Kenya, a failed state, now headed to the dogs

Unfortunately for Kenya, all that holds the coalition together now is mutual greed and pressure from abroad.

From The Economist


AFTER the horrendous violence that followed Kenya’s flawed general election in 2007, the mediation of Kofi Annan, a former secretary-general of the United Nations, was acclaimed for pushing the two main political parties into a coalition government. This at least stopped the bloodshed. Now, however, the deal is unraveling—fast. At a recent summit feuding government ministers could not even agree on what to discuss in order to find common ground. The Orange Democratic Movement (ODM) of the prime minister, Raila Odinga, stomped out before the meeting had even begun, accusing President Mwai Kibaki’s Party of National Unity (PNU) of blocking the agenda.

Among the foreign diplomats looking on, optimists refer to the squabbling coalition as an “unconsummated marriage”. The less charitable say Kenya does not have a functioning executive at all, just an unholy alliance of fierce rivals. A schedule of constitutional, electoral, judicial, security, land and economic reforms was laid out in the original agreement between the two parties. A domestic tribunal to judge those responsible for the post-election mayhem was supposed to be set up and a truth commission established. Yet more than a year later the ODM and PNU have failed to agree on any of these issues.

New corruption scandals, confined to no party, are regularly revealed by Kenya’s papers. With so many senior figures from the main parties co-opted into the government—which has 94 ministers and deputies, each earning over $15,000 a month—Kenya has become almost a one-party state. Ministers constantly squabble over pay, protocol, seniority and even who gets the best rooms at government get-togethers. The churches, NGOs and foreign diplomats are left to play the role of opposition, cajoling and threatening from the sidelines.

The infighting and bickering have also confounded hopes for measures to tackle the causes of the post-election violence, or even the country’s increasing gang violence. For example, Mr Odinga backed calls for the resignation of the soldier turned chief of the police, Major-General Hussein Ali, after he had been heavily criticised by human-rights groups and the UN over the activities of police death-squads. But Mr Kibaki, who appointed Mr Ali, has refused to let him go, despite an agreement to have a civilian head of the police. This week clashes in central Kenya between villagers and gang members of a criminal sect known as the Mungiki, who belong to the Kikuyu group, Kenya’s biggest, left another 40 or so people dead.

Parliament reconvened this week. The next elections are not due until 2012, but so grave is the impasse that politicians are already attending to their political futures rather than present troubles. Martha Karua, who resigned as justice minister on April 6th in protest at Mr Kibaki’s decision to appoint judges without consulting her, has said she will run for president. She gives press interviews, addresses crowds and lambasts the government she so recently abandoned as if a national poll were due for next week. Ms Karua is popular because she gives voice to the disgust felt by ordinary Kenyans towards their politicians. Her resignation is seen as a rare display of principle.

Unfortunately for Kenya, all that holds the coalition together now is mutual greed and pressure from abroad. Despite everything, foreign donor governments are nonetheless determined that the coalition should not collapse entirely. They believe any government is better than none, fearing yet more violence.

Mr Annan may intervene again. Within a few months, unless the domestic courts deal with the matter properly, he promises to hand over to the International Criminal Court the names of ten people considered by a special Kenyan commission to be responsible for the post-election violence. The removal of these figures from Kenya’s politics, and even from the cabinet itself, might give a useful jolt to the country’s dysfunctional political system.

Obama Speech in Ghana, Transcript (Full Text)

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Also Related: KENYA, a failed nation...CLICK TO READ

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The following is the transcript of US president, Barack Obama, Speech, Transcript as delivered in Accra, Ghana. Obama delivered the speech on Saturday, 11th July 2009.

Good morning. It is an honor for me to be in Accra, and to speak to the representatives of the people of Ghana. I am deeply grateful for the welcome that I've received, as are Michelle, Malia and Sasha Obama. Ghana's history is rich, the ties between our two countries are strong, and I am proud that this is my first visit to sub-Saharan Africa as President of the United States.



I am speaking to you at the end of a long trip. I began in Russia, for a Summit between two great powers. I traveled to Italy, for a meeting of the world's leading economies. And I have come here, to Ghana, for a simple reason: the 21st century will be shaped by what happens not just in Rome or Moscow or Washington, but by what happens in Accra as well.

This is the simple truth of a time when the boundaries between people are overwhelmed by our connections. Your prosperity can expand America's. Your health and security can contribute to the world's. And the strength of your democracy can help advance human rights for people everywhere.

So I do not see the countries and peoples of Africa as a world apart; I see Africa as a fundamental part of our interconnected world — as partners with America on behalf of the future that we want for all our children. That partnership must be grounded in mutual responsibility, and that is what I want to speak with you about today.

We must start from the simple premise that Africa's future is up to Africans.

I say this knowing full well the tragic past that has sometimes haunted this part of the world. I have the blood of Africa within me, and my family's own story encompasses both the tragedies and triumphs of the larger African story.

My grandfather was a cook for the British in Kenya, and though he was a respected elder in his village, his employers called him "boy" for much of his life. He was on the periphery of Kenya's liberation struggles, but he was still imprisoned briefly during repressive times. In his life, colonialism wasn't simply the creation of unnatural borders or unfair terms of trade — it was something experienced personally, day after day, year after year.

My father grew up herding goats in a tiny village, an impossible distance away from the American universities where he would come to get an education. He came of age at an extraordinary moment of promise for Africa. The struggles of his own father's generation were giving birth to new nations, beginning right here in Ghana. Africans were educating and asserting themselves in new ways. History was on the move.

But despite the progress that has been made — and there has been considerable progress in parts of Africa — we also know that much of that promise has yet to be fulfilled. Countries like Kenya, which had a per capita economy larger than South Korea's when I was born, have been badly outpaced. Disease and conflict have ravaged parts of the African continent. In many places, the hope of my father's generation gave way to cynicism, even despair.

It is easy to point fingers, and to pin the blame for these problems on others. Yes, a colonial map that made little sense bred conflict, and the West has often approached Africa as a patron, rather than a partner. But the West is not responsible for the destruction of the Zimbabwean economy over the last decade, or wars in which children are enlisted as combatants. In my father's life, it was partly tribalism and patronage in an independent Kenya that for a long stretch derailed his career, and we know that this kind of corruption is a daily fact of life for far too many.

Of course, we also know that is not the whole story. Here in Ghana, you show us a face of Africa that is too often overlooked by a world that sees only tragedy or the need for charity. The people of Ghana have worked hard to put democracy on a firmer footing, with peaceful transfers of power even in the wake of closely contested elections. And with improved governance and an emerging civil society, Ghana's economy has shown impressive rates of growth.

This progress may lack the drama of the 20th century's liberation struggles, but make no mistake: it will ultimately be more significant. For just as it is important to emerge from the control of another nation, it is even more important to build one's own.

So I believe that this moment is just as promising for Ghana — and for Africa — as the moment when my father came of age and new nations were being born. This is a new moment of promise. Only this time, we have learned that it will not be giants like Nkrumah and Kenyatta who will determine Africa's future. Instead, it will be you — the men and women in Ghana's Parliament, and the people you represent. Above all, it will be the young people — brimming with talent and energy and hope — who can claim the future that so many in my father's generation never found.

To realize that promise, we must first recognize a fundamental truth that you have given life to in Ghana: development depends upon good governance. That is the ingredient which has been missing in far too many places, for far too long. That is the change that can unlock Africa's potential. And that is a responsibility that can only be met by Africans.

As for America and the West, our commitment must be measured by more than just the dollars we spend. I have pledged substantial increases in our foreign assistance, which is in Africa's interest and America's. But the true sign of success is not whether we are a source of aid that helps people scrape by — it is whether we are partners in building the capacity for transformational change.

This mutual responsibility must be the foundation of our partnership. And today, I will focus on four areas that are critical to the future of Africa and the entire developing world: democracy; opportunity; health; and the peaceful resolution of conflict.

First, we must support strong and sustainable democratic governments.

As I said in Cairo, each nation gives life to democracy in its own way, and in line with its own traditions. But history offers a clear verdict: governments that respect the will of their own people are more prosperous, more stable and more successful than governments that do not.

This is about more than holding elections — it's also about what happens between them. Repression takes many forms, and too many nations are plagued by problems that condemn their people to poverty. No country is going to create wealth if its leaders exploit the economy to enrich themselves, or police can be bought off by drug traffickers. No business wants to invest in a place where the government skims 20 percent off the top, or the head of the port authority is corrupt. No person wants to live in a society where the rule of law gives way to the rule of brutality and bribery. That is not democracy, that is tyranny, and now is the time for it to end.

