JUA KALI, THE WEED KILLING KENYAN FORMAL ECONOMY

[Empedocles]

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Thoughts?

http://africanmarketmedia.com/2017/03/25/jua-kali-the-weed-killing-kenyan-formal-economy/

[Omollo]

I'll help you out with tiny historical details. Am travelling so if you will want specifics, they'll wait.

Matatu: It was already happening. Just like the black Taxis in modern European and American cities, people started operating illegally. The penalties were stiff during the colonial era and the law was ruthlessly enforced.

The owners of the matatus were civil servants (the only ones with access to good money). Sometimes they were their own cars (Peugeot 403, 404 etc). Or VW vans bought from mzungu.  A driver would be hired to do the matatu thing while boss worked.

The corruption you see in it started way back. Civil servants would speak to the police to let their vehicles pass. A few times they landed in big shit when a mzungu happened to join the kinyasa wearing officers on the beat and one of those illegal taxis turned up. This is what had graduated in to this day when Gen. Ali could run a bus company that was never stopped at any traffic roadblock or any money collected (Crown Buses).

Yes at independence Kenyatta had promised jobs and wealth to the Africans. He soon realized that not every Kenyan could steal land or extort Indian dukawalas.  He first lifted the ban on matatus but the licensing and taxation requirements were so stiff that only a few made it. The rest operated illegally with cat and mouse fights with the police and Kanjos.

The delegation you speak of was of Kikuyu "elders". These were mostly MPs, Councillors, businessmen (who had paid to join - no thrills and frills in Central when you are going to see Muthamaki). They requested that the burden be removed from them. Kenyatta decreed (he ruled by unwritten decree) that matatus should not be taxed. They shall only pay road licenses like "other vehicles". The death toll on the roads started rising.

It is true that the removal of any form of regulation brought on the disorder that you see today. I am not so sure that the so called "jobs" could mitigate the levels of crimes such as public rape of women in bus stops.

I am one of those who believe that there are two uniquely Kenyan traits that must be ended forcefully and with brutality if need be:

1. Matatu - Those who want to invest in public transport can do so by buying shares in a National Public Transport Company that would take care of Urban and Rural Transport in Rail, Road, Sea and if possible air. I do not mind specific routes being places on tender but the vehicles shall look the same. They shall meet safety standards with secure seats, etc.

2. Squatters: I believe squatters are land thieves. They should be discouraged. I missed the memo that said every Kenyan must have a piece of land.

[RVtitem]

Very true.

[Kim Jong-Un's Pajama Pants]

Kenyatta must have been caught between trying to normalize the economy, and hanging onto power.  Remember the colonial economy was not designed around benefitting the toiling Negro.  I think focus on power won out; especially after a mutiny early in his misrule.  The result is that the colonial economic model has never really changed.

[Empedocles]

I'll help you out with tiny historical details. Am travelling so if you will want specifics, they'll wait.

Matatu: It was already happening. Just like the black Taxis in modern European and American cities, people started operating illegally. The penalties were stiff during the colonial era and the law was ruthlessly enforced.

The owners of the matatus were civil servants (the only ones with access to good money). Sometimes they were their own cars (Peugeot 403, 404 etc). Or VW vans bought from mzungu.  A driver would be hired to do the matatu thing while boss worked.

The corruption you see in it started way back. Civil servants would speak to the police to let their vehicles pass. A few times they landed in big shit when a mzungu happened to join the kinyasa wearing officers on the beat and one of those illegal taxis turned up. This is what had graduated in to this day when Gen. Ali could run a bus company that was never stopped at any traffic roadblock or any money collected (Crown Buses).

Yes at independence Kenyatta had promised jobs and wealth to the Africans. He soon realized that not every Kenyan could steal land or extort Indian dukawalas.  He first lifted the ban on matatus but the licensing and taxation requirements were so stiff that only a few made it. The rest operated illegally with cat and mouse fights with the police and Kanjos.

The delegation you speak of was of Kikuyu "elders". These were mostly MPs, Councillors, businessmen (who had paid to join - no thrills and frills in Central when you are going to see Muthamaki). They requested that the burden be removed from them. Kenyatta decreed (he ruled by unwritten decree) that matatus should not be taxed. They shall only pay road licenses like "other vehicles". The death toll on the roads started rising.

It is true that the removal of any form of regulation brought on the disorder that you see today. I am not so sure that the so called "jobs" could mitigate the levels of crimes such as public rape of women in bus stops.

I am one of those who believe that there are two uniquely Kenyan traits that must be ended forcefully and with brutality if need be:

1. Matatu - Those who want to invest in public transport can do so by buying shares in a National Public Transport Company that would take care of Urban and Rural Transport in Rail, Road, Sea and if possible air. I do not mind specific routes being places on tender but the vehicles shall look the same. They shall meet safety standards with secure seats, etc.

2. Squatters: I believe squatters are land thieves. They should be discouraged. I missed the memo that said every Kenyan must have a piece of land.

I think the author is pointing out how the Matatu culture has permeated our entire economy, where the only businesses which are successful in Kenya are those with the right political connections, regulations be damned.

For example, how many of our "astute" business people (eg. Kirubi) are able to successfully expand their businesses outside Kenya? Aside from buying a couple of residential houses here and there overseas, the majority have yet to spread their core businesses regionally, let alone globally.

That's the result of the matatu culture in our economy, whereby a majority of our leading businesses are only able to operate in a deal-friendly environment.

[Georgesoros]

Until regulations are passed and enforced, Kenya will continue to be a majority poor state. Korea and the rest of Asia are very organized fast growing economies.