Claiming Election Victory Is One Thing, Governance Is Another One Altogether

President-elect Uhuru Kenyatta (R) shares a word with Finance Minister Njeru Githae at a past function. Photo/FILE NATION

Uhuru makes his first misstep!


Wage burden heavy, says Uhuru


President-elect Uhuru Kenyatta and deputy William Ruto have warned that the Kenyan wage bill is not sustainable and that the next government would consider freezing pay rises or effecting salary cuts.

The two said that Kenya risked being the most uncompetitive country in the sub-Saharan region because of paying high wages that were not sustainable.

“We need to focus on this issue of an unsustainable wage bill, we must address it and align the rates with the level of our economy,” said Mr Kenyatta.

He noted that the government would also work around reducing the cost of basic commodities so that even if wages were slashed, Kenyans would still afford basic commodities and lead descent lives that the economy could sustain.

Deputy President-elect Ruto said that Kenya lagged behind in development because development funds were used to pay excess wages that did not generate income.

Mr Ruto indicated that they would “put facts on the table” to harmonise wages and focus on reducing the cost of living instead of continuous salary increments.

He noted that Kenya spent 12 per cent of its total GDP paying wages yet other countries in sub-Saharan Africa limit themselves to around six to seven per cent which is the recommended global average that can leave sufficient resources for growth.

“This is double the normal and is totally unsustainable,” said Mr Ruto.

The two said their government would invest in production of basic food commodities and the provision of basic amenities like health care which would reduce the cost of living to be in sync with reduced wages.

Efforts would be made to grow the Kenyan economy by double digits as is the case in countries like Ethiopia and Ghana, they said.

Their remarks come a day after the Salaries and Remuneration Commission reduced MPs’ perks by 37 per cent from Sh850,000 to Sh532,500.

The commission — which is seeking ways to reduce the public wage bill — has ensured that incoming MPs will not enjoy the privileges of duty-free vehicles like their predecessors.

Instead, the MPs will be given a Sh7 million loan to buy a vehicle of their choice and repay it with a three per cent interest rate. The loan, which is an entitlement, will have to be repaid in five years or before the end of the term of the 11th Parliament.

The new SRC terms have also put a cap on sitting allowances for MPs who are members of House committees of the National Assembly and Senate.

The Treasury in January hinted that there could be massive job cuts and salary reviews in the public service from July. This will help the government manage a wage bill inflated by Sh40 billion to get teachers, lecturers and doctors back to work.

“Difficult choices must be made to ensure that scarce resources are directed to priority areas of economic development,” Finance minister Njeru Githae said in the Budget Policy Paper released in January.

Among the listed choices was layoffs and wage increase freezes.

“Salary pressures will also impact on pensions hence increasing the government contingent liability,” Treasury permanent secretary Joseph Kinyua said in the paper.


According to the Economic Survey 2012, Kenya had about 220,000 central government employees as at 2011.

111 comments on “Claiming Election Victory Is One Thing, Governance Is Another One Altogether

  1. Hehehe… if muthamaki can stay away from mademoni and kadhalika for just a day, he may soon realize the futility of running away from the truth. haya shauri yake.

    Someone brought this to my attention. for those on facebook please check out fred omulo’s page – specifically the machage clip. He talked like a real mzee

    Machage has never been my favorite politician – we gave him the seat but ‘he delivered’ the kuria votes to uhuru 🙂 yawa..

    Although this was a solemn ceremony to console Dalmas and family, I see no problem discussing matters of national importance.


    • Wow, thats called an elder’s reprimand

      Straight talking/shooting from the hip as it were. Very similar to what Bonny Khalwale did

      As i understand it, Uhuru has now asked to stop being insulted. Hehehe truth can indeed be very insulting, and it hurts deeply

      Funny how URP “nusu mkate” is now only “nusa mkate” and TNA (read central) loaf is being swallowed whole as URP and the rest of the country watches.

      Looks like the 41 vs 1 rhetoric will not go away anytime soon


      • Admin,
        Perhaps this speech here by Machage is what Uhuru considers an insult. But it is truth and nothing but the truth.

        Uhuru wants everyone to behave like William Ruto, just bowing down and saying yes to everything. Not Machage and not Khalwale


  2. Why Jubilee’s foreign policy falls short of global realities

    Chinese Premier Li Keqiang (L) gives a speech next to (L-R) Uganda’s President Yoweri Museveni, Kenya’s President Uhuru Kenyatta, Rwanda’s President Paul Kagame, and South Sudan’s President Salva Kiir on May 11, 2014 after the signing of the Standard Gauge Railway agreement at the State House in Nairobi. AFP/PHOTO

    By David Ndii

    “Fortune is guiding our affairs better than we ourselves could have wished. Do you see over yonder, friend Sancho, thirty or 40 hulking giants? I intend to do battle with them and slay them. With their spoils we shall begin to be rich for this is a righteous war and the removal of so foul a brood from off the face of the earth is a service God will bless.”

    “What giants?” asked Sancho Panza.

    “Those you see over there,” replied his master, “with their long arms. Some of them have arms well nigh two leagues in length.”

    “Take care, sir,” cried Sancho. “Those over there are not giants but windmills. Those things that seem to be their arms are sails which, when they are whirled around by the wind, turn the millstone.”

    During his trip to China last year the President published a belligerent op-ed articulating his “Look East” foreign policy.

    He talked of the economic rise of Africa and Asia “that rekindles memories of an ancient world economic system of great duration” and of the importance of a secure Indian Ocean to Asian economic development “since it supports regional energy security.”

    “Actions to secure the Gulf of Aden and to secure the Horn of Africa coastline from the grip of terrorist groups must be seen in this context.” He is talking about Kenya’s military intervention in Somalia, but makes no mention of Western military and financial support in it.

    “China,” he concludes, “is important to our trade and investment agenda” as are “India and Singapore, Russia, Ukraine and Belarus, and others such as Brazil, Ukraine and South Africa.” He leaves out Iran and North Korea — but you get the drift.


    Like Cervantes’ character Alonso Quixano who reads so many novels that he ends up living out his chivalrous fantasy as Don Quixote, Mr Uhuru Muigai Kenyatta seems to be living out a cloak and dagger diplomacy of a bygone era. He needs to snap out of it.

    A man with a decent liberal arts education, the President seems to have forgotten the lesson from the Melian Dialogue, a required reading in Classics 101.

    The dialogue is a fictional account weaved by Thucydides into his History of the Peloponnesian War, of the debate between the leaders of Melos a small island city state, and Athenian emissaries.

    The Peloponnesian War was a three decade long hegemonic war between Athens and Sparta. Athens has besieged Melos and given the Melians the choice to either submit to Athenian rule or be laid waste.

    In the dialogue, the Melians take the moral high ground, arguing that they have done no wrong, are entitled to their freedom and even contend that the gods will favour them to triumph in an unjust war.

    The emissaries argue realpolitik, pointing out that failing to conquer Melos would make Athens appear weak, which it could not afford, as it would encourage others to defy it:

    “For ourselves, we shall not trouble with specious pretenses—either of how we have a right to our empire, or are now attacking you because of the wrong that you have done us—and make a long speech which will not be believed; and in return we hope that you, instead of thinking to influence us that you did not join the Spartans, although their colonists, or that you have done us no wrong, will aim at what is feasible, since you know as well as we do that right, as the world goes, is only in question between equals in power, while the strong do what they can and the weak suffer what they must.”

    The Melians chose valour. They were laid waste.

    But it is in on the economic front that the President and his foreign policy handlers really tilt at the windmills.

    Today’s globalized economy has no East, West, North or South. It runs on global supply chains and fluid faceless capital that whizzes round the world in nanoseconds. Your adorable iPhone is assembled in China but most of the money you paid for it ends up in US.


    Kenya Airways is burning a serious hole in our trade balance, buying new planes to take Africans to China. Boeing. Sure, the Embraers are made in Brazil, propelled by Rolls Royce and Pratt & Whitney engines. American corporations are the biggest foreign investors in China, and China is the biggest buyer of US Government debt.

    The President talks of Africa “shaping into a globally indispensable source of raw and value-added materials for industries and consumers in Asia.” Investors, including the Chinese, are not coming to Africa for raw materials— or rather that is not new, they’ve been doing that for more than a century. What is new is that Africa is shaping into a significant market.

    The engine of Africa’s economic resurgence is consumers. Investors are coming to Africa to sell stuff. African consumers are buying over a hundred million mobile phone handsets a year, and tens of millions of motor cycles, TVs, fridges and microwave ovens.

    READ: KAGWANJA: Why China’s ‘soft power’ approach appeals to Kenya

    READ: GAITHO: Emerging narrative about Western sabotage is merely Jubilee propaganda

    READ: MUTIGA: Time for UhuRuto to call off their campaign-era war with the West

    They are making merry, quaffing rivers of beer and Scotch, making the Diageos and SABMillers of this world happy.

    Sure enough, China needs raw materials, but these Africa will export regardless and China can buy them in the world market. Oil and gas are popping up all over the place, and the world’s biggest consumer, the US is on course to become self-sufficient in less than a decade.

    China like much of the West, is an aging society. “To be rich”, Deng Xiaoping said, “is glorious.” China’s biggest challenge is that it will grow old before it grows rich.

    China’s wage cost is already pricing it out of the sweatshop manufacturing that has been its growth engine for the last three decades. So China needs to invest its current savings where they will yield the highest returns.


    At just over 900 million folk, the population of Sub-Saharan Africa today is two thirds of China’s 1.3 billion people. China’s population is forecast to start shrinking in just over a decade, while Africa’s is forecast to keep growing for a long time.

    In 2050 Africa will be more populous than both India and China. Africa will be approaching two billion people, India will be at 1.6 billion and China will be down to 1.3 billion, two thirds of Africa’s.

    Africa’s 180 million workforce is a fifth of China’s 850 million today. But between now and 2050, Africa’s workforce will grow five-fold, while China’s will contract by half. Africa’s workforce will be twice China’s, and the World’s largest, and youngest.

    Both China and the West need Africa to grow and prosper so as to become a big enough market for both trade and investment. We are, as it were, their pension plans.

    The tyranny of numbers is on our side. We need neither shake fists at the West or suck up to China. What we ought to be doing is calmly going about our business of positioning ourselves as the World’s gateway to Africa, and Africa’s gateway to the World by building a reputation as a country that is open for business.

    The last thing we need is a Government that throws tantrums at customers with ruined holidays. We need Western, Asian, South American, African tourists and investors—we need them all.

    If I were the President, each of the tourists evacuated from Mombasa would have left the country with a voucher for an all-expenses paid holiday at a time of their choice. And I would have been at the airport to apologize and hand it to them.

    Spare us the theatrics Mr President and get on with the job.


  3. Why Jubilee has become a byword for blunder

    By David Ndii

    A few weeks ago, I was shooting the breeze with friends in one of those conversations we call in my language shortening the evening—an oxymoron, since they almost invariably go on to the small hours.

    As this was around the Jubilee Government’s one year anniversary, we pondered a little bit on how it might fare in the second year.

    The one thing on which there was unanimity was that the Jubilee Government could be relied upon to continue blundering. As one usually prescient political observer put it, if there is a banana skin on the other sidewalk, Jubilee will cross the road to skid on it.

    As if on cue, we watch helplessly as the Government scales the walls of the cemetery to go waking up ghosts — I am talking about Anglo Leasing.

    In another one of his now predictably intemperate op-eds, the president’s speech writer attempted a satirical spin on the blundering, blaming everyone from corrupt civil servants to analogue citizens for frustrating Jubilee’s gallant efforts to run a “clean government and sound financial management” (I keep telling you they are smoking something these people!).

    Judging from the comments on the article on the web, it was a blunder.

    As an economist, I much prefer to draw my conclusions from data. For this article, I did a two second opinion poll on the Jubilee Government. I googled “Jubilee Government blunders” and Jubilee Government achievements.” Results were as follows.

    Blunders: 5.5 million hits. Achievements: 1.2 million.

    It could of course be that the results for blunders are spiked by reactions to the speech writer’s article. Not quite. A search for “Eric Ng’eno Jubilee Blunders” yields 770,000 hits.

    So even excluding the reactions to the article, the public association of Jubilee with blunder is at least three times as likely as association with achievement.

    So what is ailing Jubilee? Three things. Institutional change, paradigm paralysis and leadership.


    Institutional change. Jubilee seems totally befuddled by the challenge of institutional change brought about by the new Constitution.

    Much of the public focus has been on devolution. This is part of it, but not the biggest challenge. For the national government, the change from a parliamentary to presidential system is the bigger challenge.

    Take the complete separation of executive and parliament. In the old system, every ministry had at least one and typically two assistant ministers.

    With thirty ministries, and more than forty in the last one, this meant that the president had a team of at least 80. This has now been reduced to 20. This requires a very radical re-configuration of both the functions of the executive and how it works.

    Jubilee does not seem to have recognized this, and continues to try and work like in the old system. So the Cabinet Secretaries find themselves running all over the place, permanently overworked, not achieving very much, but they can’t seem to figure out why. It’s rather like watching a beginner swim—furious violent motion, water all over the place, very little movement.

