2008 Speeches
“Fundamental Reform and the Democratic Future of Kenya” U.S. Ambassador Michael E. Ranneberger American Chamber of Commerce in Kenya
December 9, 2008
Thank you very much for the opportunity to speak today.
When I first spoke to the Chamber just over two years ago, I discussed the profound partnership between the United States and Kenya. That partnership – and friendship – has deepened over the past two years, and this was no where more evident than during the watershed crisis that Kenya experienced earlier this year.
The American Chamber of Commerce is a vital part of this partnership. I commend the efforts you are making to promote trade and investment between the United States and Kenya in a way that benefits both countries. I want particularly to salute the important role that you, as leaders of the private sector, played along with civil society and the media to press for a political solution to the crisis.
Today I want to focus on the agenda for fundamental reform – both political and economic – that poses an historic opportunity and challenge for the people and government of Kenya.
The Watershed Crisis and Fundamental Reform
Kenyans today are within grasp of a much brighter democratic future, one which will improve the well-being of all the people of this great country. You may think this a problematic statement to make, given the watershed crisis that Kenya experienced only almost one year ago.
But let us pause to reflect upon what happened then and where matters stand today. As a great friend and partner of Kenya, the United States worked with the Kenyan people to play a decisive role in resolving the crisis. The United States was only able to play this role because the Kenyan people themselves mobilized: civil society, religious groups, the private sector, the media, and ordinary Kenyans across ethnic, social, and political lines. As a result, Kenya pulled back from the abyss, and an unprecedented coalition government was established. That coalition government was formed on the basis of an agreement to pursue the fundamental reforms necessary to ensure that the country never again suffers such a fate.
Early during the crisis, I stated my belief that it would be resolved, largely because of the confidence I had in the Kenyan people. For this same reason, I am confident that the agenda for fundamental reform will be carried out.
The future of the coalition government and the reform agenda rests first and foremost with the Kenyan people, who must maintain pressure for action. The continued strong leadership of President Kibaki and Prime Minister Odinga is also vital to success. I want to commend them for the positive way in which they are pursuing the reform agenda.
Arguably, the process of implementing the reform agenda has been too slow, but we must put this criticism into perspective. The President and Prime Minister are managing a very complex political situation, and the reform agenda raises a host of sensitive issues that must be carefully navigated.
We are, in fact, seeing progress:
- Critical legislation, including on the Truth, Justice, and Reconciliation Commission, Ethnic Relations, and Constitutional Review Bills, has been passed by Parliament.
- The Cabinet has reached consensus to abolish the current Electoral Commission, initiating the process to form a new, independent electoral body.
- The President and Prime Minister are moving towards formation of the Special Tribunal called for in the Waki Commission report. Clearly, they and we recognize that it is preferable to ensure accountability and to end impunity through a local process – rather than internationalizing it.
While I welcome this progress, we – and more importantly the Kenyan people – expect to see meaningful results. We made clear that achieving an acceptable political solution to the crisis was crucial to the future of the U.S.-Kenyan bilateral relationship – and we consider full implementation of the reform agenda the most vital part of that political solution.
In order to help ensure effective implementation, the United States stands ready to assist in implementation of the reform agenda. We are prepared to commit $1.5 million to support electoral reform, and we would welcome a request to provide investigative experts for the Special Tribunal.
In order to ensure that the reform agenda is implemented in a transparent and effective manner, the coalition government and the Parliament should reach out to the Kenyan people through civil society to take into account their observations. Doing so will help ensure that there are no loopholes or hidden agendas in the relevant legislation, particularly with respect to the Special Tribunal and establishment of an independent electoral body. These – coupled with constitutional revision – are by far the most important elements of the reform agenda.
Accountability, Impunity, and Ethnic Relations
The steps that have been taken thus far are the beginning of a process of reform, but the results over the next 12 to 24 months will determine whether there truly will be fundamental change to help ensure that the country does not again suffer such a profound crisis.
The reform agenda, and even the results, are not, in themselves, a panacea for the problems that Kenya faces. The reforms – if fully carried out – will put in place constitutional provisions, laws, and mechanisms to deal with four major issues which have plagued Kenya for over four decades: lack of accountability, the culture of impunity, ethnic tensions, and lack of land reform. We must be realistic in appreciating that it will likely take decades and generations to change the underlying attitudes that help fuel such problems, but carrying out the reforms will alter the political and social landscape in ways that will bring about fundamental change. The reforms will mitigate the impact of the lack of accountability, the culture of impunity, ethnic tensions, and conflict over land and resources, and establish a more constructive framework for dealing with them.
By insisting that the reform agenda be fully and transparently carried out, the Kenyan people will ensure greater accountability in government and by politicians. The friends of Kenya, including the United States, Kofi Annan, and others will support the Kenyan people in their determination to bring about fundamental change.
