Daily Nation July 21st 2014

KSh60/00 (TSh1,700/00 : USh2,700/00 : RFr900/00) www.nation.co.keNairobi | Monday, July 21, 2014 No. 18004

GOVERNANCE | Besieged minister insists decision to drop Atwoli and Mugo as trustees backed by law

Cotu in strike threat over NSSF sackings

I asked the government to take auditors to NSSF to conrm this claim after I wrote a statement over the Sh5bn scandal Cotu secretary-general Francis Atwoli

>> Workers body threatens national strike if ocials removal from pension fund is not reversed in 14 days >> Teachers fault decision

by Kambi and threaten to withhold contributions>> Union rejects rules giving Cabinet Secretaries power to hire and re Pages 4-5

News P. 2-11, BackOpinion P. 12-13Letters P. 14County P. 17-25World P. 28-33Business P. 39-41Sport P. 51-55

INDEXON OTHER PAGES

P. 17 > New deal to end garbage crisis in Kisumu

COUNTY NEWSLack of land and dierences over how to share revenue from recycling business have derailed plans

INSIDE: TA WARNS ON SALE OF ASSETS

TALENT | Youthful performers showcase their abilities in classical music show

GERALD ANDERSON | NATIONMembers of the Conservatoire Symphony Orchestra conducted by Levi Wataka perform at the GoDown Arts Centre in Nairobi yester-day. The event featured performances of excerpts from Haydns Surprise Symphony, among other classical music compositions. A similar show will be held at the All Saints Cathedral next weekend.

MIAMI, FRIDAY

A Florida jury has ordered US ciga-rette company, RJ Reynolds Tobacco, to pay $23.6 billion (Sh2.2 trillion) to the widow of a longtime smoker who died of lung cancer.

The verdict was one of the largest for a single plainti in the states history.

CONTINUED ON PAGE 3

Widow awarded Sh2.2 trillion in US cigarettes case

Mr Duale said Muslim lead-ers had pleaded with the police boss to impose a curfew for public and private vehicles on the Lamu-Mombasa highway, but allow Muslims to access the mosques for prayers.

The curfew was imposed a day after seven people, includ-ing four policemen, were killed by gunmen who spoke Somali and Swahili. The gang sprayed a bus with bullets near Mambo Sasa forest in Witu Division.

A Land Cruiser belonging to the police that was approaching the area was also sprayed with bullets. Six people died.

Religious obligationsDue to the rising insecurity

in Lamu County, I do hereby issue curfew orders within Lamu County from July 20, 2014 to August 2014 from 6.30 pm to 6.30 am, Mr Kimaiyo ordered on Saturday.

He announced the ban as security agencies grappled with rising cases of insecurity in Lamu County for the last month.

Yesterday, Mr Duale pushed for Muslims to be allowed to continue with their prayers. Maintaining security in Lamu County is paramount, but de-nying Muslims there religious obligation is unacceptable, he said. Lamu County should be allowed to go to the Mosque for

the last 10 days of Ramadhan prayers despite the curfew.

The Muslim faith, he said, supersedes curfew orders.

Earlier on Sunday, Lamu County Assembly Speaker Mohamed Hashim said the curfew would adversely aect the economy of the area, as well as stop residents from adhering to Ramadhan prayers.

Reporting by John Njagi, Mwakera Mwajefa, Galgalo Bocha and Kalume Kazungu

BY NATION [email protected]

A stando looms between Muslims and the police over a dusk-to-dawn curfew in Lamu imposed after the death of seven people in a suspected Al-Shabaab attack.

The Leader of Majority in Parliament, Mr Aden Duale yesterday criticised the cur-few and asked Muslims to ignore it as religious leaders and Lamu politicians gave the government 48 hours to rescind the order issued on Saturday. Failure to reverse the order would force them to seek legal redress.

However, Inspector-General of Police David Kimaiyo yester-day maintained that the curfew order was in force even as Mr Duale said he had pleaded with Mr Kimaiyo to provide security for Muslims to enable them to pray in mosques during the last 10 days of Ramadhan.

The last 10 days of Ramad-han are very special days in the life of every Muslim; they are the most blessed days in the blessed month of Ramadhan, because its in the Holy month that the Quran was revealed, he said in a statement.

Yesterday, more than 500 Muslim faithful from Lamu

Island protested the curfew.Just a day after the order,

many Lamu Muslims rejected the curfew saying it would greatly affect their evening prayers. Some of them con-verged at Mkunguni Square, where worshippers from more than 35 mosques demanded revocation of the curfew.

County Commissioner Miiri Njenga said a special County Security Committee would be convened to specically ad-dress religious issues.

However, Mr Kimaiyo warned Lamu residents against ignoring the curfew without a written permit from the Lamu County police commander.

Remain indoorsEvery person within Lamu

County is directed to remain in-doors in the premises at which he normally resides, or at such other premises as may be au-thorised during the period the curfew is in force except under and in accordance with terms and conditions of a written permit granted by the County Commander, Mr Kimaiyo said in a statement.

Meanwhile, Muslims for Human Rights (Muhuri) of-cial Khelef Khalifa and Haki Africa executive director Hussein Khalid opposed the curfew, terming it an aront to Muslims freed of movement and worship.

The curfew is unconstitu-tional as it violates the freedom of worship and government failure to provide security

should not be used to punish people who have nothing to do with the ineciency of security agents, Mr Khalifa said in a statement.

He demanded lifting of the curfew to allow Muslims to

continue with their Magharib (evening) prayers and night worship as part of their Ram-adhan calendar.

The curfew, he said, would also adversely aect the activi-ties of shermen, who lay their traps after dark.

Lamu West MP Shariff Athman said the government should respect the Constitu-tion and Muslims right of worship. He said leaders met with security agents in the county and they had agreed that they consult Mr Kimaiyo.

In Nairobi, Mr Duale said Muslims supported security agents in maintaining law and order and flushing out criminals in Lamu County, but they cannot interfere with the freedom of worship by the Muslims in this Holy month.

However, Mr Kimaiyo said police had to carry on with their work.

ATHMAN OMAR | NATIONLamu residents protest over the dusk-to-dawn curfew imposed by police at the weekend.

Stando looms over Lamu curfew order

SECURITY | Majority leader asks Muslims to ignore police orders, just a day after seven people were killed in a night attack on bus

June 15 and 16: Mpeketoni and Kibaoni attacked. Fifty-one killed.June 17: Nine people kid-napped by the attackers found dead at Maporomokoni Village. June 21: Attack on Pandan-guo Village in Witu Division. Five killed, one injured.July 5: Hindi attacked and Kibiboni Village and Gamba Police Station raided. Twenty-three killed, one injured.Night of July 7: Conserv-ancy oces (Amu Ranch) attacked. Several houses and vehicles torched.Night of July 10: Attack on Pandnanguo. Houses torched, dispensary vandalised and six guns stolen from KPR.July 12: Raid at Pandanguo. Homes looted and maize har-vested from two-acre plot.July 19: Bus attacked near the Mambo Sasa Forest. Seven killed.

CHRONOLOGY

Region rocked by night raids

Due to the rising insecurity in Lamu County, I do hereby issue curfew orders... from July 20Inspector-General of Police David Kimaiyo

Residents say Kimaiyos directive will greatly aect evening prayers

Nairobi SUHUR 5.07IFTAR 6.46

Mombasa SUHUR 5.01IFTAR 6.30

Kisumu SUHUR 5.14IFTAR 6.56

Nakuru SUHUR 5.09IFTAR 6.51

Nyeri SUHUR 5.06IFTAR 6.47

Eldoret SUHUR 5.11IFTAR 6.55

Kitale SUHUR 5.11IFTAR 6.56

Isiolo SUHUR 5.01IFTAR 6.46

Garissa SUHUR 4.56IFTAR 6.36

Wajir SUHUR 4.50IFTAR 6.38

Moyale SUHUR 4.51IFTAR 6.44

Lamu SUHUR 4.52IFTAR 6.28

Malindi SUHUR 5.58IFTAR 6.29

Ramadhan Timetable

Courtesy of Young Muslim Association

20th July 2014

Yesterday, the Sunday Nation carried a story that indicated television host Julie Gichuru, dropped out of law school to pursue a degree in journalism. The correct position is that

Mrs Gichuru completed law school and has never studied journalism. We apologise to Mrs Gichuru for any embar-rassment the mix-up may have caused.

CORRECTION

DAILY NATIONMonday July 21, 20142 | National News

BY NATION CORRESPONDENT

Chief Justice Willy Mutunga has been urged to consider setting up a special court to deal with the ris-ing criminal cases related to the attacks in Lamu.

Justice Edward Muriithi said that this would assist in quicker dispensation of justice.

The judge made the remarks while reviewing the decision to release on bail a matatu driver linked to the raids.

Mr Muriithi said Mr Dyna Sulei-man will now remain at Shimo La Tewa Prison in Mombasa during the hearing until further orders are issued by the court.

The judge had earlier released Mr Suleiman, a diabetic, on a Sh500, 000 bond with three sure-ties of the same amount.

Application for bondJustice Muriithi said the appli-

cation for bond shall be reviewed after every 30 days in view of Mr Suleimans medical condition, pending trial and determination of the case.

Mr Muriithis doctor is at liberty to visit him in prison. He should make a report, which will be looked at during a review of the accuseds case, said the judge.

He said Mr Suleimans family would be allowed to provide spe-cial food for him.

Justice Muriithi said the presence of a special court would enhance faster restoration of security and maintenance of the law.

