How ‘wanjiku’ finances Uhuru’s campaigns

I have no intention of reviewing how the Kenyatta’s acquired their enormous wealth, especially the hundreds of thousands of acres that they ‘own’. That is common knowledge. I also do not want to talk about how Chinese billions funding Jubilee campaigns or even how much Ruto managed to ‘hustle’ from Mama Ngina in order to sell Kalenjins to GEMA/TNA

I am just surprised that the Kenyatta’s are not content to merely spend their billions. No. They instead, have devised truly ingenious schemes to get the extra buck from long-suffering Wanjiku. I will only explain two such.

In the last few weeks, Kenyatta’s brookside dairies have increased the price of milk by more than 20/= per liter… and counting. Brookside deals with millions of litres of milk daily. So do the maths on how much more money 20/= per litre means to the bottom-line. Farmers, many of whom have been tied up in unfair contracts with Brookside (Brookside always retains a month worth of sales!) and cannot sell their milk to anybody else, are not being paid a coin more. Farmers are receiving exactly what they have been getting from Brookside even when retail milk prices were lower. Yet housewives are paying much more at the till. Due to strange rainfall patterns this January, there is a lot of fodder and the quantities of milk produced are still very high. So milk shortage is not the problem. It is simply about raising money for campaigns.

The Kenyatta’s are known for cut-throat competition. Brookside Dairies has systematically cannibalised other dairy processors; either elbowing them from the shelves or buying them off. This is creating a monopoly. KCC is now being run by Kenyatta allies. They fought viciously, weakened and bought off Spin Knit (Tuzo). As the Kenyatta’s push the price of milk upwards to raise money for campaign, they are also using their allies at the Kenya Dairy Board – a Michira Gichohi in particular – to harass small traders who hawk milk.

A second example that I will not dwell on is the usurious M-Shwari. Here again poor folks are being forced to pay the highest interest rates in the World (7% per month)!

CBA is an elitist bank that has no time for poor folks. They would not stand them in their pristine banking halls. So they have found a way to to take their money without even meeting them or knowing their needs and concerns. But notice again the cut-throat biashara of the Kenyatta’s in display here: the idea of M-Shwari was a Faulu innovation. CBA simply stole it.

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By roughrider Posted in kenya

13 comments on “How ‘wanjiku’ finances Uhuru’s campaigns

  1. On the milk bit, being someone who lives somewhere along Kiambu road, all I can say is that the people of Kiambu rarely buy the milk in packets. What the farmers have done is to open milk shops all over and therefore they bring the milk directly from the farm to the consumers with no middlemen. This whole arrangement costs the consumer sh. 60 per litre. Now, if the sh 60 covers for the transportation of milk, the rental of the shop space and the farmer is able to make a decent profit from the milk, how does one defend the almost sh 100 being charged by the milk processors? And besides, what is sold @ sh 60 is full cream milk that usually costs more at the shops & supermarkets.

    No wonder more than 80% of the milk doesn’t reach the processors. It is also little wonder that the ‘big boys’ in the milk sector wanted to propose a statute that bans the sale of raw milk that would have forced farmers to sell their milk to the big boys.

    On the M-Shwari, even before this extortionate product was launched, the M-Pesa account was originally @ CBA. When the M-Pesa deposits crossed the sh 500B mark, CBK stepped in and compelled Safaricom to bank the money with other banks as well, as things stand the total M-Pesa deposit base exceeds sh 1 Trillion with several hundred billion @ CBA. Now, any smart person at a Treasury department of a bank will tell you the possibilities of what can be done with hundreds of billions of cash in the bank….So, it is not only through the M-Shwari that Kenyans are paying, we are earning them money through M-Pesa as well.

  2. Why your milk is so expensive

    “They have also raised concern over the current milk prices, saying that while farmers are being paid Sh35 per litre of milk, consumers are paying close to Sh100 per litre for the same commodity in the supermarkets.

