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Kenyan Digest

KDF contracts should not be shrouded in mystery

3 min read
Published 29 March 2020

By MYLES LEO
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One of the country’s most important ministries is that of Defence. Kenya is a stable nation. In light of the recent terror attacks by Somali-based terror group Al-Shabaab, the Kenya Defence Forces’ swift response is something we may take for granted.

As a nation, we can count on President Uhuru Kenyatta’s firm decisions as the Commander in Chief of the Kenya Defence Forces.   

The brave men and women that defend our nation are Kenya’s backbone. And all efforts to undermine the security industry through corrupt procurement practices is an insult not only to our military, but to the nation.

The security and defence industry is shrouded in mystery across the globe, especially in the way arms dealers conduct their businesses.

Others have evil intentions. Since there is little transparency in the security industry, companies often manipulate the figures.

The overlap between public sector - government - officials making purchases and private sector companies selling goods and services to the defence department gives room for corrupt deals.

This has started to unfold in Kenya. A newly released report by the Africa Centre for Open Governance (AfriCOG) called State Capture: Inside Kenya’s Inability to Fight Corruption highlights many such questionable transactions over the past few years. 

During the 2019/20 financial year, the Ministry of Defence was allocated 4.3 per cent of the national budget, or Sh121.6 billion. However, since many military transactions are hard to trace, it gives well connected business people the opportunity to plunder public resources. 

In 2014/15, industry insiders failed to explain to the Kenyan Auditor-General why it had funnelled more than Sh185 million into the purchase of two excavators, that usually go for Sh40 million.

The equipment was never used for the purpose for which it was bought. That same year, accounting records failed to explain the expenditure of some Sh74 million.

In 2016/17, the Ministry of Defence bought liquefied petroleum gas at Sh184 million from the tenth lowest bidder. This was despite the fact that the Ministerial Tender Committee recommended purchasing from a different vendor, National Oil Corporation and Dash Energy for Sh100 million.

 These are but two examples of many questionable transactions. Recently, the former Sports Cabinet Secretary Rashid Echesa and other people associated with the Office of the Deputy President, were arrested and questioned over suspected financial impropriety connected to the military. 

This is the first time the department of defence’s spending is being given more scrutiny. Prosecutors are no longer turning the other cheek, pretending not to see. While the arms industry is known around the globe for being lucrative, there is need for more regulation.

The recent surge in corruption crackdowns due to President Kenyatta’s anti-corruption campaign is bringing us, albeit slowly, to the place where we should be. Millions of shillings have been either stolen or wasted.  

Corruption can be defeated. There are many corrupt individuals at the top, many who seek to become close to our elected leaders. 

In the current political environment, those people are not going to last much longer. The recent arrests of Mr Echesa and his cronies is but one example. It also serves to intimidate others in similar positions. They should be scared, because their financial crimes are no longer going unnoticed.