Is Government Broke?

There are a lot of questions floating around on how government is unable to make payments. There are serious payment delays going back 3 months some even more.

These include salaries/wages, benefit payments as well as payment for services and goods procured.

Besides the very casual talk over budget deficit, with revenues falling short, there is also widespread belief that huge chunks of cash are equally casually being siphoned off from the coffers.

THe Auditor general has announce (yet again, same as last year) that another Sh.500 bn is unaccounted for. Meanwhile Uhuru is asking for those who have misplaced Sh.300bn to step forward (rather than aside).

In the midst of all this we have Sh.700m stolen from NYS, and the CS similarly continues to step forward.

There are dozens of stories such as this one http://www.nation.co.ke/counties/Mandera-border-wall-pay-delay/-/1107872/2913094/-/89cy04z/-/index.html

Not to forget that the “over subscribed” Eurobond, whereabouts are still subject of much speculation, with some placing funds in some offshore account, obviously earning interest, but certainly not for the government or people of Kenya who must in the end repay this money

There is talk of increased borrowing with commitment to pay through 2085, for funds which at the loss of 500bn a year (thats half the budget) we really do not know where it goes and for what its used for, and therefore we are paying for air. Quite simply Kenyans are being asked if you are poor to flush down the toilet 80% of what you earn, middle class are better off flushing only 50% down the toilet. The rich are of course in cahoots with the embezzlers so are exempt from flushing and in fact get paid for professional services. See Kenya Airways and similar corporations with directors earning about 10m a month

Am not trying to put a cohesive story here. Am just amazed that so much theft is happening, so much irregularities. For instance IDPs who were settled more than 2 years back, once Raila unleashed his missive, another 1.1b surfaced, complete with IDP camps and had to be resettled by none other than William Ruto, accompanied by devolution CS Anne Waiguru.

Despite all the cash woes, recent audit reveal that upwards of Shs 3bn are spent by the national and county executive and parliaments on unnecessary travel expenses.

Meanwhile as Adongo notes, the ICC has started placing a few embers under Moses Kuria’s seat, and it could get a little hot over there.

With all this confusion, lack of order and I daresay rapid descent into a society that is completely in chaos, who stands to benefit from all this.

There are many reports and rankings published lately of which we are only ahead of countries that have no stability.

Our movement forward appears to hinge on the single factor that the allies who want to contain spread of terrorism, still find Kenya the only country with a ready operational base, having been thus for over two decades and no thanks to any regime. And therefore still continue to fund projects to maintain stability.

In five short years, this base will move to a more predictable and stable country like Tanzania which is rapidly developing economically.

Anyway back to this story, Jaindi in an article published earlier this week states government is not broke, but poorly managed. Thats quite a conundrum. If its poor management, then Jaindi is suggesting that the government of the day should pack up and go home, I think an easier story to sell is that Government is broke.

Will in the next few weeks scout for some more articles that will shed light on where exactly we are, but gut feeling, we are in serious economic woes

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28 comments on “Is Government Broke?

  1. for those who have not yet seen this on facebook

    Jacob Juma writes the following

    +—
    How Eurobond money was Looted, by Jacob Juma :
    Fellow Kenyans, the following release is part of how EUROBOND money was embezzled: the Government of Kenya raised Sovereign bond in Irish Stock Market and used LAWYER CLIENT ACCOUNTS to move the money. No bank to bank was used due to money laundering constraints. When our money hit the lawyers accounts, they moved the money based on instructions by Cabinet Secretary for Finance, Mr. Henry Rotich and his Principal Secretary, Mr. Thugge. In-fighting among the lawyers handling Kenya’s EUROBOND began immediately pay-outs began. Part of EUROBOND money was transferred to COMMERCIAL BANK of AFRICA, owned by Uhuru’s family. About US$200-$300 of EUROBOND money was used to REFUND ALL CAMPAIGN money for 2013 elections. Some money was transferred by the lawyers directly to the Office of the President and out the back in gunny bags. A Sheikh in the Gulf was refunded unspecified amount advanced just before the elections(US$20 million) as well using EUROBOND. They also paid Std Chartered Bank Syndicated loan of about US$600 million and pocketed a massive chunk of it. I will be publishing a complete list of the lawyers involved and the movement of our EUROBOND money. God bless Kenya. God bless Kenyans. God bless the Son of Man.

    +—-

    • Folks, the rubber has now hit the road.

      http://www.nation.co.ke/news/40000-to-lose-jobs-as-cash-crisis-bites–/-/1056/2927644/-/83kuxtz/-/index.html

      After driving the country into bankruptcy, Uhuru now wants to send Kenyan workers into forced retirement. They are basically going to fire 40,000 civil servants and that is just the beginning. It also seems that lenders like IMF are getting jittery and giving conditions for any more loans. It is going to get worse. This is how Moi drove the country into an economic grave in 1992/3.

      The effect of the layoffs is going to be huge. They say they will lay off staff from the provincial administration, agriculture, health etc. There is really nobody in the PA system except for the so called county commissioners and those once are not going to be touched. So they will scramble here and there.

      The big losses are going to be in agriculture which could have serious problems. Agriculture has not been devolved in any serious way. Agricultural field officers who are doing a tremendous work in the villages are still paid by the central government.