Mr Suleiman is charged jointly with Mr Mahadi Swaleh Mahadi alias Jesus, with 60 counts of murder.

Separately, a man who has been under investigation over the raids was freed on a Sh5 million bond with a surety of similar amount or a Sh3 million cash bail.

The Director of Public Pros-ecutions, Mr Keriako Tobiko, did not oppose Mr Ali Said Ahmed Bujraans application.

Form courtto deal with Lamu raids, Mutunga told

In addition to the punitive damages, the verdict also awarded more than $16 million (Sh1.4 billion) in com-pensatory damages to the estate of Michael Johnson Sr.

During the four-week trial, lawyers for Johnsons widow, Ms Cynthia Robinson, argued that the tobacco company was negligent in inform-ing consumers of the dangers of consuming tobacco and thus led to Johnson contracting lung cancer from smoking cigarettes.

They said Johnson, who died at 36, had become addicted to cigarettes and failed multiple attempts to quit smoking.

The Escambia County jury returned its verdict after some 15 hours of de-liberations.

RJ Reynolds took a calculated risk by manufacturing cigarettes and selling them to consumers without properly informing them of the haz-ards, Ms Robinsons lawyer, Mr Willie Gary, said in a statement.

As a result of their negligence, my clients husband suered from lung cancer and eventually lost his life.

We hope that this verdict will send a message to RJ Reynolds and other big tobacco companies that will force them to stop putting the lives of in-nocent people in jeopardy.

RJ Reynolds plans to appeal the court decision and verdict, vice presi-dent and assistant general counsel J. Jeery Raborn said.

The landmark award was far be-yond the realm of reasonableness and fairness, he said in a statement.

Reynolds is confident that the court will follow the law and not allow this runaway verdict to stand, said Mr Raborn, calling the damages grossly excessive and impermissible under state and constitutional law.

Smoking remains the leading pre-ventable cause of premature death in the United States, killing nearly half a million Americans each year, health

experts say. Some 18 per cent of Americans now

smoke, down from 42 per cent in the 1960s. The RJ Reynolds court verdict comes only days after its parent com-pany, Reynolds American, announced it would acquire rival Lorillard to cre-ate a behemoth aimed at conquering the growing e-cigarette market.

Recent growth in e-cigarettes, which deliver nicotine in a vapour rather than smoke, comes as con-ventional cigarette sales drop amid tight consumer spending and health concerns.

The deal could remake the US to-bacco market, one of the worlds most important, with annual sales of more than $90 billion in 2013, according to

research house Euromonitor.

With tobacco smoke claiming a life every six seconds, the tar-free, elec-tronic alternative could help prevent much of the cancer, heart and lung disease and strokes caused by the tox-ins in traditional cigarettes, a group of 50 doctors and policy experts told the World Health Organisation in May.

In January the United States marked the 50th anniversary of the rst sur-geon generals report warning that smoking caused lung cancer.

Since then, the habit has been attributed to 13 kinds of cancer and a host of other diseases, including liver and colon cancer, blindness and diabetes. AFP

Judge orders cigarette rm to pay widow Sh2.2trn over cancer death

HEALTH AND JUSTICE | Family awarded another Sh1.4 billion in compensatory damages

Willie Gary (widows lawyer): RJ Reynolds took a calculated risk by manufacturing cigarettes and selling them to consumers without properly informing them of the hazards. As a result of their negligence, my clients hus-band suered from lung cancer and eventually lost his life.Jeery Rabon (companys vice-president): The damages are grossly excessive and impermis-sible under state and constitu-tional law. It goes far beyond the realm of reasonableness and fairness.

REACTIONS

Firm, litigant in row after ruling

18 per centPopulation of Americans that now smokes. This is down from 42 per cent in the 1960s

A man smokes a cigarette in Mum-bai. In the US, a court has slapped a hefty penalty against a cigarette manufacturer for causing death. Left: Some of the brands manufactured by RJ Reynolds.

PHOTO | AFP

CONTINUED FROM PAGE 1

DAILY NATIONMonday July 21, 2014 National News 3

Sacking Atwoli, Mugo from NSSF sparks row

CORPORATE GOVERNANCE | Cabinet Secretary on the spot over decision to retire ocials from Sh126bn pension fund

BY DENNIS ODUNGA @[email protected]

Labour Secretary Kazungu Kambis decision to retire workers and employers representatives from the NSSF board has drawn wide criticism with Cotu threatening to call a strike unless the decision is reversed.

Teachers and political leaders also sharply criticised the move, describing it as irregular and in-tended to cover up corruption at the pensions fund, which manages over Sh126 billion of retirement savings for workers in both the private and public sectors.

Kambi had no powersThe Central Organisation of

Trade Union (Cotu) yesterday declared it will call a nationwide strike from August 4, if Mr Kambi does not reverse his decision to remove Mr Francis Atwoli of Cotu and Ms Jacqueline Mugo of the Federation of Kenya Employers (FKE) from the NSSF board.

The Kenya Union of Post-Primary Education Teachers (Kuppet) warned that its members would withhold their contributions to NSSF following the removal of the two ocials on Friday.

Kuppet chairman Omboko Milemba said yesterday that Mr Kambi had no powers to take such action.

We suspect Mr Kambis action is meant to cover up corruption at the NSSF, he said.

Two MPs also threatened to table a censure Motion in Parlia-ment against Mr Kambi.

Sabatia MP Alfred Agoi and his Matungu counterpart, Mr David Were, said they will table a Motion to impeach Mr Kambi.

Ms Mugo has said the FKE board will be meeting today (Mon-day) to decide its next course of action, including demanding the revocation of the Kenya Gazette notice through which Mr Kambi retired her and Mr Atwoli.

Workers representatives from 42 trade unions aliated to Cotu, led by Mr Atwoli, yesterday faulted the government for intimidating those who advocated for proper governance while glorifying those promoting mismanagement of public resources.

Mr Atwoli attributed his tribulations to his bold stand on corruption and cited his move to expose dubious deals through which, he claimed, NSSF had

lost billions of shillings in the last six months.

I am being hunted down be-cause of my rm resolve to expose thieves out to embezzle workers funds, Mr Atwoli said. He accused the Ethics and Anti-Corruption Commission (EACC) of reluc-tance to investigate the matter after its ocials were allegedly asked to go slow on the issue by inuential government ocials.

I asked the government to take auditors to the NSSF to conrm these claims after I wrote a state-ment over the Sh5 billion scandals. But someone at the EACC was told to lock the les, he said, add-ing, it was unfortunate that Mr Kambi did not have the workers interests at heart.

Popularly electedThe Cotu boss also criticised

the Cabinet Secretarys claims that he does not speak for work-ers. Kambi is being sent and whoever sent him, let him keep o, he said.

Other Cotu ocials said Mr Atwoli sits in the NSSF board of trustees as an elected leader, whose removal can only be sanc-tioned by the workers themselves, not the Cabinet Secretary. They vowed to ght the governments scheme to weaken unions by sup-porting rivals.

Atwoli was popularly elected and has the full mandate of Ken-yan workers, Kenya Electrical Trade and Allied Workers Union boss Ernest Nadome said.

Mr Kambi said that they had served longer than stipulated in law. He said he was implementing

laws enacted in February, which stipulate that a trustee can only serve a maximum of two terms, equivalent to six years.

According to him, both Mr At-woli and Ms Mugo had served in the NSSF board for 15 years. He

Mr Abdallah Wanyama (centre) demonstrates with fellow workers in Kakamega Town yesterday over Cabinet Secretary Kazungu Kambis retiring of Cotu boss Francis Atwoli from the NSSF board. The protesters asked President Kenyatta and his deputy, Mr William Ruto, to intervene.

ISAAC WALE |NATION

Cotu warns it will call a nation-wide strike on August 4 if Kambi fails to reinstate the two representatives

Labour Cabinet Secretary Kazungu Kambi said he was implementing new rules, which bar trustees from serving for more than 12 years.The Federation of Kenya Employers said the Cabinet Secretary had no powers to retire representatives elected by the federation.Cotu ocials said Mr At-wolis removal can only be done with the approval of workers themselves.

WHATS ALLEGED

Minister diers with ocials

We suspect Mr Kambis action is meant to cover up corruption at NSSF Kuppet chairman Omboko Milemba

also said Mr Atwoli had failed to attend nine consecutive meetings of the board.

I will write to Cotu and FKE to nominate new members, he had said.

Both the workers and employ-ees representatives have, however, faulted Mr Kambis interpretation of the new regulations, especially the decision to apply them ret-rospectively. There are also questions whether the minister has any power to give directives on the issue.

After the ouster of the two, only Erastus Mwongera and Cornelius Ogutu remained to represent FKE and Cotu respectively.

Other board members are Mr Is-mail Noor, the Principal Secretary for Labour, Mr Mutua Kilaka, who represents the National Treasury and Mr Daud Mohammed, the board chairman.

LABOUR DISPUTE

@NairobiWater

INTERRUPTION OF WATER SUPPLY The Nairobi city Water and Sewerage Company Ltd, would like to inform its esteemed customers of a scheduled shutdown of Gigiri Pumping Station from 6.00AM on 23rd July 2014 to 6PM on 24th July 2014. This is to facilitate water improvement works along the rising main to Kabete.

