Agribusiness: the salve that failed to soothe.

Previously we talked about the maize shortage that plagued our nation last year. The government partly blamed it on an international food crisis that led to higher prices on imported grains. We also addressed agribusiness by noting its inadequacies to sustain food production for coming generations. In this article we will give cause as to why agribusiness is not the way forward for Kenya.
Until recently, agribusiness and large scale farming was the favored method of feeding western nations particularly America. It still is, but in the last two decades, peasant farming or sustainable agriculture has become a growing movement seeking to replace the highly chemicalized, mechanized, specialized, industrialized factory farms.
Although factory farms are efficient, they do have monumental drawbacks examples of which include:
• Topsoil depletion,
• Groundwater contamination,
• The decline of family farms,
• Continued neglect of the living and working conditions for farm laborers,
• Increasing costs of production,
• Disintegration of economic and social conditions in rural communities.
In fact, in April 2008, Sixty countries backed by the UN and the World Bank called for radical changes in world farming when they signed the final report of the UN's International Assessment of Agricultural Knowledge, Science and Technology for Development (IAASTD). The key message of the report was that small-scale farmers and organic, agro-ecological methods are the way forward to solve the current food crisis and meet the needs of local communities.
And according to the International Food Policy Research Institute (IFPRI), land degradation may pose a serious threat to food production and rural livelihoods, particularly in poor and densely populated areas of the developing world. Some of the effects specific to regions would be:
• Nutrient depletion
• Agrochemical pollution
• Soil erosion
• Agriculture-induced deforestation
These are all linked to large scale food production particularly the growing of cash crops for export.
Health wise, the inordinate consumption of processed foods has led to an increase in ‘modern’ ailments such as arthritis and tuberculosis among others.
Weston A. Price (1870-1948) author of Nutrition and Physical Degeneration traveled more than 100,000 miles to study the diets and health of isolated primitive peoples in Africa, South America, Australia, Polynesia, Europe and northern Canada, at a time when such communities still existed. Wherever he found them, regardless of race, diet and climate, they were a "picture of superb health": they had superb physiques, perfect teeth, no arthritis, no tuberculosis, no degenerative diseases, and they were cheerful, happy, hardy folk.

That changed radically when he compared them to other, less isolated groups of the same peoples, charting a catastrophic health decline the closer they got to the "trade foods" produced by industrial society (processed foods grown by synthetic farming methods). He found it takes only one generation of eating industrialized food to destroy health and immunity.
What does this portend for Kenya? Since about 70% of the population lives in the rural areas, subsisting on locally grown food, we have not been affected as adversely by the effects of eating processed food. We also mainly farm following natural cycles so nutrient depletion in the soil is not as drastic as other nations that largely grow food on factory farms. We do however need to:
• Nurture the peasant farmer to produce locally for local markets thus reducing the need for imported grains.
• Encourage family farming as a counter to rural-urban migration.
• Reduce the acreage being used for cash crops and instead grow mixed crops and encourage animal keeping for poultry and meat products.
• Establish local processing plants to reduce the price of food due to transportation.
These among many other ideas may lead us to self sufficiency as pertains to feeding the nation.
The next article will address sustainable farming and organic farming as a viable option to building vibrant rural communities.
As usual reader suggestions and professional opinions are entertained.

The Ugali episodes: From staple to scarcity

Maize flour often described as ‘the every man’s food’ became a rarity last year leading to an appeal for international food aid by the government. The maize shortage was partly caused by the drought and the maize scandal at the Ministry of Agriculture.
The government statement attributed the cause of the shortage to a host of international factors such as higher fertilizer prices, the oil crisis, and an international food crisis leading to higher prices on imported grains.
Based on our present mode of food production, we will always be a captive of international trade policies and fluctuations in market conditions far removed from our own. We will address our solution to sustainable food production in another article.
In this posting, we welcome back Mwarang’ethe, our partner in progress, who addressed this issue a while back. His opinions have recently been echoed by an MP seeking to pass a bill for a return to price controls on food prices. The relevant quotation in the story is, “maize and maize meal prices in urban areas have increased astronomically because, after liberalizing the market in 1993, we encouraged the emergence of highly-centralized large-scale milling facilities, promoting the consumption of highly-refined and expensive maize meal”. The entire story can be found HERE.
The Ugali Saga: A Better Perspective

Written by Mwarang'ethe

The shortage and cost of Ugali flour has captured the attention of Kenyans, and rightly so, in the recent days. Now, the question is, have we really been discussing the real issues? We venture to argue that many Kenyans are not aware of the real issues. This includes our politicians, journalists, etc. Thus, to the extent they we/are unaware, then, the real issues have not been discussed. (We will not discuss the issue of hoarding, as much as we know it is an issue).