      These are the people we go to when you are doing any form of modern farming in the counties. They organize and streamline access to new seeds and crops which you have to buy from private shops but these guys know what you need.

      The days of just planting your left over maindi and beans as new seeds are gone. You will harvest zero if you do that. You have to know the approved seeds for your area and figure out how long they have to be out there. You have to talk to the agricultural officers, horticulture officers and fruit farming experts. They are there and in places like my hometown Bondo area people are doing all sorts of things like watermelon farming which has good money but is very complicated. It needs water but not to omuch water or it rots. You have to know when to spray what type of insecticide. Many little things and it gets ready in a short time and the market is there big time in Kenya and Southern Sudan.

      I am just talking about agriculture which I know about and my friends down there depend on these officers all through the year. These people are not going to be employed by the counties which are themselves broke. Taking away the technical workers in areas like agriculture, poultry, fishing industry etc will cripple the capacity of millions of Kenyans to make a living never mind the fact that you will have hundreds of thousands of people out of work and reduced to beggars.

      Rationalization of the government workforce is necessary but it has to be done very carefully to maximize the productivity of state workers and their impact on the ground and not just to salvage the government which is overstealing from the public purse.

      And the devolution process has to be done smoothly otherwise it is just going to be chaos like we see in the health sector where the central government offloaded medical staff to be paid by the counties while the budget for the ministry of health in Nairobi still goes up.

      Raila sums it up very clearly when he says the wage bill for the Central Government has grown from Kshs 271 billion to Kshs 284 billion while the same government has downloaded many services to the counties who have no money to pay for them.

      We are going to be in for a rough ride.

      Here is Raila’s very insightful look at the state of the lootery.

      http://www.standardmedia.co.ke/article/2000180551/raila-jubilee-is-on-looting-spree

      • Adongo

        I also saw that and maybe its time for me to raise questions that have always bothered me from the very first time I heard that Kenya needs to trim its civil service which is considered bloated. I heard this way back in early 90’s when IMF was micromanaging developing countries’ economies

        Here are the questions that I’d like addressed and you allude to some of these in your post above

        lets start by grouping, then by professions

        total number of civil servants is about 800,000. About half of these are teachers

        But before we go into the numbers lets do some simple fact finding

        a) How many doctors are there in Kenya and how many in civil service? Should we increase the number of doctors in public health institutions or should we be reducing them?
        b) expand (a) above to other medical service personnel (nurses, clinical officers, pharmacists, medical technicians etc) should we be employing more personnel or reducing these? Think about when you visit a public hospital and the wait times, etc

        Take items (a) and(b) above and apply that to Engineering (any branch) etc

        Now lets look at teaching

        Do we need more teachers or less teachers? Think about public schools. the number of students per teacher in public schools. I believe we have outrageous numbers like between 60 – 80 students per teacher

        Most developed countries have about 20 students per teacher

        I dont want to say our civil service is bloated or not, am asking, are we asking the right questions?

        So our public wage bill is 550 bn per year or about 50bn per month

        Assuming the 40,000 pulic servants earn on average about 50,000 a month. This is an outrageously high average (it would be around 20,000 if you average due to large disparity), but lets use 50,000 per month we get a reduction in wage bill of 2bn per month or 24bn per year

        Honestly this does nothing, in one corrupt transaction we lose 5bn as the minimum in this Jubilee regime. Remember the BVR kits shooting from 1.5bn to 12bn and they still didnt work

        Eurobond 200bn etc

        Over at Ann Waigurus NYS 1bn in a day transaction

        So how does shaving 2bn of low income payers help this economy or wage bill?

        As you point out, the much needed technical staff are the ones that get knocked off, while the guzzlers in the top cream earning millions a month, and also embezzling or enabling embezzling of billions per day remain untouched.

        Kenyans need to ask, where and how exactly is the money disappearing to. before you do a retrenchment

        And besides, retrenchment comes with its own delicate processes like golden handshakes and what not, which means that to save 2bn, about 10bn needs to be dispensed for retrenchment.

        An exercise in futility. Eventually the only beneficiaries are the lawyers for and against those retrenched, this is an exercise or more precisely a circus that goes on for about 15 years. I know of people retrenched over 20 years ago who are still in court today trying to get their golden handshakes. And these are the recent ones, there are others from prior cycles.

      • My dear Kenyans, even if Ms Waiguru is UK´s honey, its time some action was taken about this lady who is stealing with such impunity that boggles the mind.
        The amounts that are being used to buy luxury things to keep her happy in her office are very shameful. TV´s, carpets, condom and dispensers among other things etc. costing millions and millions of shillings.

        Waiguru takes all manner of credit whenever anything go right but pretends to know nothing when caught pants down with her hands in the coffers. And she twists everything thrown at her. Mara no money was lost at NYS mara the money was actually lost. Mara she does not know about corruption mara she is the whistle blower.

        Then she justifies the corruption is her office by claiming that what happens is her office is nothing as compared to theft in other ministries. In other words, it does not matter if she steals as long as others are doing the same. The Jubilee government is on a looting spree.