In the 21st century, capable, reliable and transparent institutions are the key to success — strong parliaments and honest police forces; independent judges and journalists; a vibrant private sector and civil society. Those are the things that give life to democracy, because that is what matters in peoples' lives.

Time and again, Ghanaians have chosen Constitutional rule over autocracy, and shown a democratic spirit that allows the energy of your people to break through. We see that in leaders who accept defeat graciously, and victors who resist calls to wield power against the opposition. We see that spirit in courageous journalists like Anas Aremeyaw Anas, who risked his life to report the truth. We see it in police like Patience Quaye, who helped prosecute the first human trafficker in Ghana. We see it in the young people who are speaking up against patronage and participating in the political process.

Across Africa, we have seen countless examples of people taking control of their destiny and making change from the bottom up. We saw it in Kenya, where civil society and business came together to help stop postelection violence. We saw it in South Africa, where over three quarters of the country voted in the recent election — the fourth since the end of apartheid. We saw it in Zimbabwe, where the Election Support Network braved brutal repression to stand up for the principle that a person's vote is their sacred right.

Make no mistake: history is on the side of these brave Africans and not with those who use coups or change Constitutions to stay in power. Africa doesn't need strongmen, it needs strong institutions.

America will not seek to impose any system of government on any other nation — the essential truth of democracy is that each nation determines its own destiny. What we will do is increase assistance for responsible individuals and institutions, with a focus on supporting good governance — on parliaments, which check abuses of power and ensure that opposition voices are heard; on the rule of law, which ensures the equal administration of justice; on civic participation, so that young people get involved; and on concrete solutions to corruption like forensic accounting, automating services, strengthening hot lines and protecting whistle-blowers to advance transparency and accountability.

As we provide this support, I have directed my administration to give greater attention to corruption in our human rights report. People everywhere should have the right to start a business or get an education without paying a bribe. We have a responsibility to support those who act responsibly and to isolate those who don't, and that is exactly what America will do.

This leads directly to our second area of partnership — supporting development that provides opportunity for more people.

With better governance, I have no doubt that Africa holds the promise of a broader base for prosperity. The continent is rich in natural resources. And from cell phone entrepreneurs to small farmers, Africans have shown the capacity and commitment to create their own opportunities. But old habits must also be broken. Dependence on commodities — or on a single export — concentrates wealth in the hands of the few and leaves people too vulnerable to downturns.

In Ghana, for instance, oil brings great opportunities, and you have been responsible in preparing for new revenue. But as so many Ghanaians know, oil cannot simply become the new cocoa. From South Korea to Singapore, history shows that countries thrive when they invest in their people and infrastructure; when they promote multiple export industries, develop a skilled work force and create space for small and medium-sized businesses that create jobs.

As Africans reach for this promise, America will be more responsible in extending our hand. By cutting costs that go to Western consultants and administration, we will put more resources in the hands of those who need it, while training people to do more for themselves. That is why our $3.5 billion food security initiative is focused on new methods and technologies for farmers — not simply sending American producers or goods to Africa. Aid is not an end in itself. The purpose of foreign assistance must be creating the conditions where it is no longer needed.

America can also do more to promote trade and investment. Wealthy nations must open our doors to goods and services from Africa in a meaningful way. And where there is good governance, we can broaden prosperity through public-private partnerships that invest in better roads and electricity; capacity-building that trains people to grow a business; and financial services that reach poor and rural areas. This is also in our own interest — for if people are lifted out of poverty and wealth is created in Africa, new markets will open for our own goods.

One area that holds out both undeniable peril and extraordinary promise is energy. Africa gives off less greenhouse gas than any other part of the world, but it is the most threatened by climate change. A warming planet will spread disease, shrink water resources and deplete crops, creating conditions that produce more famine and conflict. All of us — particularly the developed world — have a responsibility to slow these trends — through mitigation, and by changing the way that we use energy. But we can also work with Africans to turn this crisis into opportunity.

Together, we can partner on behalf of our planet and prosperity and help countries increase access to power while skipping the dirtier phase of development. Across Africa, there is bountiful wind and solar power; geothermal energy and bio-fuels. From the Rift Valley to the North African deserts; from the Western coast to South Africa's crops — Africa's boundless natural gifts can generate its own power, while exporting profitable, clean energy abroad.

These steps are about more than growth numbers on a balance sheet. They're about whether a young person with an education can get a job that supports a family; a farmer can transfer their goods to the market; or an entrepreneur with a good idea can start a business. It's about the dignity of work. Its about the opportunity that must exist for Africans in the 21st century.

Just as governance is vital to opportunity, it is also critical to the third area that I will talk about — strengthening public health.

In recent years, enormous progress has been made in parts of Africa. Far more people are living productively with HIV/AIDS, and getting the drugs they need. But too many still die from diseases that shouldn't kill them. When children are being killed because of a mosquito bite, and mothers are dying in childbirth, then we know that more progress must be made.

Yet because of incentives — often provided by donor nations — many African doctors and nurses understandably go overseas, or work for programs that focus on a single disease. This creates gaps in primary care and basic prevention. Meanwhile, individual Africans also have to make responsible choices that prevent the spread of disease, while promoting public health in their communities and countries.

Across Africa, we see examples of people tackling these problems. In Nigeria, an interfaith effort of Christians and Muslims has set an example of cooperation to confront malaria. Here in Ghana and across Africa, we see innovative ideas for filling gaps in care — for instance, through E-Health initiatives that allow doctors in big cities to support those in small towns.

America will support these efforts through a comprehensive, global health strategy. Because in the 21st century, we are called to act by our conscience and our common interest. When a child dies of a preventable illness in Accra, that diminishes us everywhere. And when disease goes unchecked in any corner of the world, we know that it can spread across oceans and continents.

That is why my administration has committed $63 billion to meet these challenges. Building on the strong efforts of President Bush, we will carry forward the fight against HIV/AIDS. We will pursue the goal of ending deaths from malaria and tuberculosis, and eradicating polio. We will fight neglected tropical disease. And we won't confront illnesses in isolation — we will invest in public health systems that promote wellness and focus on the health of mothers and children.

As we partner on behalf of a healthier future, we must also stop the destruction that comes not from illness, but from human beings — and so the final area that I will address is conflict.

Now let me be clear: Africa is not the crude caricature of a continent at war. But for far too many Africans, conflict is a part of life, as constant as the sun. There are wars over land and wars over resources. And it is still far too easy for those without conscience to manipulate whole communities into fighting among faiths and tribes.

These conflicts are a millstone around Africa's neck. We all have many identities — of tribe and ethnicity; of religion and nationality. But defining oneself in opposition to someone who belongs to a different tribe, or who worships a different prophet, has no place in the 21st century. Africa's diversity should be a source of strength, not a cause for division. We are all God's children. We all share common aspirations — to live in peace and security; to access education and opportunity; to love our families, our communities, and our faith. That is our common humanity.

That is why we must stand up to inhumanity in our midst. It is never justifiable to target innocents in the name of ideology. It is the death sentence of a society to force children to kill in wars. It is the ultimate mark of criminality and cowardice to condemn women to relentless and systematic rape. We must bear witness to the value of every child in Darfur and the dignity of every woman in Congo. No faith or culture should condone the outrages against them. All of us must strive for the peace and security necessary for progress.

Africans are standing up for this future. Here, too, Ghana is helping to point the way forward. Ghanaians should take pride in your contributions to peacekeeping from Congo to Liberia to Lebanon, and in your efforts to resist the scourge of the drug trade. We welcome the steps that are being taken by organizations like the African Union and ECOWAS to better resolve conflicts, keep the peace, and support those in need. And we encourage the vision of a strong, regional security architecture that can bring effective, transnational force to bear when needed.

America has a responsibility to advance this vision, not just with words, but with support that strengthens African capacity. When there is genocide in Darfur or terrorists in Somalia, these are not simply African problems — they are global security challenges, and they demand a global response. That is why we stand ready to partner through diplomacy, technical assistance, and logistical support, and will stand behind efforts to hold war criminals accountable. And let me be clear: our Africa Command is focused not on establishing a foothold in the continent, but on confronting these common challenges to advance the security of America, Africa and the world.

In Moscow, I spoke of the need for an international system where the universal rights of human beings are respected, and violations of those rights are opposed. That must include a commitment to support those who resolve conflicts peacefully, to sanction and stop those who don't, and to help those who have suffered. But ultimately, it will be vibrant democracies like Botswana and Ghana which roll back the causes of conflict, and advance the frontiers of peace and prosperity.

As I said earlier, Africa's future is up to Africans.