So, what are the real issues? It is the objective of this short essay to bring out what the real issues so that the real debate can begin. The real issues can be discussed under the following headings:

(a) The nutrition question.
(b) The milling technology question.
(c) The quantity question.

1. THE NUTRITION QUESTION
There are three types of Ugali flour. These are:
(a) Whole maize meal.
(b) Partially de-germed maize meal.
(c) Fully de-germed maize meal, i.e. super sifted meal
From the nutrition point of view, the whole meal is the most nutritious of all. To that extent, medical people recommend we eat the whole meal. However, as many of you are aware, most Kenyans and especially, the educated (read brain washed) and those in the urban areas (so called urbanites) prefer the full de-germed. Why so? Well, to the educated and urbanites, this flour is whitish and therefore preferred. Also, since almost all fibers are removed so it is easier to digest.
Yes, it is easier to digest because; the fiber, nutrients like calcium, iron, niacin, riboflavin and fat are removed. Furthermore, the sifted meal also lacks two very vital types of proteins, i.e. globulins and glutelins, but has zein which is a poorer source of protein. Thus, under this heading, it is worth noting that we have adopted eating habits that are extremely poor in the name of sophistication. This is important considering that we rely on maize meal to the tune of over 70%.

2. THE MILLING TECHNOLOGY QUESTION

Taking cognizance of the types of meals, here, we venture to state that the sifted maize meal (full de-germed), is the most expensive to produce. This is because it requires very expensive meals called roll mills. On the other hand, whole meal is the cheapest to produce.
So, what are the implications? Since roll mills are very expensive, it is only the foreigners and some few very rich Kenyans who can afford such technology. However, if we had adopted the habit of eating whole meal, it would have given Wanjiku, the small scale miller, the chance to mill maize and sell to us. This would in turn lead to the operation of hundreds of small maize mills owned by Kenyans. But since we have adopted the habit of eating sifted maize meal, we have entrusted maize milling to the foreigners who use expensive IMPORTED and EXPENSIVE technology, whereas, the whole meal technology is CHEAP and available in Kenya and from other third world countries. Have you ever wondered why Africa keeps on getting poorer? Stop wondering, you can now see why.

3. QUANTITY QUESTION

Let's assume that we produce 1 metric tonne of maize every year. Let us also assume that we consume 1 metric tonne of maize every year. If we look at the situation this way, we produce enough maize meal for our nation. However, when we factor in the three types of maize meals, i.e. whole meal, partially de-germed and full germed maize mills, the equation changes.

If we mill 1 metric tonne of maize under the whole meal technology, we get back flour to the tune of 98%. If we use the de–germed meal technology, what ends on the table is around 80% of our initial input. Under the fully de-germed technology, we only get back around 60%. Simply, under the sifted maize technology which we have adopted, we end up with 40% deficit. This means that we have to IMPORT the 40% we lose under this technology. So, we have to look for $$$ and ££££ to import maize because we have lost it in the milling process. This seems to us nothing but madness.

3 (a) WHAT HAPPENS IN THE FULLY DE-GERMED TECHNOLOGY

Under this technology, we lose about 40% of our maize output because the by-products of this system are used as animal feed and oil production. For the animal feeds, much of this ends up being exported to the West to feed their animals, although some is used locally as well. Furthermore, most Kenyans cannot afford meat produced by these by products. Even more interesting, only 10% of the energy/food content of these by products is utilized by these animals. This means, that 90% of the food content in these by products is simply lost for good.

