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KAGWANJA: To arm or not to arm guards, that is the question

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By PETER KAGWANJA
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To arm or not to arm watchmen. This is the big question as the dust settles on the awful terrorist attack on 14 Riverside Drive complex in the Westlands area of Nairobi on January 15/16, 2019.

It is the Roman poet, Juvenal, who captured the dilemma of all times regarding watchmen: “Who will watch the watchmen?”

In the post-Cold War international order, the private security sector has become a growth industry, propelled by genuine fear of insecurity, overstretched capacity of government security services and pressing need by companies and private citizens to protect their property and the loved ones. A private company providing highly trained armed personnel and logistical support, assisting governments and armed forces operating in crisis zones across the world is now an emblem of our age of extremes.

In Kenya, the September 2013 terrorist attack on the Westgate shopping mall drew attention to the urgent need to scale up the capacity of security forces to counter terrorism and protect. Contrastingly, Dusit has put a sharp spotlight on the private security industry as the weakest link in Kenya’s war against terror. Paradoxically, the frequent attacks from the al Qaeda, its Al-Shabaab affiliate and more recently the Islamic State (ISIS) have irreversibly changed the fortunes of private Security as the first line of policing for industry, business and individuals. Since 2008, the industry has become a fast growing venture. Kenya’s 2,000 registered companies have an estimated annual turnover of more than Sh300 billion and directly employ more than 450,000 guards, nearly eight times more than police officers!

The risks posed by terrorism and the need to secure, promote and protect the rights of guards have also highlighted the importance of the Kenya National Private Security Workers Union, whose membership has shot meteorically from just 327 people in 2011 to over 45,000 in 2016.

But opinion is sharply split about the place and capacity of Kenya’s watchmen in the emerging anti-terrorism architecture.

Earlier on, in May 2018, the Cabinet Secretary for Interior, Fred Matiang’i, announced plans to arm private guards to fight crime, describing Kenya’s private guards as “the first line of defence.”

In the wake of Dusit, the Director-General of the Private Sector Regulatory Authority, Fazul Mohammed, announced the arming, vetting and training of guards in six months.

However, arming the guards will demand a serious rethinking, and possible overhaul, of the extant legal framework for regulating private security companies and their cooperation with national security organs.

Specifically, it calls for an innovative rethinking of the Firearms Act (2015), which currently does not allow a private security service provider to use firearms in the rendering of a security services.

However, critics of the arm-the-watchmen thesis are pointing to the multiple vulnerabilities of the watchman in Kenya. Guards are targets of the surge of violent crime and terror attacks. But Dusit and a recent satirical article titled, “Man in the Hood: It’s good to be friends with the watchman” (Daily Nation, July 11, 2018), revealed the vulnerability of guards to corruption, enticements and manipulation by criminals and terrorists, owing to their low pay (often way less than $250 per month), making them more of a danger than a defence.

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Proponents of armed guards as “a first line of defence” against terrorism miss a crucial the point. Arming guards is likely to increase their risk from terrorists who will now seek to eliminate rather than to entice them with tips.

Moreover, operationally, armed response to terrorism is usually the last line of defence after the terrorist who has broken through the essential preventive intelligence safeguards. True, it makes sense to see armed guards as a measure to hold fire before the tactical teams arrive. However, by the time the terrorists encounter the guard, they already have superior firepower that can only be countered by Special Forces.

The arming of guards must be viewed within the larger canvas of the dual problem of securitisation of the Kenyan society. In recent years, the number of private individuals licensed to own firearms and growing cohorts of Kenya Police Reservist (KPR) especially in view of terrorist attacks, cattle rustling and other criminalities, has put firearms in the hands of private citizens. Moreover, Kenya is in the thrall of a growing menace of the proliferation of illegal arms. According to Geneva-based Small Arms Survey, Kenyan civilians own 750,000 firearms as of 2018 up from 680,000 in 2016 — more than what the military and police have combined. Of these, only 8,136 are registered, 99 per cent of others held illegally.

Arming guards calls for serious benchmarking with countries allowing arming of private guards. Uganda has armed its guards with low calibre riffles with three to five bullets mainly for self-protection than for countering terrorists.

Although countries like the United States have allowed thriving armed private military and security services, private military and security contractors are subject to a complex set of laws and regulations, and their activities are reviewed and reported on by more than 20 federal oversight bodies and committees.

Dusit unveiled the growing capacity, preparedness and effective coordination by our security forces to detect, deter and defeat terrorism, including foiling a planned simultaneous attack in Mombasa.

Perhaps the first order issue, is not the arming of guards, but the setting up a multi-agency operational taskforce within the aegis of a well-resourced National Counter Terrorism Centre to review the 2011-2019 terror attacks, deepen understanding of the changing face of terror and address the preparedness and participation of the Kenya public in countering violence extremism.