    But perhaps the more poignant study is the tension between the two offices of Secretary to the Cabinet and the President’s Chief of Staff.

    The Secretary to the Cabinet position is established by the Constitution. It is the lesser half the job of the previous position of Head of the Civil Service and Secretary to the Cabinet.

    The Chief of Staff is not in the Constitution but it is a common position in presidential systems of Government. It is more or less an elevated position of the Comptroller of State House.

    The problem here is not with the positions per se but one of the President bungling the transition. The first mistake was to appoint the two senior most bureaucrats in the previous system to the two positions.

    In a presidential system, both positions are below the positions the two incumbents held previously. What we are now seeing is a re-creation of the powerful Chief Secretary position occupied by Ambassador Francis Muthaura and his predecessors.

    But the Constitution abolished this position because it does not fit in presidential system with executive Cabinet Secretaries.


    It would not have taken much work to devise a State House staff structure for a presidential system. A good place to begin would be to google “White House Organizational Chart.”

    There, you find that the President’s Chief of Staff has two dockets under him, a Deputy Chief of Staff for Policy and Deputy Chief of Staff for Operations. The functions under the deputy for policy are similar to those for the Secretary to the Cabinet while those of the deputy for operations are similar to those of the Comptroller of State House.

    The way I would have gone about it is to add Chief of Staff portfolio to the Secretary to the Cabinet position and then create under it “Deputy Chief for Cabinet Affairs and Policy”, and “Deputy Chief for Administration and Comptroller of State House.”

    The President has gone on to add security docket to his chief of staff. We now find ourselves with a clueless innkeeper and overworked twice retired bean counter as our security policy chiefs. Terrorists, muggers and alcohol poisoners beware.

    It is fairly obvious that there is a big gap somewhere between the President and the security agencies. How does the country whose system we have copied do it?

    Most people will remember Condi Rice, George Bush’s brilliant, elegant National Security Advisor. Here’s the Wikipedia entry for the US National Security Advisor:

    “The Assistant to the President for National Security Affairs (APNSA), is a senior official in the Executive Office of the President who serves as the chief advisor, stationed in the White House, to the President of the United States on national security issues.

    This person also participates in the meetings of the National Security Council. He or she is supported by the National Security Council staff that produces research, briefings, and intelligence for the APNSA to review and present either to the National Security Council or directly to the President.” Enough said.

    Paradigm paralysis. For the last two decades at least our development policy has been led by the Washington Consensus, which reduced to its core, is the dictum that free markets equals growth equals development. Free markets tick. Growth tick. Development? This is what I call paradigm paralysis.

    The Bretton Woods institutions who we have relied on to provide intellectual leadership to our development policies have yet to come up with another paradigm to replace it.

    The problem is not that there are no viable development ideas Their problem is one of a paradigm that has them, and aid, in the driver’s seat — for the radically inclined, a paradigm that perpetuates dependency.

    For a while, they were onto infrastructure, but then the Chinese ran away with that show.


    The Washington Consensus has been dealt a serious body blow by the global financial crisis. Finally, the penny has dropped. The rich also cry. But having never before thought for themselves, our leaders now wander the geopolitical wilderness looking for new foreign masters.

    It is said that if you don’t know where you are going, any road will get you there. So they roam. China, Russia, Brazil, Turkey, Nigeria. The one place they don’t look is inward, to their people.

    Leadership. In his memoir From Third World to First: The Singapore Story, Lee Kwan Yew had this to say: After several years in government I realized that the more talented people I had as ministers, administrators and professionals, the more effective my policies were, and the better the results.”

    I was in a social place I frequent when both instalments of the Jubilee cabinet were unveiled. The most common reaction to the appointees was “who is he” or “who is she”, followed by, “really? ”

    These reactions of course do not mean that the people are not talented, but the fact that a broad cross section of the country’s top professionals and business leaders had not heard of three quarters of the cabinet is pretty unusual.

    When we pick our national football team or Olympics athletics squad, you expect people who follow the sport to know most, if not all the team members.

    I don’t have any data but I would be surprised if there are many precedents where a president picked cabinet members from a bunch of CVs submitted by cronies.

    Cabinet calibre people would not have to send CVs to be scrutinized. Their public credentials should speak for themselves.

    There are two primary motivations why leaders choose weak teams. One is lack of confidence to lead people who are just as or more accomplished than he or she is. Such leaders choose people who cannot be threats to their position.

    The other is leaders who value loyalty more than ability. Such leaders choose people who will know that they owe their position to the leader, not to their credentials. Take your pick.

    Having made his bed thus, you would think that the President would be happily rolling on it. No. Having no substantive achievement to report in his inaugural State of the Nation address, he shoves out his hapless Cabinet to take the bullet for him.

    And now with frustration rising, they throw tantrums, lashing out at anything and everyone, civil society, media, opposition—it is everyone’s fault but their own.

    It is Charles Njonjo, that refreshingly forthright sage, who foretold many years ago, at another time like this, that when the leading sheep limps, the flock does not reach the pasture.

    Thankfully, times have changed. Thanks to democratization, economic liberalization, devolution and our nascent constitutionalism, Jubilee is not Baba na Mama, and theUhuruto Error is not going to be around for 24 years.

    David Ndii is Managing Director of Africa Economics–/-/440808/2317366/-/eg07dz/-/index.html


    • Can someone please give Uhuru Kenyatta some lessons on the basics of economics! How this guy is running the country is just painful to watch. Don’t we have good economists in the Jubilee Administration?

      Uhuru Kenyatta takes radical actions to boost tourism

      By PSCU

      President Uhuru Kenyatta has issued a raft of new measures to boost domestic and international tourism.

      He said Kenyans working in corporate and business entities will now enjoy paid up vacations in the tourism sector.

      Making the announcement after holding a meeting with tourism sector stakeholders at State House Nairobi, President Kenyatta said the Government is taking specific measures to stimulate the tourism sector including giving at least 25,000 Kenyans a chance to go for a week’s holiday every month at the expense of their employers.

      President Kenyatta also ordered that Government events be held in hotels, revoking a directive by the National Treasury Circular restricting the public service from holding conferences and other meetings in private hotels.

      The President’s move follows recent travel advisories issued by the United States, United Kingdom, Australia and France to its citizens that Kenya is not a safe destination.

      (READ: Kenya angered by US, UK travel advisories)

      Other measures taken to revamp the sector include exemption of VAT on air ticketing services supplied by travel agents as well as payment of all income tax related refunds owed to tourism industry players by the Kenya Revenue Authority not later than Thursday next week.

      “All park fees currently set at USD90 per non-resident and KShs.1,200 per resident guest shall be reduced to USD.80 and KShs.1,000, respectively, effective 12th June 2014,” he said.

      To increase flights to Moi international Airport and Malindi Airport, the President announced the reduction of landing charges for both local and international flights by 40 per cent and 10 per cent respectively.

      To give impetus to tourism sector recovery, President Kenyatta affirmed that all budgetary resources at National Government earmarked for foreign travel in Supplementary II, will be reallocated to domestic travel. He also urged other arms of Governments to do the same.

      “The National Government urges the County Governments to reallocate all their foreign travels budgets to domestic travels in order to spur growth of domestic tourism and sustain employment,” President Kenyatta stated.

      President Kenyatta said the industry has also identified several other measures to complement government’s initiatives to revamp the sector.

      The tourism stakeholders pledged to offer better vacation package to Kenyans compared to what they offer international package tourists, estimated at about USD 60 (Ksh5,280) daily per person.

      “The Government and Industry will develop an interactive Kenya Tourism Portal, within a week, to promote and manage booking and distribution of domestic guests under the Tourism Stimulus Program,” the President further added.

      He affirmed that for the Medium to Long Term Measures, the Government will reconstitute a task Force with a mandate of developing a strategy to address underlying challenges and positioning Kenya as a preferred destination for all types’ of tourism activities including conferencing tourism and professional services in Africa, attracting at least 5 million guests in the next five years.

      Chairman of Tourism Committee in Council of Governors who is also the Taita/Taveta Governor John Mruttu, said the Industry players appreciate measures taken by the National Government and that they will fully support the initiatives regardless the current challenges facing the sector.

      “ I also welcome what has been agreed with the hotel owners where hotels in the beach and in the park will stop selling curious and other wares and instead leave this business to small scale traders,’ Said Governor Mruttu.

      The chairlady of the Kenya Tourism Federation Lucy Karume urged all stakeholders in the industry to do their best and maintain the good image of the country.


      • Brother Einstein

        I saw this earlier today and my jaw dropped.

        Chinese “tourists” will come by force (I used to think the term for that was prisoners/captives or some other term for forced labour – or more precisely in this case, “forced pleasure”)

        Now we are extending the “forced pressure” (hehe pun totally unintended) internally compeling CEO to take vacation at some tourist hotel.

        You can take the donkey to the well, but I high doubt you can force him to drink

        What of fake receipts and all, which was one of the reasons besides austerity measures, that the previous directive was issued.

        And then we come to the fake-economics [fakenomics] of the issue (e.g left pocket borrows money/buys goods from the right pocket), Moi is just about beginning to sound like an economics guru


      • I just love these comments here:

        ThebullJ • 16 hours ago

        This is like a kiosk owner giving his children/relatives money to lineup at his kiosk and give the impression he is busy….or unpopular politician mobilizing his/her family to hold his signs allover town…in both cases reality eventually catches up with them…in case of the kiosk owner you ended in financial straits and the politician voting day blows the lid off your gimmick….


        Chege Chuckles > ThebullJ • 8 hours ago

        I totally agree. This is ridiculous. If we wanted to holiday at place where the “foreigners go,” we’d be doing it already…but we’re not. So these crazy incentives will further contribute to bleeding the state dry. Anglo Leasing payments, interest on loans paid to China, duplicating devolved government through a renamed provincial administration, militarizing the youth service…bravo, indeed, Mr President!


  4. The DDD government is already broke! Heheheheee!!!!

    Unease in military over cuts in July allowances

    By Geoffrey Mosoku and Cyrus Ombati

    Nairobi, Kenya: There is confusion and unease in the military after soldiers noticed a significant change in this month’s salaries as indicated on their payslips.

    The Standard has established that their pay was less by an average Sh10,000 following the exclusion of food and laundry allowances that they have enjoyed for some time.

    Commissioned officers and soldiers from the Air Force, Army and Navy received payslips that indicated only basic allowances.

    The soldiers normally receive Sh9,500 as ‘gas’ or food allowance, while an additional Sh2,000 and Sh500 is paid out to women and men respectively as laundry allowance.

    Soldiers who spoke to The Standard on condition of anonymity, because military protocol does not allow them to comment publicly on the matter, said the change follows implementation by Kenya Revenue Authority of a requirement that even State officers pay tax on allowances.

    Military officials, however, played down the concerns with Department of Defence (DoD) Spokesman Bogita Ongeri saying there was no discontent in the military’s rank and file.

    Mr Ongeri said whereas the pay had not been slashed, there were alterations in the payslips of all Kenya Defence Forces officials that he attributed to the separation of ‘vote items’.

    “This is a matter of separating the vote items in the payslip to distinguish between those for allowances and that for salary. That has been explained to the officers,” he added.

    Ongeri explained that the two votes were facilitative allowance and salary. But multiple soldiers interviewed said the second vote is not reflected in their payslip.

    Ongeri said unlike other disciplines and workers, soldiers first receive the slips before the salary is credited to their bank accounts. “They will get their money by tomorrow in the accounts. It’s only those who are on leave who have not been told what is happening,” Ongeri added.

    And the Chief of Defence Forces Gen Julius Karangi told The Standard no money had been deducted.

    “There is nothing like that. It has not been deducted and their money is safe. Just tell them that,” a firm Karangi said.

    He sought to assure that all was well in the military, and that they are determined to ensure the country is safe all the time.

    Although the military is not exempt from paying tax, most of their allowances are not taxed, particularly those paid to officers serving in United Nations or African Union missions. The development, The Standard learnt, has angered both juniors and seniors and they are demanding an explanation from their seniors.

    Avoid disagreements

    “These are the privileges that we have been enjoying, but can now not get an explanation on how the decision was reached,” said a soldier who asked not to be named.

    Most of those interviewed but who cannot be quoted said this was the first time that the State was taking away their allowances.

    Another source at the DoD who sought anonymity said the military payment system was structured in a way that when changes are made to an entry for an allowance, for example, it affects all serving officers.

    The DoD and the Treasury are said to be working on a system to separate the allowances paid for soldiers on peacekeeping missions from the rest to avoid disagreements with its international partners, but allow taxing of allowances paid by Kenyan taxpayers.

    More than 3,000 military personnel are currently serving in the African Mission for Somalia (Amisom) in Somalia under the United Nations. There are others who are also in UN missions across the continent and abroad.


    • Why civil servants have not yet received July pay

      By Standard Digital Reporter

      NAIROBI, KENYA: Civil servants have not received their July pay but the Government has moved to reassure them that it was not broke.