Conclusions

So what now? What Kenya needs is a different policy that encourages Kenyans to eat whole meal. If you read this essay carefully, the advantages of doing so are self evident. However, the question is, are the policy makers even interested in such a radical shift in policy? We venture to argue that they are not. But why do we argue so? Simply, when the big mills come to invest as foreign investors, they give the so called policy makers a share in the plants, (Remember Safaricom saga) and thus, they are accomplices in these schemes. Since Wanjiku will not give shares to these petty elites of Kenya/Africa, (we have nothing, but contempt for the African elite) she is not supported in her search for entrepreneurial success.
Finally, what we have written about this industry can be extended to other sectors of the economy. In that case, a wise person can start to see why Africa sinks into poverty every day despite all the efforts. We need a new way of thinking. It does not matter which incorrigible leader is in power, as long as we are ignorant of the very critical issues that contribute to poverty or wealth creation of any nation, we will remain a desolate destitute people. We invite the reader to engage in a constructive debate to put our country on the path to prosperity.

Ethics and the search for a national identity

Ethics and the search for a national identity
In previous articles, we talked about the insidious corruption plaguing our government employees. The bane of our people will be this malignancy that has regrettably become a requirement for the procurement of government services.
So pervasive is this corruption that it is practiced in the private sector without any shame from the seeker or remorse from the giver. From the Failed States Index 2009, we learn that Kenya is ranked 14th out of 177 countries surveyed by the Fund for Peace. This may seem like old news, but in light of the recent scams orchestrated by ministry officials, and the ominous alliances being proposed by our copious legislators, we feel the need to sound an alarm now rather than sing a dirge over our nation later.
We interact daily with one another, in business dealings, in the work place, in school and at social gatherings. We therefore believe that in order to forge a national identity, we should seriously examine how we treat one another. Below are some suggestions that may minimize corruption and inculcate nationalism.
• Adopt a uniform code of conduct for all government •Employees: All employees should be trained in customer service. Issues like how to greet the public, how to transact business professionally and how to handle complaints should be addressed among others. A yearly review of employee conduct may determine continuation or termination of employment. Periodic impromptu ‘secret shopper’ operations should be carried out to flush out employees engaging in reprehensible behaviors such as bribery.
• Establish a dedicated hot line: This office will deal with customer criticisms and suggestions. This may take the form of regional centers throughout the country to bring services closer to the people. Complaints should be investigated and positive interactions should be rewarded.
• Establishment of regional Better Business Bureaus: They would comprise of local businesses associations dedicated to providing an excellent shopping experience. Their membership badge would be displayed prominently on their premises to reassure customers that they will be treated fairly and disagreements will be resolved.
• Cultural events: We would engage in regional and national events featuring sports, music, crafts and others. Participants would be drawn from students as well as the general public from all diverse areas. The expected outcome would be that participants would then teach their neighbors that other Kenyans may be different terms of language and appearance but we all experience the same joys and pain.
• Education and awareness: Schools should make ethics and morality a part of the curriculum from the onset until university level. Student exchange programs would make students appreciate other cultures different from their own. We should teach our children about our traditional history, the heroes of yesteryear from different tribes and the achievements and contributions of Kenyans towards our liberation.
As for nationalism, we previously talked about the importance of establishing local sustainable economies. An integrated neighborhood that worked and played together would be hesitant to turn on each other at the behest of greedy, power hungry politicians. That workmate, that friend from a different tribe, that fellow parent whose children go to the same school, is more likely to be of assistance in time of need than the politician who promised everything but will not be seen until the next general election.
Kenyans in the Diaspora are curiously nationalistic. One would think that living a comfortable life in the west would make them adopt western ways and reject the trappings of home. Conversely, they seek to retain and cultivate the ways of the motherland. They pine for all things Kenyan, food, music, film, news and social interaction through celebration of our national holidays. Absence makes the heart grow fonder they say, and it is only when we are separated from what makes us Africans do we get to appreciate the beauty and uniqueness that is Kenya. We may not be the greatest nation on earth, but we would like to believe we are the greatest people on this green earth!
Suggestions and reactions from readers welcomed.