        But the person to blame is her boss. Uhuru Kenyatta seems to have lost all control of the country and is just sleep walking oblivious to what’s going on. He keeps borrowing more money to fill the holes that have been left open by theft. Interestingly, a large chunk of the cash is disbursed among brokers and wheelers dealers even before they are used to fill the gaping holes. In other words it’s an evil circle that will not end.

        Yet, the man keeps saying that all is well and the economy is strong. You wonder if he has a brain in his head. People who had been accused of deportation, murder and rape by the ICC cannot lead this country. They are basically clueless as far as leadership is concerned but completely busy with looting the country.

        Initially they tried to make a Raila thing but when confronted with facts majority have now hidden behind their loot. If Kenyans do not come out to force these people out of office, they will force Kenyans out of this world via hunger and starvation. Even Daniel arap Moi was not this bad.

    • Good lord have mercy. Uhuru sent a memo to his herd of constipated goats in parliament to pass new tax on boda boda, juice, used cars, sigara etc. I mean this is like a grown up who drinks their entire salary in the bars and comes home to rob his mother for more money to go back to the dip. It would be laughable if it was not so sad.

      http://www.standardmedia.co.ke/article/2000180959/jubilee-ignores-cord-walkout-to-pass-new-taxes-on-juice-cigarettes-and-motorcycles

      http://www.nation.co.ke/news/politics/Uhuru-MPs-clash-over-proposed-taxes-/-/1064/2932746/-/14e4mnq/-/index.html

      There is broke and then there is sick. This is sick and broke. I saw the other day they are trying to get a new bond for Kenyans to put in as little as kshs 3,000.00 to help save Uhuru from complete ruin.

      I am stunned they are not taxing Kenyans every time they pee. That would be Kshs 10.00 cash per pee. Imagine the billions this would raise for Uhuru and Waiguru everyday. It would be a jackpot. Except for the poor penniless folks who would be writhing and wriggling in mud because they can’t pee. They have no money. Oh dear. We got problems people.

      The other weird thing is that in this tax grab Uhuru is allocating specific amounts for each tax. It is Kshs 10.00 per litre of juice. Kshs 10,000.00 for each boda boda sold which means boda boda fares will shoot through the roof. Kshs 200,000.00 for each used car sale. This kind of stuff is unheard of. Usually governments levy a certain percentage on the sale price.

      So if the tax was say increase of 5% on sales tax for a boda boda or a used car then the tax amount will depend on the sale price. You choose a cheaper boda boda you pay less tax. In the Uhuru mad tax grab you pay 10,000.00 per unit of boda boda regardless of the price of the motorcycle. Same with used cars. You pay an extra Kshs 200,000.00 regardless of the price of the vehicle. Desperate is as desperate does.

      And now the worst case scenario is upon the nation. Bank interest rates are going up on everybody. That is a killer. Siasa mbaya, maisha mbaya. Sawa?

      Here we go:

      http://www.standardmedia.co.ke/article/2000181077/things-fall-apart-for-kenyans-as-loans-burden-bites?articleID=2000181077&story_title=things-fall-apart-for-kenyans-as-loans-burden-bites&pageNo=1

      This is going to present a big challenge to all Kenyans. Everybody is giving up on Uhuru and his little pet called Ruto but will not be enough. We need a real discussion and a set of solutions on dealing with the financial crunch from the ground up.

      I like the idea being promoted for regional banking entities like the proposed Lake Side Banking entity comprising contributions from several counties in Western Kenya and parts of Rift Valley. This is a good idea if we can move it to interest free loans for development projects in the counties. It is a long haul. All work is long haul. I will come back to this topic sooner than later.

      • Here is a bit of the breakdown of the Eurobond scam. Uhuru and his friends have 15 offshore accounts according to Rotich. There are two signatories to the accounts and there are not accountable to anybody.

        http://www.standardmedia.co.ke/business/article/2000181431/cs-henry-rotich-defends-holding-cash-in-us-account

        There a few thing the PAC should be able to ask directly and get answers but this PAC is the weakest and most clueless ever. They can’t ask questions and never prepare any reports.

        Here are some of the questions Kenyans need answers to.

        1. Provide list and signatories to all the offshore accounts in which the Eurobond money was deposited.

        2. Give the dates and signatories to all debits into the account (when the money came in) and credits to the account when the money was paid out.

        3. Provide list and proof of all the recipients of money from the Eurobond money. It is stupid for the PAC to simply accept claims that the money was paid to ministries. Get proof of the payment and summon those in charge of the ministries that got the money.

        Let them provide proof of where the money was spent. For example PAC was told that Irrigation ministry got Kshs 14 billion for Tana River Irrigation project and yet the evidence on the ground is that nothing of value has been done there. Where did the alleged Kshs 14 billion go.

        4. Let Rotich and company understand that this could turn into criminal investigations any time if the PAC determines that public money has been looted by state officials.

        Kenyans took Moi to court over Goldenberg which was a harder rock to climb. PAC and other state agencies and those in the civil society need to approach this matter as grand theft that may very well cripple the nation’s economy for a long time. PAC should quit fooling around with these people.

