How power and wealth are joined at the hip in Kenya

One out of five wealthy Kenyans boasts strong ties with the political families that have produced the country’s first four presidents or their rivals.

The Kenyatta, Moi, Karume, Kibaki, Odinga, Nyachae, Kulei, Biwott, Saitoti and Mwau families are mentioned among the wealthiest Kenyans.

The Wealth in Kenya 2014 report by consultancy New World Wealth says that 20 per cent of ultra high net worth individuals or 21 out of 105 individuals with wealth exceeding $30 million have some political clout.

Part of their wealth includes huge swathes of land, with the Kenyatta, Moi, and Kibaki families being some of the largest land owners in Kenya.

“We estimate that politically connected elite control over 50 per cent of Kenya’s wealth,” says the report.

Corporate governance crusader and Capital Markets Authority chairman Kung’u Gatabaki says many Kenyans made their wealth during scandals engineered in the regimes of the first three presidents such as the Ken Ren Fertiliser Factory, Goldenberg and Anglo Leasing scandals.

“There was very little political governance. Many people abused their positions of powers and their offices,” Mr Gatabaki said.

READ: 8,300 billionaires control two-thirds of Kenya’s wealth

The poor governance in the political arena, he said, later spread to parastatals and the private sector and is evident today in open fights between directors and executives.

“Without governance in the political arena you cannot have governance in the corporate arena,” said the CMA chair.

However, economist X N Iraki says the relationship between wealth and politics is not exclusive to Kenya.

“There has always been (that relationship), even in developed countries. Remember Americans in Iraq? First government is a source of business, with lots of purchases,” said Dr Iraki.

He notes that some politicians, such as the late John Michuki, have built businesses that have employed Kenyans. Mr Michuki founded the Windsor Golf Hotel and Country Club.

Senior government officials are also privy to highly valuable information such as regulations and planned policy.

The report, however, says that the marriage between politics and the economy must come to an end for the benefit of the 43 million Kenyans.