Friday, July 20, 2007

Earth tremors and quakes - Kenya's lack of preparedness


Over the last week or so, Kenyans (many for the first time) have been experiencing earth tremors (ten at the last count).
The uncanny slight movements of the earth, causing cars and buildings to shudder and sway, have caused some measure of concern to Kenyans and to its Government.

Just the other day, the Government spokesman propped up some geologists from the University of Nairobi to issue soothing statements about the tremors.

And there was nothing soothing about it. Turns out our earthquake detection equipment has been out of order for some time...Kenya now appears to rely on the United States for data on what is happening in Kenya....how complacent can we get.

As the tremors continued over days, entire high rise buildings began to be evacuated in the city of Nairobi.

Can the Government consider purchasing the relevant equipment asap. After all, Kenya lies on the Rift Valley, which theoretically is prone to earth movements.

Back to the University of Nairobi geology experts...they were heard saying on national TV that there exists no capacity in the world for early detection of earthquakes.

Strange...a simple google search revealed the existence of the SOS-LIFE earth quake early warning device, alarms you 30-60 seconds before an earthquake occurs, depending on the seismic epicentre, hipocenter depth and the distance at which you are situated from the seismic epicentre, earth composition etc.

Make your own conclusion!

Wednesday, July 18, 2007

Anti-smoking laws for Nairobi


Over the last week or so, the City Council has unleashed a number of by-laws prohibiting among other things, smoking in public places otherwise not designated to be smoking places.

The Council has designated few public open spots to be smoking places.

Such as the one above at one corner of Jeevanjee Gardens.

You will now find smokers huddled over the small designated smoking area, doing what they do best.

Smokers are now demanding that the Council puts up shelters on the open spaces, so that they can smoke without being rained upon.

Can't they see the Council's motive? To discourage smoking under any circumstances? BAT, having grossed 7Billion Kenya shillings in the last six months, as well as other tobacco companies, must surely be furious!

Thursday, July 12, 2007

Kenyan Justice Minister declares traffic police not entitled to enter your car

The respected Kenyan Justice Minister emphatically declared yesterday
that it was illegal for traffic police to enter civilian cars for
traffic offences. She said that traffic police had in the past used
this tactic to demand bribes. As we have always said, the traffic
officer can only give you a ticket or meet you at a police station of
his choice.

Monday, July 09, 2007

Nairobi City of Traffic Jams

Nairobi has become a city of massive traffic jams. Traffic police directives take precedence over traffic lights. Traffic is halted without notice to let dignit
aries through. It is not known when the much touted by passes shall become reality. Vehicles by far exceed all available city parking. The city authorities nee
d to act quickly to deal with this crisis.

Sunday, July 08, 2007

President Kibaki quickly losing votes

Listening to Assistant Minister Koigi wa wamwere accuse the police of extra judicial killings, it was apparent that Kibaki is quickly losing votes from his supporters. The dreaded kwekwe were placed on the spot. It was apparent that a revived economy was irrelevent when the right to life was not protected.As lawyer Judy Thongori observed, what sad times we live in today. Maybe another party has a constitutional remedy to roaring crime? If yes, can we hear it now?

Churches and pastors should pay taxes

Churches and pastors are very wealthy in this country. Indeed, they are even vying for parliament and the Presidency. The Government should tax them henceforth in order to achieve its ever spiralling tax target.

Media bill

There has been intense debate on this bill. Essentially the Government seeks to regulate the media as they have failed to regulate themselves. The price of democracy is a free media. They can write what they wish so long as they do not whip up ethnic animosity. A contrary view would only take us back in time. Restricting the media restricts the economy. What is the basis of requiring a journalist to have a journalism qualification? I suppose journalism school shall help in creativity? Clearly this bill needs to go back to the drawing board!

Catholic church burying its head in the Sand

The Catholic church continues its absolute ban on use of contraceptives by its faithful. At least the Anglican church now allows discordant couples to use condoms. The Catholic Church, whose own priests are dying of Hiv and Aids, must know this policy is ridiculous from whichever angle we look at it. Does it not believe in life?

The tragedy that is Zimbabwe

Zim is now on its knees, inflation at over 4500%,authorities ordering no bulk buying of basic commodities now missing from shops,80% jobless, thriving black market, spiralling economic refugees to neighbouring Botswana and South Africa. Mugabes time came and went. What are Zims waiting for?

Equity bank and its bankers cheques

The cost of a bankers cheque must be lowest at the 1.3 million account Equity Bank. Only Kes 100. But beware that it costs 500 at its Upper Hill Prestige branch. Still lower than most banks. Kudos.

Saturday, July 07, 2007

Pyramid schemes

I am frankly suprised at the number of people who have fallen prey to these schemes, even with the ncrwcc having previously published warnings about them. Free advice, check with us before investing your hard earned money!

Friday, July 06, 2007

Crime expert opinions

Do you know anyone who has been unfairly accused of commiting a crime? Seek our expert opinion on the matter. It may help their case.

Super pen to prevent cheque fraud

A new pen has been introduced into the market, whose ink cannot be washed or altered once written on cheques. Do not allow anyone to alter your cheques. Order your pen now for Kenya Shillings 200 only.Tried and tested by several Kenyan banks.

Lessons from South Africa- mobile technology

My mobile phone automatically told me which street or road i was on at any moment, it was impossible to get lost. It is hoped that Kenyas highly profitable mobile phone companies will spend some money in introducing this feature for its customers.