        5. Last but not least, the opposition, civil society and other groups should plan a massive exposure of the Eurobond rip off and let Uhuru and his cronies know that this matter could go nuclear in a way that could put an end to all possible future Eurobonds and any other international loans.

        If we don’t do that the IMF will just come up and tell Uhuru to fire civil servants in hundreds of thousands, cut health and education expenses (cost cutting) and get money and the IMF would care less. The IMF is very nasty and they like weak and helpless thieves (leaders) who will beg them for money at their own terms.

        There was a time Kenyans all over the globe had to pressure the European countries and the US to stop any loans or grants to the Moi government because he was stealing everything. We were called names but that I show Moi’s legs were cut off for him. It helped the country.

      • Thank goodness for Anne Waihuru. She is the kind of maniac we have not seen in Kenyan politics and mass looting for a generation. I think Uhuru needs to keep Waiguru. She is a gift to Kenyans. She just throws money to her friends and none of them has any clue how to hide the stuff.

        Moi had Biwott, a super thief but very smart. Uhuru has Waihuru who is a wrecking ball. She is going to wreck Uhuru to smithereens. Looks good on him.

        Here are some off the wall Waihuru wreckages:

        http://nairobinews.nation.co.ke/exposed-how-waigurus-staff-blew-money-on-piano-and-condom-dispensers/

        http://www.standardmedia.co.ke/article/2000181517/mps-shocked-by-how-ministry-misused-public-funds

        I like having the names in the accounts. It looks like the CID are up to to their eyeballs in the looting. PAC needs to take ownership of the whole digging. EACC is of no help either and Kenyans are no longer shocked. Uhuru and Waihuru have established a new normal in Kenya. Just rip off the nation and tell them to eat cake. We will.

        Here we go:

        http://www.the-star.co.ke/news/probe-reveals-fresh-sh106-million-lost-nys-all-cash-paid-josephine-kabura

        And it never stops:

        http://www.nation.co.ke/news/MPs-query-inflated-expenses-in-Anne-Waiguru-office/-/1056/2941676/-/te6ykdz/-/index.html

        And CORD is now speaking our language. We needs names and signatories to these endless loans. Soon CORD and civil society need to launch a campaign to tell these private lenders that if they are giving money out for some people to buy condom dispensers as is happening in Waihuru’s office, it is none of our business and Kenyans won’t repay such loans:

        Here is the new loan.

        http://www.standardmedia.co.ke/article/2000181501/cord-demands-full-disclosure-of-sh61b-loan-by-kenyan-government

      • Good lawd. To say that the ministry of “Devil”ution is a cash-cow would be the understatement of the century,

        In the rush to sepnd 11 billion http://www.standardmedia.co.ke/article/2000181517/mps-shocked-by-how-ministry-misused-public-funds?articleID=2000181517&story_title=devolution-principal-secretary-accidentally-reveals-misuse-of-public-cash&pageNo=1

        Consultancy, drain clearing etc marked as assets. Prices inflated to a point where they floated past the moon. Sky is no limit is a serious slogan for these jamaz

        Everyday, a new scandal more incredulous than the last one emerges in this jubilee regime. There is a competition to see who will have the most mind wracking scandal

        Spending 1m for software, 1m for a computer screen is considered petty cash, the principal accounting officer is not even aware of the details. How many professionals do we know that consider a million to be petty details?

        Someone call me if the unthinkable happens (i.e someone actually saves us some money) this exposes scandals is no longer exciting, its gotten old

      • An Anticorruption Plea in Kenya: ‘Please, Just Steal a Little’

        By JEFFREY GETTLEMAN NOV. 4, 2015

        NAIROBI, Kenya — When it comes to honesty, politicians here don’t usually win many awards.

        But even for Kenyans, who have witnessed countless corruption scandals over the years, the graft coming to light now is almost too outrageous to believe.

        This week, a parliamentary committee was given a document detailing millions of dollars that disappeared through some very curious government spending. It included thousands of dollars for simple condom dispensers and, apparently, $85 for ballpoint pens — that is, $85 each.

        “A pen?” said John Githongo, a leading anticorruption activist. “More than $80 on a single pen? Come on, this is the biggest bunch of crooks to ever run a government in this part of Africa. This is literally the rape of the country, everything from the poaching of our wildlife to the accumulation of debt at an extraordinary level.”

        “It’s scandal after scandal,” said Mr. Githongo, who was once a senior government anticorruption official but had to flee Kenya because of death threats. (He returned a few years later.) “We don’t have a government. We have a scandal.”

        Prices of staples are going up. The currency is tanking. Kenya, historically considered one of the most stable and strategically important nations in Africa, is going deeper and deeper into debt.

        Just a few months ago, the government refused to give public schoolteachers a court-ordered raise, saying it had no money, which resulted in an acrimonious strike with children out of class for weeks.

        At the same time, the daily newspapers are filled with allegations against ministers and high-ranking officials accused of everything from trying to steal playground land from a primary school to skimming millions off a pipeline contract.

        Kenya recently raised $2 billion in a Eurobond, which was supposed to be used for new infrastructure. It is unclear what happened to all that money.