The people of Africa are ready to claim that future. In my country, African-Americans — including so many recent immigrants — have thrived in every sector of society. We have done so despite a difficult past, and we have drawn strength from our African heritage. With strong institutions and a strong will, I know that Africans can live their dreams in Nairobi and Lagos; in Kigali and Kinshasa; in Harare and right here in Accra.

Fifty-two years ago, the eyes of the world were on Ghana. And a young preacher named Martin Luther King traveled here, to Accra, to watch the Union Jack come down and the Ghanaian flag go up. This was before the march on Washington or the success of the civil rights movement in my country. Dr. King was asked how he felt while watching the birth of a nation. And he said: "It renews my conviction in the ultimate triumph of justice."

Now, that triumph must be won once more, and it must be won by you. And I am particularly speaking to the young people. In places like Ghana, you make up over half of the population. Here is what you must know: the world will be what you make of it.

You have the power to hold your leaders accountable and to build institutions that serve the people. You can serve in your communities and harness your energy and education to create new wealth and build new connections to the world. You can conquer disease, end conflicts and make change from the bottom up. You can do that. Yes you can. Because in this moment, history is on the move.

But these things can only be done if you take responsibility for your future. It won't be easy. It will take time and effort. There will be suffering and setbacks. But I can promise you this: America will be with you. As a partner. As a friend. Opportunity won't come from any other place, though — it must come from the decisions that you make, the things that you do, and the hope that you hold in your hearts.

Freedom is your inheritance. Now, it is your responsibility to build upon freedom's foundation. And if you do, we will look back years from now to places like Accra and say that this was the time when the promise was realized — this was the moment when prosperity was forged; pain was overcome; and a new era of progress began. This can be the time when we witness the triumph of justice once more. Thank you.

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End of US president, Barack Obama, Speech, Transcript as delivered in Accra, Ghana. Obama delivered the speech on Saturday, 11th July 2009.

Pop Icon, Michael Jackson is Dead

From: THE NEW YORK TIMES

Michael Jackson, Pop Icon, Is Dead at 50.

LOS ANGELES — For his legions of fans, he was the Peter Pan of pop music: the little boy who refused to grow up. But on the verge of another attempted comeback, he is suddenly gone, this time for good.


Michael Jackson, whose quintessentially American tale of celebrity and excess took him from musical boy wonder to global pop superstar to sad figure haunted by lawsuits, paparazzi and failed plastic surgery, was pronounced dead on Thursday afternoon at U.C.L.A. Medical Center after arriving in a coma, a city official said. Mr. Jackson was 50, having spent 40 of those years in the public eye he loved.

The singer was rushed to the hospital, a six-minute drive from the rented Bel-Air home in which he was living, shortly after noon by paramedics for the Los Angeles Fire Department. A hospital spokesman would not confirm reports of cardiac arrest. He was pronounced dead at 2:26 pm.

As with Elvis Presley or the Beatles, it is impossible to calculate the full effect Mr. Jackson had on the world of music. At the height of his career, he was indisputably the biggest star in the world; he has sold more than 750 million albums. Radio stations across the country reacted to his death with marathon sessions of his songs. MTV, which grew successful in part as a result of Mr. Jackson’s groundbreaking videos, reprised its early days as a music channel by showing his biggest hits.

From his days as the youngest brother in the Jackson 5 to his solo career in the 1980s and early 1990s, Mr. Jackson was responsible for a string of hits like “I Want You Back,” “I’ll Be There” “Don’t Stop ‘Til You Get Enough” “Billie Jean” and “Black and White” that exploited his high voice, infectious energy and ear for irresistible hooks.

As a solo performer, Mr. Jackson ushered in the age of pop as a global product — not to mention an age of spectacle and pop culture celebrity. He became more character than singer: his sequined glove, his whitened face, his moonwalk dance move became embedded in the cultural firmament.

His entertainment career hit high-water marks with the release of “Thriller,” from 1982, which has been certified 28 times platinum by the Recording Industry Association of America, and with the “Victory” world tour that reunited him with his brothers in 1984.

But soon afterward, his career started a bizarre disintegration. His darkest moment undoubtedly came in 2003, when he was indicted on child molesting charges. A young cancer patient claimed the singer had befriended him and then groped him at his Neverland estate near Santa Barbara, Calif., but Mr. Jackson was acquitted on all charges.

Reaction to his death started trickling in from the entertainment community late Thursday.

“I am absolutely devastated at this tragic and unexpected news,” the music producer Quincy Jones said in a statement. “I’ve lost my little brother today, and part of my soul has gone with him.”

Berry Gordy, the Motown founder who helped develop the Jackson 5, told CNN that Mr. Jackson, as a boy, “always wanted to be the best, and he was willing to work as hard as it took to be that. And we could all see that he was a winner at that age.

Tommy Mottola, a former head of Sony Music, called Mr. Jackson “the cornerstone to the entire music business.”

“He bridged the gap between rhythm and blues and pop music and made it into a global culture,” said Mr. Mottola, who worked with Mr. Jackson until the singer cut his ties with Sony in 2001.

Impromptu vigils broke out around the world, from Portland, Ore., where fans organized a one-gloved bike ride (“glittery costumes strongly encouraged”) to Hong Kong, where fans gathered with candles and sang his songs.

In Los Angeles, hundreds of fans — some chanting Mr. Jackson’s name, some doing the “Thriller” dance — descended on the hospital and on the hillside house where he was staying.

Jeremy Vargas, 38, hoisted his wife, Erica Renaud, 38, on his shoulders and they danced and bopped to “Man in the Mirror” playing from an onlooker’s iPod connected to external speakers — the boom boxes of Mr. Jackson’s heyday long past their day.

“I am in shock and awe,” said Ms. Renaud, who was visiting from Red Hook, Brooklyn, with her family. “He was like a family member to me.”

Dreams of a Comeback

Mr. Jackson was an object of fascination for the news media since the Jackson 5’s first hit, “I Want You Back,” in 1969. His public image wavered between that of the musical naif, who wanted only to recapture his youth by riding on roller-coasters and having sleepovers with his friends, to the calculated mogul who carefully constructed his persona around his often-baffling public behavior.

Mr. Jackson had been scheduled to perform 50 concerts at the O2 arena in London beginning next month and continuing into 2010. The shows, which quickly sold out, were positioned as a comeback, with the potential to earn him up to $50 million, according to some reports.
But there had also been worry and speculation that Mr. Jackson was not physically ready for such an arduous run of concerts, and his postponement of the first of those shows to July 13 from July 8 fueled new rounds of gossip about his health.

Nevertheless, he was rehearsing Wednesday night at the Staples Center in downtown Los Angeles. “The primary reason for the concerts wasn’t so much that he was wanting to generate money as much as it was that he wanted to perform for his kids,” said J. Randy Taraborrelli, whose biography, “Michael Jackson: The Magic and the Madness,” was first published by Citadel in 1991. “They had never seen him perform before.”

Mr. Jackson’s brothers, Jackie, Tito, Jermaine, Marlon and Randy, have all had performing careers, with varying success, since they stopped performing together. (Randy, the youngest, replaced Jermaine when the Jackson 5 left Motown.) His sisters, Rebbie, La Toya and Janet, are also singers, and Janet Jackson has been a major star in her own right for two decades. They all survive him, as do his parents, Joseph and Katherine Jackson, of Las Vegas, and three children: Michael Joseph Jackson Jr., Paris Michael Katherine Jackson, born to Mr. Jackson’s second wife, Deborah Jeanne Rowe, and Prince Michael Jackson II, the son of a surrogate mother. Mr. Jackson was also briefly married to Lisa Marie Presley, the daughter of Elvis Presley.

A spokesman for the Los Angeles Police Department said the department assigned its robbery and homicide division to investigate the death, but the spokesman said that was because of Mr. Jackson’s celebrity.
“Don’t read into anything,” the spokesman told reporters gathered outside the Bel-Air house. He said the coroner had taken possession of the body and would conduct an investigation.
At a news conference at the hospital, Jermaine Jackson spoke to reporters about his brother. “It is believed he suffered cardiac arrest at his home,” he said softly. A personal physician first tried to resuscitate Michael Jackson at his home before paramedics arrived. A team of doctors then tried to resuscitate him for more than an hour, his brother said.

“May our love be with you always,” Jermaine Jackson concluded, his gaze aloft.
In Gary, Ind., hundreds of people descended upon the squat clapboard house were Mr. Jackson spent his earliest years. There were tears, loud wails, and quiet prayers as old neighbors joined hands with people who had driven in from Chicago and other nearby towns to pay their respects.