Devolution and the case for a local economy

Devolution and arguments for a local economy
Previously we discussed foreign aid as it is currently and how we can conditionally accept it, if we have to at all.
In this article, we will further stress our position that government should not be engaged in enterprise but should instead focus on delivery of essential services.
Devolution is the government’s idea of stimulating the economy at the grass roots level. What exactly is devolution? Simply put, devolution is the decentralization of development projects to the District and Constituency level. Its intention is to equitably distribute national resources throughout the country from the Treasury without bias. Several funds have been set up for this purpose. They are mentioned in this informative article HERE!
The one fund that politicians are incessantly yapping about is the Constituency Development Fund (CDF) they extol its virtues to bewildered masses as a panacea for all the ills burdening our every day existence. The government website touts it as a wealth building program at the grass roots level but in our opinion, it has not been a success due to it being plagued by problems some of which we have highlighted.
• Awareness. Many people are only vaguely familiar with the CDF and its operating structure and were not consulted in its implementation.
• Membership. The ordinary citizen is not represented in the myriad of committees that manages the fund. It is up to the discretion of the local MP to appoint the committee which will invariably be filled with conniving cronies of dubious extraction.
• Evaluation. There is no open avenue for idea presentation, project monitoring, and evaluation of completed projects. There are also no applicable consequences for shoddy, mismanaged, delayed or even non starter projects.
We thus reinforce our position that government programs aimed at resource reallocation only end up augmenting the illegitimately acquired coffers of those proposing them.
The way forward
How then do we work towards vibrant, healthy self sustaining local economies?
Our solution is in the exploratory stage so far but these are the areas we need to focus on if our communities are going to flourish.
• Local food sufficiency
• Locally owned financial systems (community banks)
• Businesses rooted in the community /community supported enterprises
• Locally based energy generation
• Local production for local needs
• Protection of open spaces and establishment of public parks
• Rezoning so that business and government buildings are centrally located in a down town area.
• Civic education awareness and citizen participation in the governing process
• Promotion of vibrant social outlets
• Local barter exchanges and volunteer programs
• Others
In a series of future articles, we will tackle the above issues. We will afford each area a posting of its own and we will give examples of sustainable projects that have been successfully implemented both at home and in other developing nations.
As usual reader feedback and suggestions are entertained.

LETS RETHINK FORIEGN AID

Lets rethink Foreign Aid
Corruption has seemingly become a way of life in Kenya. One of the ongoing scandals is at the Education Ministry. Money meant for free primary education has been diverted to private accounts owned by Ministry officials. Some of the money was from foreign donors who have since frozen further funding until audits are done, culprits punished and the money recovered. Details of the story can be found HERE
It has become glaringly clear that funds from foreign sources, meant to alleviate poverty or implement development, are not making it to the intended recipients. Even food aid meant for the starving populace is impounded by corrupt officials and later sold on the open market.
The primary recipient of foreign aid is the government. It is in turn supposed to disburse this aid to citizens according to the donor’s intentions. Our moribund government bureaucracy instead concocts schemes to siphon off all the money to phony accounts for their personal benefit. This practice has now become putative and even celebrated in the corridors of power and it will continue unabated if we do not put in a system of monitoring how these funds are disbursed.
The situation has become so dire that even when the government did distribute funds as in this recent example shown HERE, the groups charged with implementing the intentions of the government distributed the money among members and disbanded!
We now have to seriously reconsider the role of the government and the way it delivers its services. It is our contention that government should not be engaged in funding any income generating projects. We are not talking about government run corporations but funds given to self help groups to run micro businesses such as posho mills. The government’s role should be to provide the following:
• Infrastructure. This means passable and well maintained main roads and feeder roads that should make travelling around the country a thing of ease. Said roads should also be well lit, secure from banditry and should take into account flooding
• Education. Build, maintain and adequately supply all government schools. The free primary education has been a good initiative but it has been riddled with scandal as noted above. The government should train and recruit enough teachers. Pay them well. Avoid overcrowding in the classrooms. If possible, provide a free meal to children during school hours. We should overhaul our current curriculum that stresses passing exams and replace it with training students to become entrepreneurs, trades people, science professionals or excel in any other areas that promote nation building as per their predilection
• Medical attention. The government should build enough regional hospitals with the capability to perform even the most complicated procedures. They should be adequately staffed with personnel and have enough provisions. The government should train and hire enough medical staff and compensate them well. Health awareness, healthy eating and disease prevention should be a part of the school curriculum together with similar campaigns aimed at the general public.
• Security. It is the right of every citizen to be protected from nefarious elements from within and from marauders without. The government should train and recruit enough police personnel to deal with any eventualities that may threaten our safety. There should also be a department specially trained to deal with mishaps that require large scale coordinated responses.
What then do we do with the foreign aid that the west feels so compelled to throw into our laps? We think that foreign aid in the form of money should be rejected by African governments all together. If we have to have foreign assistance, let it be in the form of:
• Technical assistance. Our foreign friends may lend us technical experts to help train local professionals in development projects
• Equipment. We will accept donations of heavy equipment for use in infrastructure projects or other equipment for use in rural projects.
• Election monitoring. We will accept personnel to monitor our General Elections and report back to the world as to their fairness.
These things among a few others we may accept. The only item that we should summarily reject is foodstuffs. It is totally unacceptable for Kenyans to be dying of starvation while we could be producing more than enough to eat and a surplus for export. We will deal with self sufficiency as it pertains to food in a later article.
Conclusion
We are of the opinion that foreign aid should be completely factored out of the working budget of the government of Kenya. In A previous article, we put forth the proposal to fund all government expenditure through the use of the Land Value Tax. In a future article, we will look at how we can move away from a dependent, groveling citizenry to establishing vibrant, local, green, self sustaining communities that will hold government accountable.
As usual reader comments and suggestions are welcome.