    “This is nothing short of exploitation due to the fact that a few big processors dominate dairy processing, and can therefore control prices at will,” said Chira.

    http://www.standardmedia.co.ke/?articleID=2000078264&story_title=Kenya-Why-your-milk-is-so-expensive

  3. This is a lot of nonsense…brookside products are priced highly than Tuzo as a market segmentation strategy, also don’t forget one has a choice of Molo Milk, Fresha and even the local mama pima…so the notion that Brookside is financing Uhuru is just a blunt attack on a business that has excelled. secondly the Mshwari interest 7.5% being touted here is a saviour compared to 15%+ interests at the banks not to forget it’s hustle free money with no paperwork and guarantors. even my SACCO with all their welfare matras can only offer me 12%…c’mon people if its progressive its progressive period. if today RAO managed to get an ingenious deal with an Arab dealer and is able to supply 90% of the LPG market are we going to tell Kenyan’s not to buy gas X because it’s marketed by Spectre… let’s not take our political shenanigans to private businesses. If Safaricom, CBA or Brookside are conducting an illegal business someone please show me and lets go to the commercial courts.

    • Dodoman;

      Think. The SACCO offers 12% per year. M-Shwari is 7.5% per month. These are the highest rates in Kenya. Also note that Tuzo now belongs to brookside and the prices of the milk are exactly the same on the shelves.

    • Dodoman,

      Ignorance is no defence. 7.5% interest that is being charged is per month, the 12% charged in SACCOs is per annum. so, if you are to compare apples to apples, M-Shwari = 7.5% & SACCO= 1%. As for Brookside…..Brookside Dairies bought the milk processing wings of Spin Knit (Tuzo) & Delamere dairies….Could you please tell us how the acquisitions were done….

  4. As much as the timely of the milk shoot price coincides with the campaigns, i bet to differ. Uhuru’s wealth in total can enable them to pay every single voter including those in the opposition a total of 40,000 and still remain a million-er man…. and thats just cash in the bank….. the whole campaign if it costs kes 17billion, that would be a half year profit from the real estate in britain, east africa and other countries. the milk prices going up is due to the scarcity of the commodity … milk is reducing due to the dry spell hence they are buying it at more than 30 per liter from the farmers…..do you research before posting

    • Frank Mwenja;

      Press reports from real farmers disagree about the production. Thanks for the info about Uhuru’s fabulous wealth. The question is how it was acquired: could it be wailing seller, willing buyer?

  5. ReCBA: It is actually 7.5per cent per month -90 per cent pa simple- via the GOK controlled Safaricom which markets this service to the impoverished 80 per cent. The Safaricom mantra is that this is really a savings programme since deposits attract up to 5percent interest! Smoke and mirrors? As for milk which is priced at American levels which category of ” wanjiku” can afford to purchase beyond the minimum daily requirements? Certainly not the “wanjikus” who raise dairy cows! Wait for targeted sanctions; already heavily penalized Kenyans won’t notice any change in their lives although their political elites may have diminished commercial opportunities.

  6. You must be aware that Ruto is also in the mix with his Buzeki Diaries?

    I have been forced to cut down on milk consumption, these guys are literary milking us dry. I think the prices of milk will have doubled in the next few weeks, all indications show that.

    Then they con Gor Mahia with a skewed sponsorship deal!

    • I think that the only way to break this monopoly is for the counties to build small diary factories to handle locally produced milk. In this way prices might be kept to a minimum.

      While at it why not build smaller beer and soft drinks companies all in the counties to produce more affordable stuff.

      In many countries this is the trend. So one will have Kisumu, Kitui, Mombasa, Kakamega, kericho beer or soda etc.

      The county government must think really fast.

    • mzee you are onto something there, and thats why there are a lot of people against true devolution. hopefully the governors, senators and MPs will latch onto the opportunity to enact laws that promote local industry

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