Mergers make political parties democratically competitive

By Koki Muli

The Political Parties Act (PPA) principally dealing with political parties allows for mergers.

PPA is a creation of the Constitution, which contains the principles and values that govern political parties.

Article 11 (PPA) provides that mergers must accord with the Constitution, rules and procedures of the political parties; and, the decision to merge should be in writing and duly executed by the officials authorised to execute agreements on behalf of the political parties.

Also, the governing bodies of the merging parties should determine the Constitution, rules, regulations and the principles forming the basis of the merger to be registered as the new party; and must sign the merger agreement and the particulars for it, and deposit the agreement with the Registrar within 21 days of the signing of the agreement.

The merged political parties shall stand dissolved upon registration of the new political party. Also, a member of the political party that has merged with another, who is a Member of Parliament or county assembly, and who does not want to be a member of the new party will not lose his/her seat by joining another party or becoming an independent member for the remainder of his/her term.

"Merger" means where two or more political parties consolidate their operations and combine all officers, structure, and other functions of the political parties (Article 2 PPA). It also means "the combining of two or more entities into one, through purchase acquisition or pooling of interests. Sometimes a merger may require the transfer of the properties to one surviving corporation or combination business enterprises into a single enterprise.

The main reasons for mergers are to achieve greater efficiencies of scale and productivity by enhancing synergy and strategic fit; technical knowledge, infrastructure or cash/funds.

The flexibility and power boost they provide is key strategic tool for reaping rewards coming from combined strengths and sizes; cutting down expenses and becoming self sufficient to operate alone.

A merger can help one enter new markets, reach more customers/members or a geographic expansion, which will help political parties comply with the Constitution, by becoming national and more inclusive (women, people with disability and marginalised communities). Most political parties will need to merge to comply with both the PPA and the Constitution.

Mergers also freeze out competition and can get parties on the fast track to become more democratically competitive by adding more institutional capabilities that are impossible to grow in-house.

Mergers can increase political funds available to parties from the State, especially if the merger happens after the pay out.

Also parties with money coming together enhance purchasing and financial flexibility required during an election year to sell their election agenda through effective campaigns.

Parties also need to keep financial accounts and records (clean up the balance sheet); and a merger will help bring two years of accounts (track) records and strengthen the potential for the merged party to receive funding from donors by increasing trust, and confidence.

However mergers do have disadvantages, which can result in quick death.

It is critical doing homework to know the actual worth/value and competencies of the other party and working with competent professionals (lawyers/accountants/business brokers). Ask tough questions and get to know the other party on all levels.

Kenya has a long history of unsuccessful or short-lived political parties mergers beginning even before independence in 1960, when different ethnic associations came together in 1960 to form the Kenya African National Union (Kanu) and the Kenya African Democratic Union (Kadu) respectively; at independence the two merged; the notorious 2002 merger of Kanu and LDP (which lasted about six months), the 2002 Narc, 2007 PNU and ODM.

It is worth studying why all these mergers failed to learn some valuable lessons in preparation for the coming mergers and to avoid past grave mistakes.

The writer is an elections and constitutional law expert and lecturer, South Eastern University College