“Just continue to glorify the man, Lord,” said Ida Boyd-King, a local pastor who led the crowd in prayer. “Let’s give God praise for Michael.”
Shelletta Hinton, 40, drove to Gary from Chicago with her two young children. She said they had met Mr. Jackson in Gary a couple of years ago when he received a key to the city. “We felt like we were close to Michael,” she said. “This is a sad day.”
As dusk set in, mourners lighted candles and placed them on the concrete doorstep. Some left teddy bears and personal notes. Doris Darrington, 77, said she remembered seeing the Jackson 5 so many times around Gary that she got sick of them. But she, too, was feeling hurt by the sudden news of Mr. Jackson’s death.

“He has always been a source of pride for Gary, even though he wasn’t around much,” she said. “The older person, that’s not the Michael we knew. We knew the little bitty boy with the big Afro and the brown skin. That’s how I’ll always remember Michael.”

Michael Joseph Jackson was born in Gary on Aug. 29, 1958. The second youngest of six brothers, he began performing professionally with four of them at the age of 5 in a group that their father, Joe, a steelworker, had organized the previous year. In 1968, the group, originally called the Jackson Brothers, was signed by Motown Records. The Jackson 5 was an instant phenomenon. The group’s first four singles —

“I Want You Back,” “ABC,” “The Love You Save” and “I’ll Be There” — all reached No. 1 on the pop charts in 1970, a feat no group had accomplished before. And young Michael was the center of attention: he handled virtually all the lead vocals, danced with energy and finesse, and displayed a degree of showmanship rare in a performer of any age.

In 1971, Mr. Jackson began recording under his own name, while continuing to perform with his brothers. His recording of “Ben,” the title song from a movie about a boy and his homicidal pet rat, was a No. 1 hit in 1972.

The brothers (minus Michael’s older brother Jermaine, who was married to the daughter of Berry Gordy, Motown’s founder and chief executive) left Motown in 1975 and, rechristened the Jacksons, signed to Epic, a unit of CBS Records. Three years later, Michael made his movie debut as the Scarecrow in the screen version of the hit Broadway musical “The Wiz.” But movie stardom proved not to be his destiny.

A Solo Sensation
Music stardom on an unprecedented level, however, was. Mr. Jackson’s first solo album for Epic, “Off the Wall,” released in 1979, yielded four No. 1 singles and sold seven million copies, but it was a mere prologue to what came next. His follow-up, “Thriller,” released in 1982, became the best-selling album of all time and helped usher in the music video age. The video for title track, directed by John Landis, was an elaborate horror-movie pastiche that was more of a mini-movie than a promotional clip.

Seven of the nine tracks on “Thriller” were released as singles and reached the Top 10. The album spent two years on the Billboard album chart and sold an estimated 100 million copies worldwide. It also won eight Grammy Awards.

The choreographer and director Vincent Paterson, who directed Mr. Jackson in several videos, recalled watching him rehearse a dance sequence for four hours in front of a mirror until it felt like second nature.

“That’s how he developed the moonwalk, working on it for days if not weeks until it was organic,” he said. “He took an idea that he had seen some street kids doing and perfected it.”

Mr. Jackson’s next album, “Bad,” released in 1987, sold eight million copies and produced five No. 1 singles and another state-of-the-art video, this one directed by Martin Scorsese. It was a huge hit by almost anyone else’s standards, but an inevitable letdown after “Thriller.”

It was at this point that Mr. Jackson’s bizarre private life began to overshadow his music. He would go on to release several more albums and, from time to time, to stage elaborate concert tours. And he would never be too far from the public eye. But it would never again be his music that kept him there.

Even with the millions Mr. Jackson earned, his eccentric lifestyle took a severe financial toll. In 1988 Mr. Jackson paid about $17 million for a 2,600-acre ranch in Los Olivos, Calif., 125 miles northwest of Los Angeles. Calling it Neverland after the mythical island of Peter Pan, he outfitted the property with amusement-park rides, a zoo and a 50-seat theater, at a cost of $35 million, according to reports, and the ranch became his sanctum.

But Neverland, and Mr. Jackson’s lifestyle, were expensive to maintain. A forensic accountant who testified at Mr. Jackson’s molesting trial in 2005 said Mr. Jackson’s annual budget in 1999 included $7.5 million for personal expenses and $5 million to maintain Neverland. By at least the late 1990s, he began to take out huge loans to support himself and pay debts. In 1998, he took out a loan for $140 million from Bank of America, which two years later was increased to $200 million. Further loans of hundreds of millions followed.

The collateral for the loans was Mr. Jackson’s 50 percent share in Sony/ATV Music Publishing, a portfolio of thousands of songs, including rights to 259 songs by John Lennon and Paul McCartney, considered some of the most valuable properties in music.
In 1985, Mr. Jackson paid $47.5 million for ATV, which included the Beatles songs — a move that estranged him from Mr. McCartney, who had advised him to invest in music rights — and 10 years later, Mr. Jackson sold 50 percent of his interest to Sony for $90 million, creating a joint venture, Sony/ATV. Estimates of the catalog’s value exceed $1 billion.

Last year, Neverland narrowly escaped foreclosure after Mr. Jackson defaulted on $24.5 million he owed on the property. A Los Angeles real estate investment company, Colony Capital L.L.C., bought the note, and put the title for the property into a joint venture with Mr. Jackson.

A Scandal’s Heavy Toll

In many ways, Mr. Jackson never recovered from the child molesting trial, a lurid affair that attracted media from around the world to watch as Mr. Jackson, wearing a different costume each day, appeared in a small courtroom in Santa Maria, Calif., to listen as a parade of witnesses spun a sometimes-incredible tale.

The case ultimately turned on the credibility of Mr. Jackson’s accuser, a 15-year-old cancer survivor who said the defendant had gotten him drunk and molested him several times. The boy’s younger brother testified that he had seen Mr. Jackson groping his brother on two other occasions.

After 14 weeks of such testimony and seven days of deliberations, the jury returned not-guilty verdicts on all 14 counts against Mr. Jackson: four charges of child molesting, one charge of attempted child molesting, one conspiracy charge and eight possible counts of providing alcohol to minors. Conviction could have brought Mr. Jackson 20 years in prison. Instead, he walked away a free man to try to reclaim a career that at the time had already been in decline for years.

After his trial, Mr. Jackson largely left the United States for Bahrain, the island nation in the Persian Gulf, where he was the guest of Sheik Abdullah, a son of the ruler of the country, King Hamad bin Isa al-Khalifa. Mr. Jackson would never return to live at his ranch. Instead he remained in Bahrain, Dubai and Ireland for the next several years, managing his increasingly unstable finances. He remained an avid shopper, however, and was spotted at shopping malls in the black robes and veils traditionally worn by Bahraini women.

Despite the public relations blow of his trial, Mr. Jackson and his ever-changing retinue of managers, lawyers and advisers never stopped plotting his return.

By early this year, Mr. Jackson was living in a $100,000-a-month mansion in Bel-Air, to be closer to “where all the action is” in the entertainment business, his manager at the time, Tohme Tohme, told The Los Angeles Times. He was also preparing for his upcoming London shows.” He was just so excited about having an opportunity to come back,” said Mr. Paterson, the director and choreographer.
Despite his troubles, the press and the public never abandoned the star. A crowd of paparazzi and onlookers lined the street outside Mr. Jackson’s home as the ambulance took him to the hospital.

Reporting was contributed by John M. Broder from Washington; Randal C. Archibold from Los Angeles; Susan Saulny from Gary, Ind.; and Melena Ryzik, Ben Sisario, Brian Stelter and Peter Keepnews from New York.

TRANSCRIPT: KENYA BUDGET 2009/2010 DELIVERED ON 11TH JUNE, 2009, BY FINANCE MINISTER UHURU KENYATTA

TRANSCRIPT: KENYA BUDGET 2009/2010 DELIVERED ON 11TH JUNE, 2009, BY FINANCE MINISTER UHURU KENYATTA

Theme: Overcoming Today’s Challenges for A Better Kenya Tomorrow

Mr. Speaker, the 2009 Budget is premised on the need to urgently overcome the immediate socio-economic challenges that we face today. This we must do in order to restore the confidence of Kenyans in their country and its institutions. As part of these initiatives we must strive to return the economy back to our long term growth path, while at the same time, providing impetus for building a cohesive and prosperous Kenya that we all desire. This Budget that I have the honour to table in this August House today, therefore, marks the first and bold step towards progressively building a better future for our people, consistent with our Vision 2030.