      Three Cabinet Secretaries confirmed that public servants had not been paid and stated that it had resources to pay them.

      Cabinet Secretary for Devolution Anne Waiguru, Henry Rotich (National Treasury) and James Macharia (Health) issued a statement on Tuesday stating that the Government had resources to pay its employees.

      “We wish to confirm that adequate resources for payment of salaries and other programmes are available and moving forward will be rolled out on a timely basis,” a statement issued by the three Cabinet Secretaries stated.

      The Cabinet Secretaries moved to reassure civil servants that plans were under way to fast-track their July pay.

      They said the delay was occasioned by restructuring of ministries after they were collapsed from 44 to 18.

      They said the restructuring, done in conformity with the new constitution led to inevitable delays in processing of all financial management transactions including processing of salaries.

      They stated that the National Treasury will immediately facilitate disbursement of funds to ministries to cater for the July payroll including salaries for civil servants who were to be paid by county governments.

      They said the County Government will refund to the National Treasury the salaries paid to civil servants on their behalf.

      The move is aimed at stemming disquiet among doctors who protested delay in their July pay and threatened to go on strike next week.

      Through the Kenya Medical Practitioners, Pharmacists and Dentists’ Union (KMPDU), the medics claimed they usually receive their salaries as early as July 22.


    • einstein

      this thing is quite elephant

      civil servants pay delayed. military allowances fudged. teachers july pay slashed

      all in the same period. and the govt says its not broke but is as a result of collapsing ministries from 44 to 18

      its funny, how come when ministries went up to 44 there wasn’t a similar delay? also some core ministries did not change so why would these be impacted?

      this DDD government has perfected excuse making. they offer excuse after excuse after excuse. and intimidate, bribe, and basically con their way out of issues through power brokers.

      they are not keen on finding lasting resolutions and i see already that the teachers have issued a 7 day strike notice.

      at which point will they tell us that, the coffers are drying up fast for any or all of the reasons below

      a) our foreign funding is fast drying up
      b) KRA revenue collection alone cannot keep pace with unsustainable govt expenditure particularly large wage bill – after paying MPs monthly salary, nothing left for anybody else
      c) misplaced priorities on projects
      d) persistent looting of public coffers through unnecessary expenses
      e) corruption – incidentally since corruption is a way of life in kenya, we need to simply include it as an expense item and stop thinking of it as something that can be eradicated.


      looks like GoK will have to go begging real quick somewhere (china, russia, etc) or else, govt will slowly grind to a halt.

      reading somewhere inflation rose from 4 to 6 percent June-July on account of increase in utilities costs.


      meanwhile lets bring on 2.5bn in celebration of 50 years of ….. hehehehe… self “rule”


      • well well well

        so this thing is even deeper than imagined

        even MPs pay is bdelayed, so what happened did parliament also collapse ministries from 44 to 18? hehehehe


        Usually, MPs are paid between the 25th and 30th of every month, and according to Njoro MP Joseph Kiuna, who also served in the 10th Parliament, this has never happened before.

        “We suspect either sabotage or the government does not want to admit that its coffers are dry,” he said in a telephone interview.

        “From the look of things, all is not well in Treasury.”


        but the clearest indicator


        several ministry operations are also gradually grinding to a halt.

        “We only report to office to pass time. We were supposed to be in the field but we cannot fuel our vehicles,” the source said.

        To date, the Government has not sent any money to ministries. This is despite the fact that it has been collecting taxes for the last 32 days.

        Administration police officers too have not received their July salaries even as their colleagues from regular police got their pay.


        well people, its time to start the mass photocopy of bank notes

        zimbabwe here we come


  5. Yeah! Chest-thumping is not a good thing!!

    Kibaki urges Kenyans to support Uhuru
    President Uhuru Kenyatta (right) with retired president Mwai Kibaki at the Moi International Sports Centre, Kasarani in Nairobi on June 23, 2013. Photo/STEPHEN MUDIARI NATION MEDIA GROUP

    Retired president Mwai Kibaki on Sunday appealed to Kenyans including politicians to support his successor Uhuru Kenyatta in building the nation.

    Mr Kibaki was at the Moi International Sports Centre, Kasarani in Nairobi where he said that he had come specifically to “say goodbye” to the nation.

    “I have a cold. I am still convalescing. I came to say goodbye and I also came because I knew it will be good to see you again,” said Mr Kibaki, who has kept a low profile since April 9, when he handed the leadership baton to Mr Kenyatta.

    “I have done my part. What is left is for you to do. I know you will do a good job,” he added.

    President Kenyatta said the new government needs a little bit of “help and support” to steer the country forward.

    Mr Kibaki’s appeal for Mr Kenyatta comes at a time when the country is dogged with multiple strikes from teachers to the nurses, all of which, are causing Mr Kenyatta sleepless nights.

    There’s also the siege from Somalia-based terror group Al-Shabaab; the inter-clan fighting that have resurfaced in the north eastern part of the country and the runaway insecurity because of turf wars between the Inspector-General of Police and the National Police Service Commission.

    “This man Uhuru Kenyatta has plenty of experience and he knows what he’s doing. He’s a hard-working man. Let’s pull together and help him move this country forward. He needs help. Everyone should come out and help him. That’s the only way we’ll succeed,” said Mr Kibaki.

    The call for “help and support” also comes within the week that the Jubilee administration is facing a major international snub, with the US President Barack Obama coming to east Africa for the first time but failing to make a stop in Kenya.

    The US officials say they will skip Kenya because of the pending cases against Mr Kenyatta, his deputy William Ruto and broadcaster Joshua Sang, at the International Criminal Court in the Hague.


  6. Poor Uhuru. Did we not warn you that winning an election is one thing, but governance is a different ball game! You will surely need the west, yes those you called names, if you are to survive this. I’m laughing my head off!! Here we go:

    Economists predict sluggish growth as debt burden rises

    A rising debt burden risks derailing Kenya’s development and slow economic growth.

    The government faces increasing budget demand amid revenue collection shortfalls.

    The pressure for higher pay by civil servants has seen the government increase its borrowing in the domestic market, pushing the domestic debt to over Sh1.1 trillion by end of last month with the country paying at least Sh10.1 billion monthly to service the debt.

    Economists argue that the government should re-invest the monies it is borrowing to development or capital expenditure if it is to put to good use its high appetite for borrowing.

    More than doubled

    Kenyatta University Economics lecturer Paul Gachanja said it is unwise for the government to borrow heavily, spend the money on recurrent expenditure and forget about infrastructure and capital investments.

    “There is nothing wrong in borrowing, but let the government invest the borrowed funds in capital expenditure,” Dr Gachanja said on phone.

    The public debt has more than doubled in the last decade to Sh1.79 trillion as at December 2012 from Sh749.5 billion in June 2005 according to parliament’s Budget Office.

    As of May 31, the gross domestic debt rose by 25.8 per cent (Sh221.3 billion), to Sh1.1 trillion up from Sh858.8 billion as at the end of June 2012 according to Central Bank of Kenya data.

    The debt on Treasury Bills (short term paper) rose by Sh129.2 billion, while the debt on Treasury Bonds (long term paper) increased by Sh61.6 billion.

    The chairman of the Parliamentary Budget Committee, the Reverend Mutava Musyimi, said the government had focused more on increasing its expenditure than on creating a surplus and allowing a private-sector led economic growth.

    Moving the motion to open debate of the report on the floor, Mr Musyimi said there was need for the government to be more creative on ways of raising revenue by reducing corruption and cutting on expenditure.

    He said the committee’s proposals were meant to free more money and make it available for development votes.

    Hurt the poor most

    Faced with huge and expensive promises expected to stimulate growth in the economy, the government is still weighing options on raising more tax revenues including slapping levies on basic commodities that may hurt the poor most.

    By March, the government had received Sh53.7 billion against a Sh233.8 billion target from donors, increasing revenue deficit likely to hurt economic growth.

    Alarm raised over Sh160bn cash deficit

    Parliament has raised the alarm over a Sh163 billion hole in the Budget and asked the Treasury to consider further cuts on expenditure or push for additional borrowing.

    The Budget Office — a team of mandarins which advises MPs on how to handle fiscal, monetary and economic issues when preparing the budget — said taxes alone will not fill the huge financing gap, because the maximum extra amount that can be raised through tax measures is just Sh50 billion — assuming more taxes will not be introduced.

    Tax structure

    “The current tax structure is unlikely to support the huge gap,” the Budget Office noted in a brief to the Budget and Appropriations Committee of the National Assembly.

    The report was released ahead of debate on the report of the Budget and Appropriations Committee in the House, and within the week that the Cabinet Secretary for the National Treasury, Mr Henry Rotich, is expected to read the Budget statement laying out tax measures, a revenue plan, and major policy decisions.

    The Budget Office also looked at the persistent failure of the taxman to meet his targets and labelled the Sh986.2 billion target for revenue as “unrealistic”.

    Public workers demand 90 per cent salary rise

    Civil servants have issued fresh demands for a 90 per cent salary increment.

    They also want new house and hardship allowances included in Thursday’s budget so that they can be paid from July 1.

    The Union of Kenya Civil Servants said its demands were in cognisance of the existence of the Salaries and Remuneration Commission and its role of advising the government on public officers’ remuneration.

    “The union has demanded a 90 per cent salary increase alongside other packages in the proposed Collective Bargaining Agreement.” UKCS said in a statement signed by Mr Jerry ole Kina on behalf of the secretary-general.

    The workers demanded that they be awarded a hardship allowance the government promised them in 2009 and that a 2007 pledge to harmonise house allowances be met.

    “Harmonisation of house allowances was meant to eliminate the discriminative payment where rural areas are paid less while urban areas are paid more,” the statement said and explained that the imbalance denied rural area some services as workers opted for urban areas to earn higher house allowances.

    The union asked the government to assure its members of job security due to devolution.

    The civil servants also complained of high taxation as opposed to their Defence counterparts who enjoy duty-free shops.

    They want the current tax relief raised from Sh12,000 to Sh30,000, and tax be levied on basic salary only, exempting all allowances.

    The union said it was easy to collect taxes from employees and asked the government not to punish civil servants for its inability to collect taxes from the private sector.

    And this below is a powder keg waiting to explode. I do not know if Uhuru really wants to touch it!?

    To tax or not to tax milk and bread?

    Debate over a proposed law that could impose taxes on basic commodities is likely to be re-ignited when the Treasury presents the 2013/2014 Budget to Parliament on Thursday.

    Earlier this week, the National Treasury Cabinet Secretary, Mr Henry Rotich, renewed the push for Parliament to pass the Value-Added Tax (VAT) Bill.

    The law proposes to impose a 16 per cent tax on bread, milk, sanitary towels and wheat flour and it is at the heart of the Treasury’s bid to fund the Sh1.65 trillion 2013/2014 national Budget.

    The proposed law was first introduced in Parliament last year as a part of a raft of taxation reforms contained in the then Finance minister Njeru Githae’s 2012/2013 Budget speech.

    However, it came to a grinding halt amid opposition from the public, parliamentarians and the private sector. Parliament put the controversial law on hold as it passed time-bound constitutional legislation.

    The VAT Bill was born of a need to streamline and simplify the legislative regime as well as to seal various leaks in tax collection.

    VAT currently contributes about 29 per cent of total revenue collection. However, the Treasury estimates that this could rise to 40 per cent with legislation that encourages compliance.

    “The main objective was to make the VAT tax code simple so that the government does not spend more money on the administration of the tax relative to the amount that it collects,” said Mr John Mutua, a budgeting expert at the Institute of Economic Affairs.

    The Treasury proposed a leaner list of tax exemptions and zero-rated goods. Goods that had been zero-rated, such as sanitary towels, newspapers, rice, wheat flour and processed milk would be subject to 16 per cent tax. Similar measures would apply to previously zero-rated services such as water drilling and film production.

    Critics of the proposed VAT Bill have argued that the Treasury ought to pursue alternative measures of meeting revenue targets without increasing the tax burden on Kenyans.

    The Consumer Federation of Kenya has called for adoption of austerity measures, pointing to “excessive costs on foreign travels”. It also wants KRA to increase transparency and efficiency in its revenue collection processes.


    • China’s loan to push Kenya debt to Sh2.3trn

      PHOTO | PSCU President Kenyatta and First Lady Margaret are welcomed by Chinese President Xi Jinping and First Lady Peng Liyuan at an official ceremony at the Great Hall of the People, Beijing, China on August 19, 2013.

      China’s commitment to offer Kenya Sh425 billion loan will push the country’s total debt level past Sh2 trillion, with analysts warning of challenges in servicing the debt.

      Total public debt, which stood at Sh1.9 trillion as at the end of May this year, has now soared to Sh2.3 trillion, the highest in Kenya’s history.

      The amount has also pushed the foreign debt past the Sh1 trillion mark and made China the top bilateral and single largest lender to Kenya, displacing Japan.

      It is, however, the pace at which the country is accumulating the debt that is worrying analysts. As of May this year, total external debt stood at Sh832.2 billion.