Professor Peter Kagwanja is former Government Advisor and currently Chief Executive at the Africa Policy Institute. This article is an except from the recent API report: “Who Will Guard the Guards”: Challenges and Options of Regulating the Private Security Industry in Countering Violent Extremism in Kenya” (January 2019).



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Sordid tale of the bank ‘that would bribe God’

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Bank of Credit and Commerce International. August 1991. [File, Standard]

“This bank would bribe God.” These words of a former employee of the disgraced Bank of Credit and Commerce International (BCCI) sum up one of the most rotten global financial institutions.
BCCI pitched itself as a top bank for the Third World, but its spectacular collapse would reveal a web of transnational corruption and a playground for dictators, drug lords and terrorists.
It was one of the largest banks cutting across 69 countries and its aftermath would cause despair to innocent depositors, including Kenyans.
BCCI, which had $20 billion (Sh2.1 trillion in today’s exchange rate) assets globally, was revealed to have lost more than its entire capital.
The bank was founded in 1972 by the crafty Pakistani banker Agha Hasan Abedi.
He was loved in his homeland for his charitable acts but would go on to break every rule known to God and man.
In 1991, the Bank of England (BoE) froze its assets, citing large-scale fraud running for several years. This would see the bank cease operations in multiple countries. The Luxembourg-based BCCI was 77 per cent owned by the Gulf Emirate of Abu Dhabi.  
BoE investigations had unearthed laundering of drugs money, terrorism financing and the bank boasted of having high-profile customers such as Panama’s former strongman Manual Noriega as customers.
The Standard, quoting “highly placed” sources reported that Abu Dhabi ruler Sheikh Zayed Sultan would act as guarantor to protect the savings of Kenyan depositors.
The bank had five branches countrywide and panic had gripped depositors on the state of their money.
Central Bank of Kenya (CBK) would then move to appoint a manager to oversee the operations of the BCCI operations in Kenya.
It sent statements assuring depositors that their money was safe.
The Standard reported that the Sheikh would be approaching the Kenyan and other regional subsidiaries of the bank to urge them to maintain operations and assure them of his personal support.
It was said that contact between CBK and Abu Dhabi was “likely.”
This came as the British Ambassador to the UAE Graham Burton implored the gulf state to help compensate Britons, and the Indian government also took similar steps.
The collapse of BCCI was, however, not expect to badly hit the Kenyan banking system. This was during the sleazy 1990s when Kenya’s banking system was badly tested. It was the era of high graft and “political banks,” where the institutions fraudulently lent to firms belonging or connected to politicians, who were sometimes also shareholders.
And even though the impact was expected to be minimal, it was projected that a significant number of depositors would transfer funds from Asian and Arab banks to other local institutions.
“Confidence in Arab banking has taken a serious knock,” the “highly placed” source told The Standard.
BCCI didn’t go down without a fight. It accused the British government of a conspiracy to bring down the Pakistani-run bank.  The Sheikh was said to be furious and would later engage in a protracted legal battle with the British.
“It looks to us like a Western plot to eliminate a successful Muslim-run Third World Bank. We know that it often acted unethically. But that is no excuse for putting it out of business, especially as the Sultan of Abu Dhabi had agreed to a restructuring plan,” said a spokesperson for British Asians.
A CBK statement signed by then-Deputy Governor Wanjohi Murithi said it was keenly monitoring affairs of the mother bank and would go to lengths to protect Kenyan depositors.
“In this respect, the CBK has sought and obtained the assurance of the branch’s management that the interests of depositors are not put at risk by the difficulties facing the parent company and that the bank will meet any withdrawal instructions by depositors in the normal course of business,” said Mr Murithi.
CBK added that it had maintained surveillance of the local branch and was satisfied with its solvency and liquidity.
This was meant to stop Kenyans from making panic withdrawals.
For instance, armed policemen would be deployed at the bank’s Nairobi branch on Koinange Street after the bank had announced it would shut its Kenyan operations.
In Britain, thousands of businesses owned by British Asians were on the verge of financial ruin following the closure of BCCI.
Their firms held almost half of the 120,000 bank accounts registered with BCCI in Britain. 
The African Development Bank was also not spared from this mess, with the bulk of its funds deposited and BCCI and stood to lose every coin.
Criminal culture
In Britain, local authorities from Scotland to the Channel Islands are said to have lost over £100 million (Sh15.2 billion in today’s exchange rate).
The biggest puzzle remained how BCCI was allowed by BoE and other monetary regulation authorities globally to reach such levels of fraudulence.
This was despite the bank being under tight watch owing to the conviction of some of its executives on narcotics laundering charges in the US.
Coast politician, the late Shariff Nassir, would claim that five primary schools in Mombasa lost nearly Sh1 million and appealed to then Education Minister George Saitoti to help recover the savings. Then BoE Governor Robin Leigh-Pemberton condemned it as so deeply immersed in fraud that rescue or recovery – at least in Britain – was out of the question.
“The culture of the bank is criminal,” he said. The bank was revealed to have targeted the Third World and had created several “institutional devices” to promote its operations in developing countries.
These included the Third World Foundation for Social and Economic Studies, a British-registered charity.
“It allowed it to cultivate high-level contacts among international statesmen,” reported The Observer, a British newspaper.
BCCI also arranged an annual Third World lecture and a Third World prize endowment fund of about $10 million (Sh1 billion in today’s exchange rate).
Winners of the annual prize had included Nelson Mandela (1985), sir Bob Geldof (1986) and Archbishop Desmond Tutu (1989).
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Monitor water pumps remotely via your phone