        “Can you imagine? We pay taxes, I can barely afford flour, and now this?” said Boniface Wanyama Wekesa, a security guard, looking at a front-page story Wednesday about the $85 pens. “If you’re going to steal,” he said, echoing the famous words of Mobutu Sese Seko, the former dictator of Zaire (now the Democratic Republic of Congo), “please, just steal a little.”

        The implicated officials have denied any wrongdoing. Manoah Esipisu, a government spokesman, said in a text that “allegations are being investigated.”

        “In Kenya,” he wrote, “we believe in our institutions. Ethics and Anti-Corruption Commission; director of public prosecutions, judiciary, etc.”

        Kenya is a vital Western ally, home to a large Western intelligence community and several Western military bases, overt and covert. It is seen as a reliable bulwark in the battle against the Islamist extremism that troubles neighbors like Somalia. The United States has a tricky line to walk here, because while it needs the Kenyan government’s cooperation for counterterrorism operations, it does not want to be silent on runaway graft.

        In July, President Obama, spoke strongly about corruption during a visit to Kenya, saying it “holds back every aspect of economic and civil life.”

        The United States announced a joint anticorruption commitment with Kenya and recently pledged more than $1 million to set up a specialized Kenyan investigative unit to uncover public corruption connected to transnational crime. The American ambassador to Kenya, Robert F. Godec, said Wednesday, “The United States is deeply concerned by recent allegations of corruption and the misuse of public funds.”

        But the West seems to be banging its head against a wall. Activists say that Kenya’s corruption is only getting worse and that the West needs to say less and do more, like denying visas to any Kenyan official accused of stealing public money. Kenya, after all, is still a poor country where many people don’t have clean water to drink or access to electricity. It is not a stretch to say that many lives are made much harder — or even lost — because of all the stolen money.

        Even Robert Mugabe, the longstanding ruler of Zimbabwe, hardly known for good governance, was quoted as saying this past weekend, “Those people of East Africa shock me with their wizardry in stealing.” He added, “You can even think that there is a subject in their universities called Bachelor of Stealing.”

        Mr. Mugabe told his countrymen to be on “high alert” in case they visited Kenya. “They might infect you with that disease.”

        Kenya is often ranked as one of Africa’s most corrupt nations. Since it has no major oil industry or trove of diamonds or gold, public looting here is usually done through clever and opaque schemes. Big scandals have involved a tangle of companies or complicated currency deals.

        But today’s apparent looting spree seems more blatant and desperate, and there may be a few reasons. Already, analysts said, Kenyan politicians are trying to build war chests for the national elections in 2017. The economy is also growing fast, making real estate in Nairobi, the capital, suddenly incredibly valuable, leading to illegal land grabs by those in power.

        But Mr. Githongo said it went even deeper than that. He pointed to the fact that Kenya’s two top leaders came into office in 2013 under a cloud, having been indicted by the International Criminal Court on charges of crimes against humanity tied to the violence that broke out after the disputed 2007 election. President Uhuru Kenyatta was eventually cleared, though the case against the vice president, William Ruto, continues.

        “This has a major existential impact,” Mr. Githongo said. “It creates a bohemian, permissive atmosphere from the very top to the bottom. People at all levels of government are saying, ‘If our leaders can get away with it, why not us?’ ”

        http://www.nytimes.com/2015/11/05/world/africa/kenya-government-corruption.html?_r=0

      • Admin,
        You are right that not even the sky is the limit for the looting we are seeing in Kenya today. I know there is a special place in hell for these thieves but we don’t have the time to wait for hell to swallow them. We will all be in hell by that time if this doesn’t stop.

        The frightening thing is that the thieves think this is some kind of a joke. The idiots like Duale, Uhuru’s dirty mouthpiece, think this is just about fighting Raila and the others exposing the dirt. They haven’t figured out that Waiguru is a gift from god to the opposition. In any event removing her from office wouldn’t solve anything. We know that.

        Look at this new scandal of Kshs 2 billion spent in a few days before the end of the last financial year on “security” expenses. The idiot Nkaissery has now ordered the CID to investigate the journalists who exposed the story. Never mind that the journalists were reporting on facts that were made public by the Auditor General.

        Scary stuff:

        http://www.standardmedia.co.ke/article/2000181704/nkaissery-orders-cid-to-interrogate-journalists-over-expos-on-sh3-8b-audit-queries-at-interior?articleID=2000181704&story_title=cs-joseph-nkaissery-orders-cid-to-interrogate-journalists-over-expos-on-sh3-8b-audit-queries&pageNo=1

        And more. Now they want the PS who gave the damning dossier to the PAC on Waihuru’s theft machine fired. Keep it coming:

        http://www.standardmedia.co.ke/article/2000181700/duale-punish-ps-mangiti-for-exposing-rot-in-devolution-ministry

      • Robert Mugabe – God Should never have created those thieves (Kenyans) here in Africa

        By Clarence Mbagazi

        HARARE: Zimbabwean President Robert Mugabe has launched a verbal war with Kenyans. While Presiding over a funds drive in a city church on Sunday where he was the chief guest, Mugabe said that Kenyans are the most arrogant thieves in the world because they steal with high degree impunity.