      “Infrastructure development ultimately provides support to the economy in the long term and the Chinese financial inflow is certainly a boost to overall development. We are, however, likely to have serious challenges in servicing the debts,” University of Nairobi economics lecturer Dr Samuel Nyandemo told the Nation.

      The country’s total debt was already past the 50 per cent GDP, at 52 per cent, by May 2013, a level experts say a country should start to get concern on its sustainability.

      The government already faces a huge challenge in financing domestic debt that currently stands at more than Sh1 trillion.

      The cumulative interest and other charges on domestic debt rose to Sh101.7 billion in the year to May 2013, compared to Sh74.2 billion over a similar period in 2012.

      “If the investment can yield returns in a much shorter time, then it is a good move. If the repayment period given is longer than the time the projects to be invested in are to mature, then the projects could yield better results in the economy,” said head of Sustainable Aid in Africa International, Mr Alfred Okeyo.

      Early in the week, President Uhuru Kenyatta led the government in signing several bilateral agreements that would see China, the second largest economy in the world, extend financial support to Kenya in a raft of economic partnerships.

      One of the key projects that China is expected to support is the construction of a modern railway line connecting the port of Mombasa to Uganda through Malaba.

      Another project is enhancing efficiencies at the port, a key trade route serving landlocked countries which include Uganda, Rwanda, South Sudan, Burundi and the Democratic Republic of Congo. Kenya is also constructing a port in Lamu as part of the Lamu and South Sudan Ethiopia Transport Corridor.

      By May this year, China’s debt to Kenya stood at Sh63.8 billion ($750 million). The additional Sh425 billion ($5 billion) pushes the debt to almost Sh500 billion.


    • Rising national debt will burden Kenyans, says Kenneth

      Former presidential candidate Peter Kenneth has decried the rising public debt saying it would burden Kenyans if not handled well.

      Mr Kenneth, a former Planning and National Development assistant minister recalled that at the start of 2008, Kenya’s national debt stood at Sh700 billion.

      “But just six years later the debt is about Sh2 trillion and from the look of things, it will hit Sh2.5 trillion by the end of the financial year,” says Mr Kenneth.

      “Therefore, while our national debt has more than tripled in the last six years, the economy has lagged behind,” Mr Kenneth said in a statement via email to

      As a result, he added, Kenya’s total national debt is now hovering at around 50 per cent of the GDP.

      “This is unsustainable as about 40 per cent of our revenues will go towards servicing debts and interests leaving no funds for development,” he adds.

      During the campaigns for the last general election, Mr Kenneth had cautioned about the rising national debt saying the issue required serious attention.

      “In recent days, the issue has gained some traction due to a significant rise in the debt though it still hasn’t attained prominence in our national conversations,” Mr Kenneth said.


      However, Mr Kenneth noted that the acquisition of national debt is not in itself a problem, adding that the challenge lies in how the money is used.

      He said money borrowed should be used prudently in projects that have the capacity to generate funds to meet annual repayments of both the principal amount and the interest.

      “It seems that a big chunk of our debt goes to finance the rising recurrent expenditure especially administrative costs.

      This deprives the economy of the growth momentum we need as a country to attain a middle-income status,” Mr Kenneth said.

      In the past, Kenyans have been overburdened by debts that were acquired for services that were not delivered.

      Mr Kenneth said Kenyans should be vigilant on the utilisation of borrowed funds so that they can serve the intended purposes.


      He said the National Assembly should also not be allowed to set remuneration packages that will hurt Kenyans in the long-run.

      He cited the hefty retirement perks that are being proposed for state officers.

      “A heavy and increasing wage bill and extravagant retirement benefits for top state officers will continue to threaten our economic prospects,” Mr Kenneth said.

      During President Uhuru Kenyatta’s visit to China recently, the Asian country committed to offer Kenya Sh425 billion loan.

      This will push the country’s total debt level past Sh2 trillion, with analysts warning of challenges in servicing the debt.

      Total public debt, which stood at Sh1.9 trillion as at the end of May this year, has now soared to Sh2.3 trillion, the highest in Kenya’s history.

      The amount has also pushed the foreign debt past the Sh1 trillion mark and made China the top bilateral and single largest lender to Kenya, displacing Japan.


      It is, however, the pace at which the country is accumulating the debt that is worrying analysts.

      As of May this year, total external debt stood at Sh832.2 billion.

      “Infrastructure development ultimately provides support to the economy in the long term and the Chinese financial inflow is certainly a boost to overall development.

      We are, however, likely to have serious challenges in servicing the debts,” University of Nairobi economics lecturer Dr Samuel Nyandemo told the

      The country’s total debt was already past the 50 per cent of the GDP, at 52 per cent, by May 2013, a level experts say the country should start geting concerned about its sustainability.

      The government already faces a huge challenge in financing domestic debt that currently stands at more than Sh1 trillion.

      The cumulative interest and other charges on domestic debt rose to Sh101.7 billion by May 2013, compared to Sh74.2 billion over a similar period in 2012.


  7. This is what Uhuru told us when he was still president-elect:

    ““We need to focus on this issue of an unsustainable wage bill, we must address it and align the rates with the level of our economy,” said Mr Kenyatta.

    He noted that the government would also work around reducing the cost of basic commodities so that even if wages were slashed, Kenyans would still afford basic commodities and lead descent lives that the economy could sustain.”

    You can read it here:

    And now this……….

    Consumer lobby opposes move to reintroduce VAT Bill

    Consumers have opposed the re-introduction of a Bill by Parliament whose enactment will see the cost of bread, maize flour and other basic commodities increase by 16 per cent.

    The Consumers Federation of Kenya (Cofek) said the controversial bill which proposes 16 per cent Value-Added Tax on the commodities would not only make life unaffordable to majority of Kenyans but would kill the economy, increase insecurity and diseases.

    “The government will be faced with almost instant realities of low food production and mass food imports which will deny the country a lot of revenue as well as strangle agriculture related industries that rely on locally produced raw materials,” Cofek secretary general Stephen Mutoro said Wednesday.

    Mr Mutoro, who was accompanied vice-chairman John Juma told journalists at Panafric Hotel, Nairobi that Cofek would lead consumers in camping at the Treasury or at State House if it is barred from presenting petitions to Cabinet Secretary Henry Rotich and President Kenyatta.

    “We will seek the support of all Kenyans to camp at Rotich’s office or at State House gate as they cannot eat while the poor continue to die. There will be no country called Kenya if the bill is passed at whatever form. We will ask Kenyans to come to the Treasury forever and eat from the Treasury,” Mr Mutoro said.

    Cofek further plans to write to the International Monetary Fund President, United Nations Special Rapporteur on the Right to Food, President Kenyatta and Mr Rotich to protest plans to reintroduce the Bill.

    “We will seek judicial intervention if the Bill is approved and assented to by the President,” Mr Mutoro said.

    Last week, Mr Rotich told Budget and Appropriations Committee that the Bill is a priority for the National Treasury if only to ensure that the taxman meets his revenue targets.

    Mr Rotich said there were revenue leaks in the current VAT Act that need to be closed.

    The VAT Bill proposes to slap a 16 per cent tax on basic commodities that are hitherto untaxed such as sanitary towels, newspapers, journals and periodicals, rice, wheat flour, bread, wheat, computers and computer software and processed milk.

    Domestic electricity consumption, water drilling services, and landing and parking services for aircraft also stand to be taxed.

    But Cofek said it is lobbying MPs led by ODM’s John Mbadi to reject the Bill saying it is unconstitutional.

    “It negates Article 10 provisions on stakeholder participation and is an affront on the economic and social rights and in particular Article 43 (1) which states that every person has a right to be free from hunger and to have adequate food of acceptable quality.”

    Taxing basic commodities is a sure way to increase revenue collections for the taxman, but it portends economic burden for the public.

    The inflation for the first half of the current financial year was recorded at 5 per cent, and if the taxman is to be believed, an increase in the inflation rate by just one percentage point means that the taxman will net Sh7.7 billion more for the public coffers.

    On Wednesday, Cofek accused the Jubilee Government of contradicting the Constitution by being pushed by the International Monetary Fund to pass and enact the Bill to win some favours. The Bill, Mr Mutoro said, was to be brought to Parliament during former Finance Minister Robin Githae’s tenure but rescheduled as the government then lacked numbers to pass it.

    If passed and implemented, the Cofek officials said, they feared unscrupulous traders will increase prices of the affected commodity by more than 16 per cent.

    “Farming will be affected as it will be cheaper to import some produce than grow locally,” Mr Mutoro said.

    Saying increasing taxation requires sufficient justification, Cofek said the government should focus on attracting direct foreign investments, reform Kenya Revenue Authority, introduce capital gains tax, strengthen Ethics and Anti-Corruption Commission and devolve it to Counties and put in place austerity measures to cut costs.

    “Unregulated expenditures on legal fees by government agencies hiring private lawyers point to the systemic incompetence and low capacity of the Attorney General,” Cofek said.

    The body also took issue with expensive foreign travels by top government officials, the Sh300 million requested by Judiciary for the purchase of a plane, continued financing of non-viable foreign embassies and investments in non-core government services.

    It said lowering VAT will generate growth and employment, zero-rating food would give immediate poverty relief and that even developed countries have VAT exemptions targeting the poor.

    “Tax harmonisation and reform measures need to enable the economy not to rely on imports but exports,” Mr Mutoro said.

    Additional reporting by Alugo Stacy and Winnie Adhiambo


  8. And now Uhuru signs an illegal Bill into law!

    President Kenyatta assents to Revenue Bill- Duale

    President Kenyatta has assented to the controversial Division of Revenue Bill, Majority Leader Aden Duale has told MPs.

    Mr Duale told MPs that the President signed into law the Bill on Monday.

    On receiving the news, the Senate adjourned and went into a closed session to discuss President Kenyatta’s move.

    Siaya Senator James Orengo broke the news to a shocked Senate and proposed the adjournment.

    President Kenyatta was under intense pressure to reject the controversial Bill, with less than 20 days left to the beginning of the next financial year.

    The Bill determines financial allocations between the national government and the 47 county governments, and is the first step to help the counties know how much money they will get from July 1 when the next fiscal year begins.

    The National Assembly and the Treasury had agreed on Sh210 billion, but the Senate added an extra Sh48 billion to ensure delivery of services in counties is not affected once the national government stops providing them.

    However, in the final Bill, MPs ignored the senators’ input and retained the initial Sh210 billion, leading to the conflict.

    Last week, Senate Speaker Ekwee Ethuro wrote to President Kenyatta and asked him to reject the Bill.

    Mr Ethuro also wrote to Attorney General Githu Muigai, with a plea to explain to the president why the Bill, as approved by the National Assembly was illegal.

    “What Bill did they submit to the president when they did not even touch the Bill that was sent to the National Assembly from the Senate? A Bill has to follow a laid-down procedure before it is said to have been enacted,” said Mr Ethuro.


    • Battle lines drawn as Uhuru signs law on sharing of Sh210bn for counties

      The turf wars between the two Houses has escalated dramatically as the Senate announced it would sue the National Assembly and President Uhuru Kenyatta in the Supreme Court.

      Senate Majority Leader Kithure Kindiki told a news conference at the Kenyatta International Conference Centre last evening that the Upper House had decided to go to the Supreme Court this morning because, it believed the President had made a “grave mistake” in assenting to the contentious Division of Revenue Bill on Monday night.

      “We believe that the action is against the law, and that it violates the Constitution fundamentally. We want to register our gravest concerns because it is an event like this that can trigger something which will undermine the rule of law in this country,” said Prof Kindiki.

      Senate Speaker Ekwee Ethuro had appealed to President Kenyatta to reject the Bill forwarded to him by the National Assembly, but the plea was ignored.

      The Senators have thus summoned all governors and all Speakers of the 47 county assemblies to Nairobi for a meeting to protest the president’s action. They said their meeting will be held at noon on Wednesday.

      “We are united across party lines. We have deliberated on this matter and we know that is has monumental implications on the future of this country as governed under the devolved government regime,” said Prof Kindiki, accompanied by 54 senators.

      He said the Senate had many lawyers who will help it prosecute the matter at the Supreme Court, and they were sure they had a case, more so, because the Division of Revenue Bill was the mother law for the sharing of resources between the national government and the 47 county governments.

      The news that the President had signed the Bill was broken in the National Assembly on Tuesday shortly after an attempt by Suba MP John Mbadi to stop debate on the Budget and Appropriations Committee’s report on the estimates presented by the three arms of government.

      Mr Mbadi had sought to have the debate stopped because the Public Finance Management Act states that the committee’s report can only be debated with the Division of Revenue Act in place.

      Important decision

      It was then that Majority Leader Aden Duale informed the House that the Act had been signed by the President.

      Speaker Justin Muturi confirmed this immediately and said President Kenyatta had assented to it at 9.30pm on Monday night.

      There had been no official communication from State House as is the norm when the President makes an important decision.

      Last evening, the President said he “acted strictly within the law, in pursuance of the national interest and with a view to safeguarding the integrity and timeliness of the budgetary process.”