During the shutdown water supply to the following areas will be affected: Langata area and environs, Riverside, Kileleshwa The whole of Kilimani Karen Lavington, Kangemi, Mountain view, Uthiru, Riruta, Satellite, Dagoretti corner NyayoHighrise, Ngumo, parts of South C,Madaraka estate Westlands,Parklands Upperhill area, Kenyatta hospital Chiromo area and the surrounding environs Ngong and its environs Mamlaka road area

While every effort will be made to restore the normal supply of water as indicated above, we request our customer in the affected areas to use their available water sparingly during the period of interruption.

Any inconvenience is highly regretted.

Eng. Phillip Gichuki Eng. Malaquen Milgo Managing Director Chief Executive OfficerNairobi Water and Sewerage Company Athi Water Service Board


BY NATION CORRESPONDENTS

Labour Cabinet Secre-tary Kazungu Kambi was yesterday asked to reverse his decision to remove Cotu secretary-general Francis Atwoli from the National Social Security Fund board of trustees or face protests from workers.

Politicians and trade un-ionists from western Kenya said the move by the Cabi-net Secretary was evidence that there was a scheme by some senior government ocials to undermine the Cotu boss.

Mr Caleb Jumba, the western region secretary of the Kenya Building and Construction Workers union and a businessman, Mr Abdalla Wanyama, said they were mobilising workers in the region to take part in demonstra-tions if Mr Atwoli was not reinstated to the board with immediate eect.

Fight graftMr Ben Ombima, a mem-

ber of the Vihiga County Assembly, said the decision by Mr Kambi was driven by a grudge following Mr Atwolis resolve to ght graft at NSSF.

Since the labour min-ister was appointed, there

is very little he has done apart from ghting workers through the Cotu boss; we will deal with these forces unless they withdraw their onslaught against Mr At-woli, said Mr Ombima.

He told Mr Kambi to let Cotu decide who takes over from Mr Atwoli at the board.

The leaders asked President Uhuru Kenyatta to intervene in the matter to ensure Mr Atwoli and the Federation of Kenya Employers (FKE) Chief Executive Ocer Jackline Mugo are back in oce.

URP wingThey claimed the removal

of Mr Atwoli and Mrs Mugo was meant to pave way for corrupt deals at the NSSF board of trustees and that workers could end up los-ing billions of shillings.

What is happening is a clear scheme by senior ocials in government to ght Mr Atwoli for being steadfast in campaigning to protect workers money from being mismanaged, said Mr Wanyama.

Mr Atwoli claimed on Saturday that the URP wing of the Jubilee ad-ministration was behind the scheme to have him out of the NSSF board of trustees.

Cotu boss gets leaders backing

BY NATION CORRESPONDENT Teachers will resist any pressure

requiring them to save their money in a pension fund.

The decision was arrived at after Labour Cabinet Secretary Kazungu Kambi removed Cotu secretary-general Francis Atwoli from the National Social Security Fund (NSSF) board.

My Kambi also retired the Fed-eration of Kenya Employers boss, Mrs Jackline Mugo.

Kenya Union of Post Primary Education Teachers (Kuppet) na-tional chairman Omboko Milemba said Mr Kambi had no powers to take such action.

We suspect Mr Kambis decision is meant to cover up corruption at NSSF.

He wants Mr Atwoli out be-cause he has been asking questions about unacceptable practices, he told journalists in Mumias.

Giving imsy excusesMr Milemba said Mr Kambi had

no authority to re workers and employers representatives from the board.

He must come out clearly on his actions instead of giving imsy excuses, he said.

Mr Milemba wants the decision rescinded.

His sentiments come hot on heels of claims by Mr Atwoli that a top ocial in the Jubilee admin-istration had directed Mr Kambi to show him the door.

You dont have powers to sack, minister told


Two MPs have threatened to table a censure motion against the Labour Cabinet Secretary over the move to drop Cotu Secretary-General from the National Social Security Fund board.

Sabatia MP Alfred Agoi and his Matungu counterpart David Were said Mr Kazungu Kambi had no powers to drop Mr Atwoli from the NSSF.

On Friday, the Labour Cabinet Secretary also had the Federation of Kenya Employers boss Jackline Mugo removed from the board. Mr Kambi said the two ocials had served longer than what the NSSF Act allowed.

Must be respectedMr Kambi said he was imple-

menting rules that came into force in February 2014 stipulat-ing that a trustee could sit on the board for a maximum of two terms.

Mr Atwoli must be respected. The cabinet secretary should not be allowed to break the law, said Mr Agoi.

Mr Were said they would rally other politicians to send Mr Kambi home.

The NSSF board of trustees in-cludes representatives from Cotu, FKE and the Ministries of Labour and the National Treasury.

MPs vow tohave Kambi kicked out

BY JOHN [email protected] DENNIS ODUNGA @[email protected]

Workers have opposed a new employment policy that will see cabinet secretaries and principal secretaries get more pow-ers in hiring and dismissing public servants.

Cotu secretary-general Francis At-woli yesterday said the new system that allows cabinet secretaries to appoint and dismiss as they wished was against international labour standards.

It is unfair to allow cabinet secre-taries to appoint and dismiss those they wish. This is against international norms and we oppose it, he said at Solidarity Building in Nairobi during a meeting of top ocials of all Cotu-aliated unions.

Mr Atwoli accused the government of resorting to unfair labour practices meant to silence workers from de-manding their rights.

They have removed employment from Public Service Commission and placed it under cabinet secretaries. These are unfair labour practices

aimed at putting the workers in a disadvantaged position, said Mr Atwoli.

Those conversant with the new policy say if implemented, it will remove power to recruit, promote, train, discipline, dismiss and reward civil servants from centralised agen-cies like PSC and the Directorate of Public Service Management to individual ministries.

Those opposed to the Policy on Decentralisation of Human Resource Management in the Civil Service, which was launched in May, say key

stakeholders were not involved in its development as required by the law.

They say if CSs and PSs are going to be allowed to manage human resource services in ministries, it would result in abuse and promote tribalism and nepotism in hiring.

Currently, the government employs public servants through an agency sys-tem where some cadres of employees are posted centrally to ministries but supervised by the ministries.

The unionists also cited delays in the appointment of Teachers Service Commission commissioners and su-

premacy wrangles over the mandate of the National Land Commission at the Ministry of Lands.

However, Public Service Commis-sion CEO Alice Otwala has defended the new system, saying safeguards had been set against tribalism and nepo-tism when hiring under CSs.

Workers oppose plan to let CSs hirePUBLIC SERVICE | Critics say new policy will promote tribalism and nepotism

The PSC will still recruit civil servants especially those at graduate entry level, while under the new decentralisation pro-gramme, only the recruitment of those in job group A to G will be transferred to the CSsPublic Service Commission CEO Alice Otwala

REACTION

PSC defends new personnel system

Atwoli says allowing cabinet secretaries to appoint and dismiss is against best practice

EVANS HABIL | NATIONA shop steward joins Cotu Choir at the unions headquarters in Nairobi yesterday. Union leaders said workers would call a strike on August 4 if Labour Cabinet Sec-retary Kazungu Kambi failed to reinstate their secretary-general Francis Atwoli into the NSSF board.

LABOUR DISPUTEDAILY NATIONMonday July 21, 2014 National News 5

TRANS NZOIAKutuny: Opposition to blame for problems

Mistakes committed by top Cord leaders in the last regime were to blame for the current challenges, a government ocial said yesterday. The Presidents Director of Political Aairs Joshua Kutuny said criticism of the government was hypocritical. It is strange that Cord wants the mess they created resolved through a referendum, he spoke during the burial of Mzee Francis Murkomen at Chematich centre.


Former Vice President Kalonzo Musyoka yesterday urged Ukam-bani residents to rally behind him and support the referendum proposed by Cord.

Speaking during the burial of former Mbooni MP Fredrick Mulinge Kalulu in Kitundu village, Makueni, Mr Kalonzo said the ref-erendum was not optional.

We want the Jubilee govern-ment to know that referendum is not optional. We have to do it for the change in poor governance, he said.

Mr Kalonzo said that one of the major reforms to be realised through the referendum is the disbandment of the Independent Electoral and Boundaries Com-mission (IEBC).

He said lawyer Kethi Kilonzo would be one of those nominated to sit in the professional committee that will formulate the referendum questions.

Speaking at the event, Makueni Governor Kivutha Kibwana said leaders in Ukambani would follow Mr Musyoka the Wiper party leader.

But Yatta MP Francis Mwan-gangi diered with his colleagues, saying it was too soon to call for a referendum to change the Con-stitution.

Kalonzo asks for backing in vote campaign

BRIEFLY

KAKAMEGAMarende re-ignites Luhya unity talk

Former National Assembly Speaker Kenneth Marende has revived the Luhya unity debate, saying time had come for the community to articulate its is-sues through a single party. He said this was the worst time in the communitys history as it had been sidelined from the govern-ment. Mr Marende (above) was speaking on Saturday during the burial of Federal Party of Kenya (FPK) leader Cyrus Jirongos mother. He was backed by ex-Jus-tice Minister Eugene Wamalwa.

BY NATION REPORTER

Cord leader Raila Odinga will convene a joint Oppo-sition parliamentary group meeting as dierences in Wiper Party on whether to support the referendum or not, play out.

The Tuesday meeting is aimed at drumming up support for the Okoa Kenya campaign. Cord will launch structures for the drive this week.

Yesterday, Mwingi North MP John Munuve opposed plans for a referendum, say-ing it was unnecessary and also not a priority.

Other Wiper leaders including Chairman David Musila appear uncomfort-able with it. Party leader Mr Kalonzo Musyoka backs the referendum.