        “Those people of East Africa shock me with their wizardry in stealing. Sometimes I tend to believe that stealing is in every Kenyan’s blood. These people go to their schools and read good courses but they qualify as the best thieves. You can even think that there is a subject in their universities called Bachelor of Stealing. Whenever they get an opportunity as employees, they never disappoint. They steal enough money to buy their freedom because even the judges who listen to their cases are financially powerless. I urge you my people to be on high alert in case you by bad luck, happen to visit that East African nation. They might infect you with that disease and we don’t want it here. Zimbabweans are honest people who love their country and don’t want such stealing tendencies ” He shouted with courage as he advised his nation.

        Nonetheless, Kenyans especially those on Twitter are yet to react in response to Mugabe’s callously conveyed contempt on them.

        http://www.spectator.co.ke/2015/11/robert-mugabe-god-should-never-have-created-those-thieves-kenyans-here-in-africa/

      • Scandal after scandal and its never stopping.
        The president is asleep on the job and we all know that. But sleeping is his problem. Ours is the economy that’s bleeding as we speak.

        Fortunately we are in a country where thieves are celebrated as heroes and the corrupt sit high above the law. Its a country where the poor suffer and end up in jail for stealing a potato while the billions dollar thieves wine and dine all over the place. Its a nation of hypocrites where people talk but don’t act.

  2. another piece to add to the jigsaw puzzle

    http://www.standardmedia.co.ke/business/article/2000179973/investors-lose-sh530b-as-foreigners-pull-cash-out-of-nse

    so far the govt response has been

    a) to float a 5bn local bond payable via MPESA i.e saidia chap chap (basically all rules thrown out of the window, just give me the money)

    b) talk of another Eurobond (i dont quite get how the second Eurobond will help considering that we don’t know the whereabouts of the first Eurobond

    Everyday it looks like the government is clutching at straws financially.

  3. I copy this very interesting thought here

    facebook link

    By Tom JM

    Uhuru Kenyatta presided over errors when he was Minister for Finance. Anna Waiguru and Henry Rotich worked under him.
    Today Uhuru is PORK, Anna Waiguru and Henry Rotich run Devolution and Treasury ministries that are critical to the administrative health of this country yet they are bedeviled with financial scandals of historical proportions which they seem incapable of mitigating.
    In Anna Waiguru’s Ministry, folks using her pilot pet project – IFMIS system – have perfected the art of utilizing errors to loot public coffers. The recent mega scandal of nearly a billion rip off was as a result of ‘zero (0) error’. Zero ended up as the last digit behind every invoice total that was punched in the IFMIS system effectively minting lots of monies for the crooks involved. In fact other GoK agencies are now taking the queue. Zero is now becoming the most significant number in Jubilee administration.
    One big query i keep on asking myself is how this happened. One would expect that once a supplier’s quote is accepted in a competitive bidding process and punched into the system, it automatically locks out any mischievous attempts to fiddle with the figures as happened in the NYS scam. It thus will only accept invoices with same figures as per the corresponding quoted figures for that entire financial year.
    But that it seems is not the case. The system fails, as far as its security features are concerned. Am thinking It is either fatally prone to interference, a technicality that can only be inherited from the developer, or its security functions have been deliberately inactivated, bypassed, overridden to permit flagrant theft of public funds with reckless abandon Yet the tax payer foots a bill of 4m for its maintenance!!
    That the supplying entity which i also suspect is the same one charged with maintenance hasn’t insisted on use of the system’s full security features, reeks of an intricate syndicate that incorporates ginormous evil enterprise of public private sector conspiracy.
    It is even more baffling that Anna Waiguru, the mother of IFMIS is mute about the measures she has so far taken, to up security steps in the system that will prevent future interference of transactions. This inertia is a testimony of her culpability in the scandal.
    Even though she has attempted to delink herself from it by telling the public she blew the whistle stubborn facts in the open indicate a different story. She is dishonest.
    I recommend the following remedial measures
    • that the system be redesigned in such a way that it will alert the CS herself or her successors in the event it detects breaches or intrusion meant to rob the public of its monies.
    • that GoK agencies ban persons who’s relatives work with the offices of the procuring entity(ies) from applying for tenders in there.
    • that GoK works on a radical legislation to deal with corruption. This legislation must inculcate the following;
    (a) Death Penalty (no life imprisonment) against culprits.
    (b) An everlasting ban on business entities run by culprits that are involved corruption from ever transacting business with GoK.
    (c) deregistration of businesses of involved in corruption.
    (d) freezing and confiscation of the property of corrupt individuals to revert back to the state.
    (e) heavy fines to go hand in hand with death imprisonment.
    ————————————–
    When is Henry Rotich going to blow whistle on Eurobond ala Anna Waiguru?
    Cc. Hon Moses Kajwang Jacob Juma Tsomnyazi Wa Nganga Rodney Simmons Oganga Onyango A. Owaga Hallin Yttek Stongan Phil Wesonga Deep Cogitation

  4. Adongo

    One frightening reality is this. There are some civil servants and including security officers that have not been paid. Some for more than two months. Most of whom live pay-check to pay-check. The fact that we have not had massive unrest in the civil service including service boycott can only mean one thing. There is massive corruption taking place to fill in the gaps.

