VP woos Rift in quest for presidency

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By VPPS
Posted  Sunday, July 31  2011 at  19:41

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Vice-President Kalonzo Musyoka on Sunday took his campaign to the Rift Valley where he urged residents to support his presidential bid in the next general elections.

Mr Musyoka said he has the necessary experience having been a MP for over 25 years where he served as deputy speaker, assistant minister, Cabinet minister and Vice-President.

He paid tribute to former President Daniel arap Moi for having given him the opportunity to sharpen his leadership skills through the various key appointments.

“I must express my gratitude to the former President Moi for his mentorship to many of us through giving us the opportunity to serve in various capacities in his government,” he said.

Mr Musyoka urged the youth to take advantage of employment opportunities in Southern Sudan while addressing the public at African Inland Church (AIC) in Eldama Ravine at the ordination of seven pastors.

He was accompanied by area MP Moses Lesonet, Luka Kigen (Rongai), Daniel Muoki (Mwala), and Sammy Mwaita (Baringo Central).

He asked the Church to continue praying for peace as the general elections near.

Kenyans pay Sh32 billion to clear Kanu rot

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Photo/FILE Treasury Building: Details of the huge burden were first revealed during a session between Treasury officials and the Budget Committee of Parliament. 

By ALPHONCE SHIUNDU ashiundu@ke.nationmedia.com
Posted  Sunday, July 31  2011 at  22:30

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The Treasury is secretly paying a debt of more than Sh32 billion, described as ‘dirty money’, to the Central Bank of Kenya.

It has merged that the taxpayer is servicing the massive loan incurred more than 20 years ago when the Kanu government raided the Central Bank of Kenya to print excess currency.

Details of the huge burden were first revealed during a session between Treasury officials and the Budget Committee of Parliament.

The debt is about four times the annual Budget of the National Assembly. It is to be serviced until the year 2039, subjecting future generations to debts they knew nothing about.

This year, the Treasury has earmarked Sh1.11 billion towards the repayment of the debt.

The Controller and Auditor General, Mr Anthony Gatumbu, first raised the red flag in his report, saying Treasury had not made a full disclosure on the matter.

“Although the government continues to make repayments against the loan, a detailed analysis of the advances has not been provided for audit verification, rendering it difficult to ascertain the authenticity of the loan balance of Sh32 billion,” reads the report in part.

Minutes of the Budget Committee meetings with Finance Minister Uhuru Kenyatta and permanent secretary Joseph Kinyua revealed that the debt was “incurred in an irregular manner” in the years before 1997.

Overdrafts of ministries

The minutes say it arose from overdrafts of ministries in the early 1990s following a “weak fiscal framework that led to excessive borrowing by the government from the CBK through the overdraft facility”.

Ministries, it seems, were allowed to get money from Central Bank and then have the ‘advances’ regularised through the Supplementary Budget, presented to Parliament every March.

The debt had accumulated to Sh36.97 billion by the end of 1996, but fell to Sh35.6 billion in 1997 after being ‘rationalised’.

It was converted into a long-term loan to be repaid in 30 years in July 2007.

Mr Kinyua said he was behind the conversion of the debt into a long-term-debt, adding, there was need for Government to pay that debt.

Even as MPs pushed for modalities to have the debt written off, Mr Kinyua held his ground.

“It is money that can be dangerous (if released into the economy at once). It can lead to serious inflation,” he said.

He insisted that the money has to be paid in bits over a long period, because, if it is paid back at once, the sky-rocketing inflation will spiral out of control.

“This is money that was lent to the Kenya Government. The only distinction that we needed to draw is that it is not the kind of money that we consider to be real money; it is fiat money, because it is not backed by goods and services,” Mr Kinyua told Parliament’s Budget Committee when it first raised queries early last month.

But questions still linger as to why then the government is paying what is not a real debt; and why the Central Bank is charging interest on that debt.

“We’re removing what may seem to be dirty money, it is very inflationary; and as much as possible we should try to get it out of the system,” he told MPs.

“But if you do it abruptly, say in one lump chunk it will be quite costly to the government, because it will deny the government in terms of other things it needs to do and hence the reason why it has to be spread over a long period,” Mr Kinyua said.

He dismissed the queries about the payment of interest on the money.

“Even though we’re saying this is not real money, there was still a small cost at the Central Bank in printing that money, and we’re trying to recover a small part of that cost (by charging interest),” he concluded.