This country is bleeding. We have serious insecurity issues.

Where will the money for referendum come from? asked Mr Munuve.

He said last weeks Wiper parliamentary group meeting, chaired by Mr Musyoka, did not agree on a common position that the leaders would take.

In ODM, a few MPs have been boycotting meetings called to plan the referen-dum. A group of lawmakers at the Coast opposed it at

a meeting attended by President Uhuru Kenyatta in Taita Taveta last week.

Mwatate MP Andrew Mwadime (ODM) sprung a surprise when he criticised his opposition colleagues and urged the President to ignore them.

Key ODM members such as Mr Ababu Namwamba (Budalangi MP), Aden Keynan (Eldas MP), Ri-chard Onyonka (Kitutu Chache South MP), Joseph Nkaissery (Kajiado South MP) and Turkana Governor Josephat Nanok have kept o party activities.

I support the refer-endum. Failure to attend some meetings does not mean I am running away from the party, said Mr Namwamba.

Mr Keynan described as mere rumours claims that he is backing down in his support for ODM.

Raila calls meetingamid split in Wiper

This country is bleeding. We have serious insecurityissues Mwangi North MP John Munuve

BY PHILEMON SUTER [email protected]

The government has told the Opposition to forget about a referendum and give it a break from political friction.

Deputy President William Ruto said it was time Cord respected constitutional institutions and allowed the government to do its work without unnecessary public incitement.

The proposed referendum is expected to call for the disbandment of the Independ-ent Electoral and Boundaries Commission (IEBC), among other issues.

Mr Ruto said the government was committed to serving every-one, regardless to their political aliation.

We are serving all equally and equitably both in resource allocation and distribution of jobs, said Mr Ruto.

The Deputy President added: Uhuru Kenyatta and I are in charge, and we are on course. Let those making noise do because that is what they can do best. Given that they are idle, what did you expect them to do any-way? asked Mr Ruto, who was addressing faithful yesterday at Wounifer African Inland Church in Uasin Gishu County.

He was accompanied by sena-

tors Kipchumba Murkomen, (Elgeyo-Marakwet] and Isaac Melly (Uasin Gishu), Uasin Gishu governor Jackson Mandago and MPs Samuel Chepkonga (Ain-abkoi) Jackson Kiptanui (Keiyo South) and Sakwa Bunyazi (Nambale).

Mr Ruto said the time when the ruling party marginalised some regions for political rea-sons was long gone. It was, in any case, not possible under the current constitutional dispensa-tion, he added.

Mr Murkomen said Cord chiefs were misusing the refer-endum since it should only be used for a worthy cause, unlike in the current scenario, where it

is driven by a quest to rule.I want to tell Cord that there

will be no referendum in Kenya without dialogue, and they

would rather forget about it and concentrate on meaningful constructive criticism, said Mr Murkomen.

The Deputy President said the government was committed to alleviating poverty by providing a good environment for business and subsidising farm inputs.

He said the government had already allocated Sh200 million for technical training colleges in 60 constituencies and would also make sure that the remaining constituencies get them.

He challenged county govern-ments with agricultural potential to ensure that they invest in milk cooling plants to raise produc-tion.

Forget referendum, Cord toldPOLITICS | Deputy President says Kenyans treated equally in resource allocation and jobs

Ruto tells Cord to give the govern-ment a break from political friction

Deputy President William Ruto yesterday said the government had increased free secondary and primary education funds by 35 per cent. There should be no extra levies to parents and the managers of the schools should know that we are de-manding accountability from them, said Mr Ruto.

RELATED STORY

Free education funds increased

Deputy President William Ruto (in tie) studies an ar-chitectural plan of the Kipkabus Training Institute in Ainabkoi, Uasin Gishu County, yesterday. He later laid the foundation stone for the college.

PHOTO | DPPS


DAILY NATIONMonday July 21, 2014 7

BY FRED [email protected]

Anti-terrorism detectives in Nairobi are holding four people who were found with bomb-making materials.

The three men and a woman were picked up from a house in Majengo on Saturday night.

Nairobi Police Commander Benson Kibui said the materi-als could be assembled into powerful explosives.

They were arrested after our ocers were tipped-o by the public. We are inter-rogating them to establish their motives, he said.

Police said they found 11 mobile phones in the house. Handsets are commonly used by terrorists as bomb detonators.

Our officers also found

34 rolls of bhang, added Mr Kibui.

The four people are being detained at Buruburu Police Station.

The arrest comes months after police launched an operation to rid the city of terrorists and their cells.

Since the operation began in April, more than 4,000 people have been arrested. Some were deported to So-

malia, while many more were sent to refugee camps in the north of the country.

Some Muslim leaders and the Independent Policing Oversight Authority (Ipoa) have expressed discomfort at the manner in which the operation is being carried out, accusing police of high-hand-edness and corruption.

The operation was launched in April in reaction to a series of explosions targeting mata-tus and businesses.

In the latest attacks on May 16, 12 people were killed and 78 injured in twin bombings at the busy Gikomba market.

Two others died in a similar explosion in a passenger bus on Thika Superhighway.

The operation was con-centrated in Eastleigh and extended to other parts of Nairobi.

Last week, Ipoa released a damning report blaming po-lice for harassment, extortion and assault during the opera-tion in Eastleigh.

Its chairman, Mr Macharia Njeru, said the watchdog had singled out 29 police ocers whom it would recommend for prosecution.

Police arrest four terrorism suspects

INSECURITY | Public tipped the ocers

Al-Shabaab: Since Oc-tober 2011 when Kenya sent its troops to Somalia, the country has suered a record number of at-tacks, most blamed on Al-Shabaab insurgents. The worst was on September 21 last year when Westgate Mall came under siege. About 70 people lost their lives. As expected, Al-Shabaab claimed respon-sibility.

SOMALIA QUESTION

Attacks shot up from 2011

Three men and a woman picked up from a Majengo house on suspicion of making bombs

BY NATION REPORTER

Mombasa County Commis-sioner Nelson Marwa is being fought because of his war on drugs, a senator has claimed.

Addressing a press Confer-ence at the Whitesands Hotel in Mombasa, Senate Majority Whip Beatrice Elachi claimed that Mr Marwa had made a lot of enemies after stepping on the toes of no-torious people behind illicit drug trade at the Coast.

I want to thank him. He is doing a good job. He is going after drug barons, she said.

The eects of drugsI want to tell the women of

Mombasa that it is your children who are suering from the nega-tive eects of drugs. Come out and support Marwa. You must stand with him, said the nominated Jubilee senator.

She hit out at Mombasa Gov-ernor Hassan Joho for failing to support Mr Marwas efforts to stamp out insecurity.

While the County Commis-sioner is addressing insecurity and building the economy, you are trying to frustrate these eorts, she told Mr Joho.

Ms Elachi claimed the county had been unable to collect revenue to sustain its operations and it depended on subsidies from the national government to survive.

Drug dealers ghting back, says senator

PRACTICE | High rider

GERALD ANDERSON | NATIONMasalule Kituyi, 17, practises for the East African Motor Cross Championship at Jamhuri Park, Nairobi, yesterday. The event will take place on August 3.


A couple and their one-day-old-baby spent last weekend in the Thika police cells for subjecting a child to suering.

They were arrested on Saturday evening by Childrens ocers and the police at their house in Makon-geni estate. The ocers said the ve-year-old, the step-daughter of the woman, had serious wounds all over her body.

Pleas and cries from the woman did not stop the ocers from ex-ecuting their duties.

Neighbours threatened to beat up the couple if police did not take them into custody.

The small girl, who had been rescued by good samaritans, had deep wounds on the face and big scars on her back, which she said were inicted on her by the step-mother.

On the increasePolice officers had pitched

camp at the house for two days after they were told that the woman had gone to Thika Level Five Hospital to have a baby. The girl was immediately taken to a childrens home.

Childrens Department ocer Simiyu Wanyonyi said such cases of abuse were on the rise and called on the public to be vigilant.

Nobody has a right to be cruel to a child just because he or she is the guardian, he said.

The public, led by the childs teacher Monica Wanjiku, broke into the couples house on Thurs-day morning and found the girl mopping the oor.

Ms Wanjiku said she got con-cerned after the girl failed to go to school for a week.

The girl was hesitant to leave the house because she was also taking care of her four-year-old step-brother.

The arresting ocer, Ms Bilha Lichuma, said the couple would appear in court today. (KNA)

Neighbours rescue girl, 5, from cruel stepmother

BY GRIFFINS OMWENGA@[email protected]

The government lost more than Sh2.2 billion in the nancial year that ended in June 2013. Auditor-General Edward Ouko

(right) revealed that the billions went missing between the taxmans oces and the Ministry of Finance when revenue was being submitted to the national government.

Out of the total revenue of Sh815 billion collected in the period 2012/13, records showed that only Sh 812.7 billion reached the National Treasury, said the Auditor General.

The discrepancies are mainly due to unexplained and unreconciled dif-

ferences between revenue statement balances at the KRA and the records at the Treasury, he said.

In a report, the Auditor-General in-dicates that more than 99 per cent of this amount about Sh2.29 billion was lost from the money meant for the recurrent expenditure. He said Sh94 million was siphoned from the development expenditure.

It is apparent that there are per-sistent dierences in accounting for revenue which has resulted in mis-statements of the revenue records, said Mr Ouko.

More than Sh800 billion in revenues collected by KRA have incomplete or

misleading records. These are records for more than Sh373 billion from taxes on income, prots and capital gains by the taxman.

