The tribulations of the family of Martin Steyn- the main shareholders in Nguruman Ranching Ltd on the boundary of Narok and Kajiado counties- are food for thought on where we are going in terms of maintaining an enabling environment for private investment.
Because the Steyn family is Caucasian, the invasion of the ranch resembles the invasion of white farms in Zimbabwe several years ago.
The wanton destruction of private property, the barricading of the airstrip by youths carrying bows and arrows- and burning of facilities developed over a period of 20 years- is a grotesque display of lack of respect for private property.
Make no mistake, the problem the white family and their co-shareholders are encountering is not a genuine rebellion by ordinary Maasai peasants agitating for land rights.
This whole thing is about manipulation of community politics by local oligarchs interested in taking over the business. It is about devolution of corruption.
We have new insight into the tactics and exploits of the local elite: how Nairobi-based and politically-connected elites are setting themselves up to extort rents from the booming business of exclusive cottages and tents- hitherto dominated by white business interests.
Nguruman Tents and Lodges has been involved in tourism conservation and mixed farming. It was developed as an exclusive property that mainly hosts famous movie stars and royal families.
It was created for well-known personalities who want to hide from the rest of the world.
A few months ago, a similar property within the vicinity, Shompole Lodges suffered a similar fate. It’s proprietor, Anthony Russel- has a horrifying story to tell.
I am a strong supporter of devolution. But we must accept that one of its negative aspects is the fact that it is beginning to breed parochialism.
The Constitution has also left the populace with an exaggerated sense of rights- referred to as the “Haki Yetu” phenomenon.
The national government is not exerting enough authority to protect and defend its obligations to private property and investment.
It is a perfect environment for the games the political elite in Narok and Kajiado are playing right now.
Today, an investor operating in rural Kenya must deal with multiple power-seekers and pretenders to power, all of whom seek to be recognised as the authentic representatives of the people.
The new realities have made the investment climate in rural areas unpredictable. And I am not saying that the investors don’t have to respect local communities. Indeed, the trend in the world today is that companies implementing massive projects in the countryside must support community projects and offer jobs to area residents.
Today, institutions such as the World Bank and the African Development Bank will not give you a cent if you do not produce a comprehensive strategy of dealing with what they call “Project-Affected Persons”.
You can’t get a cent from these international lenders if you don’t come up with a comprehensive ‘Settlement Action Plan”, produced after wide consultations with local leaders.
I have argued before that with the advent of devolution, engagement with local communities will have to go beyond run-of-the-mill social responsibility projects — a primary school here, bursary funds there and a women income generating project there.
The realities today demand community social responsibility programmes that go beyond mere gestures.
Still, what has happened to the Steyn family in Narok is unacceptable by any standards. It is confiscation of private property.
We need to disabuse communities of the notion that they have more rights and entitlements to assets built by private capital within their regions.
Indeed, some of those local politicians pretending to be championing community interests are extortionists.
Local communities will have to get a fair share, but we must remind them that in terms of attracting private investments, we are in competition with other countries.
@jaindikisero
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
