[wanabidii] KISUMU MOLASSES FACTORY: HOW DID THE ODINGAS GET IT?

Yes,     I agree Willis, I agree totally........connect the dots and compare note at foot-note:.......     We must know how and why KCC was killed and how Brookside came about. Likewise we shall know how Kenya Railways was transferred to be owned by Trans-Century Limited of with others listed down here.     All must be questioned because public funds were used in all these deals and today Kenya is in very acute state of indebtedness in fiscal rating. It is headed and getting closer to 100 billions that Kenya must pay. We must demand to know how this debts were made and to whose accounts they were channelled wether Offshore, Swiss bank or otherwise........we shall dig everything, and all who are involved in stealing public wealth and resources MUST FACE JUSTICE AND PAY BACK.     The Idea of "BAR WABAR"......"Cut we Cut"......How did it come about? We want to know how the deals were made and passed conclusively. In "BAR WABAR"…….Kenya Railways was changed to Rift Valley Railways........how and why???? Note also that in some countries, the railway operating bodies are not companies, but are government departments or authorities........How and why did the Coalition process and privatized the Public corporation and at what value???   In Kenya Railways Rift Valley Railways Consortium with Transcontinental, Sheltam, Mirambo holdings, Babcock and Brown of Australia etc., became utilizing public resource wealth, facilities and utilities without trading regulations, securities or protection to preserve public interest and without public knowledge is something that the law must make clear their authentification and charge; and in the transparency and accountability, for public to analize and scrutinize if their interests were fully represented and taken care of in the consequence.     Rift Valley Railways Stock Ownership Rank Name of Owner Percentage Ownership 1 Sheltam Railways of South Africa 35.0 2 Trans-Century Limited of Kenya 20.0 3 Prime Fuels Limited of Kenya 15.0 4 Centum Investments of Kenya 10.0 5 Mirambo Holdings of Tanzania 10.0 6 Babcock & Brown of Australia 10.0 Total 100.0 Rift Valley Railways Stock Ownership Rank Name of owner Percentage ownership A 1 Sheltam Railways of South Africa 35.0 2 Trans-Century Limited of Kenya 20.0 3 Prime Fuels Limited of Kenya 15.0 4 Centum Investments of Kenya 10.0 5 Mirambo Holdings of Tanzania 10.0 6 Babcock & Brown of Australia 10.0 Total 100.0 B 1 Africa Railways of Egypt 51.0 2 Trans-Century Limited of Kenya 34.0 Bomi Holdings Limited of Uganda[17] 15.0 Total 100.0 See footnote and compare for further debate and argument:   Sincerely, Judy Miriga Diaspora Spokesperson Executive Director Confederation Council Foundation for Africa Inc., USA http://socioeconomicforum50.blogspot.com       Uhuru Sneaked 1.2 Billion in Budget to Pay Fake Company Representation on the inclusion of payments out of the Consolidated Fund to an Austrian Bank ostensibly related to the defunct Ken Ren Chemical and Fertiliser Company factory project Wednesday 22nd June, 2011 Main Conference Room, County Hall, NairobiKENYA Uhuru Kenyatta: Bogus allocation in the budget Honourable Members, This year Payments to Austria Bawag Bank related to the failed Ken Ren Chemical and Fertiliser Factory project of the 1970s have again been factored into the Budget see Consolidated Fund Services Estimates 2011-2012 at p.16 (attached and as follows) • 2011/2 = Ksh 372,357,514 • 2012/3 = Ksh 404,709,457 • 2013/4 = Ksh 437,321,723 The Ministry of Finance has made provisions to pay Ksh 1,214,388,694 for a non existent factory this financial year. That the factory is non-existent is well established by the MP for Changamwe where it was supposed to be situated – see Ken Ren Chaani Hansard of 23rd February 2011 statement by Ramadhan Kajembe (attached). But worse still, Kenya has paid huge sums for this undelivered project in the past. Between 2003 and 2009 the C&AG states the country paid Ksh 2.3 billion for this non existent factory. Thus in the Controller and Auditor General Report 2008 – 2009 (attached) – see page 18 and 19 – the C& AG says "A review of the two debts in June 2009 showed that a total of Kshs.2,371,887,138.05 made up of principal and interest amounts of Kshs.1,639,409,203.95 and Kshs.732,477,934.10 respectively, had been paid as at 30 June 2009. However, and as observed in the preceding paragraphs, no fertilizer factory had been constructed, thus making the entire expenditure of Kshs.2,371,887,138.05 nugatory." This sort of impunity is not new to Treasury – another example is their complete refusal (since April 21st 2011) to provide a requested statement on the tax accounts to Hon John Mbadi – see attached extracts of the Hansard of the National Assembly "Status of the Tax Revenue Account at Treasury" Mwalimu Mati Mars Group Wednesday 22nd June 2011 If Kenya was in the Euro-zone, it would have the third lowest debt ratio Based on the IMF fiscal monitor, if Kenya was a member of the Euro-zone, its debt-to-GDP ratio would rank only behind Estonia and Luxemburg. Kenya's macroeconomic success is home-made. Through prudent fiscal policies—particularly strong revenue mobilization—and economic growth, Kenya has gradually brought its debt burden down 20 percent in five years. Kenya understands that what matters is not the absolute amount of debt, but its proportion to the overall economy, and has therefore been praised for its wise fiscal policies and sound budget management. Through its economic reforms, especially in the service sectors, it has managed to open up the economy and create a growth momentum that has benefited the country over the last decade. Source: World Bank (blog)   --- On Sun, 8/19/12, Owuor Willis <owuora4710@yahoo.com> wrote: From: Owuor Willis <owuora4710@yahoo.com> Subject: Re: KISUMU MOLASSES FACTORY: HOW DID THE ODINGAS GET IT? To: "wanakenya@googlegroups.com" <wanakenya@googlegroups.com> Cc: "Judy Miriga" <jbatec@yahoo.com>, "oduor" <mauricejoduor@yahoo.ca> Date: Sunday, August 19, 2012, 11:18 AM On the same note may we also know how Kenyatta acquired Brookside factories. They are spread all over the country. From: Judy Miriga <jbatec@yahoo.com> To: Judy Miriga <jbatec@yahoo.com> Sent: Sunday, August 19, 2012 10:09 AM Subject: KISUMU MOLASSES FACTORY: HOW DID THE ODINGAS GET IT? Folks, This is an excellent piece for exhibit to demand justice both locally and internationally. Objectively? Absolutely. This is without doubt. It is the main starting point to recover our peace and unity in endeavoring prospects to achieve way-forward to common good of our livelihood and survival without holding back. It is the treasure of what was lost in the thicket of corruption and impunity in sin that must be recovered to be forgiven. Without the hidden truth taken before the court of justice for legal action, it remains a smokescreen where demons and bad wicked spirits find way to continue to divide and destroy us. There will be no truth in us if we remain in sin. Without us debating it exhaustively, reconciliation and rehabilitation will be hard and difficult to come by and forgiveness will be hard to find. We must therefore engage with clear conscious and sanity that demands seriousness for Reform Change we all want. At the end of our engagement on this valuable piece of information, the heavenly doors shall open and cover the earth with peace that passes all understanding; as the evil spirit of the wicked will have been exposed and defeated by the Truth. The good Angels from God with all people on earth with all there is, shall sing praises of good tiding, thanking God for His Mercies and Faithfulness because He is the author and purpose for creation and He created us all and gave us life to share. Here after, nothing but the truth shall bond us together in union at peace with each other loving and caring for one another. It is the Truth that shall set us free indeed. If God is able to take care of Birds in the air and provide for them in all seasons; how well will God provide for mankind if we remain faithful, trusting and believing in Gods promises of love........??? I love you all……..Our God is good all the time......Good revelations will keep coming as we look for transformational reform change we all value......!!! Let each and everyone who care; engage in their ways and set ups as they wish, as all go towards peace and unity we all care much for....... Cheers everybody ! Judy Miriga Diaspora Spokesperson Executive Director Confederation Council Foundation for Africa Inc., USA http://socioeconomicforum50.blogspot.com --- On Sun, 8/19/12, Tom Oreje <tomoreje@gmail.com> wrote: From: Tom Oreje <tomoreje@gmail.com> Subject: KISUMU MOLASSES FACTORY: HOW DID THE ODINGAS GET IT? To: progressive-kenyans@googlegroups.com, "WanaKenya" <Wanakenya@googlegroups.com>, "uchunguzi online" <uchunguzionline@yahoogroups.com>, "KOL" <kenyaonline@yahoogroups.com>, "Vugu Vugu" <vuguvugumashinani@yahoogroups.com>, "YP Young Professional" <Youngprofessionals_ke@googlegroups.com>, africa-oped@yahoogroups.com, "MWANYAGETINGE NETWORK" <mwanyagetinge@yahoogroups.com> Date: Sunday, August 19, 2012, 8:16 AM This is how i remember the events, lets debate objectively........ Read on......... BY SARAH ELDERKIN On February 16, 1990, the body of Foreign Affairs minister Dr Robert Ouko – who had been missing for four days following a trip with then President Daniel arap Moi to the USA – was found, mutilated and burnt, in a thicket near Got Alila Hill, four kilometres from his Koru home, in Nyanza. Ouko's death was announced to the nation by Moi, who expressed his "profound sorrow". A couple of days earlier, Moi had also announced his "sadness and grave concern" at his minister's unexplained disappearance. He said he had directed that the state machinery be deployed to trace Ouko's whereabouts, and that his "top personnel" were applying "maximum effort" towards this end. It was too late. As he spoke, Ouko was already lying murdered. Seven months later, on October 1, 1990, Moi appointed a commission of inquiry into Ouko's death. This went on very well for months – until the day Scotland Yard detective John Troon, who was investigating the case, named Nicholas Biwott, then MP for Kerio South, as one of his two main suspects. Biwott, at the time, enjoyed a status in the inner circle around Moi that had long rendered him immune from criticism, despite the fact that he was widely disliked and feared. Moi acted swiftly to close down the commission of inquiry before any evidence against Biwott could be heard. Biwott's problems had begun when a witness, director of medical services Prof Joseph Oliech, told the commissioners that the Scotland Yard detectives had asked him whether Ouko had made any enemies because of the stalled molasses plant in Kisumu. The molasses plant, then properly called the Kenya Chemical & Food Corporation Ltd, had been inaugurated in 1977 and abandoned five years later, one of the costliest failures in Kenya's industrial history. The original proposal for the plant's establishment had come from Nitin Madhvani, of the influential Madhvani family, investors in Kenya, Uganda and elsewhere, particularly in the sugar industry, of which molasses is a by-product. It was to be a joint venture with the government to produce power alcohol. Despite the fact that the Madhvani group had been involved in a previous joint venture with the government that had failed to get off the ground (the Kenya Fibre Corporation, based in Nanyuki) and had cost the Treasury huge sums, the new company was set up and capitalised at Sh170 million, of which the government, as 51 per cent majority shareholder, contributed Sh86.7 million. In 1977, this was a huge sum of money. The project was initially dealt with by three ministries – the Ministry of Finance under Mwai Kibaki and later under Prof George Saitoti, the Ministry for Commerce and Industry under Eliud Mwamunga, and the Ministry of Foreign Affairs under Dr Munyua Waiyaki. The plant's main planned function was to produce power alcohol, that is, an energy fuel, out of waste from the sugar production process. The Ministry of Energy, under which the project eventually fell, was created by Moi in 1979, and Biwott was given the portfolio in 1983. By 1981, the government had guaranteed Sh600 million in loans for the failing molasses project and was being asked to guarantee another US$24 million. Lenders were pressing for repayment and contractors and suppliers had stopped work for lack of funds. In 1982, government estimates showed the country would lose Sh135 million a year for the next 10 years if the project went ahead. At that point, the plant was all but abandoned, and in 1983 it was placed in receivership. Some people, however, including Ouko, minister for Industry at the time, believed the project was still viable, and Ouko had appealed to the government and been instructed to find investors for the project. He had subsequently brought investors from Italy to see the plant and they had said it was possible to revive it. But a row over the molasses plant had been simmering for some time. Avon Ltd managing director Eric Onyango, giving evidence to the Ouko Commission, said Ouko had told him there were those among his Cabinet colleagues who favoured a different set of investors who would pay them "kickbacks". Competition had become intense. Ouko himself had told other friends who later gave evidence that there were powerful forces in the Cabinet opposed to his determination to expose corruption. Onyango said Ouko had told him that the level of corruption in the Cabinet was "not only alarming but unbelievable". Another witness said he would reveal the names of Ouko's enemies if he were granted police protection. Biwott, informed, under the inquiry's rules, of possible adverse mention of himself, brought in a team of three lawyers. Moi was quick to see that big trouble might be brewing and he promptly announced a new commission of inquiry – into the molasses plant. Attorney General Amos Wako was on hand as usual to deny that there was anything remarkable in this timing, and to say that the two commissions would operate independently. Soon afterwards, the witness who had asked for police protection, James K'Oyoo, who had been a political aide to Ouko, was recalled to the stand. Deputy public prosecutor Bernard Chunga applied for K'Oyoo's evidence to be given in secret, describing it as "possibly alarming", but the witness responded that he would not ask for protection as long as his testimony could be given in public. When he took the stand, K'Oyoo said Ouko had mentioned threats to his life over the molasses plant. A report in the New York Times, meanwhile, said the newspaper had obtained a copy of a US High Court injunction blocking Citibank New York from recovering dollar funds equal to Sh400 million in loans to Biwott's companies. Sh320 million of this was reported as secured by letters of credit in a Swiss bank account owned by Biwott. The New York Times quoted New York officials who warned that high levels of corruption in Kenya could endanger future US aid. A letter from the head of BAK, the Italian group favoured by Ouko regarding the revival of the molasses plant, to a legal firm in Nairobi said Kenya's reputation in international business circles had been marred by corruption, and it cited Turkwel Gorge and Noolturesh (Kajiado-Machakos) water projects. Chillingly, a memorandum from the same group of companies indicated that, in the days immediately before he died, Ouko had been preparing a report on the high-level corruption that was hindering the revival of the molasses plant. The writer of the memorandum said, "I spoke with him last on Saturday, February 10, when … he told me he was staying in Kisumu to finish his report for HE [President Moi]…." Three days after this conversation about the report Ouko was preparing, Ouko was dead. When Detective John Troon finally took the stand, he told the commissioners he had repeatedly tried to interview Biwott, without success, and also that he had been stopped from proceeding with his investigations, particularly regarding the questioning of senior government officials. Meanwhile, the International Monetary Fund's quarterly report stated that half the funds deposited in foreign bank accounts owned by Kenyans had been deposited in the past five years alone. On November 18, 1991, Troon named Biwott as one of two principal suspects in Ouko's murder and recommended full investigation of the corruption allegations against him. Troon said he was certain Ouko had been murdered because of his anti-corruption stance. The following day, Moi relieved Biwott of his ministerial post "with immediate effect", then abruptly disbanded the Ouko Commission of inquiry, instead directing the Kenya Police Commissioner to "proceed with due diligence and speed" in investigating Ouko's death. Sceptics abounded, especially as the commissioners themselves had requested an adjournment because of harassment by the Special Branch, including a brutal arrest of Ouko family lawyer George Oraro, "clearly calculated to undermine the continuance of these proceedings", they said. Moi's action was also interesting from another point of view: it came days before Kenya was to meet its increasingly reluctant donors in Paris. The issue of the billions stashed away abroad by corrupt political leaders was expected to feature prominently on the agenda, including the hundreds of millions of shillings held by Biwott in Swiss bank accounts. With Ouko's death, the whole matter of the Kisumu molasses plant was abandoned, and the physical structure of the plant fell into disrepair – a rusting skeleton standing at the edge of the Kisumu-Busia road, a colossal monument to government mismanagement and wasted public funds. It was apparently not until five years later that it was deemed safe to raise once again the issue of the molasses plant – and "all moveable assets" of the plant were advertised for sale on July 10, 1995. Raila Odinga, like Ouko, believed the plant had a future, and he protested officially at the intention to dispose of the assets of the company piecemeal. The sale did not proceed, but on March 8 of the following year, 1996, an advertisement again appeared in the Daily Nation newspaper, this time offering "For sale by public auction: All assets of Kisumu Molasses Factory". The auction was to be conducted at the plant on April 15, 1996. Among the conditions of sale was "(b) "IMPORTANT: First consideration will be taken for offer to purchase the whole plant in total [writer's emphasis]. Thereafter consideration for purchase of large combination of units and finally consideration of single item purchases." The would-be purchaser of the "whole plant or large items" was required to pay 25 per cent of the purchase price by banker's cheque at the fall of the hammer, and the balance within 30 days. The auction did not actually take place until June 3, on which day, Mr Odinga was present. Representing Spectre International Ltd, he bid Sh570 million for the "whole plant". This turned out to be the highest bid and it was accepted by the auctioneers on behalf of the receiver and the plant's debenture holders, Kenya Commerical Bank – but only tentatively.A token deposit was therefore paid, in two cheques totalling Sh2million, with the balance of the 25 per cent to be paid upon official acceptance of the bid by the receiver and debenture holders. M N Kanyi, of auctioneers Panama Rovers, wrote to Mr Odinga the following day and again two days later, on June 6, 1996, confirming that the bid had been accepted. Kanyi returned the two cheques lodged and requested payment of the full 25 per cent, which amounted to Sh142,500,00, not later than June 14, with the balance to be paid by July 15, 1996. The letter of June 6 included, however, a major caveat. While the advertised lot had described "the whole plant in total", Kanyi now stated in his opening paragraph that the Sh570 million purchase price "covers all the assets of the company, which, as stressed prior to the auction, exclude land". The Daily Nation advertisement had made no mention of this and Spectre's board was taken aback by Kanyi's remarks. It was difficult to see how a factory could be purchased sitting on thin air and it had naturally been assumed that the 