Another Sh270 billion collected from taxes on goods and service also suered the same predicament.

The nancial statements provided for the audit exercise by the various ministries, departments and agencies do not fairly present the nancial posi-tion of the Government of Kenya and its funds as at June 2013, Mr Ouko said in the report.

I was not able to fully comply with the constitutional provision of Arti-cle 229 (6) requiring that I conrm

whether or not public money has been applied lawfully and in an eective way, he said.

Mr Ouko said the government could not conrm whether or not the Sh337 billion spent in 2012/2013 was used lawfully.

The ndings paint a grim picture of how taxpayers money is used.

According to the report tabled in the National Assembly on Thursday by Majority Leader Aden Duale, the Sh337 billion came from 130 nancial statements out of 343 statements that were scrutinised. Out of these, 45 had adverse and disclaimed opinions. This represents 13 per cent of those studied by the auditors.

The Auditor-Generals report will now be scrutinised by the Public Ac-counts Committee of Parliament.

Among ministries and departments that failed to provide documents to support their expenditure for a total of Sh33.9 billion are ; Internal Secu-rity, State House, Foreign Aairs, Home Affairs, Planning, Defence, Information and Communication and Education.

Missing Sh2.2bn raises queriesRevenue collected by taxman conicts with cash given to the State,says Auditor-General

TAXES | Report will be scrutinised by the Public Accounts Committee

812.7The amount in billions that reached the National Treasury as per the record of the Auditor General

WHEELS OF JUSTICE | Accused to face burglary charges

Suspected burglars board a police vehicle at Kiamunyi Chiefs Oce yesterday after they were arrested in connection with a se-ries of house break-ins in Kiamunyi, London and Mercy Njeri areas in Nakuru County. Household items, among them television sets, radios, cookers, gas and other electri-cal appliances were recovered. They will be charged in court today.

SULEIMAN MBATIAH | NATION


BRIEFLYISIOLOTown residents appeal to KeNHA for bumps

County elders yesterday asked the highways agency to erect bumps on the main road that passes through Isiolo Town. Led by their chairman, Mr Gufu Gollo, they said motorists and boda boda riders had the habit of ignoring road signs leading to many deaths and injuries. KeNHA regional manager Justus Okoth agreed with the residents demands, but accused the county government of not identifying the ideal spot for the bumps.

EMBUTSC to the rescue of alcoholic teachers

The Teachers Service Commis-sion has started a programme to rehabilitate alcoholic tutors. TSC county director Lillian Mwangi said on Saturday that six teachers had already been taken to Math-ari Mental Home and 100 others were being counselled. She said most of the aected ones were in primary schools, especially in Mbeere. She said alcoholism contributed to the declining aca-demic standards.

MERUFarmers protest at poor state of roadFarmers have protest at the poor workmanship on the Kithithina-Mia Moja road. They said at Kithithina during the peaceful demo on Saturday that they were losing millions of shillings due to the bad state of road link to Timau, Meru and Nanyuki, which is under the Kenya Rural Roads Authority. Through their spokes-man Imathiu Muriuki, they said the poor road was negatively af-fecting the regions economy.

KAKAMEGAMotorbike gang steals money in shop raid

Robbers broke into a shop in Mumias Town and stole an unknown amount of money. Witnesses said the three-man gang arrived on a motorcycle on Sunday afternoon and shot in the air several times before enter-ing the shop where they grabbed two bags containing money and ed on the motorbike. Mumias Deputy OCPD Patrick Nyangaresi said the motorcycle and one of the bags were found in a farm.

ISIOLOGovernor tells herders to shun cattle rustling

Governor Godana Doyo has asked pastoralists to abandon cultures that promoted livestock theft and banditry. He said yes-terday that it was dicult to address the regions challenges because of conicts. These prac-tices have retarded development and led to death and destruction, he said. Mr Doyo was address-ing a security meeting at Kom, attended by Isiolo and Samburu county leaders.

BY NATION [email protected]

T he anti-drugs agency has vowed to crack down on gangs that are undermining the war on adulterated alcohol.

The National Authority for the Campaign against Drug Abuse (Nacada) chair-man, Mr John Mututho, said powerful networks are sabo-taging the ght against toxic drinks that have claimed many lives.

Nacada has an ambitious plan to defeat the criminals who have sympathisers in top government oces and in law enforcement agencies, Mr Mututho said in an interview with the Nation.

Awareness campaignThe former Naivasha

Member of Parliament told Kenyans to shun the drinks that have claimed 30 lives in Nandi and Uasin Gishu counties amid reports that some government officials knew about the sale of the toxic liquor, but did nothing about it.

Last Wednesday Nacada, in collaboration with Uasin

Gishu County Government, flagged off an awareness campaign on the effects of consuming banned alcohol in the North Rift region.

The caravan will drive through three constituencies to pass on the message against spirits and wines that are unt for human consumption.

Leaders have urged drinkers to shun unapproved sources.

Meanwhile, over 3,000 litres of kangara (a raw material for making changaa) have been conscated and destroyed in Nyahururu District, an admin-istrator said yesterday.

Maina Chief Joseph Wait-haka said the by-product of busaa was destroyed in a three-week operation to rid the area of illicit alcohol.

Speaking in his office in Nyahururu Town, Mr Wait-haka said 2500 litres were conscated in Maina Village and 1,000 litres at a den in Shamanek forest where illegal brewing takes place.

Frequent deathsMr Waithaka said mobile

phones have assisted in the ght against crime.

Separately, bar owners in Nyeri are recording low sales as customers shun spirits following frequent deaths reported in various parts of the country.

Some have reduced the prices of spirits and are also giving special oers to oset their stock.

Blue Moon Vodka is going for Sh180 for a 250ml bottle. An additional full glass is given free. Those who sell Meakins Vodka are hardest-hit as it was one the spirits that caused deaths in Eldoret.

Reports by Eric Matara, David Macharia and Stephen Muthini

Gangs derail eorts to ght killer drinks

ILLICIT ALCOHOL | Nyeri bar owners record poor sales

Mututho accuses powerful networks and public ocers of shielding sly traders

30Number of people who died after consuming adulterated alcohol in Nandi and Uasin Gishu

Nacada has an ambitious plan to defeat the criminalsNacada chairman John Mututho


Five people were killed yester-day when a lorry overturned on them at Kipkaren Market on the Webuye-Eldoret road.

Police said the empty lorry was heading to Eldoret from Webuye when the 4.45pm accident oc-curred.

Kakamega Police Commander said they suspected the lor-rys brakes had failed. It then overturned on the three men, a woman and a child killing them on the spot.

Traders warnedAt the time of going to the press,

rescue eorts were ongoing. The western region trac boss,

Evans Getembe said the accident could have been avoided if trad-ers had heeded constant calls not to sell too close to the busy highway.

Police have gone to the mar-ket on many occasions to warn the traders on the dangers of selling next to the road but our calls have always been ignored, he claimed.

Kipkaren Market is about 30 kilometres from Webuye Town.

Five killed astruck rolls into market

BY NATION REPORTER

Foreign investors and those eyeing government contracts will now be re-quired to demonstrate how many jobs they will create for the youth before being allowed to set up shop in the country.

These are some of the measures being undertaken to deal with rising youth unemployment as the govern-ment attempts to deal with a key challenge blamed for insecurity, youth disillusionment and radi-calisation, among other ills.

Major investmentsDevolution Cabinet Sec-

retary Ann Waiguru (right) said this will be guided by the National Employment Policy that is awaiting Parliaments approval.

The policy will require all major investments and projects in the country to be subjected to systematic analysis to de-termine their employment creation potential before they are adopted for implementation.

The government has also directed state

departments to conduct a similar analysis to determine the number of jobs they can create for the youth.

Ms Waiguru was speaking during the 8th Extraordinary Youth Summit on International Conference on Great Lakes Region in Nairobi to seek ways of tackling youth unemployment. Yes-terdays event was attended by youths and ocials from 12 countries.

The country, which is experiencing a youth bulge, with the population of

those between 18 and 35 years growing from 3.3 million

in 1969, to 16 million currently, has an un-

employment rate of 12.7 percent,

with 90 per cent of the unemployed l a c k i n g vocational

skills.

Other measuresinclude setting aside Sh200 billion worth of gov-ernment tenders for the youth every year, although the initiative is cur-rently suering low uptake, as only Sh2 billion has been absorbed since its launch two years ago.

The minister said training initiatives had been started to impart skills upon youth wishing to start enterprises to enable them to absorb opportunities by government

Tackling povertyThe minister revealed that the Na-

tional Youth Service has increased its intake ten-fold this year from 2,300 to 21,870, to ensure as many youths as possible benet.

Upon graduation, the youths will be used to train 227,670 others who will then undertake 4 to 6 months paid labour to improve livelihoods, she said.

The minister also cited the Sh6 billion Uwezo Fund, the Women Enterprise Fund (Sh3 billion) and the Youth Enterprise Development Fund (Sh6 billion) as some of the indicators that the government was serious in tackling poverty among the youth, women and persons with disabilities.

Waiguru tightens youth quota policy to stem joblessness tide

ROGUE | Killer bualo shot dead

JOSEPH KANYI | NATIONKenya Wildlife Service wardens moments after they shot this bualo dead at Aberdare National Park yes-terday, The beast had killed a man at Nyarugumu Village in Nyeri County earlier in the morning. STORY PAGE 19


BY KEVIN [email protected] York

Nearly 16 years after the attacks on the US embassies in Nairobi and Dar es Salaam, prosecu-tors in New York are urging a court to proceed with the scheduled trial of three men charged with involvement in the bombings.