    Why is this frightening? Well these guys have found a way to go to work and divert government revenue to sustain themselves and fill the hole created by lack of pay. This is the beginning of a final death spiral because since government revenue is being pinched small scale at the bottom (diverted ), large scale at the top (embezzled) , naturally the government will continue to experience what they call Revenue shortfalls or deficit. This will continue until basically the guy on that desk, opens shop, collects what he needs then goes off to run his errands.

    Even “arresting officers” will have quotas to meet.

    The guys at the top, since they are skimming of the top, will have no idea until its too late, when the coffers finally run dry. No reversal. I believe we are currently surviving off residual spending from direct donor funded projects

    Hate to say it, but in a few years (maybe months) we will grind to a halt. The sad thing is that many still operate like Alfred Mutua, looking at high optics projects, like stadium, or new ambulances, or SGR and newly tarmacked roads.

    Reality however is that for good planning, these first impressions require sometimes 3 or 4 times the effort and resources to sustain and make meaningful impact.

    Its not the freshness, starch and bright colors of the new school uniform that a student needs to be concerned with, its the maintenance of the attire for the duration of the term and sometimes entire school course, but even more importantly that the student actually attains the education that was the purpose of schooling

    Looking at the news media, and the elaborate stage shows by presenters, one gets the impression that Kenyans are now for geared only for the eye candy and absolutely zero on substance.

    There are many who at the end of this period/era will genuinely wonder what went wrong, it was all going so very well, so many beauty parades (or is it charades)

    Who is fooling who?

  5. I did not see this Eurobond story:

    http://www.nation.co.ke/news/Questions-over-use-of-Eurobond-billions-/-/1056/2908230/-/5498j3z/-/index.html

    It is quite disturbing that nobody seems to be in charge of anything at all. Rotich and the Treasury have no clue where the money is and how it is spent. In the case of the Eurobond loan which was collected in June 2014 nobody even knows who the signatories are and where the money was invested if anywhere at all.

    Why are these issues not brought up in parliament. Nicholas Gumbo and his PAC need to get off their asses and get to work. The PAC has historically played a very big role in dealing with corruption and this level of national financial collapse going back to the Goldenberg days and even through the Anglo Leasing mass theft of public funds.

    We need the PAC to do more than just holding committee meetings. We need the PAC to bring issues to the floor of the house and once they do that they can raise the issues with the Kenyan public. That is what committees of legislatures and even of the United States Congress do to address issues that affect the resources of the country. We don’t want committees that just sit and sit and collect benefits and their work never reaches the public even in times of great financial crisis like is happening in Kenya today.

    Secondly CORD has to take a break from the ICC circus and take a bold stand against the financial crisis in the country today. Surprise Kenyans by doing something that is important to them.

    This matter now goes beyond just demanding that Uhuru’s behemoth at the NYS Anne Waiguru should be suspended from office. That point has now been made and Kenyans can see CORD was right on the money on that issue.

    Now is the time for CORD to hold a well organized press conference with details about the magnitude of the financial distress that country is facing today. Come with specific details of the mess and provide solutions. Civil servants including teachers as well as county employees whose salaries come from the central government are not getting paid. The counties have no money because the Treasury has no money to give them to cover the salaries and other recurrent expenditure.

    When we reach a point where the government has to borrow on short term loans to cover recurrent expenditure we are deep in red ink as a country. It is not workable. That is like you and me telling your kids at home to sit tight because you have to rush to the shylock every morning to borrow money to buy milk and bread for breakfast. What are you going to do for lunch? Borrow again? Come on. You might have to send the kids for adoption somewhere. And fast.

    Jubilee politicians are running a mock everywhere talking about ICC prayers and everything else to do with ICC when the country is too broke to cover basic things for the citizens of the republic. CORD has to bring them back to earth and tell them they have a bigger job to do and they are failing miserably at it.

    We have people like Ruto running from Harambee to Harambee talking about 2017 and 2022. We need to talk about 2015 as in right now. How are Kenyans going to survive in the midst of the financial collapse brought to them by courtesy Uhuruto misrule. That is what we need to talk about. Right now would be a good time to start that conversation.

    • Now this Eurobond issue has to be fully addressed and should be taken both to the floor of the house and to the courts.

      http://www.the-star.co.ke/news/kenya-running-mysterious-offshore-account-controller-budget

      Uhuru cannot be allowed to run government resources like those crazy pyramid scams. In which other country in the world does the government keep public money obtained by loan no less in a secret offshore account that is held by unknown individuals.

      Offshore accounts are essentially for crooks hiding money. It is for money laundering and other such criminal activities. Public spending in Kenya is subject to the approval of the Budget Controller.

      Now we have a case where Kshs 53 billion of public money is held in a secret offshore account and spent secretly by unknown individuals. Where the heck is the PAC? Where are the M.Ps? Where are the opposition leaders.

      • Adongo

        That Eurobond cash saga is frightening

        First of the total amount is about $2bn approx Shs 200bn maybe more. THis is the amount that never entered Kenyan banks but was deposited into someone’s off-shore account.

