Donation Amount. Min £2

East Africa

Kenya's President Uhuru Kenyatta (pictured September 2021) is the first African leader invited to the White House under US President Joe Biden's administration

US President Joe Biden is slated to meet Thursday with his Kenyan counterpart Uhuru Kenyatta, the first African leader invited to the White House under the current administration.

The two leaders will discuss "the strong US-Kenyan bilateral relationship and the need to bring transparency and accountability to domestic and international financial systems," the White House said ahead of the meeting.

The agenda was published shortly after the release of the Pandora Papers, a journalistic investigation that exposed secret offshore accounts linked to politicians and businesspeople all over the world.

In the investigation, Kenyatta -- who has stated his intent to fight corruption -- is said to own, together with six family members, a network of eleven offshore companies, one of which is valued at $30 million.

Asked about the revelations and how they might affect Biden's meeting with Kenyatta, White House spokeswoman Jen Psaki said: "The president has been quite vocal as you all know about the inequalities in the international financial system."

"That doesn't mean we don't meet with people you have disagreements on," she said. "We have a range of interests in working with Kenya and working with them on issues in Africa, in the region, and that will be the primary focus."

The two leaders will also talk about "efforts to defend democracy and human rights, advance peace and security, accelerate economic growth, and tackle climate change," according to the White House Statement.

Another issue on the agenda is trade.

Former president Donald Trump's administration had started discussions with Kenya on a free trade agreement but, according to Nairobi, Biden's team so far hasn't resumed the negotiations, causing much frustration.

"To our American friends, I would like to say that you know you cannot start and stop a discussion with partners on the basis of one administration after another," Kenyatta said earlier this week in New York. "Relationships are between countries and people, not between administrations."

Kenya is worried that a trade agreement that largely exempts its exports to the United States from customs duties will expire in 2025.

Washington, for its part, is concerned by the growing economic influence of major rival China in Africa.

But unlike Trump, who eagerly engaged in trade negotiations, Biden has so far shown restraint on that front.

For example, he gave no promises to Britain, which is also eager to sign a free trade agreement with the United States. Mail Online

ANC party leader Musalia Mudavadi, Wiper party leader Kalonzo Musyoka and Kanu leader Gideon Moi during a meeting with Oka officials and Mt Kenya delegates on October 7, 2021. Image: MERCY MUMO

 

Kalonzo says co-principals will pick him as flagbearer.

In Summary
  • The agreement will be inked at a public event by mid-November.
  • Kalonzo has criticised Raila, saying age has caught up with him and he should retire.

One Kenya Alliance principals could sign a pact binding them to work together in next year's polls, dampening hopes of a reunion with ODM boss Raila Odinga. 

It was hoped the Oka chiefs would agree to a political deal with Raila to cobble together a political movement that would face off against Deputy President William Ruto’s United Democratic Alliance. 

The Star has established that the Oka technical committee has prepared a coalition agreement that could be signed as early as mid-November, formally ushering in the third horse in the 2022 polls.  

Oka brings together Wiper leader Kalonzo Musyoka, Kanu's Gideon Moi, Musalia Mudavadi of ANC and Ford Kenya chief Moses Wetang'ula. 

Cyrus Jirongo has also joined Oka in what was seen as part of a bigger plan to ring-fence Western Kenya vote bloc away from Raila, who is believed to hold a firm grip. 

On Thursday, Kimilili MP Chris Wamalwa, a ranking member of the Oka political board, said the technical team has finalised the alliance's instruments, which also bind the chiefs together. 

“The principals have had an opportunity to look at the agreement and they will be signing it as soon as their dairies allow,” Wamalwa said. 

Kalonzo yesterday fired a salvo at Raila, saying he should retire with President Uhuru Kenyatta next year as "age has caught up with" him. 

“My thinking is that Uhuru should go home with Raila. If you look at the ages of all the others who want to contest for the presidency, Raila is way ahead of us,” Kalonzo said in an interview with Emoo FM. 

He expressed confidence that other Oka principals will pick him as the flagbearer.

“Oka is emerging everywhere. We now have Kadu Asili on board and before December, you will see wonders,” Kalonzo added.

Analysts say Raila has the best chance of taking on Ruto as opposed to any of the Oka principals.

It has emerged that apart from the coalition agreement, there is a detailed agreement committing the five principals to Oka until the 2022 election.  