      “In the aftermath of the stalemate between the two Houses…the options of the Executive under the law are limited to not acting at all, vetoing the Bill or Assenting to the Bill. The option of not acting at all would not help the situation as the Bill would become law after 14 days; while vetoing the Bill would similarly have led to further delays in the budgetary process. In the circumstances, the most prudent cause of action was to assent to the Bill in order to facilitate the timely conclusion of budgetary process and avert the risk of bringing Government business to a halt,” he said.

      The President said he would initiate negotiations between the two Houses.

      President Kenyatta’s assent of the Division of Revenue Bill means that the 47 counties will share Sh210 billion as approved by the National Assembly and not the Sh258 billion that the Senate wanted.

      With the Act now in place, the National Assembly last evening approved changes to the Budget estimates, setting the stage for the presentation of the Budget statement in the House on Thursday by the Treasury Cabinet Secretary.

      Some MPs contributing to debate on the Budget Committee’s report took the President’s action as a statement on the supremacy wars between the two Houses.

      Mr Duale said it would be unhealthy to politicise the argument between the two Houses as to who has more power in determining how much the national and county governments ought to get.

      “Let my older brothers in the Senate tell the country under what category the Division of Revenue Bill falls. Is it a money Bill or a special Bill?”

      He said the National Assembly also ought to create the necessary ways to make devolution achievable.

      Mr Chris Wamalwa (Kiminini, Ford Kenya) said the President’s decision doesn’t make the Senate impotent. “It confirms we are an upper House for that matter.”

      Opiyo Wandayi said the impression created throughout the debate over the Bill was that the National Assembly was against devolution and that MPs should work hard to change that.

      He said although the National Assembly’s actions were lawful and legal, it would still not be logical for the Senate to be excluded from the method of dividing revenue.

      “For us not to be seen to be sterile, let the government bring an amendment to the Constitution so that the Senate can cease to be involved in the division of revenue,” he added.

      In the Senate, Mr Billow Kerrow (Mandera) said the Senate was not contesting the figures, but the process.

      “If it was about the money, the National Assembly and the Executive would have come to us and sought an explanation of why we want Sh258 billion and not Sh210 billion as they had proposed,” said Mr Kerrow, who also chairs the Senate Committee on Finance, Commerce and Economic Affairs.

      Mr Kerrow said the extra Sh48 billion that the Senate had included was to ensure the service delivery in 18 counties was not hampered when the national government pulled out. The senators made their decision based on an advisory from the Parliamentary Budget Office.

      “We’re actually going to set these counties up for failure,” said Mr Kerrow.

      Former Attorney General Amos Wako, who is also the senator of Busia, and former Justice Minister Kiraitu Murungi, now Meru Senator, said the Constitution allowed any State Organ to go to court in cases where there was a breach of the Constitution was evident.

      “What the President has done by assenting to the Division of Revenue Bill is that he’s confirming the wrong interpretation of the Constitution, the wrong view that the National Assembly has held, that the Senate has no role in discussing the Division of Revenue Bill. We’re taking it to court for the correct interpretation,” said Mr Wako.

      Presenting the report of the Budget and Appropriations Committee to the National Assembly for debate, committee chairman Mutava Musyimi said this year’s budget is the highest this country has ever witnessed.

      The total combined budget presented to the National Assembly amounts to Sh1.642 trillion.

      He explained how his team had reached at decisions to cut down budget proposals of some sectors and departments.

      He said the public debt has more than doubled in the last decade and that the government must find ways of cutting down on expenditure while boosting production.

      The committee chairperson said the huge financing gap was a major cause of concern and should be taken seriously by the government.

      According to the Budget Office of Parliament, the stock of public debt has more than doubled in the last decade growing from Sh749.5 billion in June 2005 to Sh1,793.2 billion as at December 2012.

      According to Rev Musyimi, the government has focused a lot on increasing government expenditure as opposed to creating surplus and allowing a private sector led economic growth.

      The Budget and Appropriations committee, in determining the estimates gathered views from members of the public in various parts of the country before making recommendations that including denying some budget requests and drastically slashing down others, including that of the Parliamentary Service Commission.

      It also included considerations made by the various House departmental committees that also scrutinised budget estimates of various sectors and made proposals.

      Moving the motion to open debate of the report on the floor, Rev Musyimi said there is need for the government to be more creative on ways of raising revenue by reducing corruption levels and cutting on expenditure.

      He said the committee’s proposals were meant to free more money and make it available for development votes.

      Reported by Alphonce Shiundu, Caroline Wafula and John Ngirachu


  9. Treasury chief Henry Rotich lays out his plan to cure Kenya’s ailing economy

    By James Anyanzwa

    Roadmap: National Treasury Secretary Henry Rotich takes over at a time when the economy is in dire need of recovery after five-years of lackluster performance, Weekend Business Writer James Anyanzwa caught up with the father of two and he offered his medication kit

    (Q) Where were you when you first got to know that the Jubilee Government had picked on you as nominee for the post of Cabinet Secretary in the National Treasury and what was your immediate reaction?

    (A) I first got this news when I was in the office. It came as a surprise and I had to equally adjust myself very quickly to the new reality.

    (Q) As the first cabinet Secretary at the National Treasury what is your vision for this critical institution and the economy as whole going forward?

    (A) As you are aware, the Kenya constitution 2010 and the Public Financial Management Act 2012 require us to establish the National Treasury. In this regard my vision is to establish the National Treasury as a dynamic and responsive institution providing quality and effective economic and financial management for accelerated growth and a sustainable development of our country.

    It is my responsibility to ensure the promises made to Kenya by the administration are translated into realistic budget priorities and implemented efficiently and effectively. Building on progress we have made so far I will strive to ensure that we mobilise more resources for development through enhanced efficiency and without over-burdening Kenyans.

    I will also forge strong partnerships with the private sector, civil society and our development partners to accelerate growth, create more jobs and offer increased opportunities for the poor.

    (Q) What are some of the radical changes you want to implemented at Treasury?

    (A) The National Treasury has undergone important transformation over the recent past but more needs to be done.

    My priority will be to review the current organisational structure and put in place a new structure of the National Treasury in accordance with the requirements of the Kenya Constitution 2010 and the Public Financial Management Act 2012 and with respect to devolution and transparency of the public finance function.

    This will ensure a more responsible and efficient National Treasury that will be it easier to deliver on our promises and turn our dreams as a country into realities. We will deepen and broaden our public financial management reform efforts in line with the new Public Finance Management (PFM) strategy we launched in March this year, focusing particularly on revenue mobilisation and expenditure management including public procurement in order to ensure we always get value for money, working with the entire national government to rally everybody to embrace the idea of prudent use of public resources.

    Procurement reforms will entail revising our procurement laws and procedures to enhance participation of Kenyans especially the youth in our development agenda and also ensure that the laws are not a stumbling block to achieving efficiency and effectiveness in public programs.

    (Q) What are the immediate challenges you intend to deal with at the National Treasury office and the economy at large?

    (A)The main challenges that are expected currently include devolution, growing wage bill, escalation off expenditure proposals that go beyond our baseline ceilings and managing macroeconomic risks. As the National Treasury we cannot bury our heads in the sand because the issue of wage bill is very emotive. We must offer solutions and feasible alternatives and communicate this to Kenyans in a persuasive and convincing manner. The issue of wage bill must be looked at vis-à-vis the resources the economy generates, the tax rates that we cannot afford to raise, the current high youth unemployment levels and the level of wages in the EAC region and economies of the size of Kenya. At about 12 per cent of the GDP equivalent to about 53 per cent of revenues implying that we are spending more than half of our revenues on wages.

    No one needs to tell us that this is unsustainable. Therefore as a priority we shall develop a wage policy with very clear objectives and principles that are already in the constitution and the PFM Act. We are going to work very closely with the Salaries and Remuneration Commission (SRC) in order to ensure sustainable wage bill.

    (Q) You are taking the reins of the National Treasury at the time when the Kenyan economy is facing serious challenges such as dwindling revenue collections, mounting public debt, mounting wage bill, high current account deficit and spiraling interest rates. What are your plans of action to jumpstart economic growth?

    (A) The Economic Survey 2013 revealed that real GDP grew by 4.6 per cent in 2012, up from 4.4 per cent in 2011; we estimate that in 2013 real GDP is to expand by 5.6 per cent picking up to over 6 per cent in the medium term. This will be bolstered by production following favourable weather conditions, completion of key infrastructure projects (such as roads and energy and implement robust initiatives to revamp irrigated agriculture in the next budget. In addition we will continue with structural reforms especially those targeted towards improving competitiveness of the private sector and promoting overall productivity in the economy, and exports benefitting from the relatively strong growth in the sub-region.

    Finally domestic demand is expected to be robust following a drop in inflation, and increased investor confidence following the successful general elections. Expansion of revenue base will be achieved through measures to simplify the tax code in line with best practices, inorder to help improve tax compliance, minimise delays and raise revenue.

    VAT legislation is expected to be passed by parliament while Kenya Revenue Authority is expected to institute measures to reform the tax administration to eliminate leakages and to expand revenue base. In addition Treasury will take the lead in rationalising existing tax incentives, expand the income tax base and remove unproductive tax exemptions as envisaged in the constitution.

    To deal with the high Current Account Deficit I will focus on promoting growth in exports and ensuring that imports are mostly concentrated on capital goods that will boost growth particularly in new export sectors. High interest rates are a big issue and for the economy to grow they should be brought down. The rates have not been low enough to stimulate investments and it would be appropriate to provide a sort of market solution to this problem.

    (Q) What are some of the challenges you feel you will face while trying to allocate resources to fulfill the promises of government?

    (A) In the National Treasury priority allocation of resources is our primary preoccupation. The only challenge currently lies in rationalising the promises committed in the Jubilee Manifesto.

    However we are developing a structured mechanism that will help us to lay out the fulfillment of these promises carefully and in a sustainable sequence.

    This involves aligning them to the broader Vision 2030, ensuring feasibility of each promise based on concrete fundamentals, review capacities in various implementing units responsible for specific projects, as well as using a phased approach due to resource constraints. We will prioritise on the agenda of government by fastracking projects that will generate economic growth and improve the social wellbeing of Kenyans.

    (Q) How does the Treasury intend to deal with the problem of declining revenue collections?

    (A) I would not say revenues are declining, what has happened, especially this year is that we have had challenges especially with VAT. We have looked at these challenges together with the collecting agency KRA with a view of finding the root causes including changing taxpayer behaviours. Going forward we are going to address these challenges through administrative reforms. The VAT Bill which we expect to go through parliament soon will also be a step in the right direction.

    (Q) Do you think a five per cent growth rate is achievable?

    (A) Yes! This is achievable. Compared to 2012 where the economy grew by 4.6 per cent, the outlook for 2013 looks more favourable as I outlined earlier in this interview, but without belabouring the point, the Government will lay emphasis on various key areas that will enhance our growth prospect. These are continued investment in infrastructure, addressing the root causes of weak competitiveness, supporting Small and Medium Enterprises and agri-business, supporting manufacturing, maximising the use of the country’s natural resources, deepening regional integration and enhancing food security through irrigated agriculture.

    These together with expected external environment, favourable weather and robust domestic demand following successful general elections and a stable macroeconomic environment will ensure our economy achieves a robust real GDP growth.


  10. As the counry has “moved on” some interesting things.

    … and according to maddo, Ruto is beginning to sample Raila’s woes in the last coalition;

    1. Electricity installation cost has gone up despite his “freeze” order.

    2. The Internal Security appointment was never discussed with him.

    3. The man at the treasury is not a URP appointee, Rotich is a former colleague and buddy of Uhuru.

    Some of my observations;

    1. The cabinet was supposed to be a 50/50 arrangement. What people don’t realize is Kimemia, Gichangi and Amicas Curae aka Githu Muigai (Uhuru’s people) are part of cabinet.

    2. Am i the only one who notices the double standard applied by the Nation media; quick to criticise Ruto – (100 m jet), yet quick to exalt every Uhuru’s actions. Is Ruto being set up? alternative press seem to think so.


  11. Good times indeed as we prepare to grow the economy by a 2-digit figure, something like eeehh 10% and as our beloved mPIGS aka HOGS continue hogging the whole national cake which has not even been baked yet!! But who cares, our children and grand children will foot the bills!

    Check this out!!

    State domestic debt grows by Sh100bn in one month

    Central Bank data shows government debts ballooning. Photo/FILE

    The government’s domestic debt went up by more than Sh100 billion to hit Sh1.1 trillion in the last one and a half months even as pressure for higher salaries by public servants continue to put a tight squeeze on the Treasury coffers.

    The rise has surpassed the local debt limit for this financial year 2012/13 by more than Sh75 billion, according to Central Bank data.

    The government had set the domestic debt limit at Sh138 billion but pressure to meet the rising financial obligations, especially higher pay for public servants and implementation of the devolved government, has seen domestic debt rise to Sh213.3 billion this financial year.

    A total of Sh185.7 billion, representing 87 per cent, was raised through Treasury bills and bonds.

