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STATEMENT BY THE PARTNERSHIP FOR CHANGE ON THE LETTER FROM KENYAN PRESIDENT MWAI KIBAKI TO THE PRESIDENT OF THE UNITED STATES BARACK OBAMA issued at Nairobi 28th September 2009.

The Kibaki administration is ruffled by the United States Government latest actions on Kenya and it has nothing to do with travel bans. Money is at stake and the soft underbelly of the regime is exposed. Although it touts itself as financially self-reliant, in truth the Grand Coalition Government of Mwai Kibaki and Raila Odinga cannot afford to ignore the International Community and especially the United States’ stated intention of scrutinising all loans and financial programmes for Kenya by the International Financial Institutions. Things are now very serious for the two Kenyan leaders. There is an Aid Freeze in the making. Kibaki and Odinga should ask Daniel Arap Moi to tell them what the US Government Statement actually means.

The Grand Coalition Government has been castigated by the international community and even been the subject of international investigations following the National Accord – but each time it has arrogantly shrugged off its international critics with assertions of sovereignty. But this time Kibaki is worried and we can hazard a guess as to why this is the case. His financially strapped Government is facing the prospect of having all its “vision 2030 projects” rejected by the World Bank on the say so of the President of the United States of America. The Minister for Finance doubts publicly that he can meet payroll if things continue as they are going.

October is almost here and the Government has failed to pass the Appropriations Bill through Parliament and therefore has no authority to implement its budget in full. Even though earlier this year the Government got 200 million US $ from the International Monetary Fund for balance of payment support the Government remains cash strapped for its operations and has been hoping to convince international donors to pick up the tab for several important national programmes including the resettlement of IDPs, public infrastructure development, food relief and general humanitarian aid, and recently evacuation of the water towers of Kenya. This is unlikely to be forthcoming in the current environment of a US led financial squeeze because of bad governance.

As things stand today, both Parliament and the World Bank have ordered audits into Government finances including a forensic Audit into the National budget for the past 3 years.

The Statement by the United States Government regarding consideration of future International Financial Institution projects for Kenya is most welcome to the fundamental change constituency which wishes to see the back of the Grand Coalition Government.

Kenya has not seen such a statement since the Moi era in the 1990s. What this means for the Kenya Government is that there are serious considerations for an Aid freeze to Kenya and it is pegged to the implementation of the National Accord. It is good news to those Kenyans who support fundamental reform and devastating to those who are on the wrong side of history.

The news is encouraging, because it means that the Kenya Government cannot as it has always done in the recent past ignore the demands of Kenyans for reform and implementation of the National Accord without consequences. The picture emerging is that the Kenyan public have friends and powerful friends to boot and now the Grand Coalition Government could be facing a serious reality check. You can thumb your nose at public opinion about your economic management of public resources, but there are responsible Governments in the International Community who will have none of it.

The Statement released by President Obama’s Government states “ The United States will more closely scrutinise all proposed projects, loans and other programmes of assistance to Kenya that are brought before International Financial Institutions.” This means that the United States is planning to use its immense influence over the Boards of the Bretton Woods Institutions (World Bank and International Monetary Fund) to assert its Policy towards Kenya.

Regardless of what the Government’s apologists say, a reading of public opinion as expressed in the media, shows that US policy is in tandem with what the Kenyan public wants. Between Kenyan public opinion and the US Government position there are clear points of convergence. Thus the US statement is clear “ The United States will continue to support the Insistence of the Kenyan People that Fundamental reforms be fully implemented as agreed in the National Accord of 2008”

The United States is certainly not acting alone. It acts with the support and gratitude of Kenyan Public. The latter is confirmed by public opinion polling by the Kenyan media. The sign of the times, if now seen for what it is should shock the Government into immediate action. The Kenyan Government as sovereign as it may claim to be, cannot do without Bretton Woods Support and the Kenyan public will refuse to be committed to pay private commercial loans to support a Government that is not accountable to its people. Indeed, we have already refused to pay for a wasteful bloated Government. What we want to pay for is Fundamental Reforms under Agenda 4. The Government has not provided resources for these reforms in the largest budget in Kenya’s history.