240 acres of land on which the factory stood was part of the "whole plant in total" advertised for sale. Spectre instructed its lawyers, Lumumba & Ojwang, to write to the auctioneers, which they did on June 7, pointing out that it was clear from correspondence and a previous High Court case (no. 2433 of 1995) relating to the plant that both seller and buyer understood the land to be an integral part of the offer, and that the subsequent exclusion of the land constituted a "drastic turn of events". Said Lumumba & Ojwang, "Our clients have no intention of relocating the plant elsewhere," and they were therefore seeking confirmation that the auction sale included the land . Panama Rovers replied, saying that the Daily Nation advertisement had advised potential purchasers that it was their obligation to "ascertain the state of the assets". While this would appear to refer to the condition of the assets, and not to be a new meaning for the words "whole plant in total" (a double emphasis of the entirety of the goods), Panama asserted that the joint receiver JK Muiruri, of Bellhouse Mwangi Ernst & Young, and the auctioneer had explained before the auction that the lot included plant and machinery but not land. The receiver also wrote to Spectre, emphasising that the land was not part of the sale. On June 13, 1996, Mr Odinga wrote to the receiver saying that discussions about the land had been initiated with the government and "the matter is in the process of being resolved". He asked for an extension of the time within which to pay the deposit. In a congruent letter to Panama from Lumumba & Ojwang, the lawyers noted that Spectre had been given the impression that the land was part of the package. Indeed, a change in the wording of the sale notice from the "all moveable assets" advertised on July 10, 1995, to "all assets of Kisumu Molasses Factory" and the "whole plant in total" on March 8, 1996, was significant and supported this impression, said Lumumba & Ojwang, who again asked for confirmation of the inclusion of the land. The receiver replied to Mr Odinga the following day, June 14, 1996, granting the extension of the time within which the deposit had to be paid, with the price in full to be paid by December 16 that year. Panama replied to Lumumba & Ojwang confirming that the land was not part of the sale and advising that they would enter into no further correspondence on this issue. The situation was apparently deadlocked, and Spectre, apparently in disbelief, wrote once more to the receiver, on July 27, for reconfirmation of the land issue, which was subsequently received in a letter from the receiver of July 29, 1996. The receiver expected the shs.142,500,000 deposit on September 16, 1996. Instead, on that date, Spectre International filed suit against the receiver, stating neglect to confirm prior to the sale that the land was not included, and seeking (a) a declaration that the sale of "all assets" included the land, (b) an injunction restraining the receiver from disposing of any of the assets of the factory and (c) costs. At the hearing of the injunction suit (HCCC 2324 of 1996), counsel for Spectre International Ltd cited the Collins English Dictionary with regard to the meaning of plant, the first meaning being: "The land, buildings and equipment used in carrying on an industrial, business or other undertaking or service." Counsel also cited a report on the "progress, problems and prospects" of the venture, dated April, 1981, 15 years earlier, which had been prepared for the Kenya Chemical & Food Corporation Ltd by the law firm of Schnader, Harrizon, Segal & Lewis, of Philadelphia and Washington, USA. In the provisional balance sheet of June 30, 1982, under the heading 'Capital work in progress', appeared the items "Land and site development, buildings, and plant and equipment". Lumumba contended that this reference showed that the land was among the assets of the molasses company. The application was vigorously opposed by lawyer Lee Muthoga. After lengthy legal arguments, Mr Justice AG Ringera, presiding, opined that, because the land had not been expressly itemised as an asset in the Daily Nation advertisement, Spectre had not established a prima facie case. Because Spectre had withheld the deposit pending resolution of the case, Ringera also refused to grant an injunction against the receiver's disposal of the factory's assets. But he granted the interlocutory injunction assigning costs to the receiver, on grounds that the molasses factory was "in its death throes", was being liquidated and was therefore unable to pay any damages. In the absence of the land on which the factory stood, Spectre withdrew from its proposed purchase of the plant. The receiver then wrote to the second-highest bidder, Equip Agencies, which by this time had also decided to steer well clear of this white elephant/hot potato. Presumably most investors would be reluctant to spend huge sums of money on a derelict, non-functioning factory standing on land over which they had no control. And so the molasses plant stood, forlorn and unwanted and deteriorating by the day, for another three years – until the receiver decided to have another go at disposing of this towering government problem. On February 12, 1999, he wrote to those who had been the top four bidders in 1996 to ask them if they were still interested. Spectre wrote back, saying it was still interested but it wanted to confirm the present-day value, as well as the thorny issue of the status of the land. Spectre inspected the site and found the plant buildings in a very poor condition. Time and weather had taken their toll, as had vandals. Now an even greater investment would be required to revive the factory. But Spectre wrote to Bellhouse Mwangi Ernst & Young on February 18, 1999, making an offer of shs. 120 million, 10 per cent to be paid on acceptance and the balance within 120 days. "We are in negotiation with the government over the land issues," said Spectre's letter, "and do not anticipate difficulties in that regard." On June 9, 1999, receiver Muiruri wrote to Spectre accepting its offer of shs.120 million. Spectre had been outbid by shs.15 million by another bidder but successfully argued its case that it planned to develop the factory in accordance with the government's original aims, and not simply to cannibalise the moveable assets, as the other bidder planned. To make things crystal clear, Muiruri noted in his letter that the shs. 120 million was for the "moveable assets and not of shares or of any running business". The land was not mentioned at all but Spectre was already pursuing its own negotiations in this regard. On April 7, 1999, Spectre general manager Israel Agina had written to Moi requesting the allocation for industrial development of the parcel of land on which the molasses factory stood. Agina noted that the land had already formerly been allocated to the Kenya Chemical & Food Corporation but that the allocation had not been completed. What he said was true. The land had already been allocated to the molasses plant by the government, which had itself compulsorily acquired the land in 1976 for precisely that purpose. The land was previously communal land, and shs.2 million had been paid to the local community, which had ceded the land at this price only on the promise that the community would benefit from employment at the plant. The community had not otherwise been adequately compensated. The government, having thus acquired the land, had in 1982 issued a letter of allotment to the Kenya Chemical & Food Corporation, which had paid the stand premium of shs.2.4 million to the government. All that remained was for the title to be issued, but this had not been done by the time the factory went into receivership in 1983. And as an interesting aside, on October 29, 1983, the Municipality of Kisumu had written to the KCB, the debenture holder for the Kenya Chemical & Food Corporation, demanding land rates for the plot, unpaid since 1978. The letter contained the sentence "As you are aware, the Corporation owns 240 acres of land on which it started its operations [writer's emphasis]." In his letter to Moi, Agina said the land remained an obstacle to the conclusion of Spectre's desired purchase of the plant, while the factory's existing assets were deteriorating rapidly. "We hope," said Agina, "to convert the idle facility into a socio-economic complex." That hope became a reality. More than two years after Spectre was offered the company, the sale agreement was finally drawn up mid-2001. In September of that year, government letters of allotment granted a total of 114.8 hectares of land for 99 years for total fees of shs. 3,699,750, which were paid by Spectre International on October 11, 2001. The land was to be used for horticultural, industrial, residential and educational purposes, including the growing of such crops as citrus, tomatoes, onions and cabbages, and for a school and a health clinic. All title certification, registration, search, new register, attestation, inspection, copying, survey, rent, stand premium, stamp duty, land adjudication and other fees were likewise paid by Spectre four days later, on October 15, 2001. The sale agreement was signed. As usual, however, the transfer of title was not effected until nearly two years later. This eventually occurred in 2003 (under the Narc government), by which time Spectre had also paid the commissioner of lands all the rent arrears relating to the land for the years 1982 to 2003. Spectre then set about the huge task of rehabilitating the plant – appraising the work with professional valuers and beginning to seek expert scientific advice on appropriate crop-growing and methods of ethanol production. It also began the search for investment partners. Eventually, Energem would take a 55 per cent controlling share, and the Kisumu Development Trust (with directors the late Joab Omino, former Rarieda MP George Ngure Ondeny and current chairman John Otega) would hold five per cent on behalf of local people, who had come together to raise shs.1.8m towards the project. Spectre would retain the remaining 40 per cent. The rehabilitation project