Federal Judge Lewis Kaplan is ex-pected to rule on July 23 on a request by a defendant, Nazih Abdul-Hamed al-Ruqai, also known as Anas al-Libi, to separate his case from those of the

two other alleged bomb plotters.A total of 224 people were killed in

the nearly simultaneous blasts in the Kenyan and Tanzanian capitals on August 7, 1998.

An attorney for Mr al-Libi said in a letter to Judge Kaplan on Thursday that his client is terminally ill. The 50-year-old Libyan national, who was seized last year by US commandos near the capital city of Tripoli, may have liver cancer, the Washington Post reported on Friday.

Mr al-Libi is scheduled to go on trial in November along with two alleged associates of Osama bin Laden, who were arrested in London soon after the embassy attacks. Both men Khalid al-Fawwaz, a Saudi, and Adel Abdel Bary, an Egyptian had been detained in the UK until their extradition to the US in 2012.

Mr al-Fawwaz, 51, and Mr Bary, 54, are charged with acting as publicists for Osama bin Laden and are said to

have communicated with al-Qaeda operatives who were planning the embassy bombings.

Mr al-Libi is accused of conducting surveillance of the US embassy in Nai-robi in the early 1990s, with his photos and diagrams subsequently sent to the al-Qaeda leader for review.

Bin Laden looked at the picture of the American Embassy and pointed to where a truck could go as a suicide bomber, another member of the sur-veillance team, Ali Mohamed, testied in a US court in 2000.

Judge Kaplan is also expected on July 23 to question Mr al-Libis American

attorney about the source of the pay-ments he is receiving for his work on the case. The Washington Post and New York Times have both reported that the Libyan government is paying the attorney, Bernard Kleinman, for representing Mr al-Libi.

In a recent letter to Judge Kaplan, US prosecutors urged that Mr Kleinman be asked who is paying him to represent the defendant and what, if any, instruc-tions or advice he has received.

Outside inuenceThe prosecutors letter added that

accepting payments from someone other than a defendant may subject an attorney to undesirable outside inu-ence, and raise an ethical question as to whether the attorneys loyalties are with the client or the payer.

Mr Kleinman cautioned in response that his removal from the case would cause a delay of many, many months in the start of Mr al-Libis trial.

US pushes for trial of bombersTERRORISM | American embassies in Nairobi and Dar es Salaam were targeted in the attack

Prosecutors urge court to go ahead with hearing of the case that links three men to the August 7, 1998 attack

The number of people who lost their lives in simultaneous bombings of United States embassies in Nairobi and Dar es Salaam nearly 16 years ago

224

NAROKWithdraw regulationsdraft, Sossion urges

A teachers union has urged Edu-cation Cabinet Secretary Prof Jacob Kaimenyi to withdraw the recently drafted Basic Educa-tion Regulations, 2014. Kenya National Union of Teachers Secretary General Wilson Sos-sion (top) said the regulations infringe on the constitutional role of the Teachers Service Commis-sion (TSC). Speaking in Kilgoris, Narok during the Transmara Knut annual general meeting, Mr Sossion told the CS to expunge what he described as oensive clauses in the regulations.

BRIEFLY

KAKAMEGAUse table banking to save, says Mrs Ruto

Women have been urged to embrace table banking through their groups to eradicate poverty. Eorts to eradicate poverty can only succeed if women are part of the solution, Deputy President William Rutos wife, Rachel, said yesterday. The informal banking concept in which group members save and then get personal loans has empowered many women nancially, and is therefore key to the countrys development. Mrs Ruto spoke in Kakamega Town, where she launched the concept.


Twelve crew members of MV Jamila, among them six Kenyans, have been freed by Somali pirates.

The Seafarers Union of Kenya Secretary-General, Mr Andrew Mwangura, said they were released after the intervention of a Mogadishu businessman and a district commissioner.

The Zanzibari-owned vessel was seized after developing mechanical problems.

The ship, captained by an ex-Kenya Navy officer only identied as Abubakar from Old Town in Mombasa, was sailing out of Mogadishu when it got into trouble.

We are optimistic that our people will arrive in Mombasa this week, the ship owner said in a telephone interview.

According to sources, the businessman and the DC, Mr Brava Dhuhulow, negotiated the release of sailors, with the pirates agreeing to free the peo-ple but detaining the vessel and

the humanitarian cargo. The six Kenyans, four Tan-

zanians, a Ugandan engineer and a Somali ran aground soon after leaving Mogadishu Port for the Port of Mombasa.

They were reportedly held captive by unknown gunmen about 80km north of Mogad-ishu.

It is not the rst time the vessel has run into trouble.

Humanitarian aidIn October 2005, the ship

then named MV Miltzow, was hijacked by unidentied gunmen at the Port of Merka, 100 kilometres southwest of Mogadishu.

Cargo was being o-loaded when six armed men stormed the ship. Only 400 tonnes of the total 850 tonnes of the World Food Programme humanitarian aid remained on board.

The donation was destined for the Lower Juba Valley, which is home to some of the most vulnerable people in So-malia, who are frequently hit by droughts and oods.

Somali pirates free 12 sailors, but seize ship

RECOGNITION | A betting gift for His ExcellencyPHOTO | PSCU

First Lady Margaret Kenyatta and her Niger counterpart Dr Malika Issoufou Mahamadou (left) present a honorary crystal plaque to Namibian President Hikepunye Pohamba yesterday on the occasion of his appointment as the Goodwill Ambassador on Women and Childrens Health 2014 during the 8th Stop Cervical, Breast and Prostrate Cancer in Africa Conference in Windhoek, Namibia.

A) STATEMENT OF COMPREHENSIVE INCOME

30 JUNE 2014 30 JUNE 2013KSHS000 KSHS000

IncomeFund management fees 228,673 205,389Interest income 10,169 3,265Exchange gains/(loss) (818) 530Total Income 238,024 209,184

ExpensesProfessional fees 3,252 2,833Legal fees 56 41Employee costs 106,857 90,144Rent Expense 5,066 3,845Operational and administrative expenses 17,430 15,745Depreciation expenses 1,291 2,663Total Expenses 133,952 115,271Operating Profit 104,072 93,913Finance costs - -Profit before tax 104,072 93,913Current tax provision (31,222) (27,926)Profit after tax 72,850 65,987Other comprehensive income - -Total comprehensive income 72,850 65,987

B) STATEMENT OF FINANCIAL POSITION

30 JUNE 2014 30 JUNE 2013Assets KSHS000 KSHS000Non-Current AssetsProperty plant & equipment 6,869 6,985Deferred tax 1,618 1,586Total Non-Current Assets 8,487 8,571Current AssetsOffice cash and bank balances 177,099 157,145Clients debtors 120,333 119,659Prepayments 6,857 5,457Amounts due from related parties 71,074 19,963Other current assets 3,565 2,857Tax Receivable 6,306 -Total Current Assets 385,234 305,081TOTAL ASSETS 393,721 313,652

Current LiabilitiesTrade payables 11,504 4,277Accrued expenses 44,162 16,809Tax payable - 5,215Amounts due to related parties 55,018 32,949Other current liabilities 367 600Total Current Liabilities 111,051 59,850

Share capital and reservesPaid up ordinary share capital 38,500 38,500Share premium 137,030 137,030Revenue reserves 106,759 77,872Revaluation reserve 381 400Total Shareholders funds 282,670 253,802

TOTAL EQUITY AND LIABILITIES 393,721 313,652

C) OTHER DISCLOSURES

1. Capital strengtha. Paid up capital 175,530 175,530b. Minimum capital required 10,000 10,000 (a-b) Excess 165,530 165,5302. Shareholders fundsa. Total shareholders funds 282,670 187,816b. Minimum shareholders funds required 10,000 10,000 (a-b) Excess 272,670 177,8163. Liquiditya. Working capital (excluding all the current assets

and current liabilities in relation to clients)274,183 176,822

b. Minimum working capital required(the higher of Kshs 5M and 8% Liabilities)

8,884 5,000

(a-b) Excess 265,299 171,8224. Ratio of unsecured advances to shareholders

fundsa. Ratio as computed 0% 0%b. Maximum allowable limit 10% 10%5. Ratio of borrowings to paid up share capitala. Ratio as computed 0% 0%b. Maximum allowable limit 20% 20%6. Clients funds (where applicable)a. Total clients creditors including the amounts

payable to stockbrokers.0 0

b. Total clients cash and bank balances including amounts due from stockbrokers.

0 0

UNAUDITED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2014

Jonathan StichburyManaging Director & Chief Executive


And now for the good news... Kenya is among the top 30 countries rated as good by the Good Country Index. Surprisingly, Kenya was ranked 26th, higher than both Singapore (which was ranked 27th) and Mauritius (ranked 36th), and slightly worse than the United States (ranked 21st).

The countries that performed the worst in this index were Nigeria, Sudan, Rwanda, Libya, Vietnam and Iraq, while the best performers were Ireland (ranked the highest for prosperity and equality), Finland, Switzerland, the Netherlands, New Zealand, Sweden and the United Kingdom (which ranked highest for science and technology).

Sceptics may wonder how Kenya managed to get such a high score, given that it performs dismally in almost all other measurements, such as the UNs Human Development Index, which looks at things such as per capita income, literacy rates and access to health.