    “As things are right now, the government has realised it cannot meet its expenditure with the available funds, so it has to borrow more. But if it borrows without controls, this could be unsustainable,” said Kenyatta University economic lecturer Dr Joseph Muchai in an interview.

    Despite growing demands for higher wages and funds to run the counties, the government has reduced its appetite for credit less than two months to the reading of the 2013/14 budget.

    Economic analysts say the mounting domestic debt is a burden to future generations.

    “In the short term, increased borrowing is a good thing even if it is used for recurrent expenditure like payment of salaries as people are now able to spend. But in the long term, if the level of borrowing is not controlled, the future generations will heavily pay for this,” Dr Muchai said.


  12. A victory grounded in sand!

    ““We are having sleepless nights reconciling the presidential results and those of the other positions. Over a million votes must be reconciled with the others and if the requirement is not changed then it will cast the IEBC in a negative light,” said the commissioner”

    That is what happens when you stuff ballot boxes and forget to think ahead.


    • Attempts at Reconciling the 4th March 2013 Electoral Votes

      Reconcile the total votes such that,
      Total Votes = Presidential Votes + Rest Elective Positions Votes

      Here we go:

      As on 4th March 2013,
      Total Votes = Presidential Votes + Rest Elective Positions Votes + Impunity Votes

      On 4th March 2013,
      Impunity Votes = Issack Kivuitu + Mutungaroo Court = 1 Million Votes

      Now, let
      T = Total Votes
      P = Presidential Votes
      R = Rest Elective Positions Votes
      IK = Issack Kivuitu
      MC = Mutungaroo Court

      Thus it follows that on 4th March 2013,
      T = P + R + (IK + MC) whereby (IK + MC) = 1 Million Votes = Impunity Votes

      But since the credibility of IK and MC after 30th March 2013 —-> to 0 (zero),

      today then, IK + MC = 0

      Thus currently, T = P + R + 0 and hence
      T = P + R whereby 5P = R
      Total Votes = Presidential Votes + Rest Elective Positions Votes


  13. Now, this is gonna be the benchmark by which we are gonna judge the performance of this government next year. They have just promised that the Kenyan economy is gonna grow from 4.6% to 6% by the end of this year. Help us oh God!

    Economic growth projection of 6 pc good news but….

    The projections that Kenya’s economy is expected to grow by about six per cent in 2013, up from a growth rate of 4.6 per cent last year, driven by growth in sectors like agriculture is good news for the country.

    The country’s economy has for long, after the disputed polls in 2007, been limping at less than five per cent.

    While Devolution and Planning Cabinet Secretary Anne Waiguru attributed the outlook to a stable macroeconomic environment and increased investor confidence, there is need to cushion it against major disruptions including volatile currency, high fuel prices, less foreign direct investments among others.

    Agriculture, the country’s backbone has sometimes underdone various challenges such as low and sometimes destructive rainfall, poor seed quality, delay in disbursement of fertiliser leading to poor yields and poor marketing of the proceeds which have discouraged farmers.

    President Uhuru had also promised to create a million jobs every year for the country’s youth who form the bulk of the population. The Kenya Economic Report 2012 says the year under review, the labour market recorded 659.4 thousand new jobs in 2012, representing an increase of 5.5 per cent while annual average nominal wage earnings increased by 4.7 per cent in 2012 Increasing jobs require more elaborate plans to re-engineer the private sector seen as the engine of economic growth. Such should include incentives and proper management of State affairs.

    Kenya stands out compared to other African countries, since its economy has been driven by a vibrant private sector.

    It is worthy noting that the President had pledged to lift growth to double digits to make Kenya a middle-income nation “within a generation” and lift 10 million people out of poverty by 2017. Achieving such will require checking huge public wage bill, building more houses, roads, irrigation improving power generation capacity.

    The State also needs to reduce the cost of doing business including high power charges that have seen major firms leave the country for cheaper rates.

    Others are complaints persist about red tape holding back business, unemployment and a lack of homes.


  14. Ruto’s luxury jet hire to cost Sh100m

    Deputy President William Ruto’s chartered jet is marketed as one of the finest executive planes in its class, complete with an office, catering facilities, a bed and a lounge for relaxing.

    Deputy President William Ruto’s office has hired a luxury jet for his travels across the continent in a deal which will cost taxpayers up to $300,000 (Sh25.14 million) every three months.

    Documents seen by the Sunday Nation show that the invoice for the first instalment of the “quarterly payment” for the Bombardier 850 Challenger plane was lodged on Wednesday.

    The plane is being supplied by VistaJet Company, a firm which describes itself as the world’s premier luxury aviation company for private jet charter and private jet ownership.

    The payments across the year for the use of the jet will amount to $1.2 million (Sh100.56 million).

    Mr Ruto left the country aboard the jet on Thursday for a four-nation trip which will take him to Gabon, Congo, Nigeria and Algeria.

    The Deputy President’s office issued a statement saying Mr Ruto was representing President Kenyatta on the trips in response to invitations by leaders of those countries when they attended the Kenyan leader’s inauguration last month.

    The Deputy President’s office said the trips reflected a desire by the government to underline its intention to pursue a foreign policy agenda guided by Pan-Africanism.

    “The Deputy President is representing the President on the official engagements. This follows the emphasis by the government and President Uhuru that the next frontier of the country’s partnership is the African continent. We believe with the strategic leadership we have in the region, Kenya needs to establish a partnership with countries in the South, West, North and Central Africa.”

    But the cost to taxpayers of the President’s and Deputy President’s foreign trips will raise eyebrows.

    Mr Kenyatta enjoys the services of a private jet purchased during President Moi’s reign which he uses when travelling around Africa.

    The decision to procure the services of a different jet for Mr Ruto’s use will inevitably draw criticism as wasteful at a time when the government says it is trying to limit expenditure on running the government to free up resources for development.

    The speed with which VistaJet was contracted to supply the lucrative jet hiring services will raise questions as to whether any tender process was followed before the contractor was identified.

    An official whose name appears on the “VistaJet Program Partnership Agreement” payment request sent by the company from its offices in Salzburg, Austria, flatly refused to comment on the matter saying it was a “sensitive issue”. He demanded that the Sunday Nation reporters go physically to the office of the Deputy President to lodge their inquiries on Monday.

    But transparency campaigner Mwalimu Mati of Mars Group said the government needed to halt trips abroad which were costing the taxpayer millions of shillings.

    “This is totally outrageous,” he said. “We already have a presidential jet at the disposal of the President and his Deputy. Why hire another one when you have already bought one? The President should live up to his word that the government will not be a gravy train and stop this.”

    An initial list indicted that Mr Ruto was to be accompanied by 14 people including politicians and aides.

    The plane which Mr Ruto’s team flew in lives up to its reputation as a luxury jet.

    The Bombardier 850 Challenger is marketed by VistaJet as a plane which “fuses the capabilities of a larger aircraft with the comfort and flexibility of an executive jet”.

    It is capable of accommodating 15-19 passengers and the firm says all its planes come complete with a mahogany finish and all-leather interior. The jet has a bedroom at the rear for VIPs, wireless Internet and a fully equipped kitchen.

    The plane has a transcontinental range meaning it can fly further than the official President’s jet and, according to its manufacturers, the plane affords “the best-in-class business environment, offering the widest cabin in its class”.

    “The Bombardier Challenger 850 aircraft was created to challenge convention and establish a new class of business aircraft,” the jet manufacturer’s promotional material reads.

    “In doing so, the jet has excelled in every way, setting the standard for reliability, dependability and value in its class. Expansive and versatile, it provides the flexibility to deliver customised solutions for any corporate requirement.”

    The plane has lately become a favourite of jet-set celebrities.

    Last year, American singer Beyonce bought a Bombardier Challenger 850 as a gift for her husband, musician Jay-Z, on the occasion of Father’s Day. The plane cost a reported $30 million (Sh2.5 billion).

    The jet is also popular in many parts of the world and VistaJet, whose fleet is dominated by Bombardier planes, has recorded impressive growth opening offices across Europe, the Middle East, Asiaand West Africa.

    The plane was reportedly last used by Kenyan clients when one was leased to take Prime Minister Raila Odinga to Cote d’Ivoire to mediate following a post-election crisis in that country.

    On that occasion, the bill was footed by various international organisations which were sponsoring efforts to end the blood-letting following a disputed election in that country.


    • State says Ruto’s jet hired for Sh18.5m

      The government on Sunday said Deputy President William Ruto’s plane was hired for Sh18.5 million on a one-off basis for foreign trip and in the interest of his personal security. Read (Ruto’s luxury jet hire to cost Sh100m)

      In a press statement, the government said the hiring of the jet to West Africa nations trip by Mr Ruto was necessary because there hardly exists any scheduled or commercial flights connecting between the capitals.

      “A Commercial flight would have cost more because it would entail circuitous and torturous trips to European capitals and back in just to pick up connecting flights,” said the statement.

      “In fact, by chartering the flight, the Deputy President has been able to realise this at a very cost-effective means,” it added.

      The government also noted that there was no contract of one-year lease between Kenya and VistaJet, the firm that hired out the plane.

      “The plane was hired on a one-off basis at a cost of Sh18.5 million. This figure is in fact less than that quoted by local companies, which was Sh19 million. Those interested can confirm this with the company,” said the statement.

      “According to official records of similar trips in the past it would have cost upto Sh15 million for a travel to a single country. If the Deputy President had used the traditional one trip at a time like his predecessors, it would have cost more and months to complete,” added the statement.

      Mr Ruto visited Congo Brazzaville, Gabon, Nigeria and Ghana where he met the respective Heads of State and shared with them Kenya’s vision.

      “The Deputy President was able to discuss issues of the deployment of an African Rapid Deployment Force, which will be at the disposal of and funded by African Nations,” the statement said.


    • sisemi kitu

      i see no reason to complain. a bunch of short sighted rabid tribalists elected these guys with much euphoria. now they are complaining when these guys want to raise their salaries

      and spend 20m in one whirlwind trip (remember there can be at least 20 such trips a year by this office alone)

      for someone to justify by saying it was the cheapest, must be some kind of sick joke for rich boys

      e.g this thing costs 1.5m but i got it for only 1.4m. a real steal hyuk hyuk hyuk


      • And now Ruto goes bananas and throws tantrums because the boy’s finest executive new found toy, the luxury jet, has been questioned!

        Ruto inspecting guard of honour in Gabon after landing in that west African nation on his new found toy, the luxury jet.

        Paper faces legal action over Sh100m Ruto jet story

        NAIROBI, Kenya, May 22- Deputy President William Ruto has sent a demand letter to the Nation Media Group (NMG) over a story that ran on the May 19 issue of the Sunday Nation, alleging he spent Sh100 million of taxpayers’ money to hire a luxury jet.

        Ruto said the media group must issue an apology, admit liability for libel within seven days and retract the false story because of the harm it caused him after publication.

        He argued that the newspaper ran with the story, which was accessible throughout the East African region and the Internet, under what he termed as an ‘unnecessary, provocative and alarming headline’.

        Ruto’s office was this week forced to control the damage done by releasing invoices and other documents relating to the rental of the jet, maintaining that the actual cost was Sh18.5 million.

        “It was expressly meant to embarrass, discredit and malign his respected status and standing as a respected Kenyan and deputy president in the government of Kenya,” the demand note from Ruto’s advocate Kioko Kilukumi states.

        The deputy president added that the jet he hired did not have any bedroom, meeting room, office, lounge or fully equipped kitchen as alleged in the article.

        He explained that he opted for the cheapest option out of the three quotations that were obtained from charter aircraft service providers and cautioned the media house against running additional publications of a similar nature.

        Ruto maintained that the jet in question was not hired on an annual basis but on a one-off basis adding that there would be no need to pay for it in instalments.

        “The article was calculated to be understood that our client was leading a lavish lifestyle at the expense of the taxpayers. A prudent reader will conclude that our client has very little regard to tax payer’s monies,” argued Kilukumi in part.

        It was not immediately clear what damages Ruto plans to get from the suit.

        He also said that he will file a complaint with the Media Complaints Commission if NMG fails to comply with his demands within the stipulated time.

        Ruto added that the journalist behind the headline did not seek his side of the story before publishing the article.

        “The story as published lacks fairness, impartiality and accuracy. It is biased and heavily tilted to depict our client in the most unfavourable light,” stressed Kilukumi.


      • And the blame game continues! Now, who is telling the truth? We shall know soon, won’t we?!

        But my questions to the NMG are:

        * First, is the firm VistaJet based in Switzerland or in Austria?

        * Secondly, did our bling bling boy Ruto make a 4 or 5 nation tour, since I also read somewhere that our new spoilt brat also flew to Algeria?

        * Which is which?

        Official word not backed by invoice

        VistaJet document now forms the basis of the first investigation launched by the Public Accounts Committee of Parliament

        The Daily Nation today publishes a copy of a US$300,000 (Sh25.14 million) invoice for the leasing of a luxury jet which was submitted by Swiss firm VistaJet to Deputy President William Ruto’s office.