resulted in the commissioning of the plant in 2004. The yeast plant was completed in 2006 and the factory now produces industrial ethanol for blending with liquid (bio-fuels), potable alcohol for beverages and chemical industries, carbon dioxide, and bio and organic fertiliser yeast. At the height of the factory's operations, a daily output of 60,000 litres was achieved, but the current precarious state of the sugar industry has affected this. Nevertheless, the company employs directly more than 500 people and indirectly another 200. At the height of its operations, it remitted an average of Sh1.2 billion to the exchequer every year. It also exports to the Comesa countries. The Kisumu Molasses Factory has partnered with local schools to build laboratories and boreholes, and to provide electricity and clean drinking water. It conducts a free medical camp every three months for the entire Kisumu area, bringing in doctors and buying medication, all of which is provided free of charge to the 6,000-plus local residents treated. It is helping in efforts to control and eradicate water-borne diseases in the area. So, from a derelict, rusting, useless hulk to a fully functioning industry bringing benefits to local residents through employment, education and health, and contributing more than a billion shillings annually to the Treasury, the Kisumu Molasses Plant has been a huge success story. Unfortunately, huge success stories can lead to terrible jealousy, as Ouko's case also so sadly demonstrated. A Commission of Inquiry into the Illegal/Irregular Allocation of Public Land was appointed by President Mwai Kibaki on July 4, 2003. It presented its report, commonly known as the 'Ndung'u Report', to Kibaki in June 2004. The main part of the report lists many ways in which directors of public corporations with large public land holdings had misused their positions to make these organisations – for which they had a duty of care and a responsibility to the public – fail, so that the assets could be sold off cheaply for private gain. The commission found that such state corporations' land was illegally allocated "in total disregard of the law and public interest". It said no justification for the allocation of such land could be found in any of the records, and that subsequently "the lands so allocated were then sold by the allottees to other state corporations for colossal amounts of money far in excess of the prevailing market value of the land. This way, many individuals were unjustly enriched at great expense of the people of Kenya." The report went on to detail how "the loss of corporation land was triggered by the actions of the Commissioner of Lands", whose office would engage in some "specially designed correspondences" prior to wrongly granting title to individuals or their third part proxies "The corporation management would wake up to a rude fact that their land had been acquired and title issued thereto without their knowledge," said the report, adding that another ploy was the illegal allocation of state corporation land after "irregular surrenders" of that land. "The allottees would sell the land so illegally acquired," said the report, so that "in a space of say three months, a civil servant, a politician, a political operative, etc, would transform from an ordinary Kenyan, financially struggling like many others, into a multi-millionaire. Thanks to the rampant illegal allocation and sale of state corporation land." The report cited Kenya Railways, Kenya Agricultural Research Institute, Kenya Power & Lighting Co Ltd, Kenya Airports Authority and Kenya Industrial Estates as among many state corporations that "lost huge chunks of their land in these circumstances". None of this applied in the case of the Kisumu Molasses Factory. But despite this, the allocation to Spectre International Ltd of land on which the molasses plant stands is also mentioned in the report, which concluded that the "direct allocation of alienated government land to the company by the commissioner of lands was illegal". This conclusion would appear to be in direct contradiction of the facts, as detailed above, which are that: • The land on which the molasses factory stands was acquired compulsorily by the government for the purpose of building the molasses plant. • The land was already allocated to the molasses plant in 1982, though the transfer had been only partly completed by the time the company went into receivership in 1983. • The land was properly allocated a second time, this time to Spectre International, in 2001. • Spectre paid 20 years' rent arrears and all the necessary government fees for the land. • The land has been used for the economic realisation of the original objectives of the government, of the investors and of the local community. • It was government land, and government is not in the business of selling land. Government merely allocates land for industrial and other development. This is a normal procedure and it is precisely the procedure properly followed in the case of the molasses plant. As in no other case investigated by the Ndung'u Commission, the land on which the Kisumu Molasses Plant stands has been used for the purposes stated. A hugely successful company has been established on it, which has been of immense benefit to the country via the returns the plant remits to the Treasury every year, and to the local population through jobs, education and health care. And its success is down to the determination of one man, Raila Odinga. Let no one tell you otherwise, for whoever does so is not telling you the truth. Many have tried to say that Mr Odinga took money for the plant from local people and converted it to his own use. This is totally false and blatant propaganda. The shs.1.8 million raised by the local community is safe, in the form of the five per cent shares in the hands of the Kisumu Development Trust. The contributors will begin to see returns on their investment when the Kisumu Molasses Factory becomes a publicly quoted company on the stock exchange. Before any company can go public, it is required to have made a profit for two consecutive years. Spectre had huge commitments, loans and other expenses to meet in the course of the massive task of reviving the molasses plant. But it eventually it began to be a profitable concern, and it was intended that the company would be listed last year, 2011. Unfortunately, the major shareholder, Energem, then went bankrupt. This led to the need for major restructuring and a search for another strategic partner. This was found, but the sugar industry problems have meant that the plant's output has not yet been steady enough to qualify for stock exchange listing. It is hoped this might happen next year. In the meantime, the silence from anyone whose interests are being safeguarded by the Kisumu Development Trust is deafening. What is more, the company's doors are open to anyone who feels aggrieved, and the fact the Trust chairman John Otega is the company's human resources manager makes this all the easier. All the noise that is heard comes only from those interested in political propaganda. So that is the story, and all receipts, correspondence and certificates of allocation relating to the purchase of the Kisumu Molasses Factory and the land on which it stands are available for inspection. Land remains generally a very interesting and potent matter and, now that we are on the subject, what about all those other issues in the Ndung'u Report, issues that involve billions in public funds lost to this nation, massive issues that absolutely dwarf the Kisumu Molasses Factory – where no issue at all exists? Is anybody going to start talking about those? The writer is a freelance journalist. @@@@@@@@@@ --- On Sun, 8/19/12, otieno sungu <sunoti@yahoo.com> wrote: From: otieno sungu <sunoti@yahoo.com> Subject: [uchunguzionline] POLL CHAOS-I SPEAK FOR THE DEAD. To: "uchunguzi online" <uchunguzionline@yahoogroups.com> Cc: "mombasa@standardmedia.co.ke" <mombasa@standardmedia.co.ke>, "Miziziyahaki Pwani" <miziziyahakipwani@yahoo.com>, "Kiswahili" <Kiswahili@yahoogroups.com>, "changemombasa2012@yahoogroups.com" <changemombasa2012@yahoogroups.com>, "kenyans for Change" info@kenyansforchange.com Date: Sunday, August 19, 2012, 8:19 AM Yesterday, one daily screamed its headlines, Poll Chaos Murderers and rapists to walk free. It was a declaration too hard for victims to swallow. Now, the task force formed by Mr. Keriako Tobiko, the Director of Public Prosecutions to review the matter of prosecuting poll suspects, returned the verdict that there is no evidence to try 8869 cases of suspects who killed, maimed, raped and destroyed property. This is in the backdrop of government's concerted efforts to bring back the ICC cases to be tried locally. We all know that over 1600 Kenyans were killed in 2007/08. We buried them, The President attended a memorial service sometime later in their memory, if I am not wrong, a mausoleum was erected or proposed in their honor. We all know that over 500,000 people were displaced and some are still living in IDP camps. The government has spent millions of tax payer's money resettling them. We have heard hundreds of individual accounts of victims of post poll rape in various forums. Today, I do not want to write on behalf of the IDPs, victims of rape, maiming and those who lost property. The government seems to believe they have a weak case and thus they should try harder and build stronger cases. I want to confine myself to the case of the dead, those who were killed by the marauding mobs that the government claims it cannot ascertain. I want to speak for the dead because they cannot come back from their graves to build their cases. I want to speak for them because the constitution guaranteed them the right to life and the government has an obligation to protect that right. It is not the burden of dead victims of crimes that infringe on fundamental human rights such as the right to life to prove their cases. This responsibility lies with the government, especially where murder has occurred. It is very callous of this government to throw up its hands and declare it cannot do anything to apprehend the