Kenyan Assistant Ministers

Lately we have heard how Kenyan Assistant Ministers are claiming not to have anything to do in their offices. Which is most suprising...considering the resources at their disposal. Those complaining are clearly not too creative...and unwilling to think out of the box.

Lessons from South Africa-no traffic cops

I was shocked not to see a single traffic cop directing traffic. Traffic lights work and are obeyed. Traffic cameras will catch offenders. Cops are free to focus on real crime. No traffic cops in your face demanding bribes. What a big lesson for Kenya.

7 year old spreading std

This morning i was shocked to hear that a seven year old girl in Kenya was spreading sexually transmitted disease to her age mates. Who is failing here, the parents, teachers or society?

The Nairobi Star

This refreshing paper has been launched this week. What an easy read. However, how i wish they would give us more detailed and incisive business news as well as crime prevention tips!

Monday, June 11, 2007

Loud explosion near the Ambassadeur Hotel, Nairobi, terrorist fears





A few minutes ago, while driving along Moi Avenue, I heard a very loud explosion coming from the direction of the Ambassadeur Hotel. The explosion set off car alarms of vehicles parked on nearby streets.

There are fears that the explosion may have been caused by a suicide bomber.

Witnesses said a man with what looked like grenades was seen trying to jump into a bus when the explosion occurred. The witnesses said he attempted to detonate the grenade and was killed in the explosion.

The Ambassadeur Hotel is located in the city centre and has a major bus stage right next to it. At about 8.15am when the explosion occurred, there were scores of pedestrians and workers waiting for buses to their offices.

Rescue teams are reported to have rushed to the site as there have been some fatal injuries and there are scores injured.

This blog shall be updated as soon as all facts are obtained.

Friday, June 08, 2007

Police hunting for Mungiki, the Role of the National Security Intelligence Service

































As of today, more than 30 people have been shot by Kenyan police in cold blood as they look for the dreaded Mungiki. The Kenyan constitution otherwise provides that anyone is innocent until proven guility in a Court of Law. The Kenyan National Security Intelligence Service is the intelligence agency of the Government of Kenya. Mungiki has been covered by the Kenyan media for years. Mungiki has been a security issue for this country for some time. Why has the NSIS never been able to infiltrate this gang and arrest them and take them to a Court of law? Mungiki must be eliminated from Kenya, no doubt...but the innocent must not suffer. Our Constitution protects them. Photos from the East African Standard.Very emotive.

Thursday, June 07, 2007

Capital Markets Authority shall not protect minority shareholders in Kakuzi Limited sale of Siret Tea Estate


A few weeks ago, Kakuzi Limited, listed on both the Kenyan and London Stock Exchanges, held its Annual General Meeting. At that fairly acrimonious meeting, in spite of the majority shareholders present voting against a proposal to sell the Siret Tea Estate and Factory (to a company in which the Directors of Kakuzi have interest), the proposal was nevertheless pushed through by the few supporters but majority shareholders present.

Siret Tea Estate is the jewel in Kakuzi's crown and the sale of this asset shall substantially depreciate the overall value of Kakuzi.

It is also interesting to note that the Capital Markets Authority has indicated that it shall not interfere with the sale of the asset.

Section 11(1)(d) provides that one of the main objectives of the Authority is the protection of investor interests....which of course includes minority shareholders.

Undoubtedly, the propertiership of Kakuzi in Siret Tea Estate attracted investors to purchase its equity. The minority shareholders had not envisaged that the majority shareholders would thereafter sell of the major asset of the company to a company owned by its Directors.

Is this not sufficient reason for the Capital Markets Authority to provide substantive direction?

Nevertheless, Kakuzi has declared that the allegation that its Directors are seeking to benefit from the sale of the Siret Tea Estate is scurrilous and completely unfounded.

At the end of the day, Kakuzi shareholders themselves have an obligation to establish the factual position, as they would be the losers at the end of the day!

Thursday, May 31, 2007

The Judicary, the Police and Gilbert Deya




In the course of the week, Juja MP Hon. William Kabogo is said to have obtained Court orders barring the police from arresting him. The orders, issued by Hon. Justice Ojwang, also issued anticipatory bail to the Honourable MP.

Most surprisingly, the said MP has now been arrested, and has been behind bars.

Yesterday, the High Court is said to have issued Orders directing that the MP be produced in Court for the State to show cause why he should not be released.

It has also been reported in the Pressthat the Commissioner for Police Gen. Ali has been summoned before the High Court in the same matter.

If all the above goings on be true, then it is a sad day for this country, that the State would go ahead to arrest a sitting MP when a Court of law has ordered otherwise.

Perhaps this is evidence on the alleged tussle between Hon. John Michuki, Minister for the time being in charge of Internal Security, and the Judiciary.

Recently, the said Minister criticised the judiciary for releasing criminals who should be behind bars.

The Chief Justice then came out to state that the burden is on the state to ensure that cases are properly investigated.

Clearly, a most disconcerting situation.

Meanwhile, Mary Deya, the wife of London based televangelist Gilbert Deya, was yesterday found guilty of stealing an un-named child, previously purported to be a miracle baby. Hopefully, this extortion saga from women who have not as yet given birth, shall be brought to an end.

Saturday, May 26, 2007

Lessons from South Africa - customs control, efficiency




Over the next few blogs, I shall be looking at some recent experiences that I had when I went to South Africa for the first time.

Please feel free to add onto any similar experiences you may have to share.