It could be because of the way the index is computed. Developed by Simon Anholt, an independent policy advisor, the index ranks countries in the following seven areas: Science and technology; culture; international peace and

security; world order; planet and climate; prosperity and equality; and health and well-being.

The ranking was created by merging 35 data sets produced by organisations like the United Nations and its various agencies over a three-year period.

While Kenya is not performing too well in many areas, it seems to be doing pretty well in the areas of international peace and security (ranked 20th) and prosperity and equality (ranked 16th).

It is doing even better than India (which got a ranked 81st) and China, which surprisingly, was ranked 108th. Both India and China are doing badly in two critical areas: planet and climate and prosperity and equality.

Development experts are likely to dismiss the index for failing to recognise that both India and China have made great strides

in spreading prosperity in their countries and in taking steps to reduce inequality.

Anholt says that is precisely the point both countries only focused on their domestic agendas and have not performed well vis--vis their international obligations. Moreover, to become competitive and prosperous, both countries have contributed negatively to the environment.

GDP and per capita income also do not seem to have been key to determining ranking. For instance, Germany is not among the top ten most good countries (goodness, says Anholt does not equate with morality but has more to do with selessness) because the index penalises countries involved in the arms trade and in conicts abroad, probably the reason why the United States also scored relatively badly.

So should we bring out the champagne?

Not yet. If the index was computed today, Kenya may not perform so well in the area of peace and security, given its militaristic foray into Somalia and the increasing threats of terrorism at home. With the rising cost of living, its ranking in the area of prosperity and equality may also go down.

And if there was an index

for bad manners and poor customer service, Kenya would be ranked very low. Kenyans are notorious for not returning phone calls, even when they are of a business or ocial nature, for not replying to e-mail messages in a timely manner, for being mean to fellow motorists, for not giving way to people with special needs, for throwing rubbish out of moving cars, and for not caring about noise pollution, which has reached epidemic proportions in some estates.

I recall a freelance estate agent telling me she does not deal with small-time ats and that she only has time for big houses in rich neighbourhoods. You can be sure I will never be calling her again, even if I one day own such a house and need her services.

As for telephone manners, I have lost patience with rude operators and receptionists, including, of all places, at the UN oces in Nairobi, where it is almost impossible to get an operator or receptionist to pick up a phone.

As for the hate speech propagated by Kenyans on social media, it makes Rwandas former Radio Milles Collines sound like a Sunday sermon.

[email protected]

Sceptics may wonder how Kenya got such a high score, given that it performs dismally in almost all other measurements

WHEN NEWS IS TOO GOOD . . . | Rasna Warah

Kenya ranked among top 30 good countries, but hold the champagne

Directive on jobs for youth wise and timely

T he new directive requiring foreign investors to show how they will create jobs for youth before being allowed to set up shop is a welcome development if implemented fairly.

What it means is that those seeking licences will have to plan how they can help to address the job shortage that has created social discontent which has, in turn, made young people vulnerable to radicalisation.

For a long time, one of the biggest challenges facing the country has been that it churns out a large number of trained youths who cannot nd jobs despite the investments their parents and the government have made in educating them.

This has, in turn, led to a plethora of social problems arising from disillusionment, including drug and alcohol abuse and crime. Attempts to resolve these challenges by creating a fund for youth to start businesses and for a quota of government tenders to be reserved for them have not been successful because the rules for accessing the money are too restrictive.

As such, requiring foreign companies to come up with job creation strategies will help address these challenges by creating jobs in the formal sector including banks, extraction and value-addition industries, aviation and other technical elds.

What is required, however, is to ensure the otherwise noble idea is not abused by politicians and technocrats to create jobs for their relatives because this will end up entrenching the very inequality the directive is meant to address.

This has been a major problem in the public service because many people in positions of authority have succumbed to the temptation to use their oces for unfair gain either for themselves or those associated with them.

Sports facilities derelict

For the rst time in almost a decade, Kisumu residents enjoyed competitive football when Gor Mahia took on GFC 105 in a GOtv Shield match at the Moi Stadium on Saturday.

That the people of a town whose love for the sport is renowned have been starved of their favourite pastime for that long due to derelict sporting facilities is bad enough.

But more worrying is that Kisumu is a classic example of the wanting state of sports facilities in the country, Kenyas ambition of hosting major championships in the future notwithstanding.

It is not lost in the minds of sports fans that the Jubilee governments pre-election promise of building ve stadiums in the country remains unfullled.

Eorts by county governments led by Machakos to put up sports facilities are commendable, although they are not sucient.

The National Government must still be held accountable for its pre-election pledge of elevating the standards of sport.

Kenya will only uphold its age-long status as a global sporting powerhouse if sound infrastructure is built to catalyse the development of sports. The onus lies with the government.

A PUBLICATION OF NATION MEDIA GROUPLINUS GITAHI: Chief Executive Ocer

TOM MSHINDI: Ag. Group Editorial DirectorMUTUMA MATHIU: Group Managing Editor

Published at Nation Centre, Kimathi Street and printed at Mombasa Road, Nairobi by Nation Media Group Limited

POB 49010, Nairobi 00100Tel: 3288000, 0719038000. Fax 221396

[email protected] at the GPO as a newspaper

DAILY NATIONMonday July 21, 201412 | Opinion

Recent events in the country should have taught all of us, politicians and non-politicians alike, the need to reect on the direction we want the nation to take. Sadly, our political class refuses to heed this urgent need.

Many citizens are beginning to realise that it does not matter on which side of the widening political chasm you belong, when the ship sinks as it well might, we shall all sink with it.

Political brinkmanship as we are witnessing now is both reckless and ill-informed. Reckless because it is brings the country close to violent conict. Ill-informed because good political posturing requires that the one performing it has a comfortable majority rating to rule, or to overturn a sitting government.

The Jubilee government cannot claim to have a majority rating, nor can the Cord alliance. The country is thus suspended in a political hole from which all citizens, particularly politicians, must pull it.

The push by Cord to hold a referendum is unfortunate as it plays on the same things that divide the citizens. Coming soon after a polarising election, such divisions can only entrench themselves so that the very things the move seeks to correct only become institutionalised.

The government is charged with holding the country on an even keel, managing security and driving

development programmes throughout the nation evenly. It must not be seen to govern only certain areas.

Sadly, the impasse is not being helped by most of the so-called peoples representatives. The Senate, whose primary responsibility was to strengthen devolution, is gradually killing it.

Parliament, the so-called peoples representative assembly, has been busy reversing the very gains citizens have sought for the last 50 years. Upstart politicians in the Senate, the National Assembly and the emerging army of digital defenders of the status quo only muddy the already troubled waters.

Devolved county governments with the tacit approval of the National Government have been roped into emasculating the nascent Constitution.

Little wonder that, however

inopportune, calls for a national referendum are gaining some legitimacy.

So, what is the way forward? Political posturing must rst of all stop. The intransigence evident among those in oce should end. When that happens, the Opposition must assume its mandate of constructive engagement with a view to safeguarding democratic gains.

Also, when citizens voted for a new dispensation, a critical component was to devolve power and resources to the grassroots. What informed this thought was the previous skewed distribution of national resources. Today, Parliament seems to be determined to bring back control to the centre.

At the county level, elected representatives have misinterpreted devolution. Far from being peoples servants as intended, MCAs have become little tin gods, and have only devolved corruption, abuse of oce and wastage.

The bigger responsibility, however, is on the President. He must rise above the noise generated from within his ruling coalition, separate his business associates from government, and realise that he is the President of the whole Republic. Only then can we start the long journey to national cohesion.

Mr Masidza is a communications consultant. ([email protected])

DEVOLVED MEDIOCRITY | Isaak Masidza

Politicians driving the nation to the brink

Devolved county governments with the tacit approval of the National Government, have been roped into emasculating the nascent Constitution

GET ON WITH IT | Robert Ndege

Since the night of June 15, devastating terrorist attacks have been unleashed on the villagers of the coastal region leaving, by some counts, more than 80 people dead.

Following the Westgate attack last September, Kenya has been hit by numerous grenade and improvised explosive devices (IED) attacks across the country.

Previously, the government blamed these attacks on Al-Shabaab. President Kenyatta, in a speech to the nation on June 17 after the rst attack in Mpeketoni, blamed the atrocity on local political networks even after Al-Shabaab claimed responsibility.

There were strong hints in President Kenyattas speech that the opposition Cord Coalition bore some responsibility for the attack, with reference to the latters charged election-style rallies across the country demanding an amorphous national dialogue, now turned into demands for a referendum.

Unfortunately, that statement by the President shifted focus to the usual rumour and innuendo that dominates Kenyas political discourse.

Left largely unscrutinised was the state of our security apparatus from intelligence gathering, analysis and

dissemination of actionable intelligence, deterrence and emergency response mechanisms.

The President indicated that security agencies had prior intelligence warning of an impending attack in Lamu and that local security ocials failed to act on it.

It is unfortunate that such a telling revelation was not the focus of greater debate, since it raises the important issue of where the buck stops. Surely when there are threats of attacks of such a scale, it cannot fall on county level police commanders to strategise and execute deterrent or emergency responses!

Even if it did, there should have been a higher level oversight to ensure there were

sucient preparations to counteract imminent attacks.

Reportedly, some of the attacks have lasted for hours on end with vulnerable residents left to their own inadequate devices. As if to drive the point of our collective vulnerability home, the attackers have even targeted police stations.

How does this happen in a self-respecting nation?