killers. The government machinery from the NSIS, CID and police are capable of investigating and finding these killers. These killers did not come from Mars, they are fellows within our society, people who were captured on camera hacking fellow Kenyans, burning their houses, pulling them out of vehicles and slaughtering them. These are gangs that were caught on camera, without hoods or balaclavas; brandishing machetes, bows and arrows, spears, some even transporting guns in vehicles. These people did not commit these crimes in the dead of the night; they were operating in broad daylight, in many cases right next to contingents of armed police officers. Various institutions such as the Kenya National Commission for Human Rights documented some evidence. The NSIS must have reports of what transpired before, during and after the elections with regard to the violence. Meanwhile, the government wishes for victims, among them the dead to come out and build credible evidence. If this government cannot find the killers, it has no moral authority to continue in office. The oath of the President is that of protecting lives and property, protecting the constitution which guarantees the fundamental rights and freedoms, among them the rights to life, free speech, association, owning property, exercising ones choices during elections. This latest developments is further proof of the governments preoccupation with protecting the perpetrators of post poll chaos at the expense of victims. It all boils down to political will. Neither side of this coalition government wishes to bring to justice the architects of the heinous crimes. It can only mean one thing; major players in this government are themselves the perpetrators. A government worth its salt cannot claim that out of over 1600 murders, 500,000 displacements, hundreds of rape and maiming cases, in all this, it is only capable of convicting a single perpetrator whose case a victim successfully provided evidence. This is an affront of the people of Kenya, it is an affront on the rule of law and definitely, an affront on the oaths our leaders took. If anyone still has any doubts that we expect suspected perpetrators to prosecute themselves, we are a deluded lot of a people. This is what all Kenyans must stand up against. Otieno Sungu. The writer is an online civic educator and an environmental activist. Kenya needs more security to protect voters: poll chief By Joseph Akwiri | Reuters – Sat, Aug 11, 2012 Related Content Kenya's Minister for Higher Education … 18 photos - Sun, Aug 12, 2012 See latest photos » MOMBASA, Kenya (Reuters) - Kenya needs to improve security to ensure that voters are not deterred by recent grenade and gun attacks and threats by a coastal separatist movement to disrupt the election due next March, the head of the electoral commission said on Friday. Kenya has been hit by several explosions since it sent troops into Somalia to crush al Shabaab militants in October. A separatist group has threatened to boycott and disrupt voting if the government does not give in to their demand for secession for Kenya's Indian Ocean coastal strip, centred on the tourist centre and port city of Mombasa. President Mwai Kibaki has rejected their demand. "Voting centres are naturally crowded and could be an easy target if our security is not alert. That already is a scare factor to anyone wishing to leave their house to vote," said Ahmed Isaack Hassan, chairman of the Independent Electoral and Boundaries Commission (IEBC), which will oversee the vote. It will be the first election in Kenya, east Africa's economic powerhouse, since a disputed poll in 2007 that triggered a politically driven ethnic slaughter in which more than 1,220 people were killed. Violence in Kenya could hit investment, trade and transport in its landlocked neighbours, especially Rwanda and Uganda, which rely on Mombasa port for imports of food, consumer goods and fuel. Kenya has blamed al Shabaab sympathisers for the explosions, including one last Friday near an air force base in the capital, a day before a visit by U.S. Secretary of State Hillary Clinton. Hassan said the separatist group, the Mombasa Republican Council (MRC), had threatened his staff. "MRC is a threat. They have threatened our officials. We have to increase security or there will be a low turnout, both in registration and during the election in Coast," Hassan told a meeting near Mombasa. "They are discouraging coastals from voting ... sometimes even threatening. This is worrying us because everyone will be at risk, voters, officials and innocent citizens." Kenyan authorities outlawed the MRC in 2010, but the High Court lifted the ban in June, a ruling the government said it would appeal. MRC spokesman Rashid Mraja said the police had been harassing party youths even after the court lifted the ban, and said the group's leaders would not be able to control its supporters should they retaliate. "Our youth ... are slowly getting impatient. They have been tolerant all this while, and I am afraid we may soon be unable to contain them. When that happens let nobody blame us." The MRC campaign for secession taps into deep local resentment at the fact that outsiders who have moved to the coast from elsewhere in Kenya now own much of the land and are the main employers. If the coastal region were to secede, Kenya would become landlocked. FOOTNOTE: Kenya to Launch Rapid Road and Rail Transport to Ease the Country's Urban Traffic Congestion 03/08/2012 03:10 (16 Day 06:41 minutes ago) The FINANCIAL -- Kenya will develop new mass rapid transport systems to reduce traffic congestion in Nairobi and other major cities and to improve Kenya's regional competitiveness. The National Urban Transport Improvement Project (NUTRIP), which was approved by the World Bank today, will help to expand the capacity of Uhuru highway, which bisects Nairobi's central business district, and to initiate rapid bus transit and commuter rail systems. The World Bank will invest $300 million in the project, in addition to $113 million from the Kenyan Government. "By helping to ease traffic congestion and develop a modern commuter system, this project will enable Nairobi to remain a great city in which to live and to do business," said Johannes Zutt, World Bank Country Director for Kenya. "Developing countries like Colombia, Mexico and Nigeria have embraced mass public transit systems as they transitioned to middle-income status, and it is now time for Kenya to follow their example." A National Metropolitan Transport Authority will be established to coordinate and regulate public transport. It will recommend policies on pricing and investments, financing equipment and related traffic management systems. The major components of the project include the expansion and upgrading of highway, service, and access roads from Jomo Kenyatta International Airport through Nairobi to Rironi on the Northern Corridor transport system. It will also finance the construction of by-passes in Kisumu in Western Kenya and Meru in the East. Moreover, the project will finance the building and operation of new rapid bus and rail transport systems to increase the volume and speed of passenger and freight services around the country's urban areas. "With this project, the process of reforming the urban transport has just begun, and its ultimate success will require widespread community support," said Josphat Sasia, the project's Task Team Leader. "Developing public transport systems that move large numbers of commuters will relieve the worsening traffic congestion, and improve the local business climate." The project will be implemented by agencies working for the Ministries of Roads and Transport, including the Kenya National Highways Authority, the Kenya Urban Roads Authority and the Kenya Railways Corporation. The new project, NUTRIP, will further deepen major investment in the transport sector in line with the government's Vision 2030 and the Bank's Country Partnership Strategy for Kenya. The Bank has invested another $960 million in the country's Northern Corridor Transport Improvement Project, and another $300 million in the Kenya Transport Sector Support Project. The World Bank and other development partners such as the African Development Bank, the European Union, Japan, and China, are helping Kenya to modernize its transport system and to remove barriers to a more dynamic business climate in Kenya and the wider East African region. As The World Bank reported, the new project is financed by the International Development Association, the World Bank 's zero-interest fund for the world's poorest countries, which repayment period of 40 years with a grace period of 10 years. Rift Valley Railways Consortium From Wikipedia, the free encyclopedia Jump to: navigation, search Rift Valley Railways Type Private Consortium Industry Transportation Founded 2005 Headquarters Nairobi, Kenya Key people Brown Ondego Chief Executive Officer Services Railway Systems Website http://www.riftvalleyrail.com The Rift Valley Railways Consortium (RVR) is a consortium that was established to manage the parastatal railways of Kenya and Uganda. The consortium won the bid for private management of the century-old Kenya-Uganda railway in 2005. Contents [hide] 1 History 2 Development 3 Original Shareholding 4 Shareholding in early 2010 5 Disagreements 6 Current shareholding 7 Partnerships 8 New financing 9 Future investments 10 See also 11 References 12 External links [edit] History The railway line, derided as the 'Lunatic Line' by a critical British press during its construction[1] (and still referred to colloquially as the 'Lunatic Express' even to the current day), runs some 900 kilometres (560 mi) from Kenya's Indian Ocean port of Mombasa, through Nairobi, and up the Rift Valley to Kisumu on the shores of Lake Victoria.