Naturally, I ( I was travelling with my wife, I did not want any chances of hitting it off with any South African beauties) flew Kenya Airways down South (South African Airways was actually a little cheaper, but KQ it must be) , it was a 767 flight, quite uneventful, but no entertainment at all provided for the almost 4 hour flight.

Got to Oliver Tambo International Airport in Johannesburg (called Jossy by the locals).

It was hot...hotter than Nairobi at that moment anyway.

Immediately I began to see white South Africans working at the airport....

Anyways, on board the flight, we had filled out a customs form which directed you to move to the green customs area if you had nothing to declare...

We got our visas stamped, they have many many officers serving various categories, eg South Africans, Comesa, Other Africa, other countries, etc...so there were hardly any queues.

A big lesson for Kenya which has only two (three if you are lucky) officers, so invariably a queue always forms at the customs desks.

Very efficiently, we obtained our backage and moved to the green customs area.

Most surprisingly, there was only one customs guy, and he merely picked our card, and we moved out into the receiving area of the airport where our contact was waiting to pick us up.
No questions asked!!! What a nice surprise.

This of course is contrary to our JKIA where some very rude customs officers will grill you, make you open your bags to see what you are carrying, seek a bribe if you are carrying stuff you should be paying duty on, etc..but the worst is the rudeness, absolutely no courtesy with our customs officers..

Tuesday, May 08, 2007

Kenya Airways disaster in Cameroon - simple questions


The last few days have been agonizing for everyone but in particular family, colleagues and friends of victims of the unfortunate Kenya Airways crash in Cameroon.

But some questions must be put to KQ and to Boeing, the manufacturers of the aircraft, as follows:

1) The emergency transponder did not work as it should. It stopped functioning while it should have continued to function for a period of not less than 48 hours. Does KQ regularly check that all their aircraft have such devices, and that they are in perfect working order?

2) It has been reported that Cameroon's Douala airprot may not have all the required equipment necessary to operate as an international airport including proper radar facilities. There must be some truth in this statement because the aircraft was eventually discovered only 20kms from the airport, surely, surely, the control tower should have seen it returning via radar or other suitable manner!!! This would have avoided search parties moving 100 kms away looking for the airplane!!

3) If the statement in 2) above is correct, why would Kenya Airways be operating flights to Cameroon?
4) Does KQ provide parachutes for all persons in the aircraft? Could one have opted to jump out of the plane in full flight when the crash became imminent?
Our greatest sympathies to all!

Friday, April 20, 2007

Chilling video of Cho Seung-hui Virginia Tech killer


This is the Virginia Tech killer, 23 year old Cho Seung-hui.





And the following link is the chilling home video of Virginia Tech gunman Cho Seung-Hui showing just how deranged he was. Our condolences to the families of the victims of the VA Tech Massacre.

VIDEO

Tuesday, April 17, 2007

Multiple fatal shooting at Virginia Tech University could have been prevented - lesson for Kenyan Universities






This morning, we woke up to see live pictures on CNN of a multiple fatal shooting incident at Virginia Tech University in the United States. At last count 32 dead, scores injured.

Virginia Tech officials and police have already come under fire for not placing the campus on complete lockdown immediately after the first, early-morning shooting. The second spree, during which the bulk of the victims were killed, took place about two hours later — and many students were unaware of the first incident or of any danger on campus at all.

The university has said it believed the first crime was an isolated, domestic case, may not have been related to the second shooting and was under control — even though police and administrators have admitted they didn't have the gunman in custody.

Though there are limits as to what schools can do to prevent such crimes and heighten security — public universities and colleges in this particular State, for example, aren't allowed to have gated access to campus, because they're public — there are safety measures schools can and do take.

Among them: Controlled access to residence buildings in the form of student ID swiping machines; guards at academic and dormitory buildings; a strong campus police and security presence; active-shooter training for officers and guards; metal detectors and bag searches at athletic and other events that attract crowds; security cameras; trained student guard forces; and education about safety procedures for students, faculty and staff.

All of those policies are in effect at Rutgers University in New Brunswick, a large suburban campus with more than 34,000 students (50,000 total at the school's three main locations), and at UCLA, an urban state school with a total of 37,000 students (more than 10,000 of whom are residents of the university).

What kinds of security measures, if any, do our Kenyan Universities have in place?

It is time its management opened their eyes, ears and minds as to possibilities.

This blog has already given fair warning about the feeble security at the University of Nairobi's main campus. http://ncrwcc.blogspot.com/2007/04/suspicious-night-time-photographer-at.html

Whereas gun laws in this country are stricter, it has been previously said that illegal firearms are easily available in this country, coming in through the porous borders of some of our unstable neighbours like Somalia.

Kenyan Universities should spend more resources on professional security arrangements for its students, lecturers and guests. I do not recall having ever seen even a single CCTV Camera at the University of Nairobi. It should not be heard to say that it does not have sufficient resources because it is a public university. No excuse should stand in the way of protection of precious human lives.














Sunday, April 15, 2007

Shame on thieving waiters at the Safari Park Hotel


Yesterday was a joyous occasion when a colleague got married at the Safari Park Hotel.

Everything ran like clockwork at the reception ...the meal was served buffet style...and we all had a soft drink with the meal.

The hall where the reception was held was not entirely full..some guests had not shown up.

Meanwhile, as the entertainment wore on, I figured I could do with a second soft drink, so I strode over to a waiter (my previous attempts to catch the attention of any waiter had not been successful) and requested to have a soda brought to my table.

After a further ten minutes had elapsed without my soda having arrived, I strode again, more determined, to the said waiter and demanded to know why my soda had not arrived.