Parliament still has a window to stop the payment if the MPs push for amendments to the yet-to-be published Appropriations Bill, and knock off the Sh1.11 billion earmarked in the current fiscal year for the repayment of the debt.

Why no one should dismiss Muite as a lion in winter

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Posted  Saturday, July 30  2011 at  18:48

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Every Tom, Dick and Harry — or Kamau, Adongo and Hussein, if you like — is running to succeed President Mwai Kibaki in State House next year. I can’t fault the wannabes — it’s their constitutional right.

Although I must note, tongue-in-cheek, that some of them think it’s their birthright to run for president. I don’t want to demagogue the “constitutional obligation” for citizens to run for office.

The fact is that someone has to run otherwise we won’t have “rulers”. Which begs the question — who’s for real, and who’s faking it? My take on the matter is that it would be a mistake to dismiss former Kabete MP Paul Muite, the latest man to throw his hat in the ring.

I have three reasons why Mr Muite is a “dangerous” candidate. But before I do, let me dispense with some vexing matters. I have noted with much concern that there’s too much testosterone in the presidential sweepstakes.

Marginalised women

I don’t believe the field of contenders for State House is covered by the “one-third gender principle”.

But there are simply too many male candidates. Even with Gichugu MP Martha Karua — the lone woman in the field who’s probably worth more than a few men — she’s still one woman.

Why aren’t there more women aspirants? Kenya has so marginalised women that they dare not even think of being the principal tenants at the house on the hill. That must change.

Now back to Mr Muite. The first reason anyone would be foolhardy to write Mr Muite off is because the man is a force of nature.

Those who’ve worked closely with him know Mr Muite’s relentless determination, quick and strategic mind, fearlessness, and strength of character.

Among the Young Turks, he was regarded as the heir apparent to the late opposition doyen Jaramogi Oginga Odinga.
That’s why he was Ford-Kenya’s vice-chairman. His image suffered when Goldenberg architect Kamlesh Pattni implicated him.
However, through thick and thin — and especially during his lowest ebbs — Mr Muite has always stood tall. The man is made of stern stuff. That’s why his opponents had better watch out.
The second reason Mr Muite cannot be overlooked is because of Kenya’s tribalised politics. It’s true that Kenyans are unlikely to elect a Kikuyu to the State House — right after Mr Kibaki — but it could happen.
Political scene
Let’s hypothesise that Finance minister Uhuru Kenyatta, the declared Kikuyu “muthamaki” (“king”), is knocked out of the political scene by the International Criminal Court in September. We’d be foolish not to speculate how the “Kikuyu vote” would line up.

Historically, we know that the Kikuyu — like other Kenyans — vote for their “man”. The record shows that, in fact, the Kikuyu have never voted for anyone outside the House of Mumbi. Perhaps this trend will change in 2012, but I highly doubt it.

The reason the Kikuyu may look inwards in 2012 is their distrust for all the “outsider” candidates. With Mr Kenyatta out, only Vice-President Kalonzo Musyoka, an ethnic cousin, is a possibility.

But the Kikuyu think that the man from Tseikuru is too wishy-washy and a flake. Mr Kenyatta has himself implied in public rallies that Mr Musyoka is a “chameleon”.

This is a death knell for Mr Musyoka. Eldoret North MP William Ruto may be gone to The Hague with Mr Kenyatta.

But even if he’s not, he shouldn’t count on the Kikuyu for support. Too many of them suspect that he may have been their tormentor in the post-election mayhem.

This leaves Prime Minister Raila Odinga as the only credible “outsider”. I think hell may freeze over first before some Kikuyu vote for him. This takes us back to three credible “insiders” — Ms Karua, Mr Muite, and Gatanga MP Peter Kenneth.

Ms Karua is a formidable candidate who appeals to many Kenyans. But she’ll have a hard time winning over the Kikuyu chauvinist elite. Mr Kenneth has a future, but it’s not 2012.

This makes the Kikuyu vote a contest between Mr Muite and Ms Karua. It’s possible that Ms Karua could lose the Kikuyu vote to Mr Muite. With the populous Kikuyu vote in his bag, Mr Muite could give Mr Odinga, the presumptive ODM candidate, a run for his money.

The third reason Mr Muite could win it all is because of the structure of the new Constitution.

It’s unlikely that any candidate will win outright in the first round. It will be virtually impossible in a hotly divided country for anyone to sweep over 50 per cent of the popular vote and win more than 25 per cent of the vote in more than half the 47 counties.