On March 30th, 2009, the Partnership for Change wrote to Mr. Dominique Strauss-Kahn the Managing Director of the International Monetary Fund asking the International Monetary Fund Board of Directors to consider the opinion of those Kenyans who will inevitably be taxed to repay whatever loan the Government of Kenya obtains regardless of whether or not Kenyans obtained any developmental benefit from it.

This Letter was followed by another dated June 2nd 2009, with subject title -Re: IMF’s odious loans are impoverishing Kenya through collusion with corrupt agents.

The Partnership for Change called for the Bretton Woods International Financial Institutions (especially the IMF and the World Bank) to immediately do an inventory of loans lost to corruption and public sector financial impropriety in Kenya. An independent panel of experts would determine, on a case by case basis, where responsibility lies. If it was found that their staff knowingly lent money to the Kenya Government who then siphoned it off through corruption, thereby contravening the institutions’ fiduciary mandate, negotiations about sharing liability should commence immediately. Kenya simply cannot afford more of the IMF’s unaccountable loan “medicine”. We as Kenyans were demanding the freedom to follow economic policies that protect the country from more harm.

Both letters were copied to the all multi – lateral and Bi – lateral donors to Kenya. The World Bank has already moved into action, suspending two current large projects in the last two days. Institutional Infrastructure Bond holders are now demanding to be told what projects their money is financing and the Government is being vague. When Parliament reconvenes the stalled forensic audit of the National Budget over the last 3 years will be the next urgent issue to be dealt with. And other donors apart from the United States are also enquiring into their Kenyan portfolios worried that they are being raided.

What Kibaki and Odinga should do once they next meet is face the reality that they are indeed big fish in a very small pond. And that they must take decisive steps to respond to Kenyans and International Community concerns about the stalled National Accord reform processes, and the economic well-being of the Nation. They will have to eventually make political sacrifices including dropping cabinet ministers (e.g. the Attorney General), and other senior government officials (e.g. the Chief Justice and Aaron Ringera). This is what Moi did when he faced similar actions. He sacked and arrested ministers and allowed multi-partyism by constitutional amendment. Both Kibaki and Odinga benefited from Moi’s decision, and Kenya’s democracy advanced. In reality reforms are not optional – they will come – sometimes painfully.

Mwai Kibaki has made his move, writing to Barrack Obama to complain. Kibaki has not made his letter public. Why? Instead Kibaki has continued to ignore the public and the only mandate he has, which is to deliver the reforms. Kibaki forgets or does not care that he has no electoral mandate and the reforms he is being asked to implement are critical for the survival of millions of Kenyans. Former advisors are openly calling his actions escapist.

Raila Odinga on the other hand seems delighted at Kibaki’s misfortunes falsely believing that it will assist his presidential ambitions. What Odinga forgets is that Kenyans now want fundamental Change and that the ODM is just status quo as the PNU. Odinga pretends he is not part of the problem, and yet as Prime Minister he is responsible for supervision and coordination of all Ministers. Kenyans will see him as a cynic as he tries to prepare to run without a record. Power without responsiblity.

And so to the final point. Kenyans urgently need to prepare for a democratic election. We have come to the point of diminishing returns. The more we have of the Grand Coalition Government the more Kenyans continue to suffer. Is it logical then, to keep asking those who are not prepared to deliver reforms to do so? So disadvantaged are Kenyans by this unelected Grand Coalition Government that we do not even have a voters register. We urgently need the Kriegler electoral reforms to be entrenched. Otherwise the next elections will be as farcical as the August 2009 by-elections in Shinyalu and Bomachoge where a toothless IIEC allowed ODM and PNU tn do a battle of bribery. We need the reforms to entrench a truly independent electoral referee who shall be able to control the excesses of Kibaki’s and Odinga’s political machinery. A democratic dispensation achieved through the ballot is our democratic right. Especially because the Grand Coalition is not based on an elected mandate, and rules only because Kenyans consented to a negotiated agreement to save the country from collapse. It is this agreement – the National Accord – and its reform package as set out in Agendas 1-4 that both Mwai Kibaki and Raila Odinga are not honouring.

We support the International Community in reigning in our rogue, insensitive, uncaring and visionless leaders. Keep up the pressure, Kenyans are totally with you. We have simply had enough.

Download PDF here

Signed

Mars Group Kenya

For the Partnership for Change
Nairobi 28th September 2009.

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