In this process the Members of Parliament will be tested to demonstrate whether in fact they represent a force for constructive change. Will Parliamentarians be more responsive to the people – leading reform efforts, genuinely hearing constituent concerns, passing relevant legislation that is in the interest of all Kenyans, and paying a fair amount of tax -- or will they instead become enmeshed in the old ways of doing business. Parliamentarians must heed the views of the people or, as they say in Swahili, “bendera hufuata upepo.” Parliamentarians share responsibility with the leaders of the coalition government to help end the culture of impunity by insisting on police reform, judicial reform, land reform, and vigorous investigation and prosecution of corruption, as well as violent crimes.
While I welcome the progress being made, it is important to note what has not yet been accomplished:
- There has been no sign of movement for a serious overhaul of the police. Doing so is essential, even as we recognize the enormous good work by ordinary police men and women who make great sacrifices and must cope with scarce resources.
- Some of the bills passed by Parliament have not yet been signed into law.
- Judicial and prosecutorial reforms remain immense hurdles that need to be addressed.
That said, the timeline reported in the media yesterday is, if accurate, an encouraging indication of the coalition government’s intention to act, particularly with respect to police reform.
By working together, Parliamentarians, the leaders of the coalition government, civil society, the private sector, and the media can help Kenyans to move beyond strictly ethnic politics towards a more national approach.
As we reflect upon what happened and the challenges ahead, I want to recall the words of a great American, Frederick Douglass, who said, about a certain reform agenda, albeit a very different one: “Those who profess to favor freedom and yet depreciate agitation, are people who want crops without ploughing the ground…The struggle may be a moral one, or it may be a physical one, or it may be both. But it must be a struggle. Power concedes nothing without a demand; it never has and it never will.”
In order to build a more positive future, Kenyans have no choice: the reform agenda must become history in the making.
America’s Elections – History in the Making
Speaking of “history in the making,” I want to share some thoughts on the implications of the U.S. election for Kenya.
The election was historic in so many ways – so many firsts: the first African-American nominee of a major political party who won it all; the first female presidential candidate who battled in a hard fought campaign to the end; and the oldest candidate, who was joined by a young woman as his running mate. The election highlighted the point that America draws its strength from its diversity. This is a key pillar of democracy that Americans and Kenyans share.
The two final major party nominees had perhaps the most compelling personal stories of any Presidential race – both of them quintessential “only in America” stories. Senator John McCain’s story is well-known; few individuals have gone through a similar arc of experience and transformation. President-elect Obama’s journey is a classic American story, one that he says himself would not be possible anywhere else on earth. It is a tale of the evolution of the American dream.
The electoral campaign and the results are also the story of the tremendous journey that we have made as a country and are in fact still making, because the process of building democracy is never complete. The reform agenda that we have pursued through our long history – through the promise of the constitution drafted by our founding fathers, through war, through riots, through the Great Depression, through the passage of landmark civil rights legislation -- has not solved all of our problems. However, we have been able to strengthen the rule of law and democratic institutions, and expand prosperity. In so doing we have opened opportunities for all our citizens. The reform agenda that Kenyans must grapple with is also enormously challenging. With pride as an American, I can say that yes, we could do it, we did it, and we will continue doing it. I believe that Kenyans are equally saying: “yes, we can.”
I know that Kenyans have embraced President-elect Obama as a favorite son. This is particularly true of young Kenyans, who are inspired by the election of such a young, bright leader. While I cannot speak for the President-elect, I hope that the vast numbers of young Kenyans will be inspired to push the agenda for positive change here.
It is worth recalling that, during his August 2006 visit to Kenya, then Senator Obama gave a speech in which he exhorted Kenyans to break from the destructive tradition of ethnic-based, tribal politics, saying that they are “rooted in the bankrupt idea that the goal of politics or business is to funnel as much of the pie as possible to one’s family, tribe, or circle with little regard for the public good.” Such practices, he said, “stifle innovation and fracture the fabric of the society.” Kenya’s youth have an historic opportunity to break with such attitudes rooted in the past, and to drive Kenya towards a modern democratic future.
A Comprehensive Reform Agenda
Given what this country experienced less than a year ago, and given the devastating consequences of such a difficult period, Kenya’s start toward economic and political recovery is nothing short of extraordinary.
But serious questions must be asked: Will Kenya’s political class truly heed the lessons of January and February? Will Kenya’s private sector, religious communities, and civil society leaders maintain the drive and momentum of earlier this year that will ensure the reforms which are so necessary are enacted? Will the media play the same kind of responsible role that it played during the crisis, or will it instead focus on sensational journalism focused on a glass half-full perspective? Will we be able to say in 2012 that those who led Kenya from the despair of 2008 implemented the changes needed to ensure that nothing like that could ever happen again?
When I spoke with you in November 2006, I cited Colin Powell’s rule number 13, that “perpetual optimism is a force multiplier.” I said it because I believe it. You have seen that I am an optimist, particularly when it comes to Kenya.