He managed to tell me in a number of phrases, that the sodas that had remained were to be paid for cash, at Kenya Shillings 200 each.

I thought this was a ridiculously high price, but without saying so, I asked the waiter to bring me the soda quickly, he should not assume I was not good for the money.

In less than a minute, a cold soda was placed before me, opened with gusto, and the waiter then hung about expectantly, waiting for me to give him the Kenya shillings 200 he had previously indicated to me.

Having taken a long gulp of the soda, I turned to the waiter and asked him to bring me the bill, so that I could pay for the soda.

Five, Ten, Fifteen, Twenty and finally Thirty minutes elapsed, before the waiter came to my table with the Manager.

The Manager explained to me that whereas each guest had only been entitled to a single soda, the fact that some guests had not arrived meant that there were still sodas available, all fully paid for, and there was therefore no bill for me to pay.

The manager even asked if I wished to have another soda, but i thanked him, saying I was quenched of thirst.

I was, needless to say, furious at the waiter, who had attempted to steal KES 200 from me, knowing fully well that there were many free sodas still available, and knowing further that a soda at the hotel was only KES 100 bob.

Indeed, I later came to learn from other guests, that they had been made to pay KES 100 each for a second soda, without a receipt having been issued.

The lesson for customers of this hotel is simply never to pay for anything without an appropriate bill having been tendered. Its waiters, as at yesterday, were less than honest.

This was most unexpected of an otherwise highly regarded Safari Park Hotel, and it is hoped that its management will implement suitable mechanisms and procedures to avoid theft of funds from its guests by its waiters.

Thursday, April 12, 2007

Suspicious night-time photographer at the University of Nairobi is a security risk



This blog is written with the hope that The Vice Chancellor of the University of Nairobi Prof. George A.O. Magoha, or any officer at the University, will read it and take note.

A couple of nights ago, we received an observation from one of the evening Masters students at the University of Nairobi that a young man of Somali features had been spotted taking photographs of the wall at Willoughby Hall opposite the cafeteria in Gandhi Wing.

Whereas this particular person may have simply been capturing some of the magnificent architecture of the University for posterity, the fact that these photographs were being taken at 8:30pm by a suspicious looking person deserves some attention.

The walls being photographed are directly above Taifa hall, and concerns were raised that this would be a prime target for someone with less than honourable intentions, particularly because evening students will be using Taifa hall soon for examinations.

There do not appear to be any security guards patrolling the University at all times...they seemed to be concentrated at the gates.

Call it a long shot, but Kenya has previously been a terrorism target in years gone by.

Can proper anti-terrorism preventive structures be implemented at the University of Nairobi's main campus at the earliest opportunity?

Monday, April 09, 2007

John Michuki's mistake on Mount Elgon clashes


This morning, the Minister for Internal Security John Michuki, in an interview on local radio station Kameme FM, gave the following statements:

  • There were 605 General Service Unit and administration police officers on the ground in the clash torn area (is this figure sufficient?)
  • 85 dead (and not other exaggerated figures)
  • There were no child mercenaries involved in the conflict
  • Locals should say whom among them, are the raiders
  • He would only go to tour the Mt. Elgon area when he felt like
  • He was working on the situation from Nairobi
  • He cannot be directed on how to carry out the job ie cannot be told to till an acre of land and then further accept directions on whether he should use a fork, a spade or a jembe.

Does this smack of arrogance? That assessment must be arrived at individually.

Suffice it to say that all over the world, it is highly recommended that leaders tour an area where clashes or a war is going on. US President Bush and other leaders with forces in war torn territories do this. The often go to Iraq.

It means a lot because you would get a feel of the situation first hand (second or third hand information is never good enough), and you would take the opportunity (and political mileage) of comforting and being seen to comfort the affected persons.

Without saying much more, reform in this area is fundamental.

31,200 people have been displaced following land clashes that have hit Mt. Elgon area in the Western part of Kenya since December 2006. The Internally Displaced People (IDPs) have camped in market areas, villages and with relatives. The clashes have also resulted in the deaths of 60 people, while others continue to nurse their injuries in hospital.

Some of the IDPs have moved to neighbouring districts of Bungoma, Trans-Nzoia and partly Busia. Mt. Elgon has four divisions, with Cheptais and Kopsiro as the worst affected by the clashes. The fleeing communities are still moving to neighbouring divisions of Kapsokwony and Kaptama.

Most residents have been left extremely vulnerable as their houses and food stocks have been burned and their livestock and livelihood threatened. The clashes have caused food shortages and thereby increased food prices in the local markets. The normal livelihood of these people has been drastically interfered with. Communities in Mt. Elgon depend mostly on agriculture as their major source of income.

Some schools remained closed after the December 2006 vacations, while those that opened recorded low student turn out or dwindling student numbers. Specifically, 12 schools have been adversely affected. On the other hand, schools in areas where there are no clashes have experienced an unprecedented increase in the number of student enrolments. In Lwandanyi division, for example, a primary school with formerly 800 pupils is now recording over 2,000 pupils.

As if to aggravate the situation, the locals and the displaced victims are competing over fuel, water and grazing land thus raising fears of further conflict. The price of charcoal has also increased tremendously because of the increased demand and is unaffordable to the locals.

As Mt. Elgon area is very cold, some of the IDPs, especially children and pregnant mothers, are now suffering from pneumonia and malaria. The water source is also not accessible to the affected people due to the ongoing clashes and so the IDPs have had to drink or use unclean water from springs and rivers. A number of children are experiencing malnutrition and this may cause further health complications. Most of the affected people are traumatised and need psychological counselling. Dispensaries are said to be attending to over 50 outpatients per day and have many inpatients who are IDPs. These have caused a considerable strain on the meagre resources that are available in the dispensaries.