[2] Another leg of the same railway system traverses the Great Rift Valley, through the town of Eldoret in Kenya, enters Uganda at Malaba and passes through Tororo and Jinja to enter Kampala, Uganda's capital. From Kampala, the railway continues on to Kasese in Western Uganda, close to the border with the Democratic Republic of the Congo, approximately 1,600 kilometres (990 mi), northwest of Mombasa, Kenya. At Tororo, the northern leg of the Ugandan railway system branches off and travels northwestwards, through Mbale, Soroti and Lira to end in the city of Gulu, the largest metropolitan area in Northern Uganda. From Gulu, the line continues west to Pakwach, on the banks of the Albert Nile, approximately 1,500 kilometres (930 mi), northwest of Mombasa, Kenya. [edit] Development In December 2010, RVR announced plans to increase freight volumes by 350% in the next year by improving the infrastructure, in particular upgrading old rails.[3] [edit] Original Shareholding Originally, RVR was led by Sheltam Rail Corporation of Sheltam Trade Close Corporation (STCC) of South Africa that has experience with management of other African railways. Minor partners of the consortium were Kenya's Prime Fuels (15%), Mirambo Holdings of Tanzania (10%) and Comazar (10%) and the CDIO Institute for Africa Development Trust (4%), both of South Africa.[4] The consortium plans to invest in the railway system, upgrade it, reduce inefficiencies, utilize a smaller work force, and generate an annual concession fee of 11.1% in each country. In addition it will pay 1 million United States dollars each year for the passenger service concession in Kenya and 500,000 US dollars annually to Uganda for the same reason. On 28 July 2006 the East African Standard reported that the take-over, originally planned for 1 August 2006, was postponed to 1 November 2006.[5] This operational take-over took place in November and is scheduled to last for 25 years.[2] The 2007–2008 Kenyan crisis included destructive riots that blocked and partly destroyed the rail system between Kenya and Uganda leading to difficulties in supply. Further, destruction and loss of income led to significant financial losses.[6] On 9 October 2008, Toll Holdings of Australia announced that it has entered into a contract to manage the Kenya-Uganda railway, replacing the management by Rift Valley Railways Consortium (RVR). The consortium has been criticized for falling freight traffic in the two years since taking control, while RVR alleges the drop is due to the poor condition of the railway infrastructure and the damage done by protesters during the 2007–2008 Kenyan crisis. Officers from Toll subsidiary Patrick Defence Logistics will manage the railway after the transition.[7] As of February 2010 the Kenya Uganda railway is still under the management of the Rift Valley Railways Consortium. [edit] Shareholding in early 2010 In February 2010, the East African Community announced plans to raise capital to "upgrade and expand the existing railway network to boost the region's competitiveness". In a related development, the Egyptian investment company Citadel Capital, bought a 49% stake in Sheltam Railway Company of South Africa, the lead investor in the RVR consortium.[8] At that time, shareholding in RVR is as depicted in the table below: [9] A. Rift Valley Railways Stock Ownership Rank Name of Owner Percentage Ownership 1 Sheltam Railways of South Africa 35.0 2 Trans-Century Limited of Kenya 20.0 3 Prime Fuels Limited of Kenya 15.0 4 Centum Investments of Kenya 10.0 5 Mirambo Holdings of Tanzania 10.0 6 Babcock & Brown of Australia 10.0 Total 100.0 [edit] Disagreements During the first quarter of 2010, there was rancor among the six disparate shareholders in the consortium as they jostled for control of the company. Citadel Capital of Egypt, by buying 49% of the lead investor in the consortium, had changed the balance of power among the shareholders. Trans-Century filed a lawsuit in an attempt to block Citadel Capital's entry into the consortium, but was turned away by the court in Mauritius, where RVR is incoprorated.[10][11] Press reports from East Africa indicated that Charles Mbire, a wealthy Ugandan entrepreneur, who represents Uganda on the RVR Board of Directors, had expressed interest to purchase the 15% shareholding that should be reserved for Ugandans in the RVR consortium.[12] [edit] Current shareholding In March 2010, the RVR shareholders met in London, under binding arbitration. Following those talks, the new shareholding in RVR is as summarized in the table below, effective April 2010.[13] Africa Railways is a subsidiary of Citadel Capital, an Egyptian private equity firm.[14] Trans-Century Limited is a private Kenyan investment company, whose shares are listed on the Nairobi Stock Exchange. Bomi Holdings Limited is a Ugandan investment company owned by Ugandan entrepreneur and RVR Director, Charles Mbire. The revised shareholding agreement was signed in Kampala, Uganda's capital city on 25 August 2010.[15] The new owners pledged to invest US$250 million in the consortium to revitalize the railway network.[16] B. Rift Valley Railways Stock Ownership Rank Name of Owner Percentage Ownership 1 Africa Railways of Egypt 51.0 2 Trans-Century Limited of Kenya 34.0 3 Bomi Holdings Limited of Uganda[17] 15.0 Total 100.0 [edit] Partnerships In November 2010 Rift Valley Railways Consortium signed a technical and management agreement with América Latina Logística, based in Curitiba, Brazil]]. The firm is the largest independent company of its kind in Latin America. It has operations in Argentina and Brazil, where it oversaw the successful privatization of the national railway system. América Latina Logística will provide RVR with key management and operational staff and will oversee the transfer of technology, including selection and sourcing of raw material and IT software and hardware. The initial partnership is for a renewable term of five years, starting in November 2010.[18] [edit] New financing In March 2011, media reports indicated the RVR intended to raise US$240 million to fund its expansion plans over the next five years. US$140 million will be raised by capital injection by the three corporate investors. The remaining US$100 will be borrowed from commercial banks. RVR already has a credit line estimated at about US$54 million.[19] In July 2011, RVR secured a US$40 million loan from the African Development Bank (AfDB) to finance its improvements and expansion. In the same month, RVR reported a positive EBITDA (Earnings before interest, taxes, depreciation and amortization), for the year ending 30 June 2011. This marks the first positive annual EBITDA since African Railways acquired a 51% stake in RVR, in late 2009.[20][21] In August 2011, East Africa media outlets reported that RVR had secured a US$164 million long-term loan from a consortium of six (6) International financial institutions, which include (a) International Finance Corporation (IFC), (b) German Development Bank (KfW) (c) Equity Bank Group and (d) Dutch Development Bank (FMO).[22] Another US$80 million will be raised by the shareholders. The difference will be realized from internally generated profits. The total amount needed over the next five years has been revised to US$287 million.[23][24] [edit] Future investments In August 2011, media outlets in East Africa reported that RVR was interested in financing and building the railway line linking Juba, the capital of South Sudan, to the industrial town of Tororo in Eastern Uganda, at the International border between Uganda and Kenya, an estimated distance of approximately 700 kilometres (435 mi), through Gulu and Nimule. The decision to proceed with this project would require approval from all partners in the RVR consortium and from the governments of Uganda and South Sudan.[25] With the new investments, RVR anticipates to cut down transit time for goods between Mombasa, Kenya and Kampala, Uganda to seven days from the current twenty-one. The consortium expects to open the Tororo to Pakwach section to traffic in December 2012.[26] [edit] See also Charles Mbire Babcock & Brown East African Community Kenya Railways Corporation Rail transport in Kenya [edit] References ^ "Aboard the Lunatic Express by Linda Watanabe McFerrin". http://www.lwmcferrin.com/bookings/lunaticexp.htm. Retrieved 2007-07-16. ^ a b "SA Firm gets 'Lunatic Express' railway", accessed 12-18-2006 ^ "RVR Plans Massive Capacity Growth". 11 December 2010. http://www.railwaysafrica.com/blog/2010/12/13402/. Retrieved 2010-12-11. ^ Background information ^ Postponed Take-over (Accessed 7-31-2006) ^ Albert Ahabwe. Kenya: Railway Transport Also Paralysed. African Business Week (Kampala), 11 February 2008, accessed 2/13/2008 ^ Speedy, Blair (10 October 2008). "Toll to manage Kenya-Uganda railway". The Australian. http://www.theaustralian.news.com.au/story/0,25197,24472435-643,00.html. Retrieved 11 October 2008. ^ Sheltam Sells 49% Shareholding to Citadel Capital of Egypt ^ Shareholding in Rift Valley Railways February 2010 ^ Rancor Among the Shareholders in Rift Valley Railways ^ RVR Shareholders Jostle for Control ^ Charles Mbire Wants 15% of Rift Valley Railways ^ New Shareholding Structure of RVR As of April 2010 ^ Africa Railways Is 100% Owned By Citadel Capital ^ Revised RVR Concession Agreement Signed ^ New Owners Pledge $250 Million Infusion Into RVR ^ Bomi Holdings Limited is a Ugandan Company ^ RVR Partners With América Latina Logística ^ Rift Valley Railways To Raise $240 Million For Expansion ^ RVR Makes A Profit for First Time In Two Years ^ RVR Reports A Profit ^ List of Financial Institutions In RVR Finance Package ^ Financial Consortium Approves USD164 Million RVR Loan ^ RVR Consortium Secures New Long-Term Financing ^ RVR Willing To Financce & Build Juba-Tororo Railway ^ RVR To Open Tororo-Packwach Section In December 2012 [edit] External links RVR Begins Railway Line Repair And Network Expansion Citadel Injects Funds Into RVR RVR To Sign $164 Million Syndicated Loan Rift Valley Railways Official Website IMF projects dip in Kenya's public debt Share BookmarkPrintEmail Email this article to a friend Friend's Email Address Your Email Message SubmitCancel Rating The chairman of Kenya Bankers Association Richard Etemesi. The International Monetary Fund (IMF) on Wednesday projected Kenya's net public debt will dip below 40 percent of the Gross Domestic Product (GDP) by the end of the 2014/2015 financial year. FILE By XINHUA Posted Thursday, June 14 2012 at 13:14 The International