The objective of the 2009 Budget, Mr. Speaker, therefore, is to stimulate growth and protect jobs, reduce poverty, enhance food security and protect the poor. In framing this Budget, I have been guided by five underpinning principles, namely:

First, maintaining a stable macroeconomic environment and creating an enabling environment for business

Second, developing key infrastructure facilities and public works countrywide to stimulate growth, create employment and reduce poverty

Third, promoting equitable regional and social development for stability

Fourth, investing in environment and food security; and

Fifth, strengthening governance not because we have to, but rather, because it is the way forward in improving public service delivery.

Mr. Speaker, in response to the current challenges, and to avert a further slide in the expansion of our national cake, we plan to implement a fiscal stimulus package that focuses on sectors that will generate maximum benefit. Mr. Speaker, to address the existing imbalances in regional development, which have been a real source of social discontent, the stimulus programme is deliberately designed to cover all parts of the country. The programme has projects intended to expand irrigation-based agriculture with a view to ensure food security. We will, as part of this programme, construct wholesale and fresh-produce markets countrywide for the purpose of improving marketing and distribution of agricultural produce.

PRIORITY PRO-GROWTH AND PRO-POOR POLICY MEASURES
Mr. Speaker, underlying these principles is a two-pronged strategy that aims at focusing expenditures on priority areas that have higher impact on growth, such as infrastructure and public works, while at the same time, ensuring sufficient expenditures to cushion the poor and vulnerable. Mr. Speaker, the rest of my speech now elaborates specific policy measures I intend to take within the framework of the five principles I have outlined above to overcome the challenges we face today and build a stronger and prosperous Kenya.

Maintaining a Stable Macroeconomic Environment

Mr. Speaker, at this time of crisis, it is more critical that we uphold our commitment to maintaining a stable macroeconomic environment. In this regard, we will continue to pursue fiscal policy and structural reforms aimed at restoring our economy back to a high growth path but without undermining the objective of monetary policy to bring inflation down to the 5 percent target we have set for ourselves. In managing monetary policy, the Central Bank will strive to ensure availability of sufficient liquidity to support economic activity while also allowing for gradual rebuilding of official foreign exchange reserves, which have been eroded by the adverse impact of the exogenous shocks mentioned earlier.

Mr. Speaker, with respect to fiscal policy, let me say at the outset that it has not been easy to find room in the Budget for our commitments to national development objectives as outlined in Vision 2030, and to deal with the current challenges affecting the welfare of our people. As such, we have had to strike a balance between supporting growth and maintaining medium-term debt sustainability. Mr. Speaker, budgets are about priorities given the reality that financial resources are limited.

Therefore, Mr. Speaker, faced with the current economic challenges and bearing in mind that raising taxes is not a prudent option under the current circumstances, we as a Government, chose to partly accommodate the temporary financing shortfalls with savings arising from rationalization of government expenditures to remove waste and non-priority expenditure. I will shortly elaborate on the expenditures that we have rationalised. For the balance of the financing shortfall, we have adopted a programme of responsible borrowing.

Hon. Members, we consider the approach we have taken in terms of raising additional resources beyond the tax we expect to collect, not only appropriate but also prudent. This is a must if we have to safeguard jobs and bolster economic recovery. I am aware of the concerns that have been raised regarding the amount of money we intend to borrow from the domestic sources to finance the budget. I want, Mr. Speaker, to allay any fears Kenyans may have on this proposed borrowing. Our debt in relation to gross domestic product (GDP) is currently below 40 percent; thanks to the prudent manner in which we have managed our public debt in the past.
Moreover, debt sustainability analysis done taking into account the planned new borrowing demonstrates that we face a low risk of debt distress. Therefore, we are in a position to comfortably borrow in the short term to finance the proposed fiscal stimulus package without compromising our macroeconomic objectives.
 
Mr. Speaker, under the proposed fiscal framework, our total public debt is projected to peak to 44.5 percent of GDP in 2009/10 before declining thereafter. It is, however, instructive to note that even at this level our debt position remains within tolerable levels and is much lower than that for some of the large industrial countries. Nonetheless, over the medium term, we intend to bring down the budget deficits in order to commensurately reduce the debt ratio. We are also seeking for additional concessional assistance from our development partners, which we intend to use to pay off part of the domestic borrowing that will be applied to finance the fiscal stimulus package.

Creating Fiscal Space Through Expenditure Rationalisation, Strengthened Tax Administration and Enhanced Absorption of External Resources.
Mr. Speaker, as I have already indicated, a major policy challenge we face today is how to push the frontiers of economic growth to a sustained higher level, create economic opportunities and reduce poverty. Implementing measures to achieve these objectives means the government budget for 2009/2010 will be expansionary. The overall balance is expected to be in deficit by about 6.6% of GDP.

Mr. Speaker, as I have already mentioned, we plan to accommodate our financing shortfall partly by rationalizing expenditures to remove waste and generate savings. As Hon. Members will recall, in the Supplementary Budget for 2008/09, I took measures to streamline government expenditures to generate savings without compromising delivery of public services.
But Mr. Speaker, let me remind Hon. Members that these are difficult times. And difficult times require bold decisions. Indeed, this is what Kenyans expect of us. For this reason I am going a step further to institute more bold measures so that I can raise the resources we require to finance the priority pro-growth and pro-poor expenditures planned in this Budget.
To this end, Mr. Speaker, I have reduced from the ceilings of all ministries; the following non-priority expenditures that I believe will have no material impact on service delivery. These entail reductions as follows:

80 percent on furniture and fittings;
60 percent on advertisement and publicity;
40 percent on telephone expenses;
20 percent on hospitality supplies and services, which include, and I emphasize, include payments to various taskforces appointed by the government 5.10 percent on domestic and foreign travel and subsistence.

Mr. Speaker, government expenditure on transport has increased substantially over the years and unless checked, it will soon become unsustainable. In this regard, I will be requesting the cabinet to approve a new Transport Policy to address this problem early in this financial year.
With this in mind, I have put a moratorium on purchase of new motor vehicles, except for security purposes. Any purchase of new vehicles will be allowed only under very exceptional circumstances. Mr. Speaker, we will also introduce use of fuel cards for the purchase of fuel for government vehicles because we believe this measure will significantly reduce the amount of money the government is spending on fuel.

Mr. Speaker, in the face of the difficult economic times we find ourselves today, and responding to the call by Kenyans to contain non-priority expenditures, it is about time we demonstrated in concrete terms that we are a government that listens to its people. In this regard and after consulting with The President and The Prime Minister, I am directing that all Cabinet Ministers, Permanent Secretaries, Provincial Commissioners and other senior public officials who are entitled to official vehicles, shall henceforth be allowed only one vehicle whose engine capacity should not exceed 1,800 cc.

Mr. Speaker, once the new vehicles are in place, I am also directing all Accounting Officers to ensure that vehicles at the disposal of public officials that exceed the engine capacity I have just specified, are withdrawn and surrendered to the Chief Mechanical and Transport Engineer who will arrange for their sale by end of September 2009. Proceeds thereof will be used to finance priority areas such as resettlement of Internally Displaced Persons.

Mr. Speaker, as I said earlier, no public official will be exempted from this policy.
Therefore, I expect all Accounting Officers to strictly implement this measure to the letter. In this regard, I am pleased to report to this House that the Treasury, under my leadership, has fully complied with this directive starting today. Mr. Speaker, I have decided to lead by example.
Therefore, effective from today, I am now using an official car that is compliant with this requirement.

Mr. Speaker, the austerity measures we have undertaken are only the first step toward rationalizing our budget going forward. We shall continue to scrutinize all votes of ministries in the course of this fiscal year with a view to identifying further areas of savings. To this end, I have instructed the Permanent Secretary to the Treasury to launch a comprehensive audit of the payrolls of all organization paid through the Exchequer. I expect the report of this audit to be ready by the end of October 2009.

Mr. Speaker, our utilization of donor funds has been low and this is unacceptable because it delays the development benefits to our people. In a sense, development delayed is development denied and Kenyans cannot afford this especially during these difficult times when it is not easy to obtain additional external financing. In this regard, part of the fiscal space will come from enhanced absorption of external funds from the current rate of about 50 percent to about 80 percent in FY 2009/10. I will establish a Unit at the Treasury to work with line ministries in monitoring project performance in order to unlock the constraints that are responsible for implementation delays. In due course I will be outlining guidelines specifying how these targets will be achieved.

We will also be introducing an Electronic Project Monitoring Information System (e-Promis) before the end of this year. Once operational, this system will enable Treasury to continuously monitor project performance at every stage. In order to ensure transparency and encourage public participation, the e-PromisPromis portal will also be open to the public to enable wananchi to monitor the performance of projects of their interest. When fully operational, it will be possible to monitor all government projects including those funded through the Constituency Development Fund (CDF).