There is still tension in the area since many people fear for the lives and even too frightened to provide information. Unless the situation is addressed it is expected that the current number of IDPs will increase beyond 31,200 people. The IDPs are now working in shambas, hotels and other recreational areas to raise some income and take care of their families. Some men even go back to their former areas of residence during the day to harvest some food items for their family members settled in the IDPs. In the process some get killed or injured.

The Kenya Red Cross Society’s Mt. Elgon and Bungoma Branches have distributed food and non-food relief supplies to the IDPs. The non-food items distributed comprise 2,100 blankets, 550 tarpaulins, 500 kitchen sets, 2,100 jerricans, 60,000 aqua tabs, 2,100 mosquito nets, 132 packs of tinned fish and unimix worth Ksh 2,934,300. The food items included 43 metric tonnes of maize flour, beans, canned fish, unimix, energy biscuits and cooking oil valued at about Ksh 3.1 million. These items were distributed in Sirisia, Cheptais Chwele, Tuikut, Kimabole, Namwela, Lwandayi and Mayanja areas. Relief distribution is ongoing.

While access to the areas affected is highly restricted due to a security operation by the Government of Kenya, the Kenya Red Cross Society continues to get access to the thousands of IDPs. The Kenya Red Cross Society is planning to provide medical attention to the affected people through building the capacity of the health centres in the area and also through organising mobile clinics to cater for those who have been adversely affected.


British Supermarket TESCO's move to lock out Kenyan fresh produce unfounded


Background

· On our about the 18th of January 2007, Tesco Supermarket Chain pledged to revolutionalise its business by becoming ‘ a leader in helping to create a low carbon economy’ by adopting new measures to tackle climate change.

· In the most significant step announced, the UK's biggest retailer, which produces 2m tonnes of carbon a year in the UK, said it would put new labels on every one of the 70,000 products it sells so that shoppers can compare carbon costs in the same way they can compare salt content and calorie counts.

· The Company also pledged to cut the emissions produced by its stores and distribution centres by 50% by 2020 and slash by 50% within five years the amount of CO2 used in its distribution network to deliver each case of goods.

· Tesco's move is the latest in a series as the big supermarkets battle to prove their green credentials. The trend was kick-started in 2005 by Lee Scott, president of the Wal-Mart discount chain in the US and the parent company of Asda. Mr Scott made a $500m (£255m) commitment to use 100% renewable energy, create zero waste and cut greenhouse emissions by 2009.

· Last year Tesco unveiled a 10-point plan designed to make it a "good neighbour" which included promises to install wind turbines and solar panels, source more food locally and encourage healthier eating. It has also started offering loyalty card points to shoppers who do not take carrier bags.

· Asda and Sainsbury's have unveiled similar initiatives. Marks & Spencer lhas recently unveiled a £200m environmental plan which included a pledge to become carbon neutral and send no waste to landfill by 2012. M&S boss, Stuart Rose, even pledged to trade in his BMW for a hydrogen-fuelled model.

· The British government has also waded into the issue. In 2006,the British environment secretary, David Miliband, told the bosses of the big four supermarkets to set and meet targets to cut carbon emissions, to use their buying power to demand greener products and to label electrical goods more clearly so that shoppers could more easily buy the most efficient products.

Time lines

· The new carbon labelling programme will not be immediate. Tesco has said that it would first have to develop a "universally accepted and commonly understood" measuring system.

· Implementation of carbon labeling shall be complex and could take several years to implement.

· As an initial step it would put airplane symbols on all goods imported by air as air travel is one of the most carbon intensive forms of transport.

The Problem.

· It shall be easy for British shoppers to misconstrue that a product with an airplane symbol depicts lots of carbon emissions, which is likely to contribute to poor sales for airlifted products, especially those from Africa.

· The carbon-footprint initiative is different from food-miles. Proponents of food-miles claim that the further food travels to market the less sustainable or energy efficient it is, and therefore the closer to its market that food is produced the better it is for the planet.

· The food-miles concept is fundamentally flawed because it does not accurately reflect the total energy used in production and processing, only the energy used for transport. As such it is not a useful or valid tool for assessing environmental impact.

Undermining of social and economic development of African countries through carbon labeling – recent research

Research conducted in late 2006 and released in January 2007 by the International institute for Environment and Develoment (IIED) in the United Kingdom has established that:

· The placement of an airplane symbol on a product, and eventually a carbon label on it, shall present an argument for the customer to purchase goods that have traveled the least distance from the farm to the table.

· This shall discriminate against long haul transportation, especially air freighted goods.

· Food miles is the vanguard of climate change in the United Kingdom.

· Food miles has captured consumer attention and is changing consumer behaviour, although only one third understand the concept.

· High value produce from Africa, especially flowers and horticulture are air-freighted, and are being singled out as the epitome of unsustainable consumption.

· Food miles as a concept is blind to social and economic benefits associated with trade in food, especially from developing countries.

UK consuming fresh produce from Africa

· The United Kingdom is consuming more fresh produce from Africa than never before.

· A wide range of fresh produce is imported to the United Kingdom from Sub-saharan Africa, excluding South Africa.

· This trade is dependent on the UK consumer as well as on air freight.