Monetary Fund (IMF) on Wednesday projected Kenya's net public debt will dip below 40 percent of the Gross Domestic Product (GDP) by the end of the 2014/2015 financial year. IMF Resident Representative Ragnar Gudmundsson told journalists in Nairobi that prudent fiscal and monetary policies would be key if the east African nation is to achieve this goal. "The IMF thinks that based on current trends and efforts on fiscal consolidation, net public debt to GDP ratio will be below 40 percent by the end of the 2014/2015 financial year," Mr Gudmundsson said on the sidelines of the launch of 2012 IMF Africa Economic Outlook at the University of Nairobi. According to the IMF, total net public debt stands at 46 percent of GDP while the Treasury's target stands at 45 percent of GDP. "Due to macroeconomic stability and efficient management of the economy, the level of public indebtedness is set to reach sustainable levels," the IMF representative said. The outlook said economies in Sub-Saharan Africa registered growth of 5 percent in 2011 despite difficult external conditions. Resilience The IMF's Regional Economic Outlook "for Sub-Saharan Africa" said while most of the region's banking systems have proved resilient to recent episodes of global financial stress, the rapid pace of credit growth in some countries is a cause of concern. It said the steady expansion of pan-African banking groups in the recent past may in some cases have outpaced supervisory capacity. The Bretton Wood institution's expectation is that output growth in sub-Saharan Africa would remain strong in 2012. "It is prudent for government to build fiscal space during periods of economic growth in order to be able to respond to future fiscal shocks," Mr Gudmundsson said. Data from the IMF indicated Sub-Saharan African region is the second fastest growing area after developing Asia. "However, countries should not be complacent due to risks of external shocks and therefore need to build fiscal buffers in order to respond to any eventuality," he noted. He called on the Treasury to shift public expenditure towards development and social sectors targeting the low-income segment of society. Contain inflation The IMF also concurred with the Central Bank of Kenya's stance of maintaining its key lending rate at 18 percent. "Some measure of caution is required until the inflation rate dips to the single digit level in order to contain inflation pressures," he said. "Only then will it be in the best interest of the country for the authorities to loosen the monetary stance." The chairman of Kenya Bankers Association Richard Etemesi said Kenyan banks are now plugging into the global economic system as funds from domestic markets are not adequate. "In order for the country to graduate into the next phase of development, the country as well as commercial banks will have to tap into the international debt markets," Mr Etemesi who is also the CEO of Standard Chartered Bank Kenya said. He noted foreign direct investments alone would not be sufficient to finance the country's investments. Kenya's banks, he said, are at the same level of sophistication as their counterparts in the developed world. "What is required is for regulatory reforms and oversight to keep with the pace of the evolving banking sector," he said. Bloomberg News Kenya Raises Budget Gap Forecast for 2011-12 on Higher Spending By Sarah McGregor and Eric Ombok on June 08, 2011 June 8 (Bloomberg) -- Kenya's government raised its budget deficit forecast for the fiscal year through June 2012 as it stepped up investment to improve infrastructure and enact a new constitution, Finance Minister Uhuru Kenyatta said. The fiscal deficit will widen to 184.3 billion shillings ($2.1 billion), Kenyatta said in his budget speech aired by the state-run Kenya Broadcasting Corp. Excluding the rollover in domestic debt and taking into account external debt redemptions, the deficit will widen to 236.2 billion shillings, or 7.4 percent of gross domestic product, he said. "The deficit is going up because this is a very expansionary budget," Elizabeth Irungu, investment manager at Stanbic Investment Management Services, said by phone from Nairobi. "The interest rate environment may remain a bit high, and this could squeeze the private sector a bit." The budget deficit has expanded every year since at least 2005, the International Monetary Fund said in April, partly due to stimulus spending during the global financial crisis and poor tax revenue. Faster inflation and the persistent fiscal deficits have pushed up yields on government debt that represent 47.1 percent of gross domestic product, according to the IMF. Three-month borrowing costs in Kenya, which rose to a nine- year high of 8.8 percent at the last auction on June 2, may climb higher, Kennedy Butiko, deputy head of treasury at Nairobi-based Bank of Africa, said on June 3. Food Costs Kenyatta estimated in March the budget deficit would narrow to 152.6 billion shillings, or 5 percent of GDP, in 2011-2012, from 162.5 billion shillings, or 6 percent of GDP, this year, pointing to growth in the economy and improved revenue from value-added tax. Kenya's inflation rate rose to a 25-month high of 13 percent in May, and the central bank predicts crop losses from dry weather may push up the rate again later this year. Kenyatta reiterated that he will remove the excise duty on kerosene, a fuel used for cooking, following a 30 percent reduction in April. The duty on wheat imports will also be eliminated for one year, while the tariff on corn falls to 10 percent from 50 percent for six months to cushion Kenyans from the rising costs, he said. Investment of 10.2 billion shillings to expand irrigation systems will help improve crop yields in the future, boosting domestic food supplies and transforming Kenya into a net exporter of crops, Kenyatta said. Investment Kenya plans to borrow 119.5 billion shillings on the local debt market in 2011-2012, compared with an estimated 125 billion shillings this fiscal year, as expenditure increases 15 percent to 1.15 billion shillings, Kenyatta said. Spending is forecast at 998.3 billion shillings in the current fiscal year, Planning Minister Wycliffe Oparanya said on May 17. Fiscal revenue will grow 15 percent to 787.6 billion shillings in 2011-12, Kenyatta said. Following two consecutive years of accelerating economic growth, the World Bank forecasts expansion of 4.8 percent this year, compared with 5.6 percent in 2010. Kenyatta today forecast growth of 5.3 percent this year and 6.1 percent next. Kenya is trying to implement changes required in a constitution promulgated in August, such as creating a Supreme Court and Senate and setting up 47 county-level governments before elections in 2012. The government will spend 20.8 billion shillings to enact the new charter, Kenyatta said. Kenya's economy was battered by ethnic violence following a disputed presidential election in 2007 that left 1,500 people dead and drove another 300,000 from their homes. "Our fiscal policy aims at gradually lowering our fiscal deficit in order to ensure debt sustainability, while at the same time taking care of the long-term development needs of the country as well as implementation of the constitution," Kenyatta said. --Editors: Philip Sanders, Karl Maier Money Markets Kenya bears the brunt of eurozone economic stress A section of the Muthaiga roundabout Junction being tarmacked. This is a project being funded by the African Development Bank and is expected to be complete by end of the year. Photo/Fredrick Onyango Nation Media Group In Summary Information from the EU delegation in Kenya shows that funding dropped by Sh330 million, from Sh7.33 billion in 2010 to Sh7 billion, which was linked to hard times in the eurozone. France, which is the second largest donor in the continent after Germany, cut its funding for the first time by three per cent even as Britain slightly reduced its spend on international development finance with Spain slashing its budget by 29 per cent. The World Bank warns that donor flows may be drying up even faster than previously projected given the severity of the financial crisis on sovereign balance sheets in donor countries. The move will affect Kenya whose tax projections have started showing weaknesses after the annual tax returns for 2011/2012 missed the target by Sh9 billion. Kenya has been heavily relying on donor funding to drive its infrastructure projects geared towards achieving the ambitious Vision 2030. Kenya expects Sh74 billion in loans and grants from bilateral lenders to finance the 2012/2013 budget and Sh225 billion from multilateral, lenders according to the Treasury's estimates. Kenya expects Sh12 billion from France, Sh5.3 billion from German, Sh3.1 billion from Denmark, and Sh2.2 billion from Sweden. China and Japan have in the recent past increased their development finance to Kenya with billions of shilling for roads, and water projects. The coalition government has been courting the East Asia countries to increase their participation in local projects, boosting inflows from Japan, China, and South Korea. Donor funding from the European Union (EU) to Kenya declined last year, for the first time in several years, on what the EU delegation linked to the economic stress in the eurozone area. Information from the EU delegation in Kenya shows that funding dropped by Sh330 million, from Sh7.33 billion in 2010 to Sh7 billion, which was linked to hard times in the Eurozone.Even though only a small fraction of the funding from the EU countries trickles through the EU delegation, available data shows that total flows also dropped last year after a sustained rise for seven years."The decline in funding is understandable taking into consideration the financial crisis in some of the EU member states such as Spain and Greece," said Mr Christophe De Vroey, the Trade and Communication Counsellor for the European Union delegation to Kenya.The debt crisis in Europe has stunted economic growth in the continent's main economies as recession bites, weakening the case for donor funding in favour of austerity measures.France, which is the second largest donor in the continent after