Forget the cause or the nancier of the attacks, be it local political networks or Al Shabaab; the attacks should not be allowed to occur, and if they do, the response needs to be much better.

During celebrations to mark national holidays, Kenyans are treated to a show of force from our disciplined forces, including impressive stunts from air crews.

If local police presence at the coast is inadequate at the hour of need, why then are reinforcements not own in from whichever corner of the country to where they are required?

An hour-long criminal siege in any nook of the country should be unacceptable, leave alone the ve- to eight-hour sieges that have been reported.

The security response should have been much better and must get better very soon if Kenya is to deliver the dream of a better existence for its citizens and maintain its

respect among nations.After the Westgate attack in

2013, the words never again were on the lips and Twitter handles of many a government ocial. Unfortunately, the attacks in the coast region clearly demonstrate that not much has changed and the brave words of senior government ocials ring hollow.

When Al-Shabaabs big brother, Al-Qaeda, rained terror on the US in September 2011, the country reassessed its security preparedness and constituted the cabinet-level Department of Homeland Security to specically deter and organise responses to internal terror threats.

The time is ripe for Kenya to do a similar re-evaluation of the capabilities of our security forces to deter and respond to the obvious security risks that face us.

Critically, coordination between the various security agencies must be tightened and clear rapid response mechanisms set in place.

Failure to that, the dark list that includes Westgate and Mpeketoni will only grow longer and the promise that Kenya obviously holds will remain a distant one.

Mr Ndege is a consultant with africapractice, a leading Pan-Af-rican strategy and communica-tions consultancy.

After numerous attacks, time is ripe to re-evaluate Kenyas security apparatus

An internally displaced woman fends for her family in Lamu.

A youthful would-be police recruit is examined.

THE CUTTING EDGEBY THE WATCHMAN

REFUND CAUTION MONEY. A very disturbed guardian, Sammy K, would like to know from Education Cabinet Secretary Jacob Kaimenyi just how long it should take a school to refund caution money after a student has completed Form Four. Well, he and other parents of the students who sat their KCSE exam at Nyahururu Elite School last year have not got refunds of the caution money they paid, even after having been asked to provide our bank account numbers. Having held the money for four years, why not refund immediately on completion? he asks.

E-mail: [email protected] or write to Watchman

POB 49010, Nairobi 00100Fax 2213946

JAM TOO HEAVY. For the past two weeks, Manu Shah says, there have been terrible trac jams on Jogoo Road in Nairobi in the evenings, especially between the Likoni Road junction and the City Stadium. A distance of only 1.5 kilometres takes nearly an hour, gobbling up lots of fuel and man-hours and exposing motorists and their passengers to deadly fumes. The contractor working on the road, he demands, should be asked to speed it up. Manus contact is [email protected].

MARRED BY FRAUD. The just-concluded recruitment of police ocers was marred by corruption, charges Abdikadir Aden-Devii, adding, however, that it has conrmed the high level of unemployment that is aicting the youth of the country. Abdikadir is not amused at a recruiting ocers claim that some people could not be enlisted because they have at feet and, therefore, cannot walk for long. That is one of the imsy excuses being used to unfairly lock some people out of jobs.

DISAPPOINTED. The recruitment left many able youth very disappointed, says Jimmy Ndirangu, upset about the unfair conditions set. I believe that most of the young people who turned up were in good health, but failed because they were not familiar with the methods used by the recruiting ocers. Singling out running, Jimmy says, this disadvantages some communities. The idea of height, body mass, and running ability as the criteria for picking good police ocers should change.

ESTATE A DUMP. The National Environment Management Authority, Harambee Sacco and Nairobi City County government have abdicated their respective roles in ensuring a clean environment for the residents of Doonholm in the Eastlands, says Florence Ambuche. She is accusing the three of failing to stop the dumping of waste and growth of slums on Harambee Saccos Phase B plots. Please, ensure that the garbage is cleared, urges Florence, whose contact is [email protected].

THEY WERE ALL GREAT. The World Cup in Brazil has conrmed that the days of giants and underdogs in football are over, remarks Antony Kabiro. According to him, with diligent preparations and determination, any of the teams that qualied for the nals was capable of winning the trophy. It was even more apparent, he adds, from the last 16, as most of the matches went into extra time and others were decided on penalties. Costa Rica, Belgium, Chile, Algeria and Nigeria, he argues, put up credible shows. His contact is [email protected].

Have a competitive day, wont you!

DAILY NATIONMonday July 21, 2014 Opinion 13

SATURDAYS QUESTION

What is your opinion on the Sh337bn spent in last Kibaki year?DENNIS JOHNSTONE ONYINO: We need to know more.JAMES NJAU: That is peanuts. Id guess it is much more. All former Kanu administrations, including the current one, are propped up by cor-ruption and theft of national and nat-

ural resources. I expect much worse from the current administration as it is the pearl if the Kanu hegemony. And this is despite the new constitu-tional order, which it is trying hard to dismantle. In one year, it has emascu-lated virtually all government organs, including constitutional commissions,

by denying them funds.CHRISTOPHER KIBIWOTT: It will certainly happen again and again be-cause no action is ever taken against those involved. The government through Parliament and its tyranny of numbers will sweep everything under

the carpet. The media will fear talking and the cycle continues as millions starve. Very sad to be Kenyan!ODHIAMBO OBARE: Its a serious indictment on the Kibaki administra-tion, the underpinning factor being corruption and ineptitude.

DEBATE QUESTION

Is the government justied to send civil servants home over wage bill?Send your comments to: [email protected]

Each year, thousands of patri-otic Kenyans look forward to serving their country as po-lice ocers. When the recruitment dates are announced, they start ex-ercises, given the historical anity towards punitive recruitment.

Others cross their ngers, while some pray and hope the recruit-ment will identify men and women of integrity who are not just after serving their interests.

Time and change go together, because ultimately, if you do not change with time, especially in matters of security, then the crimi-nal elements will outsmart you.

For as long as I can remember, recruitment to the Kenya police force is dened by two things: cor-ruption and physical tness exam-ined through rigorous exercise.

Run many milesWhile I can understand that so-

ciety has accepted and moved on, to the fact that corruption is part of what denes who we are and how we carry our business, I cannot comprehend why the recruitment process is still dened by who can run many miles.

In a digital regime, we ought to do better. We should be using mod-ern technology to test the tness of individuals but this should even come as the last item on the proc-ess, carrying the least weight.

What we need more, during the recruitment is keen attention to de-tails of people who can work for the force and not against the force. We need police ocers who are able to make plans and execute strategies

and I want to believe this can only be attained by those willing to place country above self, and not those who made it on the basis of paying a bribe or being an athlete.

I am not saying it is wrong for potential police ocer to be physi-cally t and able; but we should use a process that also tests reasoning ability and common sense.

Endurance and physical agility can be trained over time, but in-tegrity and reasoning can hardly be taught. Yet these are some of the basic concepts missing from the police today.

It is worth noting that in a coun-try like the United States, before a

recruit is subjected to physical exer-cises, he has to go through various tests that are aimed at checking the integrity and capacity to serve in dicult circumstances. In fact part one has to pass a polygraph before getting to the health checks.

I have asked myself time and again what we can do to improve the image of the police, but I keep going back to the fact that this is a system, and within this system are people who are churning millions of shillings, so long as the status quo remains. To expect change in the recruitment process is to be nave.

MUKURIMA X. MURIUKI, Los Angeles

To the editorThe editor welcomes brief letters on topical issues. Write on e-mail to: [email protected]. You can also mail to: The Editor, Daily Nation, POB 49010, Nairobi 00100. Letters may be edited for clarity, space or legal considerations.

SHORT TAKESTALKING POINT

Focus more on candidates reasoning capability during police recruitment

FILE | NATIONWomen who turned up for police recruitment interviews at Kamukunji Grounds in Nairobi board a police vehicle to the venue of a road race to test their physical tness.

Emails from correspondents

Flowers alone will not restore the beauty of Nakuru CountyIn June and July, small scale business owners have

faced the full wrath of the Nakuru County Council, which has demolished thousands of business struc-tures, terming them dirty dens harbouring criminals.

The move to clean up the city and return it to its former glory is not a bad thing, but how it is being done is quite wrong. Most of the businesses destroyed belong to people who live from hand to mouth. They may not be the entrepreneurs you see on television but they are making their families survive. These are also the people who nance the county by diligently paying their rates. But what were once their oces have now been replaced with owers.

So what should have been done? I believe in com-

munication. The county government should have held meetings with the business owners and told them of their plans to improve the town. Brainstorming works wonders as the ideas come from the people themselves. You simply dont wake up and demolish someones source of rent, fees and food.

The other thing could have been to secure land in dierent estates like Shabab, Langa Langa, Race-course, Kiti, Mawanga, Kiamunyi, London and turn them into trading centres.

Flowers alone will not restore the beauty of the town. Training the rude rate collectors on how to communicate alone, can yield better results.

MERCY OPANDE, Nakuru

I am responding to Stanley Nganga (Nation, July 17) who makes Israel seem like a puppy surrounded by rabid wolves. Yet the Haganah and Irgun that later became the Israeli Defence Forces were in fact terrorists, who attacked British and Arab targets, and played a role in the King David Hotel bombing.

They achieved their goal of sabo-taging British rule. They then turned on Palestinians, burning and pillag-ing their land to chase them away and create space for incoming Jewish immigrants. The myth they cre-ated that they fou

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Daily Nation July 21st 2014