Land Value Taxation bar all others!

Land Value Taxation bar all others!
In a recent article, we declared that land is an inalienable birthright and gave historical references to support our position. This post was prompted by a recent article in the Daily Nation found HERE. In summary, the article aired the grievances of Malindi District farmers who opposed a 2 % valuation of their land as a tax to be paid to the local council. They worried about the clause that said defaulters land would be seized and sold.
We will introduce the reader to Land Value Taxation, its benefits and its application to the Kenyan situation.
What is Land Value Taxation?
Land Value Taxation is a method of raising public revenue by means of an annual tax on the rental value of commercial, agricultural and idle land from owners with clear titles. It would replace, not add to, existing taxes. The value of every piece of land would go through a yearly assessment process and a land value tax would be levied as a percentage of those assessed values.
"Land" means the site alone, not counting any improvements. The value of buildings, crops, drainage or any other works which people have erected or carried out on each plot of land would be ignored, a vacant site in a row of houses would be assessed at the same value as the adjacent sites occupied by houses.
Ours is but a simple explanation. There are numerous sources of information on Land Value Taxation. We urge the reader to become more informed and invite them to join the discussion so as to add to the knowledge base.
The advantages...
• A NATURAL SOURCE OF PUBLIC REVENUE. All land makes its full contribution to the local Council or other body, allowing reductions in existing taxes on labor and enterprise.
• A STRONGER ECONOMY. If we tax labor, buildings or machinery and plant, we discourage people from constructive and beneficial activities and penalize enterprise and efficiency. Manufacturers in turn pass on these taxes as higher prices to consumers thereby reducing their buying power.
• The reverse is the case with a tax on land values, which is payable regardless of whether or how well the land is actually used. It is a payment, based on current market value, for the exclusive occupation of a piece of land
• A MORE EFFICIENT LAND MARKET. The necessity to pay the tax obliges landowners to develop vacant and under-used land properly or to make way for others who will. The tax on land value penalizes land speculation and rewards development.
• NO AVOIDANCE OR EVASION. Land cannot be hidden, removed to a tax haven or concealed in an electronic data system.
How would we implement it?
We would like suggest a panel made up of government officials, members of civil society, surveyors and economists to be the assessors and administrators of this Land Value Tax. There would probably be a panel for every province and they would assess land values district by district
They would meet in an open forum to present their figures. They would take suggestions from local residents as to what public projects would be given priority. A subsequent meeting would deal with how well the projects or services were implemented. Local residents would give feedback on the work done by the panel and members found wanting would be dismissed. All books would be available for public perusal.
It may be difficult to ascertain or trace ownership of land. We would not want the burden to fall on business renters or farmers who have leased land for commercial ventures
Conclusion
This is a daunting task ahead of us. It will be met with resistance from large land owners who have acquired idle land (through legal and illegal means) which they later resell at a profit gained from no exertion of their own on the land.
If well implemented, this tax would pay for many essential services such as education, security, infrastructure and medical services. Kenyans regardless of their station in life would be availed services essential to their well being and growth.
In addition we would collect taxes on all wealth originating from the land such as minerals, forestry products and fish from our lakes among others. Also any commercial activities harming the land or environment would be taxed. Examples include but are not limited to: the oil refining industry, polluting factories that spew waste into our water systems, factories that pollute the air and disposal firms that make use of landfills.
The issue of land has always been a contentious one in Kenya. Hopefully this new system will reward entrepreneurship and curb land speculation while prudently utilizing earth’s resources for our betterment and leave a legacy for future generations.
As usual we invite reader comments and suggestions