Mr. Speaker, on enhancing revenue collection, we recognize the need to further deepen the reforms, including implementing measures targeted at enhancing the operational efficiency of the Kenya Revenue Authority. Achieving these goals requires strengthening the institutional arrangements of KRA and holding all the officers to the highest standards of ethical and integrity behaviour in the conduct of business, while at the same time creating incentives for performance.
In addition, sanctions for under-performance or actions leading to loss of revenue must be enforced across the entire spectrum of the organization.

FURTHER DEVELOPING KEY INFRASTRUCTURE FACILITIES AND PUBLIC WORKS COUNTRYWIDE TO STIMULATE GROWTH, CREATE EMPLOYMENT AND REDUCE POVERTY

Supporting Businesses and Enhancing Competitiveness Promoting Conducive Business Environment

Mr. Speaker, the Government recognizes the important contribution the private sector has made in the process of building our economy over the years. For this reason we have been instituting a number of reforms to ensure they even play a greater role. We have in this regard come along way in terms of improving the business environment, but, as we continue to be reminded by our private sector partners, these are not enough. In this regard, I will elaborate on some of the measures we are proposing to address some of these challenges while presenting the tax policy measures planned for FY 2009/10 later.

Mr. Speaker, for now I will address myself to the regulatory challenges that arise mainly from the failure to appreciate the cost of regulation to businesses. This is compounded by lack of an appropriate framework for consulting with other public entities and more important the private sector itself when introducing new regulatory procedures or levies. To address these challenges, we will in the course of this fiscal year: (i) submit to this House the Business Regulation Bill that will empower the Business Regulatory Unit legal power to vet and recommend to the Minister for Finance any proposed new levies; and (ii) make operational the e-Registry for business licences; and (iii) fast-track implementation of ongoing licensing reforms.

Reforms under Agenda Four

Mr. Speaker, under the National Accord, the Grand Coalition Government committed itself to facilitate far reaching and coherent reforms in order to create the environment for a stable democratic and prosperous country, popularly as known Agenda IV. We recognize that without focusing on these reforms, our efforts to build a prosperous Kenya may not be realized. In this regard, the Treasury has allocated Ksh. 2 billion toward implementation of reforms under Agenda Four, in addition to specific monies provided for under respective ministries and agencies.

Mr. Speaker, through this Budget, we are also fast-tracking reforms in the Judiciary to expedite service delivery and in particular to ensure faster disposal of commercial and civil cases in order to reduce the cost of doing business as well as congestion in our corrective facilities and Courts. To this end, I have provided the Judiciary Kshs.3.1 billion, of which Ksh 250 million will be used to fund the pilot phase of the automation and modernization of our courts and employ 20 additional Commissioners of Assis. On successful completion of the first pilot phase, we will build on this experience and roll this program countrywide. We remain fully committed to adequately supporting the Judiciary in order to ensure prompt justice so that no more Kenyans languish in our corrective and remand facilities due to avoidable delays in our courts.

Maintaining Law and Order and Providing Security

Mr. Speaker, we all know that adequate security is essential to achieving the objectives of our Vision 2030. For this reason, the Government will continue to fully support our security agencies in order to ensure that individuals, communities and investors are well secured. In this regard, the Government has decided to enhance community policing by engaging our youth to work under the guidance of the regular police force in collaboration with the chiefs to strengthen security at the constituency level. In this regard, I have allocated funds to support this initiative, including funds to purchase motorised bicycles for use by the local chiefs and youths engaged in community policing. We expect this initiative will inculcate a sense of responsibility and discipline in our youth, and as an incentive for those who are successful, the government encourages the recruitment units of our disciplined forces to give priority to these young men and women.
Accelerating Infrastructure Investment

Mr. Speaker, over the last six years or so, we have invested heavily in infrastructure. The ongoing construction works throughout the country clearly attest to this. We must thank our development partners, particularly the EU, the World Bank, the AfDB and China for the valuable support in the road and energy sector. As part of the Government's fiscal stimulus program, we will continue to allocate substantial amounts of financial resources to infrastructure projects in order to enhance competitiveness and stimulate higher growth for employment and wealth creation. In this Budget therefore, Mr. Speaker, I have allocated Kshs.140 billion for infrastructure spending and this will cover roads, rail, ports, broadband and energy.

Mr Speaker, while we have made significant progress in expanding the road net work in the rural areas, we still face serious challenges with respect to timely routine maintenance to ensure they are functional throughout the year. This is despite the fact that part of the fuel levy fund is available for this purpose. After consulting with my parliamentary colleagues, I propose to this House that the portion of the fuel levy meant for the rural roads be channeled through the Constituency Development Fund (CDF) for the maintenance of rural roads at the constituency level. I am confident that CDF mechanism will ensure timely and efficient utilization of these funds for the intended purposes.

Positioning the Port of Mombasa as Regional Service Hub

Mr. Speaker, the port of Mombasa plays an important and strategic role not only to Kenya’s development but also to the development of the hinterland countries of Uganda, Rwanda, Democratic Republic of Congo (DRC), and Southern Sudan, that it serves. However, the current clearing system for cargo faces a number of challenges that compromise our country’s ability to maximise on the benefits that accrue from international trade. Indeed, documentation procedures are largely manual, resource intensive and expensive. To position the port to continue playing its strategic role more effectively in an increasingly competitive environment, there is need to urgently address these challenges. In this regard, the Government will establish in the course of the year a single window port community based system to facilitate faster, efficient and competitive clearance of cargo at the port of Mombasa. In addition, plans are underway to dredge the port and make it accessible for bigger ships, while the on-going work on the construction of a second container terminal will be accelerated.

Mr. Speaker, concurrent with the initiative we are taking to improve the efficiency of the port of Mombasa, we are also attending to the challenges in the railway system. In this regard, the Government of Kenya, working jointly with the Government of Uganda, has made decision to construct a new standard gauge railway line from Mombasa to Western Kenya and to Kampala in Uganda. The new railway line will not only reduce the cost of transport but also facilitate faster movement of freight and passengers, thereby enhancing competitiveness and improving the welfare of our people.

Mr. Speaker, considering that construction of the new railway will significantly reduce the maintenance costs of the Northern Corridor roads, it makes economic sense to use part of the road maintenance fund to invest in this railway. In this context, I will, in consultation with the Minister for Roads, be proposing an amendment to the Roads Maintenance Levy Act and the Kenya Roads Board Act to make road-bed for railway line development and maintenance eligible for funding. Meanwhile, I have allocated Ksh. 3 billion to initiate this important project. I expect the Ministries and Agencies responsible to expedite the process with a view to commencing construction by the last quarter of this financial year.

Mr. Speaker, the development of infrastructure in Nairobi Metropolitan Area is equally crucial to making Nairobi a competitive service hub. Apart from improving provision of water and security services, we are fast tracking the development of a light rail system in Nairobi and its suburbs, and construction of bypasses and modern interchanges to solve current traffic congestion. As a first decisive step, and in partnership with an infrastructure development company called InFraCo (a Private Infrastructure Development Group comprising of the World Bank, SIDA, DFID, Governments of Switzerland and Netherlands), we have commenced work toward the upgrade of the Nairobi Commuter railway system serving the heavily populated parts of Nairobi in order to reduce traffic jams and transport related costs currently hurting businesses as well as the poor urban dwellers.
Expanding Access to Affordable Energy Supplies for all Kenyans

Mr. Speaker, to enhance supply of environmentally friendly and affordable energy to our economy, the focus of our investments will be on development of renewable energy such as geothermal, wind, bio-fuel, biomas and use of solid waste. The Government will also continue to scale up investment in transmission while at the same time upgrading existing ones in order to stem systemic transmission loses that partly contribute to the high cost of energy. The Government will also continue to expand the rural electricity program covering all major trading centres countrywide. Toward this end, I have allocated Kshs 7 billion. In addition, the Government will encourage private sector participation in electric power generation from wind, biomass, and recycled waste within the Public Private Partnership (PPP) framework.

Leveraging Emerging ICT Opportunities

Mr. Speaker, after three years of heavy investments in ICT infrastructure, our economy is about to be hooked onto the global digital grid through the undersea fibre optic cables. We must leverage on this affordable broadband connectivity to accelerate economic growth, expand economic opportunities so as to reduce poverty among our people. Appropriate utilization of this infrastructure would yield some savings as well as create efficiencies for a better and more productive economy thereby creating jobs and moving our economy up the value chain and reducing the cost of doing business.

Mr. Speaker, to further expand access to benefits presented and to ensure no Kenyan is left behind by the ICT revolution, I propose the following investments as part of the stimulus package:
First, I have allocated Ksh1.3 billion to purchase Mobile Computer Laboratories for each constituency for use by our high schools. This initiative will serve as a pilot project since in the coming years we intend to expand the scope of the project to include primary schools.
Second, we intend to support the roll out of the Digital Villages in partnership with the World Bank. These centres will create business hubs and expand economic opportunities in rural areas.

