, the Kenyan government faces very serious budgetary constraints. The donor community had suggested that the government limit the number and size of delegations travelling overseas.  We therefore shared the Kenyan people’s dismay at the government’s November 12 announcement increasing travel allowances.  Under the new allowances, a Minister visiting Europe would reportedly reap $918/day in allowances, more than the average Kenyan earns in a year!  Will this allowance structure be reviewed?
  • The Goldenberg and Anglo Leasing scandals combined cost the Kenyan people $1 billion – and not a single high level official has been brought to justice.  Now we are hearing the government may make significant additional payments to Anglo-Leasing-related companies.  What will be done to ensure accountability and transparency?
  • Has the Cockar Commission report on the sale of the Grand Regency ever been made public?
  • The Kenyan taxpayers are on the hook for up to $100 million through the Triton oil scandal.  What is the status of the investigation, plans to prosecute those involved, and plans to recover those assets?
  • In response to the maize scandal, the government promised the Kenyan people and donors a forensic audit.  Where is the audit report, and what is being done to bring to change the corrupt practices of government officials who use their positions to benefit financially from food acquisition and distribution – including food for the poor and starving?
  • The government also pledged to donors that it would outsource at least some operations of the National Cereals and Produce Board by September 2009.  Yet there has been no progress.  When will the government take this much-needed action?

The Urgent Need for Reforms – 3 Individual Stories

In talking with ordinary people as I travel around Kenya, I know that corruption, the culture of impunity, and the failure to implement the reform agenda have real life-or-death consequences.  There are many victims of these crimes, and I would like to take a moment to relate a few of their stories. I will not use their real names.

Wanjiku lives just an hour’s drive from here in Central Province.  When her mother passed away, she was forced to leave school before completing her primary education to take care of her six siblings.  Now married and a mother herself, Wanjiku’s husband works as a night guard and he brings home a monthly income of 2,000 shillings.  Her husband has tried to move up to be a supervisor or join the police, but can’t afford the bribe needed to get a better paying job.  Wanjiku struggles to house and feed her four children and supplement her husband’s income with occasional tailoring jobs.  When the maize scandal unfolded, the rise in corn prices meant that Wanjiku’s children often go without meals, and now show the telltale signs of malnourishment.

Hassan is a bright, energetic twelve year old boy whose parents work as day laborers in a rural community in Coast Province.  Hassan knows that education is the key to escaping the cycle of poverty, and diligently studies each night by the light of a flickering candle.  Despite his efforts to soak up knowledge, Hassan’s class numbers eighty students and meets in a crumbling classroom block.  The Ministry of Education has promised additional teachers and a new building, but the funds disbursed were siphoned off through corruption.

Betty was forced out onto the streets of Nairobi when her father took a new wife who beat Betty daily.  After a few days she was detained by the police for vagrancy, and placed into a holding cell, which Betty at first thought would provide a dry place to sleep.  Late that night, however, one of the police officers in the station entered the cell and violently raped Betty.  After seeking care from a hospital which confirmed the assault, the police rejected the hospital report and insisted that Betty be examined by Nairobi’s sole police physician instead.  After the police doctor reported no sign of assault, the police prosecutor declined to pursue Betty’s case, leaving the officer who raped Betty free to assault other vulnerable young women who, in an accountable society, should be under his protection.

The Unwavering U.S. Commitment to Push Implementation of the Reform Agenda

Let me underscore the position of the United States Government that there will be no “business as usual” with those opposed to implementation of the reform agenda.  We have already begun to ensure that those most egregiously involved in corruption will not use the benefits of that corruption in the United States.  We will continue to do so and may take additional actions in the coming weeks regarding persons who are not welcome to travel to the United States.

The United States Government will continue to work with the Kenyan government where possible to support implementation of reforms, while exerting pressure as necessary.  At the same time, we will encourage and support civil society, the private sector, religious groups, and the media to support implementation of the reform agenda.

In November, we supported a National Youth Forum that took place in Nairobi.  The Forum was organized by 66 independent youth organizations and brought together over 700 delegates from every constituency in the country.  The Forum took place in the context of our continuing efforts to expand outreach to youth and to expand support for independent youth organizations as part of the broader process of propelling domestic-driven pressure for implementation of the reform agenda.  One of the outcomes of the National Youth Forum was that youth leaders committed themselves to mobilize millions of young people to provide input into the ongoing constitutional review process, and to push peacefully for implementation of the reform agenda.

Thomas Jefferson wisely observed that “Democracy is cumbersome, slow, and inefficient, but in due time, the voice of the people will be heard, and their latent wisdom will prevail.”  Senator Robert F. Kennedy said — and this is inscribed on his gravestone: “It is from numberless diverse acts of courage and belief that human history is shaped.  Each time a man stands up for an ideal, or acts to improve the lot of others, or strikes out at injustice, he sends forth a tiny ripple of hope, and crossing each other from a million different centers of energy and daring those ripples build a current which can sweep down the mightiest walls of oppression and resistance.”  We applaud the efforts of Kenyan youth, and indeed all segments of civil society, to make their voices heard, and we shall continue to support those voices.

As a follow up to the National Youth Forum, last month I launched a $45 million comprehensive program for youth called “Yes Youth Can.”  The “Yes Youth Can” program strongly complements on-going USG diplomacy and development efforts to reach out to and support grassroots organizations to empower them to push peacefully for implementation of reforms, to promote national reconciliation, and to develop livelihood opportunities.

Earlier this month, we supported a delegation of youth leaders and activists who went to Washington and met with Members of Congress, think tanks, and key officials of the Obama Administration concerned about the slow pace of reform in Kenya.  The message these youth leaders heard is the same as I have shared with you today: keep at it, work tirelessly and constructively for positive change, and you have our active and unwavering support!

In a few weeks Parliament is sending a delegation of the Parliamentary Caucus on Reforms to Washington in response to an invitation from the U.S. Congress.  The Caucus will meet with U.S. policy makers on the reform agenda, will develop contacts with key think tanks and NGOs relevant to propelling the reform process in Kenya, and will learn how caucus and issue-based campaigns work. We welcome this parliamentary initiative.

In my travels around the country I have had the privilege of speaking with thousands of Kenyans, and I have heard their hope — their hope that government will serve them, and not just the vested interests of the entrenched political elites; their hope for a better job and income to feed their families; their hope for a secure home and community; and their hope for a good education and better future for their children.

A Kenyan whom some of you may remember, Jonah Anguka, wrote a book about the murder of Kenya’s Foreign Affairs Minister Robert Ouko.  He depicts a situation that was as relevant in the Kenya of the 1990s as it regrettably still is today.  He quotes a Kenyan Judge, Justice Abdullah, who reportedly said in 1993:  “This is a country where the guilty go scot-free, but the innocent (are) incarcerated, where Goldenbergs and Sololo flaunt their wealth and live lavishly, but children of the streets arm themselves with feces to beg, where inciters of violence are condoned but preachers of peace are condemned….let us stop this rot. Let us stop this downward slide. Let us stop this headlong rush into the abyss now, or tomorrow will be too late.”

Now, more than ever before, the people of Kenya are demanding change, and we shall do all we can to support them in their efforts to achieve it.

Thank you very much.

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