Germany, cut its funding for the first time by three per cent even as Britain slightly reduced its spend on international development finance with Spain slashing its budget by 29 per cent.The move will affect Kenya whose tax projections have started showing weaknesses after the annual tax returns for 2011/2012 missed the target by Sh9 billion. External funding "With expectations of more than Sh200 billion from external funding, the 2012/2013 budget is significantly exposed to the debt crisis," said Mr Henry Rotich, the deputy director Economic Affairs, at Treasury.Kenya expects Sh74 billion in loans and grants from bilateral lenders to finance the 2012/2013 budget and Sh225 billion from multilateral, lenders according to the Treasury's estimates. Kenya expects Sh12 billion from France, Sh5.3 billion from German, Sh3.1 billion from Denmark, and Sh2.2 billion from Sweden. Ministry of Health permanent secretary Mac Bor said in an earlier interview that donor funding for health programmes from a number of European countries was declining. READ: Charities seek revenue streams as donor funding wanes The most affected countries such as Italy had pledged Sh1.76 billion while Spain had pledged Sh1.2 billion. The 15 largest economies in Europe, for the first time in seven years, cut their spending on development assistance by one per cent, raising fears that the ongoing crisis could stunt inflows from the world's biggest donor to Africa, Europe. Britain, through its external development agency DFiD, moved out of an aid relationship with a number of countries during 2011 and 2012 to increase its impact on the ground. Those affected are Angola, Bosnia, Burundi, Cambodia, China, Iraq, Kosovo, Lesotho, Moldova, Niger, Russia and Serbia. The move risks reducing funding to national budgets, reduce funding to NGOs, and scuttle health projects such as HIV and Aids control. "As the debt crisis spreads across the region, member states will likely continue measures of budget austerity, making it more challenging than ever to protect development assistance funding," said One, an anti poverty pressure group based in the UK. The World Bank warns that donor flows may be drying up even faster than previously projected given the severity of the financial crisis on sovereign balance sheets in donor countries. Such a shift in donor flows can accelerate the need for low-income countries to borrow on commercial terms, which could rapidly increase the exposure of their debt portfolios to financial risk if not managed prudently. Analysts project that the crisis could continue for a longer duration with tough repercussions for poor countries. "The recession could prevail at least for the next five years," said Robert Mudida, the academics director at Strathmore Business School. Among the country's that cut development assistance last year are Austria, Denmark, Finland, Greece, Ireland, Luxembourg, the Netherlands, Portugal, Spain, and the United Kingdom. Austria and Portugal slashed their international development budgets by six per cent and three per cent respectively as Greece slashed its spend on development assistance by 39 per cent. Some of the countries in Europe, however, decided to hold or increase aid to Africa while cutting development finance elsewhere. But the sustained turbulence in the Eurozone area could see them further cut funding to Africa as they seek to trim their budgets amid pressure from their peers. Data from the economic survey shows that up to last year, Kenya owed France Sh40 billion while Kenya's debt to Germany was Sh26 billion. The other leading donor is Britain whose financing is mainly through international donor agencies. Kenya also owes the International Development Association (IDA) and the International Fund for Agricultural Development (IFAD) a total of Sh319 billion. READ: Kenya's public debt now rises to Sh304 billion Economy slows down "We are likely to see a drop in the international development finance budget by the European countries which will make it hard for Kenya to finance her budget as the economy slows down this year," said Mr Fred Mueni, the director of Tsavo Securities. European economies failed to grow in the first quarter of this year at a time when the region is going through a debt crisis that has led to austerity measures which have since hit consumer demand for exports from developing economies. Kenyan NGO's saw donor inflows last year grow 10 per cent on what was largely attributed to funding to political parties. Players in the sector, however, said that donor inflows had been plummeting over the years due to bad times in the developed markets. "Britain has threatened to cut the international development finance budget which will further cut donor funding to NGOs," said Kenya Red Cross director-general Abbas Gullet. For years, international donors accounted for more than 95 per cent of NGOs' annual funds, but this has dropped to about 70 per cent, according to the National Council of NGOs. Figures from the National Council of NGOs show that donor funding declined from Sh87 billion in 2007 to Sh81 billion in 2008 and Sh73 billion in 2009. China and Japan have in the recent past increased their development finance to Kenya with billions of shilling for roads, and water projects. The coalition government has been courting the East Asia countries to increase their participation in local projects, boosting inflows from Japan, China, and South Korea. Kenya has been heavily relying on donor funding to drive its infrastructure projects geared towards achieving the ambitious Vision 2030. Unlike her neighbours, Kenya's budget is largely financed domestically meaning that countries such as Uganda, Tanzania, and Rwanda face higher risks as the crisis deepens. External grants to Uganda are expected to decline from 2.7 per cent of GDP in 2011/12 to 1.8 per cent of GDP in the 2012/13 financial year. rotini@ke.nationmedia.com https://www.civicus.org/new/media/FINALdebt-climatechangepaper.pdf The rich world demands billions of dollars from poor countries in payment of 'debts' which often came from loans that served lenders' interests. Meanwhile, the rich world's actions are causing climate disaster in poor countries. On both counts, the rich are largely responsible, but the poor are paying: so who really owes whom? The rich world – governments, private companies, and international institutions – claims billions from poor countries in debt payments, costing the poorest countries in the world over $100 million a day. This is a huge drain on resources that could otherwise be spent on essential services like healthcare and education, in countries where the overall average income is around $1.40 a day and where more than one in 10 children dies before their fifth birthday. Millions of deaths from preventable disease and hunger could be avoided if poor countries had all their debts written off. Moreover, many of these debts come from loans which governments or companies gave recklessly or to serve their own political or commercial ends. Meanwhile, industrialisation in rich countries of the global North is right now having a catastrophic impact on the climate, lives and livelihoods of poor people in indebted countries, causing starvation, displacement, disease and death. Debt is deepening these countries' poverty and vulnerability to climate disaster. Given the dual responsibility of the rich world for these crises afflicting primarily the poor – those of climate islamic relief Fact: The World Health Organisation estimates that climate change is already causing over 160,000 deaths per year. "The scientific evidence is now overwhelming: climate change is a serious global threat, and it demands an urgent global response. All countries will be affected. The most vulnerable – the poorest countries and populations – will suffer earliest and most, even nthough they have contributed least to the causes of climate change." Stern Review change Kenya's 'sustainability' Sharon Looremeta works for Practical Action in her Maasai community in Kenya. The rich world claims that Kenya's external debt of nearly $7 billion is 'sustainable', and therefore not eligible for debt relief. Servicing debt costs Kenya more than health, water, roads, transport and agriculture combined. Meanwhile, communities like Sharon's are suffering the devastating impacts of climate change caused by its northern 'creditors'. "My people are already suffering from the effects of the changing climate. Over the last ten years, I've been seeing our weather changing. The rains are becoming less predictable, and the droughts are becoming more severe and more frequent. For hundreds of years the Maasai have relied on our livestock, but the droughts are killing our animals. Last year the dead carcasses of our livestock were left littered across my homeland. In Northern Kenya, 10 million cattle perished, whilst two thirds of the Turkana people lost their livelihoods. "Higher temperatures mean that many diseases are spreading. We never used to experience malaria in the highlands, but now people are suffering. Our hospitals are struggling to cope with the increased pressure. "Our rivers and dams are drying up. Women who are the water providers now have to give up a whole day in search of water. Girls are pulled out of school to help fetch water and do household chores. "People talk of making poverty history, but until an effective mechanism is developed to tackle climate change, poverty will remain a reality. The Maasai community do not drive 4x4s or fly off on holidays in aeroplanes. We have not caused climate change, yet we are the ones suffering. This is an injustice and should be stopped right now." About us: Jubilee Debt Campaign is part of an international movement working to alleviate extreme poverty through the cancellation of unjust and unpayable poor country debts. It is a UK coalition of about 200 national organisations and local groups, supported by thousands of individuals. Jubilee Debt Campaign The Grayston Centre 28 Charles Square London N1 6HT United Kingdom +44 (0)20 7324 4722 info@jubileedebtcampaign.org.uk www.jubileedebtcampaign.org.uk

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