This means that there will almost certainly be a runoff among the top vote-getters. Suppose the runoff is between Mr Odinga and Mr Muite? In my view, the contest would be highly tribalised. Who would the Kalenjin and the Akamba vote for? I can see a scenario where Mr Muite beats Mr Odinga.

Integrity test

But Mr Muite’s path to the presidency will be arduous. Like all other contenders, he will have to pass a leadership integrity test. Safina, his party, would need to be rebuilt and “nationalised”.

He then would have to pick a credible running mate. The impressive Mandera Central MP Abdikadir Mohamed (Safina) would make a great choice. But he may have other thoughts.

Mr Muite would then have to win over either the Kikuyu elite or the Kikuyu hoi polloi. Neither would be easy. But Mr Muite’s opponents shouldn’t mistake him for a lion in winter.

Makau Mutua is Dean and SUNY Distinguished Professor at the State University of New York at Buffalo Law School and Chair of the KHRC.

Residents anxious as Njuri Ncheke notice expires

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By NATION CORRESPONDENT
Posted  Sunday, July 31  2011 at  22:36

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Meru residents are waiting to see the fate of killers of eight people a fortnight ago after an elders’ ultimatum elapses on Monday.

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The Njuri Ncheke elders called on the people who killed the eight in Meru County to surrender or face unspecified consequences.

“The Njuri Ncheke elders wish to take this opportunity to appeal to Ameru people, and the perpetrators, who may have information that may lead to the arrest of the killers and their accomplices to volunteer disclosure without fear.

“They may report to the Kenya Police or to the Njuri Ncheke elders in their respective areas of jurisdiction within 14 days after this announcement, failure to which the council of elders will apply its traditional mechanisms which will produce dire consequences,” read part of a the statement.

With the grace period ending, anxiety has gripped the Meru region and according to Mzee Gaita Baikiao, who is a Njuri Ncheke spiritual leader, the council can decide to invoke a curse on the people who carried the act or those who know something about the perpetrators and their immediate family members.

He says the ‘kithiri’ curse has severe consequences such as bad omens, although some community members say it is black magic, which the elders deny.

Raila and Uhuru in search of votes

Photo/FILE Prime Minister Raila Odinga (left) and deputy PM Uhuru Kenyatta during a parliamentary group meeting at KICC August 16,2010.  

By MAURICE KALUOCH and HENRY NYARORA newsdesk@Ke.nationmedia.com
Posted  Sunday, July 31  2011 at  22:30

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Prime Minister Raila Odinga on Sunday asked the Luo to reach out to other communities to support his presidential bid as Finance Minister Uhuru Kenyatta defended Prof Sam Ongeri over corruption claims.

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“Whenever I go across the country, Kenyans confess that they are ready to vote for me but claim Luos may not respect other communities when I win elections,” he said.

Mr Odinga urged his kinsmen to therefore re-package themselves and discount fears that Luos may not pay rents when he becomes president.

He was at the burial in Ndhiwa with his wife Ida Odinga and the Regional Commissioner for South Nyanza Erastus Ekidor, among other leaders where he said he would win in the next general elections.

“I am optimistic that I will emerge victorious in the forthcoming General election and become the President for all Kenyans and not of the Luo Community,” he said.

The PM added that Kenyan leaders should preach peace and unity and scoffed at his rivals who were campaigning against him.

He said he would not engage in the elections date debate as the Supreme Court will do so.

The ODM leader said the party was considering allowing elections of women and youth leaders and said ODM was committed to holding transparent and democratic polls.

Mrs Ida Odinga said she was disappointment with girls’ performance in Ndhiwa in last year’s KCSE.

Arguing that Mr Raila ‘sacked’ Mr Ongeri because of seeking political mileage, Mr Uhuru Kenyatta on Sunday supported his Cabinet colleague Prof Ongeri over the missing Sh4.2 billion Free Education Funds saying they got lost between 2003 and 2007 when Prof Ongeri was not in Education ministry or even an MP.

He was with MPs Eugene Wamalwa (Saboti) and Wilfred Ombui (North Mugirango Borabu) with Kanu delegates from Nyamira and Kisii at Prof Ongeri’s home in Borabu where he said the G7 would have a presidential candidate - Mr William Ruto, Eugene Wamalwa or any other popular candidate - and called for peace in the 2012 elections.