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Country Commercial Guides for FY 2000: Kenya Report prepared by U.S. Embassy Nairobi, released July 1999 Note*

CHAPTER III:   POLITICAL ENVIRONMENT

A.   OVERVIEW OF KENYAN POLITICS AND GOVERNMENT

Kenya has had an elected civilian government since independence in 1963. It became a de facto one-party state not long after attaining self-rule and was a de jure one-party state between 1982 and 1991. On December 2, 1991, multiparty politics were reintroduced.

President Daniel T. arap Moi was reelected in 1997. President Moi's Kenya African National Union (KANU) won a plurality of total votes in the 1997 presidential and parliamentary elections, and currently holds a majority of 119 of 222 seats in the unicameral National Assembly. While observers considered the 1997 elections imperfect, they concluded that the vote broadly reflected the popular will.

The 1997 elections came amid significant popular demand for constitutional and other reform. In response to this pressure, members of the National Assembly established an Inter-Parties Parliamentary Group (IPPG), which formulated a number of reforms to expand Kenya's democratic space. Parliament passed the proposals into law in late 1997. The Constitution of Kenya Review Commission Act, passed in 1997 and extensively revised in 1998, set out a complex schedule for national consultations and the drafting of a new constitution. The political parties, however, have not been able to agree on how to implement the Act. Civil society, religious groups, and various non-governmental organizations continue to press for constitutional reform, but are not always in agreement on how to proceed. As a result, the constitutional review process is now stalled.

The debate on constitutional reform is complicated by fast-approaching presidential and parliamentary elections. President Moi has stated publicly that he intends to step down after general elections in 2002, as required by the current constitution. On other occasions, however, the president has left the door open to staying in office, and some ruling party officials have urged the president to do so. Both the constitutional review process and the question of presidential succession remain subjects of intense political speculation, and the situation is likely to remain fluid through 2002.

B.   POLITICAL RELATIONSHIP WITH UNITED STATES

The United States has maintained cordial relations with the Government of Kenya since just before independence, and the United States has given Kenya substantial amounts of development and military assistance. Good bilateral relations reflect, in part, the relative stability that Kenya has achieved since independence, while most of its neighbors have been involved in serious domestic or international conflict. Kenya and the United States have cooperated most recently in providing emergency assistance to Somalia, southern Sudan, and Rwanda. The U.S. maintains a military access agreement with the Government of Kenya.

C.   MAJOR POLITICAL ISSUES AFFECTING THE BUSINESS CLIMATE

Internal politics influences the Kenyan business climate. High level corruption is pervasive. Politically motivated appointments to ministries, parastatals, and financial institutions, including the Central Bank of Kenya, often render these institutions less effective. Tenders are often awarded on the basis of political connections. The government began in mid-1999 a process of reform meant to improve governance. This included the appointment to key senior civil service positions of reformers dedicated to good governance. Although these appointments were welcome moves, it is too early to tell what the outcome of these changes will be.

The United States, in cooperation with the Government of Kenya, has implemented a special assistance program to help resolve these problems of governance by promoting government accountability; a responsible, effective parliament; and strong, independent institutions within civil society. In 1998, the Government of Kenya established the Kenya Anti-Corruption Authority, with broad powers to investigate and prosecute officials suspected of corruption. The KACA, however, has yet to demonstrate its effectiveness.

There is a significant ethnic dimension to Kenyan politics. Among Kenya's 42 ethnic groups, the long-dominant Kikuyu are now largely aligned with one or two opposition parties. The Luo, another large ethnic group, are likewise aligned with an opposition party, whose leaders, however, have struck an alliance with President Moi. Smaller ethnic groups, perhaps fearing domination by larger groups, have for the most part sided with President Moi and the ruling KANU party.

Ethnic differences sometimes unite with land pressures and other factors to produce significant violence. Between September 1991 and September 1994, over 1,000 Kenyans died in "ethnic-land" clashes. Many more were injured or maimed, and tens of thousands were displaced, mainly from the Rift Valley. There have been further, if smaller scale, outbreaks of ethnic violence in the Rift Valley and Coast provinces each year since 1997. Ethnic factors play a role in periodic instability along Kenya's borders with Uganda, Sudan, Ethiopia and Somalia, where cattle rustling and tribal conflict frequently lead to loss of life.

Often neglected in this context is the small, but crucial, business community of South Asian origin that dominates Kenyan business and is linked internationally to other South Asian businesses. This group tends to stay out of politics and to operate behind the scenes. Although resentment against this group has never resulted in major anti-Asian outbreaks, appeals to incitement against this community took place in September 1994. The community was also targeted during the 1982 coup attempt.

D.   BRIEF SYNOPSIS OF POLITICAL SYSTEM, SCHEDULE FOR ELECTIONS AND ORIENTATION OF MAJOR POLITICAL PARTIES

BASIC POLITICAL SYSTEM

PRESIDENT:     His Excellency Daniel T. arap Moi

VICE PRESIDENT:     The Honorable George Saitoti

CABINET:     Fifteen cabinet ministries

GOVERNMENT

Centralized, largely modeled on British pattern. Central government administrative control exercised through a system of commissioners appointed by the President for the eight provinces and 69 Districts. Kenya is a member of the Commonwealth.

LEGISLATURE

Unicameral. Consists of 222 voting members, including 12 nominated according to political party representation in the National Assembly. Attorney General and Assembly Speaker are ex-officio, non-voting members. Procedures generally follow British pattern. Legislative term is five years.

PARTIES

There are ten political parties represented in parliament: the ruling Kenya African National Union (KANU), the Democratic Party of Kenya (DP), the National Development Party (NDP), the Forum for Restoration of Democracy-Kenya (FORD-K), the Social Democratic Party (SDP), Safina, the Forum for Restoration of Democracy to the People (FORD-P), the Forum for the Restoration of Democracy-Asili (FORD-A), Shirikisho and the Kenya Social Congress (KSC). President Moi, re-elected to a five-year term in 1997, belongs to KANU. KANU also holds a majority of seats (119) in the assembly. DP, the next-largest party, has 38 seats.

The Islamic Party of Kenya (IPK) has never been registered due to Kenya's ban on political parties with an ethnic or religious base. A score of other parties exist but have no representation in parliament.

ELECTORAL SYSTEM

Universal suffrage exists for all citizens over 18. Voting is by secret ballot. The Electoral Commission of Kenya, which is appointed by the government, supervises elections. Kenya's next general election must occur by law by late 2002.