        The invoice, dated May 15, 2013, contradicts claims by Mr Ruto’s office that the cost of hiring the jet was $221,000 (Sh18.5 million) rather than the amount quoted in the Sunday Nation story.

        The document, which now forms the basis of the first investigation launched by the Public Accounts Committee, was obtained from impeccable sources and indicates that Kenyans may pay more than the reported Sh25.14 million.

        The invoice from VistaJet offices in Salzburg, Austria, indicates that the payment is a “first instalment of the quarterly payment” for the jet leasing services as part of a “VistaJet Program Partnership Agreement” with the government.

        The Deputy President’s office has launched a furious rear-guard action to contain the damage following the publication of the details of the deal which has triggered anger from civil society and the public. Mr Ruto has also threatened to sue the Nation over the story.

        In Parliament on Wednesday, House Majority Leader Aden Duale tabled a letter from a firm known as E-ADC Limited stating that the “official invoice” sent to the Office of the Deputy President was for $221,000.

        However, the letter was written one day after the first Nation report and distributed to newsrooms by a Mr Ahmed Kassam, an aviation expert. The letter does not bear an attachment showing the “official invoice” from VistaJet.

        The bill obtained by the Nation was addressed to Mr Evans Nyachio, a senior procurement officer in the Deputy President’s office.

        Although Parliament was told the Nation did not contact the Deputy President’s office before publication of the story, that statement is untrue.

        Mr Nyachio was called on Saturday and challenged to confirm or deny that the invoice had been received.

        He did neither and instead said the matter was “sensitive” and demanded that reporters see him on Monday, May 20.

        Various government officials have also made false statements while seeking to justify the expense footed by taxpayers for the four-nation trip to Gabon, Nigeria, Ghana and Congo.

        In an interview with NTV, Information permanent secretary Bitange Ndemo claimed that flying by commercial flights would have required the group to fly to France and connect back to West and Central Africa.

        In fact, Kenya Airways operates direct flights to Lagos, Accra and to the capital of Congo, Brazzaville. There are no direct flights to Libreville but connections exist in West Africa.

        Dr Ndemo also said that hiring a jet was the most cost-effective way the trip could have been made: “If you carry nine senior government officials on business class going to Europe and coming back you will find that the cost would have been much higher,” he said.

        In fact, information available on the Internet indicates that first class fare from Nairobi to Lagos is $3,345 (Sh280,980).

        Assuming that all 16 passengers on Mr Ruto’s trip had travelled first class — an unlikely event considering not all on board were senior officials — the trip to Lagos would have cost $53,520 (Sh4.5 million excluding connection flight charges).

        Dr Ndemo also told his interviewer there was “no contract” between VistaJet and the government and that the deal was “a one-off”.

        That statement is contradicted by documents obtained by the Nation which indicate that the money was a “first instalment” of a “quarterly payment”, the basis for the Sh100 million figure assuming that the Sh25 million fee was to be paid every three months.

        Sources within the Public Accounts Committee indicated that the investigation would focus on three aspects.

        They will be investigating the procurement process leading up to the award of the contract to VistaJet and whether procedures were flouted in offering the deal.

        They will also interrogate whether all those who travelled have been employed by the government and have obtained a PIN number which allows them to travel at taxpayer’s expense.

        A third strand, the source said, would look at the question of hiring procedures at the office of the Deputy President amid murmurs about the process of recruitment under way since the Jubilee government came to office.


      • It is unfathomable that a ‘tea-girl’ and now a granny that served 3 Kenyan ex-presidents can live in such squalor and the son of one of those presidents who is now a president himself does not even have time to listen to his own father’s ‘tea-girl’ due to time constraints!

        And what is more, this ‘tea-girl’ is living in a shanty wooden-walled house right in the centre of the cold and chilly former Central Kenya Province, a bastion of oozing wealth!

        Even the ‘lazy bums’ living right in the middle of the former Nyanza Province do not inhabit such like wooden-walled make-shifts for a house!

        Uhuru Kenyatta and all the 3 ex-presidents should be thoroughly a shamed! Whatever happened to human dignity after a faithful service to the nation!!??

        If this granny truly served the 3 ex-presidents tea all those years, then surely the government should accord her some dignified life in retirement!

        But what am I talking about? Our conjoined twin presidents need the money for their new found toys, viz. jets for globetrotting the entire universe!!

        Poor granny, your sad case is completely closed! YOU NEVER SERVED NOBODY NO TEA ALL YOUR MISERABLE LIFE!


  15. As the president is busy globetrotting for no apparent reason, the deputy president is busy dictating prices communist style. Vision 2030, here we come with the digital generation directing our paths in your direction! Are you still within sight?

    PHOTO | PPS Deputy President William Ruto during with Energy permanent secretary Patrick Nyoike and Investment secretary Esther Koimett at his office on May 9, 2013. Mr Ruto said the government would not allow Kenya Power to increase tariffs. NATION MEDIA GROUP

    Relief for consumers as Kenya Power loses bid to raise tariffs

    Kenya Power’s intention to increase electricity tariffs hit a dead end on Thursday following the government’s rejection of the proposal.

    Deputy President William Ruto told a meeting of Ministry of Energy, Kenya Power, the ERC and Ministry of Finance officials the government would not allow any tariff increases, saying the power distributor should find other means of raising revenue.

    “Kenya Power has to sort out any inefficiency in its operations. The Government will not accept any proposal to increase power tariffs… It is a burden to the country,” Mr Ruto said in his office.

    In February, Kenya Power made a proposal to the Energy Regulatory Commission seeking to increase power tariffs by more than 50 per cent to raise funds to finance the expansion of the distribution network and upgrade the current power lines to reduce blackouts.

    The directive leaves the question of power outages unaddressed as Kenya Power had indicated that part of the money would go to stabilising the system.

    “We cannot subsidise for power forever. Tariff reviews cannot just be upwards. Let us review it downwards,” he told the officials.

    Cost of goods

    Manufacturing, which utilises about 60 per cent of the energy in the country, protested the KP move, saying it would make the sector uncompetitive and cause a rise in the cost of goods.

    “The industry consumes 60 per cent of the power in Kenya and therefore the increase will disproportionately negatively affect industry and consumers of industrial products will bear the brunt of the resultant increase,” Kenya Association of Manufacturers chief executive officer Betty Maina had said, condemning the KP’s proposal.

    The last time electricity energy tariffs were increased was in 2008. This negatively affected the industry, according to KAM.

    The manufacturing lobby said the increase was granted because Kenya Power then wanted to embark on new projects to enhance system efficiency and avoid outage and reduce system losses to no more than 15 per cent.

    “The promises of 2008 have not been fulfilled and they are projecting a gloomier picture of an even higher system loss,” the lobby group said.

    The country’s energy demand is also rising rapidly with little generation to feed into the growing need due to increasing urbanisation, industrialisation and the on-going rural electrification programme.

    At present, the country has only 1,533 megawatts installed electricity capacity, up from 828 MW in 2003. In his address to the 11th Parliament, President Uhuru Kenyatta said one of his priorities would be to liberalise the energy sector and open it up to new sources of investment.

    This will help in expanding generating capacity, extending the transmission network, improving the consistency and quality of supply and lowering the cost of energy.

    Mr Kenyatta said other alternatives of energy, namely, solar, wind and geothermal plants, as well as oil, gas and coal, would be explored to provide the country with stable power supply.

    The President’s proposals were echoed by University of Nairobi economics lecturer Samuel Nyandemo.

    “Our energy producers should explore better means and more avenues for generating power cheaply other than moving to raise tariffs,” Dr Nyandemo speaking to Nation by telephone said, such as geothermal, biogas and animal waste.

    “You have to work out a plan for enhancing an efficient, cheap and effective power supply to Kenyans. This must be done urgently,” Mr Ruto told the officials, who included Energy permanent secretary Patrick Nyoike, ERC director general Kaburu Mwirichia, Kenya Power managing director Joseph Njoroge, Investment secretary Esther Koimett and the Treasury’s senior economic adviser, Mr Kamau Thuge.

    The Deputy President said high power tariffs were an impediment to development and had forced some investors to move their operations in neighbouring countries with cheaper power.


    • And the free functioning market is very unforgiving when politicians try to interfere with it.

      Kenya Power share price sheds 6pc

      Kenya Power share price declined by 6.7 per cent to touch a two-month low a day after the government rejected its proposal to increase power tariffs.

      Investors also punished the Kenya Electricity Generating Company, an indication of fear that the government directive would hurt investment prospects and future earnings of the two firms.

      The electricity distributor’s share price declined to a low of Sh17.5 during the trading on Friday compared to the closing price of Sh18.75 per share with the stock of power generator, KenGen, also declining by seven per cent to Sh14.50 per share.

      Burden to the economy

      “After an announcement that the government would not raise retail electricity tariffs, investors were selling both Kenya Power and KenGen,” analysts at Standard Investment Bank noted in their daily report. Both counter traded over 700,000 shares each.

      On Thursday, the government vetoed a proposal by Kenya Power to increase electricity tariffs, saying it would be a burden to the economy. In February, Kenya Power made a proposal to the ERC seeking to increase power tariffs by over 50 per cent to raise funds to finance expansion of its distribution network and upgrade of the current power lines to reduce blackouts.

      The tariff review would also have enabled Kenya Power to raise the amount of money it buys electricity from KenGen.

      While issuing the directive, the Deputy President, Mr William Ruto, who addressed a meeting of the Ministry of Energy, Kenya Power, the Energy Regulatory Commission (ERC) and Ministry of Finance, asked the power distributor to find other means of raising revenue.

      The directive leaves the question of power outages unaddressed as Kenya Power had indicated that part of the money would go to stabilising the system.

      The last power review was conducted in 2008, but Kenya Power was hoping the next adjustment would cover the period to 2016.

      A day after rejecting its proposal, Kenya Power unveiled a Sh16.9 billion power system upgrade project, dubbed the Nairobi Ring Project, aimed at strengthening and stabilising power supply in Nairobi.

      Kenya Power managing director, Eng. Joseph Njoroge, who commissioned the power substation at Nairobi’s Komarock Estate said completion of the project in 2015 will enhance quality of electricity supply through improved voltage levels and reduced electricity outage cases in the city.


  16. well give it to gideon to state openly this was a tribal election and the spoils are tribal

    listened to the man from minute 1:48 and ethnic hegemony 2:04

    with ethnic leaders like these who needs a country


  17. null
    President Uhuru Kenyatta and Deputy President William Ruto on April 23, 2013 when they named the first four Cabinet Secretary nominees at State House, Nairobi. PHOTO / BILLY MUTAI

    I did not know that these two cartoons admire Obama so much! Look at them, they now walk, talk, dress and even forced their wives to hold for them some book to place their left hand on during their inauguration Obama style.

    And what is more, Uhuru is left-handed just like Obama. I just hope that they will stop this useless showbiz and realise that Kenyans want food on the table and hence the need for them to quickly agree on their Cabinet list. It is almost a month since Mutunga’s court (heheheee!!!) handed these two (Jack and Jill) the presidency on a silver platter and up to now, they can still not come up with a Cabinet list!

    When will the looming budget issues be dealt with without a vetted Secretary in the National Treasury assuming office like next week. And just imagine that before the Secretary in the National Treasury makes a budget presentation, the House Budget Committee must first approve it after a long and thorough scrutiny. We only have the month of May to have all this done!

    MPs oppose vetting of an incomplete Cabinet

    PHOTO | BILLY MUTAI President Uhuru Kenyatta (left) and Deputy President William Ruto address the press at State House, Nairobi on April 24, 2013. NATION MEDIA GROUP

    President Kenyatta and his deputy William Ruto failed to unveil the second batch of their nominees to the Cabinet on Wednesday, promising to release a comprehensive list on Thursday morning.

    But in what is likely to disappoint their foot-soldiers during the last General Election, Mr Ruto was categorical that there would be no politicians in their Cabinet.

    “I can tell you today that there will only be two politicians in the Cabinet, the President and I, the rest will be managers able to implement our government’s programmes. During our interviews, we have not asked any of them which party they voted for because that is immaterial,” the Deputy President stated.

    After keeping journalists waiting for over two hours, President Kenyata and Mr Ruto emerged from State House and announced that they were still interrogating the nominees to the Cabinet and would unveil them this morning.

    “We want to apologise for keeping you waiting. As you all know, we had visitors and it took longer than expected so we were not able to interview the individuals we have in mind. We will give you a comprehensive list tomorrow morning,” Mr Kenyatta announced.

    The President and his deputy had been expected to announce the next batch of cabinet secretaries at 4pm, but this was pushed to 6.15pm. But it was not until 7.19pm that Mr Kenyatta and Mr Ruto emerged to break the news that they would not name their nominees until this morning.

    Mr Kenyatta explained that they had spent the better part of the day in talks with Ethiopian Prime Minister Haile Dessalegn which had eaten into the time they had expected to fine-tune their list of nominees to the Cabinet.

    They denied reports that the delay was caused by disagreements over power sharing saying that their priority was to identify and recruit qualified individuals to implement the Jubilee manifesto.