Third, immediately launch a one million laptop/computer campaign countrywide in conjunction with Broadband providers by undertaking to underwrite part of the interest payments on funds borrowed to purchase these laptops and computers. Mr. Speaker, I trust that this campaign would benefit University Students, public servants as well as ordinary wananchi, thereby enabling them to take advantage of the cheaper broadband now available in our country.
Promoting Regional Development for Equity and Social Stability

Mr. Speaker, the promotion of equitable regional and social development is a central objective of the Grand Coalition Government. The thrust of this Budget therefore is to ensure that the budgetary resources reach the people at the constituency level. . Since, our focus will be to stimulate economic activity at the constituency level, we will channel these resources as conditional grants through the respective ministries, using the existing Constituency Development Fund framework. This will facilitate local accountability, strengthen oversight to ensure all the funds allocated are strictly used for the planned purposes.

Mr. Speaker, during the ERS period, the Government established the Constituency Development Fund, and as a result, we have achieved tremendous progress in taking development to the people. To scale up the good work and ensure wananchi continues to benefit from this Fund, I am this year allocating Ksh.12 billion. With this amount, each constituency will now receive on average KShs.60 million to finance its various development projects. In addition, as I said earlier, I will be proposing amendments to the Roads Maintenance Levy Act and Kenya Roads Board Act to allow for 22 percent of the Road Maintenance fund to be used for the maintenance of constituency roads. I have also proposed appropriate amendments to allow this amount totaling Ksh. 4.7 billion to be channeled directly to constituencies through the Constituency Fund Board. With these amendments, I have increased significantly resources channeled through CDF for development and road maintenance from KShs.10 billion in 2008/09 to about Kshs 18 billion or an average of Kshs 86 million per constituency, representing 80 percent increase over the year ending June 2009. I expect these bold and historical measures will go a long way to measurably improve the conditions of our rural roads, promote commerce and consequently improve the welfare of our people.

Mr. Speaker, even after allocating about Kshs 90 million to each constituency for development, we are going a step further through this budget to make it possible for every Kenyan to participate in restoring their economy back on to a higher growth path, working together to expand economic opportunities and creating employment. In this regard, I have allocated additional Kshs 22 billion, an equivalent of Ksh. 105 million per constituency as conditional Economic Stimulus or Resilience Package toward financing infrastructure development covering education and healthcare, and other development projects. The funding for these interventions is provided under the respective ministry’s votes and will be released through the CDF Framework to those specific projects under strict guidelines to be developed by the Treasury.
Public Procurement to Promote disadvantaged Groups, micro, small and medium enterprises

Mr Speaker, in an effort to boost the welfare of disadvantaged groups, micro, small and medium enterprises, I direct the Public Procurement Oversight Authority to make appropriate regulations that will enable these groups to participate effectively in Government tenders. These regulations should ensure that contracts awarded through the CDF, LATF and other development funds are reserved for tenderers who are located and operate in those regions except where such local capacity is not available.
This initiative, which demonstrates the Government’s commitment to local-level budgeting, marks a departure from the past, and building on the experience of this first piloting phase, it will be scaled up to ensure we ultimately achieve in a constructive manner equitable development in our country. And through these initiatives Hon Members, Kenyans will emerge with strength when the global economy recovers, and enhance their capabilities and competitiveness for the long term.
Expanding Economic Opportunities in Rural Areas for Employment Creation

Mr. Speaker, as a decisive step toward equitable regional development, this year’s budget also focuses on rural development by creating income and employment opportunities to our people. In this regard, I have proposed a number of local-level initiatives.

First, I have allocated a total of Ksh 1.8 billion or Kshs 10 million per constituency for the construction of fresh-produce and wholesale markets in countrywide to address the missing markets and facilitate commerce, trade and rural enterprise development.
Second, I have also allocated Ksh. 1.1 billion or Kshs 8 million per constituency for the construction of 200 fish-farming ponds covering 140 constituencies countrywide to improve nutrition and create over 120,000 employment and income opportunities to our people.

Third, I have allocated Ksh. 525 million or Ksh. 2.5 million per constituency for the construction of jua-kali sheds and another Ksh 210 million or Ksh. 1 million per constituency to equip these sheds with appropriate tools and equipment in order to empower our youth directly benefit from the massive construction works we have initiated at the local levels.

Fourth, I have further allocated additional Ksh. 500 million to Youth Development Fund and another Ksh. 500 to boost the Women Enterprise Fund kitty in order to extend credit for business start-up and expansion throughout the country. Going forward, I expect these Funds will also be devolved to equitably benefit youth and women at the constituency level.
Resettlement of IDPs

Mr. Speaker, the post election crisis displaced many people from their homes. While resettlement efforts have progressed well, a number of the IDPs continue to live in makeshift camps. To deal with the problem once and for all, I have allocated KShs. 2.2 billion to support the resettlement of IDPs. A further KShs. 500 million has been set aside to assist them rebuild their destroyed businesses. In addition to this, Mr. Speaker, through the assistance from the African Development Bank, the Ministry of State for Special Progammes will be implementing “The Restoration of Farm Infrastructure and Rural Livelihoods” project intended to resettle and empower communities affected by post election violence in the two Districts of Uasin Gishu and Molo. The project components will include reconstruction of 19,000 low-cost, 3-room farm houses, including produce storage space for returning farm households, with priority given to female headed households; and the Purchase of Agricultural inputs comprising of maize seeds and fertilizer through the National Accelerated Agricultural Input Access Programme (NAAIAP).

Northern Kenya and Arid and Semi Arid Lands

Mr Speaker, with regard to the development of Northern Kenya and other Arid lands, we plan to undertake numerous interventions in the region. Key projects include the Isiolo–Modagashe–Garrisa–Wajir road at a cost of 1.2 billion; development of water infrastructure at KShs 4.4 billion; installation of solar panels in secondary schools in ASAL areas at KShs 200 million; and construction of abattoirs costing Kshs 130 million in isiolo and Garissa. In addition, resources for Arid Lands Resource Management Programme will be enhanced to KShs 2.5 billion in 2009/10.
Promoting Growth of Tourism and Export Sector

Mr. Speaker, following the post election violence, our tourism sector suffered major losses with a decline of about 60 percent in the first quarter. With the sector expected to play a key role in achievement of Vision 2030 objectives, strong actions are required to be taken for the sector to withstand the current challenges and return to its impressive performance that was witnessed prior to post election disturbances. As a step towards this direction, I have allocated Ksh 800 million to be channelled through the Kenya Tourist Development Corporation (KTDC) to be lent to business enterprises in this sector in order to protect jobs. In addition, Mr. Speaker, I have allocated another KSh 400 million for tourism marketing, targeting the high-end market.

Mr. Speaker, as I have already alluded, the current global economic recession has adversely affected our export sector, especially the horticulture industry. In order to cushion this vital sector and enable players to continue employing our people, I will be outlining later in my speech tax proposals to improve cash flow.

Mr. Speaker, we recognize that these measures may not be enough to fully mitigate the challenges facing these sectors. In this regard, we are planning to introduce additional measures in the course of this fiscal year to further safeguard and stabilize our exports and tourism against exogenous shocks. But in these challenges, we see opportunities. In this regard, I want to encourage sector players to now focus on value addition and diversification of their products to reduce possible risks in the future.

Making Quality Healthcare Accessible to all Kenyans

Mr. Speaker, as we strive to overcome the current challenges, we must recognize that building a better Kenya requires a healthy population. To achieve this objective, we plan to provide an efficient health infrastructure covering all parts of our country, and raise the quality of health care to our people. In this regard, we are initiating a comprehensive program of healthcare reforms covering infrastructure development, promotion of preventive healthcare and devolved management of facilities.

Mr. Speaker, in addition to direct funding to the two ministries of Health to finance ongoing programs, I have allocated a total of Ksh 4 billion or Kshs 20 million per constituency under the Ministry of Public Health and Sanitation for the construction and equipping of a health centre in every constituency. This is the first step in our 3-year journey towards achieving a countrywide healthcare facility upgrade programme. Mr. Speaker, as a Government that cares and listens to its people, we are going a step further, consistent with our policy to promote preventive healthcare, to employ on contract terms and at the local level, additional 4,200 nurses or 20 nurses per constituency countrywide. To this end, I have allocated a total of Kshs.655 million, which translates to Kshs 3.1 million for each constituency.

