Why I would spend Sh100 million to buy Kanu

By XN Iraki

If you won Sh100 million in a lottery, where would you invest such money? A house in Riverside Drive? A trip to Space? A private jet? Naturally, most people would start by becoming irrational, making strange decisions. No wonder most lottery winners eventually lose the money.

I would buy none of the assets but Kenya’s grand old party, Kanu. Sh100 million would still be under pricing for Kanu.

Strangely, I might be the only person interested in buying the party, therefore likely to get a bargain. Kanu’s fate is unique. Other long reigning parties often return to power after defeat and reinvention.

After all, don’t we have firms declaring bankruptcy, reorganising themselves and declaring profit? A good example is the General Motors. Does the political act provide for parties to declare bankruptcy, not just financially, but intellectually? Does it provide for sale of parties?

Party immortality

Some could argue albeit romantically that Kanu will never die. It simply mutated into all current parties that are unlikely to all die at once. This by default has given the independence party longevity and some could argue some immortality. After all, few living politicians including presidential aspirants can claim to be pure political breeds, uncontaminated by Kanu blood.

It seems few Kenyans see the economic value of Kanu. Yet the party is one of the country’s greatest assets. How can we unlock that value? One simple way is to sell the party. The "owners" are unlikely to sell it, the same way family businesses are hard to sell because of sentimental value. A hostile takeover would be in order. How about giving owners a price they cannot refuse?

We could even use better alternatives to unlock the value. We could auction the party. The best alternative is floating the party at Nairobi Securities Exchange. Is Manchester United not floated at London Stock Exchange?

We could probably be the first country to float a political party on a stock exchange. Other parties would follow. Floatation would be a big incentive for parties to govern well and increase their shareholders (voters) wealth. Where would Kanu derive its value or lose its value?

One is history: Like universities, age increases the value of an institution. Oxford and Cambridge are prestigious because of their age, almost 1,000 years old. Harvard is the oldest University in the US. Other prestigious universities worldwide happen to be old. Age anchors the brand making it recognisable. Such brands can charge a premium. Such an old party should attract lots of donations and membership like alumni associations of prestigious universities.

However history has been mixed to Kanu. She can claim legitimacy through struggle for Uhuru. There after, the party squandered the good will.

After defeat in 2002, Kanu became associated with political excesses and economic decline. That image has stuck and there are only muted efforts to change it. Renewal would be better.

national appeal

Kanu has a national reach, it is in every county: A business with such a reach would enjoy economies of scale and steepen the learning curve in new locations. Such a reach would lead to endearment with customers, building the brand and even ensuring the next generation of customers.

Kanu never invested nor innovated: Kanu’s structures never evolved to take care of changing times, the same way Alfred Sloan invented the division system to run General Motors. Kanu tried to co-opt other organisations like Maendeleo ya Wanawake and LDP party. But that was too late.

Kanu’s value lie in its potential to capture power legitimately: If I bought the party, I would turn it around and use it to capture power. The rewards would be enormous from jobs to prestige that goes with ability to influence political and economic policies, even beyond Kenya.

Value lies in networks: Kanu has contacts all over the world. We have harnessed the power of networking computers through Internet and cloud computing. Can a political party like Kanu do the same?

Kanu’s value lies in her diversity, attracting every Kenyan community.