But I don’t wear rose-colored glasses. I am also a realist, someone who recognizes that, while calls for reform are often enthusiastically voiced, meaningful and lasting reform can only come about through concerted and sustained action. In order to bring about fundamental change, the reform agenda must be comprehensive, embracing both political and economic steps. Neither is sufficient alone. Kenya’s economy will continue to be at risk until the political framework for sustained and robust growth is firmly in place.
The United States is encouraged by business and government leaders in Kenya who have demonstrated a commitment to dialogue and action. I commend the Prime Minister for initiating the business roundtable. It is a start to developing the consensus needed to create the most open and prosperous economy possible.
The opening of 24/7 operations at Mombasa port, the ongoing reconstruction of the Mombasa/Nairobi road, the reduction in the number of security checkpoints, the simplification of the registration process for new companies, the introduction of e-filing of incorporation documents, the coming to Kenya of fiber optic networks, and the elimination of superfluous licenses and fees, among many other steps, are all positive signs that the coalition government “gets it” when it comes to business.
Despite these positive steps forward, however, Kenya’s ability to access world markets and attract investors remains thwarted by what some economists have referred to as “binding constraints” on Kenya’s economic growth. None of these constraints is news to anyone. And, unfortunately, little has been done to fully address them.
- The first constraint is the corruption that pervades all levels of Kenyan society and the culture of impunity it has engendered. The regulatory environment alone is marred by its penchant to help those who pay the right price and to obstruct those who do not. Of greatest concern is the failure to expose and successfully prosecute those engaged in corruption, including at the highest levels.
- The excruciatingly slow pace of infrastructural development impedes investment and economic growth. As an example of the right approach, I applaud the government, KENGEN, and KPLC for recognizing that energy generation and distribution at affordable prices are fundamental to Kenya’s continued growth. The warnings of the business community that enterprises might close or relocate served as a wake up call that energy concerns must be addressed immediately.
- More enlightened agriculture policies that provide farmers with stable, long-term opportunities to enhance production, efficiently market the fruits of their labor, and reinvest in new technologies are critical to the economic growth, political stability and personal prosperity of all Kenyans.
- The general lack of security that affects every aspect of economic life in Kenya must be addressed. A recent global competitiveness report ranked Kenya near the bottom of 137 countries in providing a secure environment. Security concerns add significantly to the cost of doing business in Kenya, and are a serious disincentive to prospective investors.
Apart from these broad issues, I want to identify several quite specific steps that can be taken to promote economic reform and growth:
- Adopt legislation that brings Kenya into line with international norms. Pass Anti-Money Laundering and Anti-Counterfeiting laws.
- Streamline the foreign investment process by establishing an effective one-stop-shop that will cut through bureaucratic red tape.
- Do not impose new barriers to imports, such as the much mooted international standards mark.
- Improve airport security and airline inspection in order to permit direct flights between the United States and Kenya.
- Continue engagement between government and business as inaugurated in the Prime Minister’s quarterly meetings with business leaders focused on setting targets and keeping track of results.
Taken together, these reforms and steps will improve the lives of all Kenyans by enhancing their competitiveness in the world market for trade and investment.
Implications of the Global Economic Crisis
Today’s tough economic environment makes Kenya’s quest to be competitive worldwide even more urgent. A flight to developed markets has been a hallmark of this global crisis, with countries chasing fewer trade opportunities and a smaller pool of investment funds.
The crisis is global and has serious implications for Kenya. As World Bank President Robert Zoellick wrote recently, “the financial shock waves in the United States and Europe will reverberate in the global economy. The stark reality is that developing countries must anticipate and prepare for a drop in trade, remittances, and domestic investment.” We are seeing this impact in Kenya.
Competition, both globally and within this region, for markets and investment will be tougher than ever. Kenya must sell itself as never before as THE location in Africa to come and do business. Advancing the agenda for fundamental reform is crucial to achieve this. A focused Kenyan approach can catapult Kenya forward as a model of economic and political recovery in a way that will attract investors and tourists.
Partnership for Democracy and Growth
Kenya’s economic prosperity and its success as a democracy are in America’s interest. The importance we attach to this is reflected in the extent of our engagement in Kenya. Every year over $2.5 billion in resources flows from the U.S. to Kenya from public and private sources. I want to highlight particularly the role of the African Growth and Opportunity Act (AGOA), as a result of which $255 million worth of Kenyan exports entered the U.S. market duty free.
The annual high-level forum to discuss AGOA is slated to take place in Nairobi in the middle of 2009. This provides Kenya with an invaluable opportunity to showcase its trade and investment potential. In order to do this successfully, it is essential to have made substantial progress on implementing the reform agenda before the AGOA forum convenes.
Reform and Renewal
The United States has faced several major crises during its long history. Among others, the civil war, the Great Depression, and the race riots during the 1960’s stand out. The challenge we faced each time was how to seize the opportunity for renewal presented to us as a result of those crises. In what were difficult, wrenching processes that threatened to tear our country apart, we managed to rise to the challenge each time. In so doing, American emerged with a stronger democracy.
I urge Kenyans to seize the opportunity they now have for renewal.
Thank you. Asanteni sana.