Mr. Speaker, to ensure effective delivery of both preventive and curative healthcare in our health facilities countrywide, I have allocated additional KShs.500,000 for the purchase of 5 motor cycles for health workers and another 30 bicycles for community health workers in every constituency. I have also allocated Kshs 5 million as additional funding toward constituency medical supplies kit. This is in addition to the funding I have allocated through the two ministries of Health to KEMSA for the purchase of medicine and other medical supplies. And to ensure efficiency in drug supply chain, storage and inventory control, I expect the two Ministries of Health, through KEMSA, to ensure an appropriate procurement system is put in place.

Improving Infrastructure and Quality Education Countrywide

Mr. Speaker, having put pupils back to class through Free Primary education and Free Tuition in Secondary Schools, our focus is now on how to improve quality of education throughout the country. In addition to the annual allocation towards payment of teachers and running of schools, I have allocated an additional KShs.1 billion each to Free Primary and Free Secondary Tuition to take care of increased cost of goods and services.

Mr. Speaker, through this budget, we are also initiating a countrywide program to upgrade infrastructure and quality of education in order to give our children a better foundation consistent with the requirements of the modern labour market. To this end, I propose to:

Allocate Ksh 1.5 billion or Kshs 7 million per constituency for the up grading of two primary schools, and equipping them with water harvesting and under ground water storage facilities; For far too long, we have made reference to a few schools as centres of excellence. Time has now come when such schools should be available in all parts of our country. I have therefore allocated Ksh 6 billion or Kshs 30 million per constituency for the construction of one secondary school as a centre of excellence. I expect the completion of this school upgrade program will provide equal life-long opportunities to all our pupils throughout the country;

Allocate Ksh 1.3 billion or Kshs 6 million per constituency for recruiting additional 10,500 primary school teachers on contract or 50 primary school teachers per constituency to improve the quality of educational service. I also propose to allocate Ksh 353 million or about Ksh 2 million per constituency to recruit additional 2,100 secondary school teachers on contract terms, or 10 teachers per constituency as a first step; and Recognizing the need to hook our schools to the ICT grid and promote e-learning, I propose to allocate Ksh 1.3 billion or Kshs 6 million per constituency toward the purchase of a digital laboratory bus.

Investing in Environment and Food Security

Mr. Speaker, the extreme floods and droughts, incidences of vector and water-borne diseases, famine and malnutrition are some of the indicators of climate change.

Recognizing the importance of our environment for sustainable development, the Government remains fully committed to addressing the deterioration in the forest cover and quality of the urban environment. Efforts to rehabilitate the five water towers have been initiated, while a master plan for the restoration and rehabilitation of Nairobi River Basin has been developed to guide our conservation efforts. We are doing this because we want to ensure we do not bequeath our mistakes to the next generation.

Mr. Speaker, our children should know and appreciate the value of a clean environment and learn how to protect mother-nature. In this regard, I have allocated Kshs 1.2 million for tree planting programs in 20 primary schools in each constituency. This program is expected to contribute toward conservation of our environment and give our children a practical opportunity to participate in the conservation of their environment.


Mr. Speaker, countries are going green in their quest to generate clean energy and Kenya must not be left behind. In order to move forward in transforming Kenya into a green economy, we will establish a Green Energy Facility to offer interest free long-term loans to firms that opt to replace conventional high cost energy generation with low cost green energy alternatives. The facility will be funded by the government and managed by a consortium of selected banks. This is aimed at lowering energy costs and reducing consumption of power from the national grid. The government will also adopt energy saving methods including replacement of all conventional bulbs with energy saving bulbs produced locally. As part of this greening programme, we shall also fast track completion of five power generation projects that have been identified.

Mr. Speaker, to operationalise this initiative, I have earmarked, as government contribution, Kshs 500 million. I expect to elicit donor support through this initiative to scale up its operation. In addition, Mr. Speaker, I have allocated an addition Kshs 400 million for the installation of solar technologies in the Arid and Semi-Arid regions.

Ensuring Food Security

Mr. Speaker, agriculture remains the mainstay of our economy. However, our dependence on rain-fed agriculture has continued to expose our nation to famine. Through this budget we are initiating a programme intended to reduce our reliance on rain-fed agriculture and thereby substantially enhance our food production. This, we are committed to do in order to ensure that we begin our journey to a food-secure Kenya so that Kenyans never go hungry again.

To this end, the government through the coordination of relevant ministries and departments is working out an implementation strategy over the medium term focusing on mechanization, irrigation, use of hybrid seeds, water harvesting, providing mixture of chemical and green crop nutrients, efficient storage and marketing systems and application of scientific farming methods.
As a first step to ensuring our country is food secure in the medium term, I have allocated substantial resources to respective ministries responsible for agriculture and irrigation and regional development. In addition we have allocated Ksh. 3 billion toward rehabilitation and expansion of irrigable land under Bura, Hola, Tarda, Wei Wei and Kerio Valley. From these investments we expect to harvest about 1 million bags of rice and maize by the end of December 2009. As we scale up resources toward irrigable agriculture, we are confident that this great Nation will emerge as a net exporter of food by 2012.

Taking Care of the Vulnerable Members of Our Society

Mr. Speaker, with the current economic challenges, the need to protect the livelihoods of the poor and vulnerable groups in our society has become even more urgent. While some existing programmes have worked well, their coverage is limited. In particular, the urban poor have not been reached. It is for this reason that the government is in the process of developing a national social protection policy, aimed at target in all the deserving members of our society. In this regard, the Government has formed a Taskforce to spearhead the development of a well targeted food subsidy scheme to ensure food security and improve the welfare of the vulnerable groups. To support this programme and to ensure its roll-out in the course of the year, I have earmarked KSh 1 billion out of the KSh 2 billion set aside for drought relief in the budget.
Mr. Speaker, this social protection programme will supplement the initiatives I have outlined under the economic stimulus package, which are aimed at expanding economic opportunities in both rural and urban areas for employment creation, social stability and equitable development.

Mr. Speaker, as a society we must care for those amongst us who are either elderly, physically or mentally challenged, recognising that disability is not inability. In this budget, I have allocated Kshs 200 million interest-free revolving fund toward financing business ventures by our brothers and sisters who are physically challenged. Through this budget, Mr. Speaker, I am going a step further to gazette regulations allowing disabled persons, employed or self-employed tax free income up to Kshs 150,000 per month, and further allow for additional deduction to their taxable income of up to Kshs 50, 000 to cushion them against expenses on drugs, purchase of disability related devises, home care services and treatment.

Mr Speaker, We have in the past taken steps to improve the welfare of our senior citizens through our tax system. This time round, I have allocated Kshs 200 million as a cash transfer to elderly persons of over 65 years and those mentally challenged. Modalities for ensuring effective and timely transfer of such funds on a monthly basis will be developed before the end of this year. Mr. Speaker, we recognize that such a program is not complete without taking into account those physically and mentally challenged in special institutions of learning and care. To this end, I have also allocated Kshs 100 million for purchasing specialized equipments and other requirements to meet the needs of these members our society.
Strengthening Governance for Sustainable Development

Mr. Speaker, we recognize the importance of good governance for sustainable development and, in this context, the government is committed to enhancing its governance programme for better service delivery. This will ensure an efficient and effective public service that will provide an enabling environment for sustainable business growth and development.

Mr. Speaker, the Treasury on its part, will continue to strive to ensure that public resources are used efficiently and effectively for their intended purposes. We will intensify our commitment to working with other Ministries, Departments and Agencies in the government, to enhance financial integrity, and advance good governance.
Mr. Speaker, to ensure value for money to taxpayers and enhance accountability, the
Government will in the first quarter of fiscal year 2009/10 develop and enforce sector specific public work benchmarks covering such areas as the construction of roads, bridges, dams and boreholes.

Mr. Speaker, it has become clear that public entities are paying extremely highly inflated prices for items that are easily available in the market. Going forward, procurement for all common user items shall only be allowed within the established price reference. To address the problems encountered in procurement including urgent purchases at the closure of the financial year, we shall also henceforth ensure that proper annual procurement plans are prepared and all procurements are implemented within the agreed plans. We will also introduce strict ethical and integrity code of behaviour for all officers working on public financial management – procurement officers, finance officers, accountants, CDF officers, budget supplies officers and internal auditors

Mr. Speaker, we are optimistic that these measures implemented within the framework of the Governance Strategy for Equity and Poverty Reduction will enhance Financial Integrity in the Public Service by making the misuse of public resources difficult to commit, likely to be detected, and, certain to be punished. We reaffirm our full commitment to restoring the much needed trust, and the confidence of the Kenyan people in the Government, and that of investors in the Kenyan economy.

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