Tracking and monitoring motor vehicles is not new to Kenyans. Competition to install affordable tracking devices is fierce but essential for fleet managers who receive reports online and track vehicles from the comfort of their desk.

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Agricultural Development Corporation Chief Accountant Gerald Karuga on the Spot Over Fraud –

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Gerald Karuga, the acting chief accountant at the Agricultural Development Corporation (ADC), is on the spot over fraud in land dealings.

ADC was established in 1965 through an Act of Parliament Cap 346 to facilitate the land transfer programme from European settlers to locals after Kenya gained independence.

Karuga is under fire for allegedly aiding a former powerful permanent secretary in the KANU era Benjamin Kipkulei to deprive ADC beneficiaries of their land in Naivasha.

Kahawa Tungu understands that the aggrieved parties continue to protest the injustice and are now asking the Ethics and Anti-corruption Commission (EACC) and the Directorate of Criminal Investigations (DCI) to probe Karuga.

A source who spoke to Weekly Citizen publication revealed that Managing Director Mohammed Dulle is also involved in the mess at ADC.

Read: Ministry of Agriculture Apologizes After Sending Out Tweets Portraying the President in bad light

Dulle is accused of sidelining a section of staffers in the parastatal.

The sources at ADC intimated that Karuga has been placed strategically at ADC to safeguard interests of many people who acquired the corporations’ land as “donations” from former President Daniel Arap Moi.

Despite working at ADC for many years Karuga has never been transferred, a trend that has raised eyebrows.

“Karuga has worked here for more than 30 years and unlike other senior officers in other parastatals who are transferred after promotion or moved to different ministries, for him, he has stuck here for all these years and we highly suspect that he is aiding people who were dished out with big chunks of land belonging to the corporation in different parts of the country,” said the source.

In the case of Karuga safeguarding Kipkulei’s interests, workers at the parastatals and the victims who claim to have lost their land in Naivasha revealed that during the Moi regime some senior officials used dubious means to register people as beneficiaries of land without their knowledge and later on colluded with rogue land officials at the Ministry of Lands to acquire title deeds in their names instead of those of the benefactors.

Read Also: Galana Kulalu Irrigation Scheme To Undergo Viability Test Before Being Privatised

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“We have information that Karuga has benefitted much from Kipkulei through helping him and this can be proved by the fact that since the matter of the Naivasha land began, he has been seen changing and buying high-end vehicles that many people of his rank in government can’t afford to buy or maintain,” the source added.

“He is even building a big apartment for rent in Ruiru town.”

The wealthy officer is valued at over Sh1.5 billion in prime properties and real estate.

Last month, more than 100 squatters caused scenes in Naivasha after raiding a private firm owned by Kipkulei.

The squatters, who claimed to have lived on the land for more than 40 years, were protesting take over of the land by a private developer who had allegedly bought the land from the former PS.

They pulled down a three-kilometre fence that the private developed had erected.

The squatters claimed that the former PS had not informed them that he had sold the land and that the developer was spraying harmful chemicals on the grass affecting their livestock and homes built on a section of the land.

Read Also: DP Ruto Wants NCPB And Other Agricultural Bodies Merged For Efficiency

Naivasha Deputy County Commissioner Kisilu Mutua later issued a statement warning the squatters against encroaching on Kipkuleir’s land.

“They are illegally invading private land. We shall not allow the rule of the jungle to take root,” warned Mutua.

Meanwhile, a parliamentary committee recently demanded to know identities of 10 faceless people who grabbed 30,350 acres of land belonging to the parastatal, exposing the rot at the corporation.

ADC Chairman Nick Salat, who doubles up as the KANU party Secretary-General, denied knowledge of the individuals and has asked DCI to probe the matter.

Email your news TIPS to [email protected] or WhatsApp +254708677607. You can also find us on Telegram through www.t.me/kahawatungu

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William Ruto eyes Raila Odinga Nyanza backyard

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Deputy President William Ruto will next month take his ‘hustler nation’ campaigns to his main rival, ODM leader Raila Odinga’s Nyanza backyard, in an escalation of the 2022 General Election competition.

Acrimonious fall-out

Development agenda

Won’t bear fruit

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