· 40% of air freighted fresh fruit and vegetables are from sub Saharan Africa

· Poor African countries rely on the UK market to support their domestic industry

Ecological space

· ‘Ecological space’ is the individualised (per capita) right to natural resources for utilization such as energy, food, land and water. The concept of equitable ecological space translates well into “per capita carbon dioxide emissions” and the “per capita right to emit carbon dioxide”.

· Currently, carbon dioxide emissions per person are very unequal and the gap is widening: global, 3.6 tonnes; the UK, 9.2 tonnes; Africa, 1 tonne. Furthermore, African figures are skewed towards oil-rich countries, and only two countries exceed the global average. Hence,Sub Saharan countries have considerable reserves of “ecological space” compared with industrialized countries.

Inequality of impact and adaptive capacities of climate change.

· Many African countries are feeling the force of climate change impacts, the root cause of which was produced in developed countries. Poorer countries have fewer disposable financial resources to commit to adapting to these impacts.

The Kyoto Protocol

· The Kyoto Protocol recognises the need for equity and economic development for developing countries in the transition to a low-carbon future. Current calculations of a sustainable carbon future estimate equitable ecological space per capita as 1.8 tonnes. This represents the estimated absorptive capacity of natural carbon sinks, both land and sea. Yet this per capita space is falling owing to projected warmer climate accelerating the decay of carbon in soils coupled with projected population increases.

Trade offs between global environmental goods and local poverty

· Kenya is a good example of how local economic development follows export horticulture development. Kenya was the first Sub Saharan African to develop systems in which high-value horticulture is exported to the UK. A full 70% of green beans (of exportable quality) produced in Kenya come to the UK.

· This business is perceived as a success, and a number of other countries have followed - 87% of UK green beans imports are from five African countries.

Decisions of policy makers and consumers to be based on good information.

· What is clear is that decisions – of consumers, of policy makers,

and of the food chain businesses – should be based on good

information.

· If environmental harm is to be weighed against

developmental gains, it is essential that

(1) the degree of harm is quantified and put into the context of other food choices,

(2) the degree of harm is put into context of Africa’s current use of ‘ecological space’, and

(3) the degree of development gain is quantified, to demonstrate whether this trade really benefits those living in poverty.

Are food imports from Africa driving climate change

· There is increasing evidence that the UK’s carbon footprint is largely domestically generated. Indeed, to reach targets under Kyoto the UK needs to prioritise addressing domestic road transport and energy use first, then aviation.

· Estimates of doubling of air travel in the next twenty years coupled with high carbon emissions, and the exacerbating effect of “radiative forcing”, make aviation cuts a necessary part of the solution.

· Yet the main share of increased flights appears to passenger traffic; in the UK, passenger flights account for 90% of emissions from air transport, and international freight for 5%. But, air-freight is a significant contributor to total food transport

emissions in the UK.

· Only 1.5% of imported fresh fruits and vegetables arrive in air transportation but that portion produces 50% of all emissions from fruit and vegetable transportation.

· It is clear that for most products that can be grown outside

greenhouses and without heating, air-freighted produce usually scores poorly in terms of emissions compared with locally grown produce. Plus, air-freight is responsible for 200 times more emissions if flown rather than shipped from Kenya, or 12 times more energy.

· There is no firm evidence that UK consumers not eating imported fresh fruits and vegetables, fewer planes would fly today or in future. Indeed, an annual expansion of 6% in air traffic in all sectors (fresh fruits and vegetables imports, passenger volumes, and dedicated freight).

· Air-freight of fresh fruits and vegetables from sub Saharan countries accounts for less than 0.1% of total carbon UK emissions.

· In the big picture, the environmental cost of international food transport is trivial compared with UK domestic food-miles. Plus, air-freight is the only possible mode of transport for some highly perishable produce where no other infrastructure exists.

· Fresh fruits and vegetables imports highlight one of the key reasons for not including aviation emissions under Kyoto Protocol - the difficulty of allocating carbon between trading nations.

· While a 50-50 split appears to be a simple equitable solution, in practice there are measurement difficulties associated with transport hubs, passengers/cargo split, mail service, triangular flight paths and problems assessing the necessity of some cargo (such as medicines and vaccines). Plus, for fresh fruits and vegetables the large majority of imports to the UK are carried opportunistically in the belly-hold of passenger aircraft, and the rest in dedicated freight.

Are food imports from Africa driving African poverty reduction?

· Air-freighted produce from Sub Saharan Africa to the UK bestows considerable direct benefits on poor rural economies.

· Over one million people in rural Africa are supported by the fresh fruits and vegetables exports to the UK.

· An estimated 50-60,000 small-scale producers and 50-60,000 employees on larger farms grow produce that is consumed in the UK.

· When dependents and service providers are factored in, an estimated 1-1.5 million people’s livelihoods depend in part on the supply chain linking production on African soil and consumption in the UK.

· An estimated £200 million is injected into rural economies in Africa through fresh fruits and vegetables trade with the UK alone.

· From a development perspective, airfreight of fresh fruits and vegetables from sub Saharan africa is a relatively efficient “investment” by the UK in allocating its carbon emissions to support livelihoods when compared to the efficiency of the remaining 99.9% that is supporting 60 million UK residents.

Observations and Recommendations

· Economic development for the poorest in a low carbon future will mean expanding emissions for some. For those countries with excess “ecological space”, there exists a potential to use some of this space to reduce poverty, generate low-carbon economic growth and foster development.

