The fortunes of one of Kenya’s iconic enterprises, Uchumi Supermarkets, best illustrate how greed and corruption can tear apart an institution. Forensic reports show how those charged with the leadership of what was once the biggest retail store in the region plundered and then left it for dead, literally.
There are ongoing efforts to resuscitate Uchumi. It started with the change of management, which saw Julius Kipng’etich, famed for turning around the fortunes of Kenya Wildlife Service, taking over as CEO. Meanwhile, Government’s plans to give a Sh2 billion bailout are at advanced stage. Uchumi’s fall has all the hallmarks of a mismanaged business that often ends in loss of livelihoods and disrupted careers.
The chain has had to lay off workers, disappoint suppliers with late or non-payment of goods and services, leading to the collapse of a dozen other businesses. Uchumi’s is a case study of unbridled abuse of office and wanton corruption: Unchecked corruption brings down institutions. Yet corruption is in the headlines, again. No doubt, corruption is eating away at the soul of the country. The frightening case of a quack doctor unearthed in Nandi last week just shows how deep corruption has gone. It is no longer about scheming off money from a lucrative tender.
By any measure, Kenya is a land of incredible promise, boundless hope and great opportunity. But Government (Executive, Judiciary and the Legislature) remains unclean, slow-moving and ill-at-ease with being held accountable. According to the World Bank, a staggering 250,000 jobs are lost each year because of corruption. That literally eats up the country’s GDP; it is killing Kenya’s future.
When former British High Commissioner Sir Edward Clay addressed a group of British investors in Nairobi in 2004, he said corruption accounted for about 8 per cent of the country’s GDP. Going by the brazen nature of those on the take a decade later, that figure could be higher. Yet it is disheartening that instead of confronting the corruption monster, leaders are playing ping pong about it. The ruling Jubilee coalition and the Opposition CORD coalition are trading accusations about corruption.
It is symptomatic of our leaders to play the victim card when issues of financial probity are brought up. After running out of what to blame, they have turned on IFMIS, a software that has ensured that every expense of public money is traceable to the last coin. Whereas it is somewhat believable that IFMIS, the financial management solution is compromised, nobody can rule out foul play and that corruption is fighting back, viciously. That notwithstanding, questions about the integrity of IFMIS must be addressed promptly.
Secondly, reports that mega projects are easy conduits of corruption should be taken into serious consideration. Because we cannot do away with development projects, it could be that the matrix that makes it easy to steal public through these projects have to change. Just as we demand action on those who have stolen from Uchumi, we equally ask for swift, punitive sanctions against those who have stolen from the taxpayer. That should include recovery of proceeds of corruption from the culprits.
To achieve this, building strong institutions offers the surest way of fighting corruption. That means reinforcing the Ethics and Anti-Corruption Commission, the Directorate of Criminal Investigation, the Directorate of Public Prosecution, the Police Service and the Attorney General’s office all deemed as the weakest links in the fight against corruption.
The Standard Group Plc is a
multi-media organization with investments in media platforms spanning newspaper
print operations, television, radio broadcasting, digital and online services. The
Standard Group is recognized as a leading multi-media house in Kenya with a key
influence in matters of national and international interest.
join