        The 53 billion is the first payment that is due on the bond. Yeah that’s right, we are already paying for something that we have never set out eyes on. Its this payment that the officer refused to authorise since quite rightly the money has never hit the Consolidated Account. Unfortunately the name of the officer is going to betray her and i.e the ethnics and not the ethics of the saga are going to be the talk of the day

        Its either that the Jubilee regime is utterly and totally rotten to the core. Or there are some economic wizards running circles round a bunch of incompetent buffoons pretending to run this country. Either way Kenya is economically doomed. How did those fellows get hold of that Eurobond cash?

        well here is what she says herself

        http://www.nation.co.ke/news/politics/-/1064/2925274/-/12bsa62/-/index.html

  6. Yes indeed Uhuru has put the country into bankruptcy. The government is presently unable to pay even the civil servants and they have to borrow right now to pay salaries and then borrow next month to do the same. It is awful. Half the revenue they get will barely be enough to pay interests on the loans.

    And we have two more years of this: Here is Rotich saying he has no money to pay anything. Scary. Indeed.

    http://www.nation.co.ke/news/Treasury-has-no-cash/-/1056/2915658/-/65xp2gz/-/index.html

    And here is John Githongo’s insight into the state of Kenya’s finances.

    http://www.the-star.co.ke/news/kenya-inc-broke-or-it-just-broken

    • Just when you thought Uhuru has reached the limits ofo his own stupidity, comes something like this:

      First is the proposal to give the criminally corrupt Office of the President a new role to do the budget and leave the Treasury as an empty shack for Rotich while pretending to work. That is hideous in and of itself.

      http://www.businessdailyafrica.com/Treasury-stripped-of-budget-role-in-new-anti-graft-war/-/539546/2968928/-/13k5jme/-/index.html

      Then comes the bombshell:

      http://www.the-star.co.ke/news/waiguru-head-new-budget-docket-raila-claims-asks-rotich-resign

      I have no idea where Raila gets the information but it could be disastrous if Uhuru ever tried to reward Waihuru after robbing the country dry, with a light duty of being our new Treasury Chief responsible for the entire budget of the nation and now stationed at the OP. Uhuru can be dumb sometimes, but surely nobody can be that dumb but stranger things happen in Kenya. We will see.

      • Adongo

        about Anne Waiguru, I don’t really think that Uhuru is done with her, she’s a key cog to his election strategy. My guess is that he will hold her in limbo for a while and then appoint her to some post. Whether its this new budget role in OP or some other, there’s two years for that to happen. My view here is that people are celebrating too early. Her only real fear or challenge is that she actually believed herself to be indispensable, and there are enough women around Uhuru who may not quite see it that way. She is however an excellent foot soldier and we know how that works.

        Thing is he has to keep her on payroll somehow.

        The suspended CSs were on payroll drawing paychecks for last 8 months for no work done, so its a small matter

        The point am driving at here is that people are celebrating the firing of the CSs, but unless and / or until we actually see the termination letters, the reality is that they are still “CSs without portfolio”. The law allows the president to re-assign CSs and is completely silent on the actual re-assignment. He can reassign a CS to a driver I suppose, CS of drivers. Anyway point is, a new appointee does not necessarily mean exit from cabinet since some of them have been relocated, while others their status as of now is classified as unknown. We must see the individual termination letters.

        Remember under the new dispensation, the president must put to paper and sign all decree’s. So therefore so far we are (or can) only celebrating new CSs and expansion of departments and an adjustment to relocate budget setting to OP. By the way, the new CSs must still go through the parliamentary rubber stamping process often erroneously referred to as vetting/approval. No CS has actually resigned because a fresh vetting may not yield the same outcome

        But anyway, hehehe looking ahead, once budget moves to OP, so who carries and reads the budget briefcase to parliament for the July ceremony / ritual? Am guessing sweetie and Rotich will hire one of those Bungoma wheelbarrows and share the load (ka Sweetie will be on light duties and cannot be made to shoulder such a heavy burden by herself). And the president can not possibly stand the scrutiny of a few sharp parliamentarians, it would be total chaos.

        Will Uhuru be the one to stand in parliament and be interrogated on budgetary allocations or will it be the CS? Hehehe anyone ready to be the PS in OP? I see a huge bus coming lol!!!

        I think Uhuru and his Knee jerk philosophy of running the government will make for a very entertaining history book

        Also at this point with so much at stake, I don’t think Uhuru’s TNA is ready to really fall foul with waiguru’s supporters, or the likes of Ngilu and URP, my guess, is they will put them to the back burner and “hope for” or engineer a new crisis and then slip these guys right back atcha. Money is no object

        as they say

        plus ça change plus c’est la même chose

      • Blog Admin,
        Rumours doing rounds in Nairobi is that Uhuru wanted her to to be the next governor of Nairobi. Infact Mike Sonko was told to go slow and that the TNA ticket was Waigurus.
        The only hinder for capturing the seat would have been money. As we all know, in Kenya if you have enough cash you can be anything.

        Its said that the sitting governor has so much money that removing him will be an uphill task. Thats the reason, according to rumors, Waiguru was doing what she was doing.

        But as you said, Uhuru will probably give her an even more powerful position. Remember that she even asked for a “lighter” job while resigning. I’m sure that her wish will be granted. After-all Uhuru posted on twitter immediately after her resignation that he may not recover because Waiguru has his favorite CS.

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