· Export horticulture is one of the few genuine opportunities for developing countries that have direct and indirect benefits that reach into poor rural areas. Plus, there is projected future growth in export horticulture from existing and emerging producer countries in Africa, owing to tourism, economic development and more socially conscious procurement patterns in all industries.

· The food miles and carbon labelling concepts needs reform, to include social and economic development aspects. Singular comparisons do not necessarily help us to generate good policy.

· All environmental and social aspects need to be analysed, and trade-offs assessed.

· Over one million livelihoods in Africa are supported by UK consumption of imported fresh fruit and vegetables.

· Not buying fresh produce air-freighted from Africa will reduce UK total emissions by less than 0.1%. It is time to look to the huge impacts of the food system at home, rather than pull up the drawbridge on Africa.

· There must be intense negotiations and agreement between affected Governments as well as orgnisations representing the interested parties.

Wednesday, April 04, 2007

Risk Management


A couple of weeks ago, I was urgently called in to advise an Asian family whose daughter had been arrested by officers from Banking Fraud.

As you may know, this is a department of the CID (even though it is couched as a deparment of the Central bank of Kenya).

Contrary to expectations that the Banking Fraud Unit would be more diplomatic and professional, the officers who effected the young girl's arrest were no different from the usual police. They were rude, loud talking, coarse and arrogant. I am told that they even shamelessly demanded a bribe.

They agreed to accompany the complainant to the school where the young lady picks her daughter from school, tailed her until she stopped at a junction to buy maize for her daugher, then cut her off and jumped into her car, scaring the daylights out of the young girl and her daughter.

There was no warrant of arrest.

They then agreed, with some dissatisfaction to let the young lady drop her daughter to her house, and then accompany her to the Banking fraud unit in town.

All this took place at 5pm.

Questions:

1. Why could they not obtain a warrant of arrest
2. Why did they effect the arrest as they did, causing a risk of mental trauma to the nursery school child
3. Why could they not wait until morning to conduct this operation
4. Was this done so that they could extort some bribe out of the lady and her family?

Nevertheless, the young lady spent two nights in a cell before charged in Court, and she is now out on a cash bail.

What was impressive was that the young lady's muslim Asian community has in place what they call a Risk Management Committee, both at local and national level.

Overnight, these communities communicated with the owners of teh business that had lodged a complaint to the Banking Fraud unit, in Dubai seeking to find an amicable solution to the problem.

They even have their own arbitration committee. And they have worked hard to ensure that some of them have open lines of communication with the top bosses in police stations, police divisions and so on.

They have a connection everywhere in order to serve and help their community.

It reminded me of another incident where an Asian who had been arrested by the city council and was put in the cells at Spring Valley police station, was quickly released after contact was made with the police bosses. Indeed, a big shot police officer actually came to the police station and supervised the release of the Asian.

Risk management is critical in today's life, especially in Kenya.

What are you doing your community to put in place risk management structures that are organised and efficient?

Monday, March 26, 2007

Western Union money transfer to dominate Posta Pay




When Posta Pay was launched last year as a cheap fast money transfer service of the Postal Corporation of Kenya, few people thought that Western Union money transfer would hold out, especially for money transfers within the borders of Kenya.

Months after the launch of the service, it seems that Western Union has managed to hold its own pretty well.

Wishing to establish the reasons for this, I went to GPO last Saturday, the head quarters of Posta Kenya in Nairobi, to send some money to a friend in the coast region.

There were only two counters, and there was a long queue of people waiting to send or receive money.

In spite of notices indicating that one counter was for sending and another for receiving, this procedure was not followed, all persons queued on one line, and went to each counter as and when it became available.

The customers were furious. It took an average of 45 minutes for me to get to the counter. The counters were moving far too slowly.

A manager was hovering behind the counters, not listening to customer complaints.

If this was a private institution, the manager would probably have knucked down to open a fresh counter, and serve more customers, in order that Posta makes more money from commissions...alas, this never seems to feature in the minds of most Government or quasi-Government institutions..and Posta is a glaring example of that.

To add insult to injury, the watchman from a non-familiar security company, kept hovering and glaring at the customers, exchanging rude insults with them, refusing to call a manager to address the customers saying that was not his job, even threating to physically square it outside after hours with a particularly infuriated customer.... this was particularly disastrous on the calibre of security personnel hired by Posta.

There was no TV, no water to drink, no seats to rest nearby...a terrible experience.

The Post office was then closed at 12noon or thereabouts.

I decided to go for an early lunch until 2pm when i sauntered over to Western Union at Nation Building.

There were 3 counters, all open (they are even open on Sunday), there was no queue (there were comfortable seats and mineral water to quench your thirst while watching TV or reading the provided newspaper).

The watchman from a well known security company was very discplined, sat well away from the customers, the attendants at the counters were very friendly indeed, and the transaction was concluded expeditiously.

It is therefore no surprise that I (and many customers) shall always go to Western Union money transfer in spite of their slightly higher charges....Posta Pay has left a very bitter taste in my mouth !

Thursday, March 22, 2007

The Massive Risks & Gaping Loopholes that are driving investors off the Nairobi Stock Exchange



On February 19, 2007, Edward Ntalami, Chief Executive Capital Markets Authority (CMA) issued a notice that Francis Thuo and Partners have been barred from accessing the trading floor of the Nairobi Stock Exchange for 14 days to enable it address certain financial, operational and non compliance issues. The statement went further to state that the firm was directed to temporarily halt further trading and dealing, address the non compliance issues and deal with pending obligations to its clients.

The firm has since been placed by the CMA under management under the Nairobi Stock Exchange.