    “We are looking at individuals who are capable of implementing our manifesto. We believe that the individuals we have chosen do have the capacity to deliver and build teamwork,” Mr Ruto stated.

    He was responding to concerns expressed on Wednesday by medical practitioners regarding the nominee for the Cabinet Secretary in charge of Health, Mr James Macharia.

    The medical practitioners had protested that Mr Macharia, a career banker, was ill-equipped to run the health sector and demanded the appointment of an individual with a medical background.

    Among the politicians who had been highly tipped to make it to the 18-member Jubilee Coalition government include former Cabinet ministers Charity Ngilu, Chirau Ali Mwakwere, Sam Ongeri and Najib Balala.

    Mr Kenyatta and Mr Ruto had also struck post-election alliances with Amani Coalition leaders Musalia Mudavadi and Eugene Wamalwa, raising expectations that they could include them in their Cabinet. That looks unlikely following Wednesday’s announcement by Mr Ruto.

    Meanwhile, two opposition MPs yesterday said the House should not start vetting Cabinet nominees until all 18 are named.

    With President Kenyatta having named only four nominees to the planned 18-member Cabinet, ODM MPs Jakoyo Midiwo (Gem) and John Mbadi (Suba) doubted that the entire Cabinet would be in place in time for the presentation of the estimates.

    “We cannot start the vetting until the entire Cabinet is named,” Mr Midiwo told journalists in the morning. “If you tell us you have given us four nominees to vet, how shall we tell whether there is regional or gender balance?”

    Mr Midiwo said the Committee on Appointments would start work immediately the entire Cabinet list is known, even if that means starting work at night.

    President Kenyatta said as he paraded the four nominees Tuesday evening that the vetting could start since Parliament had just a few hours earlier approved the membership of the Committee.

    But Mr Midiwo said it is the President and not Parliament that was the cause for the delay in the appointment of the Cabinet.

    In the House later in the afternoon, Mr Mbadi argued that even if Henry Rotich’s nomination as Secretary for Treasury is approved, it would still be impossible for him to present the Budget to the House via the Budget Committee on time. The Budget has to be approved by the Cabinet before it is taken to the National Assembly, he said, and the Cabinet can only be considered to be in place if at least 14 members have been nominated and appointed.

    “The honeymoon is over. We now need work. We don’t want posturing. We don’t want Obama style of walking. What we want (is for you to) give us the Cabinet so that the operations of government can continue,” said Mr Mbadi.


    • wow are there two heads of state?

      kweli this is the true nusu mkate 50-50

      head of state TNA and National president, head of state URP faction and national deputy

      a picture can tell a thousand 50-50 words



    • Uhuru unveils new Cabinet

      Cabinet nominees:

      1. Fred Matiang’i (Information, Communication and Technology)


      2. Henry K. Rotich (The National Treasury)


      3. James Wainaina Macharia (Health)


      4. Amb Amina Mohamed (Foreign Affairs)


      5. Adan Mohammed (Industrialisation)


      Adan Mohamed was born on December 1963 in Mandera.

      He has been CEO Barclays Bank of Kenya for 10 years and worked in the bank’s branches in different parts of the world for 15 years.

      In recognition of his contribution, Barclays Group recently promoted him to the role of Chief Administrative Officer with responsibilities for 10 African countries.

      Prior to working at the bank, he was at PricewaterhouseCoopers for seven years after training in London as a chartered accountant.

      An MBA graduate of Harvard Business School, Mr Mohamed is also a First Class Bachelor of Commerce graduate from the University of Nairobi.

      He is married to Nafisa and has 5 children.

      He has been nominated as Cabinet Secretary for Industrialisation.

      (Source PPS)

      6. Ann Waiguru (Devolution and Planning)


      Ms Anne Waiguru has an academic background and experience in economic and public policy.

      She holds a Masters degree in Economic Policy from the University of Nairobi and has worked in sectors of public finance, financial management systems, public service reform and capacity building as well as governance.

      Ms Waiguru was the director of the Integrated Financial Management and Information System (IFMIS) and head of Governance at the National Treasury.

      She served briefly as a Senior Public Sector Manager/ Assistant Vice President at Citigroup NA.

      Previously, Ms Waiguru served as a Technical Advisor to the Cabinet, Office of the President. This position was initially seconded by the World Bank.

      In the last two years, Ms Waiguru has led her IFMIS team at the National Treasury to win three awards for exemplary performance in the Public Service.

      She was also nominated two years ago, as one of the Top 40 Under 40 women in Kenya, the only nominee at the time from the Public Service.

      Ms Waiguru has been published and has served as the Alternate to the Permanent Secretary/National Treasury in the Public Procurement oversight Authority Advisory Board and the Women Enterprise Fund Board.

      She is a mother of three sons; Ian (17), Don (14) and Wabu (9).

      She has been nominated as for Cabinet Secretary Devolution and Planning.

      (Source PPS)

      7. Davis Chirchir (Energy and Petroleum)


      Davis Chirchir, 53, has a depth of experience in project development, management and execution and is skilled in strategic analysis and financial management.

      He previously served as a commissioner at the Interim Independent Electoral Commission.

      He was also General Manager at Kenya Posts and Telecommunications Corporation where he coordinated the restructuring of KPTC to create Telkom Kenya, Communication Commission of Kenya, Postal Corporation of Kenya and staff Pension Fund.

      Mr Chirchir also coordinated the privatisation of Telkom Kenya and the establishment of mobile phone company Safaricom.

      He holds a Masters of Business Administration in International Management from Royal Holloway School of Management at the University of London.

      He also has a Bachelor of Science degree in Computer Science and Physics from the University of Nairobi.

      He is married with four children and is the nominee for Cabinet Secretary Energy and Petroleum.

      (Source PPS)

      8. Amb Raychelle Omamo (Defence)


      Amb Raychelle Omamo is a Senior Counsel and has been an Advocate of the High Court for 27 years.

      She was the first female chairperson of the Law Society of Kenya and first female Kenyan ambassador to France, Portugal, The Holy See and the Republic of Serbia as well as the Permanent Delegate of the Republic of Kenya to UNESCO.

      Ms Omamo has made substantial contribution to the advancement of the rule of law in Kenya and the development of legislation and policy.

      She was a member of the Task Force on the Establishment of the Truth and Reconciliation Commission for Kenya.

      She also served as a member of the Task Force on the Review of Landlord and Tenant Legislation.

      As a former Assisting Counsel to the Ndungu Commission, Amb Omamo was later declared Jurist of the Year 2002.

      She studied Law at the University of Kent at Canterbury in the UK and has been nominated as Defence Cabinet Secretary.

      (Source PPS)

      9. Eng Michael Kamau (Transport and Infrastructure)


      Engineer Michael S. M. Kamau was born in 1958 and is married with two children.

      He has been in the Civil Service since 1981 and was seconded to Moi University in Eldoret for seven years between 1990 – 1998.

      He holds a Bachelor of Science in Civil Engineering from the University of Nairobi and Master of Science in Engineering from the University of New Castle Upon Tyne, United Kingdom.

      He has received extensive training in the field of engineering and management both locally and internationally.

      Eng Kamau is registered as a Professional Consulting Engineer by Engineers Board of Kenya.

      He is a also a fellow of the Institution of Engineers of Kenya and the Kenya Institute of Management.

      He is an associate member of the Chartered Institute of Arbitrators.

      He has also been a Permanent Secretary since October, 2007 and a key architect in the infrastructure upgrade in the last 10 years.

      Eng Kamau is the nominee for Cabinet Secretary Transport and Infrastructure.

      (Source PPS)

      10. Phyllis Chepkosgey (East African affairs, Commerce and Tourism)


      Phyllis Kandie was born in Eldama Ravine, Baringo county 48 years ago.

      In 1986, she joined St Mary’s University in Canada for her undergraduate where she graduated with an Economics degree.

      She then proceeded to Middlesex University in the United Kingdom in 1991 and later Durham University for her MBA and further training.

      She is married to Ambassador Julius Kandie and they have two children, Lawrence and Simon.

      She is an investment banker and is currently the Investment Advisory Services director at Standard Investment Bank.

      She has also served as a regulator within the Capital Markets, energy and agricultural sector.

      Previously, she was a Business Advisory Consultant for the SME sector having consulted for the World Bank and European Union.

      She has served in several Boards including the Kenya Revenue Authority.

      Mrs Kandie is the nominee for Cabinet Secretary East African Affairs, Commerce and Tourism.

      (Source PPS)

      11. Prof Jacob Kaimenyi (Education)


      Prof Kaimenyi was born in 1952 and is married with five children.

      He holds a PhD in Dentistry from the University of Nairobi and is the first inaugurated full professor of Periodontology at the institution.

      He is currently the deputy Vice-Chancellor in charge of Academic Affairs at the University of Nairobi.

      Prof Kaimeny also serves as a member of the Medical Practitioners and Dentists Board and a trustee of Regina Pacis University College, a constituent college of the Catholic Univeristy of Eastern Africa.

      As an Honorary Fellow of the International College of Dentists, Prof Kaimeny has held several key positions such as President of the Commonwealth Dental Association and head of the National Dental Unit at the Kenyatta National Hospital.

      He is the nominee for Cabinet Secretary Education.

      (Source PPS)

      12. Felix Kosgey (Agriculture, Livestock and Fisheries)


      Felix Kiptarus Kosgey was born in 1964.

      He graduated with Bachelor of Science Honours Degree from the University of Nairobi in 1990.

      He later returned to the same university to pursue an MBA in Strategic Management in 2003.

      He joined Kenya Posts and Telecommunication Corporation in 1990.

      In 2007, Mr Kosgey moved to the Kenya Civil Aviation Authority as manager Procurement where he served for 2 years.

      Two years later, he joined the Kenya National Highways Authority and rose through the ranks to become General Manager, Supply Chain and Support Services.

      He has undertaken professional courses in Supply Chain Management offered by Chartered Institute of Purchasing and Supply having completed his graduate diploma.

      He is trained in Road Asset Management Systems and Strategic Level Planning by University of Brunswick, Canada.

      He also trained in Implementing successful and Effective Public Private Partnerships in University of Botswana.

      He is married to Margaret and has 4 children.

      He is the nominee for Cabinet Secretary, Agriculture, Livestock and Fisheries.

      (Source PPS)

      13. Prof Judy Wakhungu (Environment Water and Natural Resources)


      Judy Wangalwa Wakhungu holds a PhD in Energy Resources Management.

      She is currently the Executive Director of the African Centre for Technology Studies.

      She is also the Advisor to the Energy Sector Management Program of World Bank as well as the Legatum Centre in Massachusetts Institute of Technology.

      She is also a member of the Scientific Advisory Committee of UNESCO’s Intergovernmental Management of Social Transformation Programme.

      Prof Wakhungu is the nominee for Cabinet Secretary Environment, Water and Natural Resources.

      (Source PPS)

      14. Dr Hassan Wario (Sports, Culture and Arts)


      Dr Hassan Wario Arero was born on November 24, 1970 in Moyale, Marsabit County.

      He joined the University of Nairobi’s Institute of African Studies in 1990 and graduated five years later with a 2nd Class Upper Honours degree in Anthropology.

      In 1997, Dr Wario won the Chevening Scholarship through the British High Commission and proceeded to the University of East Anglia in Norfork, England to pursue a Masters degree.

      He proceeded to undertake his PhD in Anthropology at the same university, where he graduated in 2013.

      Dr Wario joined the National Museums of Kenya in 1995 and has extensive international work experience, having worked for the British Museums for eight years.

      He is married with two children and is the nominee for Cabinet Secretary Sports, Culture and Arts.

      (Source PPS)

      15. Najib Balala (Mining)


      Najib Balala was born on September 20, 1967.

      He served as Tourism Minister and during his tenure was declared the best ministry by the African Investor.

      He was also elected President of the United Nations World Tourism Organization (UNWTO).

      He attended a leadership course at the JF Kennedy School of Government, Harvard University and another in Urban Management at the University of Toronto.

      He served as Mvita MP for 10 years and is married to Najaah with four children.

      Mr Balala is the nominee for Cabinet Secretary Mining.

      (Source PPS)

      16. Charity Ngilu (Lands, Housing and Urban Development)


      Charity Ngilu was born in Machakos District in 1952.

      She has worked for the Central Bank of Kenya and Chase Manhattan for 10 years.

      Mrs Ngilu also managed family businesses for eight years and later served as a Member of Parliament for Kitui Central Constituency for 20 years.

      During her tenure, she served as head of two ministries; Water and Irrigation as well as Health.

      She holds a BA in Leadership & Management from the University of Nairobi.

      She was married to the late Eng Michael Ngilu and has three children.

      She has been nominated for Cabinet Secretary Land, Housing and Urban Development.

      (Source PPS)

      17. Ministry of Labour, Social Security and Services (Vacant)
      18. Ministry of Interior and Coordination of National Government (Vacant)


  18. ironically on the plus side – if raila had won this contest, with jubilee numbers in both houses being so high. it would have been a fractured process trying to push through any appointment or legislation with sabotage all the way.

    its time to build the networks from ground up, and this time i suggest no holds barred.


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