It is estimated that a sum of KES 140 million has gone down with this broker.

Investors, who initially thought they were covered to the full extent of their investment, were shocked to hear Mr. Ntalami say that each of them could only expect a maximum sum of KES 50,000/= compensation from the Capital Markets Authority.

The loop holes now existing in the electronic trading system of the Nairobi Stock exchange are simply mind boggling and permitted Francis Thuo (and perhaps others) to:

i) give
the brokers free access to their clients’ investments, unlike in the past where share certificates, a crucial document that was required for any transaction, was held by the investor and would only be surrendered when the investor wanted to liquidate his stocks.

ii)
allow dealers to sell the shares when they hit a certain peak without the shareholders’ consent, only to replace them when the prices dip, making a killing in the process.

Mr Daniel Mwaniki is reported to be one such victim of exploitation by the unethical brokers.

After being a client for over 22 years at the now ailing stock brokerage firm, Francis Thuo and Partners Ltd, Mwaniki was shocked when he noticed that his broker, without his consent, had sold his 4,000 National Bank of Kenya shares valued at over Sh200,000 in January this year.

Upon making an enquiry, one of the firm’s directors, Mr Peter Thuo, hastily credited Mwaniki’s account with 3,000 NBK shares and bought him an additional 1,000 shares at a cost of Sh40,000.

A short text message from the director to Mr Mwaniki reads thus: "We have put back in your account 4,000 NBK shares as agreed. Thank you. Peter Thuo."

Regulator inaction

It is very disturbing to note that the
legal custodian of shareholders’ investments and the market regulators — the state owned Capital Markets Authority (CMA) through the Central Depository and Settlement system, has all along been aware of the current loop holes and actual exploitation of the system.

In October last year, the CEO of the Central Depository System is alleged to have been quoted in a local daily as saying that it is "technically possible" for a stock broker to initiate a transaction without consent, and warned that shareholders should question any suspicious transactions reflected in their statements.

Lack of verification requirements

Prior to the commencement of the Automatic Trading System at the NSE, a written authorisation and a share certificate from the shareholder was required for any dealing in an investors’ shares to be commenced by a broker.

This requirement appears to have been ignored by stock brokers. Indeed, No verification by the shareholder is required before a share transfer is effected.

Present customary practice is that brokers from the different stock brokerage houses post orders from their clients into the system, which then automatically matches them without any requirement for authorisation by the shareholder.

Mr Wellington Mutuku Mbondo is reported to be another victim of the stock brokers.

His four thousand five hundred shares (4,500) of Kenya Power and Lighting Company (KPLC) were sold in January without his consent. He discovered that they had been sold when he got his statement from the CDSC weeks later.

With each KPLC share trading at Sh278 at close of the market on Friday, last week, Mr Mbondo is facing a possible loss of Sh1.25 million. To add to his misery, Francis Thuo were his stock brokers.

Widespread

Similar stories have been reported involving a number of other stock broking firms.

Lack of transparency and action by the CMA

It has been reported that many investors with complaints have been unable to obtain any sort of action from the CMA.

Francis Thuo has been having financial problems for quite a while, but the CMA has conveniently failed, refused and/or ignored to take action to prevent members of the public from pouring their money into the Francis Thuo bottomless pit.

Reported Irregularities on the trading floor

During Eveready IPO’s first day of trading at the stock market, a ‘hitch’ in the system was said to have restricted the share price movement to a rate above 10 per cent. Under normal circumtances the first day of trading of an IPO, the share price can fluctuate by margins of more than 10 per cent of the initial price.

The CMA opted to leave it to Nairobi Stock Exchange to issue a public statement. This was the situation again when news of the CFC/Stanbic banks merger talks that saw the bank’s share price soar to Sh900, which was later attributed by the NSE to be a 'mistake'.

UCHUMI remains suspended from the Nairobi Stock Exchange and the CMA has not given any indication as to when, if ever, investors may redeem the values of their shares in the company.

The above are serious anomalies....which need redress. Not only do investors have to deal with fluctuation of share prices, they also have to contend with insufficient regulatory laws and a slow moving and non-anticipatory Capital Markets Authority.

Is it any surprise that stocks at the Nairobi Stock Exchange are now falling on a daily basis, in spite good earnings reported by the companies?

The risk is yours.

Monday, March 19, 2007

Michuki's shoot to kill Order and the Right to Life


Last week's endorsement by Internal Security Minister John Michuki of his officers to gun down any suspect caught with a gun is a gross contravention of thepolice Constitutional right to life, let alone the right to be taken through the due process of law.

Mr. Michuki may be a frustrated man as violent crime surges in this country, but his orders shall not solve the problem.

Indeed it has been touted that many innocent lives shall be lost through unnecessary deaths at the hands of police officers. It is not inconceivable for innoncent persons to have firearms (even toy pistols) planted on them to justify their death.

It is high time that this country puts in place a body akin to the UK's Indepenent Police Complaints Commission.

Such a body would indendently investigate all complaints from the public against individual police officers, and take necessary action against including commencing criminal proceedings against them.

In the meantime, the following skeleton pointers may assist Hon. John Michuki to deal more effectively with crime:

1. There is need to set out the nature of the problem and current trends
2. develop a comprehensive strategy
3. develop a comprehensive violent crime reduction strategy
4 develop a strategy to intercept sources of illegal arms
5. develop a constitutionally acceptable strategy to deter illegal gun possession and carrying
6. implement education intiatives

The above strategies must also include a comprehensive review of the competence, remuneration and recruitment systems of the police force.