The legally binding pact is part of a strategy to avert betrayal and deal with issues of trust that bogged down Nasa.  

Raila, Musalia, Wetang'ula and Kalonzo formally disengaged from Nasa at the end of August.  

Raila had been accused of ignoring a secret agreement to step down and support Kalonzo in the 2022 polls.  

This means that once Oka puts pen to paper with regard to the deal, neither of them will jump ship to any other coalition, including that led by Raila until a review is made after the next polls. 

“The agreement is ready and it legally commits our principals to work together under Oka with the view of forming the next government,” Wamalwa said. 

However, as Wamalwa skirted around on the nitty-gritty of the agreement, Kanu secretary general Nick Salat said the Oka leaders will soon commit themselves to their 2022 plans. 

“The agreement will provide that Oka will field a presidential candidate in the 2022 presidential election and for us as Kanu, we have already endorsed Gideon,” Salat said. 

The Kanu point man stressed that the agreement may not affect the party’s resolve to go all the way to the ballot, especially after its national delegates congress green-lighted the Baringo senator. 

Gideon was on September 30 endorsed by the party’s NDC to be the flag-bear and also given the mandate to negotiate with other like-minded leaders in light of the 2022 polls.  

The latest details come at a time when Oka has been seen as largely indecisive and lacking steam to compete with Raila and Ruto. 

Raila and Ruto are scouring for votes across the country, with analysts saying the Oka bandwagon is dithering and would be ‘donkey’ if it goes all the way. 

There have been reports that some Oka chiefs are quietly negotiating with Raila over their place in the 2022 power matrix. 

Last week, the Oka chiefs cried foul over what they claimed is a plan by the Mount Kenya Foundation—a panel of tycoons and influential businessmen from Uhuru’s turf—to favour Raila. 

The team said it was mandated by Uhuru to scout for his successor.  It has held separate sessions with Raila and Oka chiefs to listen to their views and agenda for Mt Kenya before recommending one of them to the President. 

However, there have been questions about why the group is not meeting all the 2022 presidential candidates. 

On Wednesday, religious leaders under the Federation of Evangelical and Indigenous Christian Churches of Kenya asked the MKF to be fair and genuine as they search for Uhuru's successor. 

“Even those who have not been called to the meetings have a following too, and you never know how tomorrow will be. It’s wise to hear out everyone who is in that race,” Bishop Samuel Njiriri, the federation’s chairman, said.  Edited by A.N By James Mbaka, The Star

Credit: AP  Map shows the Kenya-Somalia coastline and disputed area.

 

Fishermen set out for their day's work in the Indian Ocean shortly after dawn in the former pirate village of Eyl, in Somalia's semiautonomous northeastern state of Puntland, March 7, 2017.

Credit:

Ben Curtis/AP

In the judgment, the court ruled largely in favor of Somalia by dismissing Kenya’s argument that Somalia had already agreed to its claimed boundary.

Instead, the court split the disputed triangular area — believed to be rich in oil, natural gas and valuable fisheries — in half.

Related: Somaliland celebrates 30 years of self-proclaimed independence

“When countries have seen the potential of either offshore hydrocarbon or fisheries resources, [it] is then making them to become more interested in their maritime boundaries and the resources within it."

Ifesinachi Okafor-Yarwood, lecturer, University of Saint Andrews

“When countries have seen the potential of either offshore hydrocarbon or fisheries resources, [it] is then making them to become more interested in their maritime boundaries and the resources within it,” noted Ifesinachi Okafor-Yarwood, a lecturer at the University of Saint Andrews who researches maritime security in Africa. 

She said maritime boundaries are becoming increasingly contentious across Africa as countries seek to grow their blue economies.

People online were quick to cast this as a major win for Somalia.

Related: US-based Somali Bantu face deportation to a nation they've never known

Somalia’s Minister of Information Osman Dubbe online celebrated with this tweet:  

But Kenya has been clear that it would not recognize any judgment by the court.

Last week, Kenya’s Foreign Affairs Permanent Secretary Macharia Kamau called it “the culmination of a flawed judicial process,” that would have a profound impact on regional security and politics.

“If you can't talk through disputes over your boundaries, how can you then sit together and collaborate on other issues?” Okafor-Yarwood said. 

Cross-border collaboration on problems such as piracy, human trafficking and illegal fishing could be jeopardized by ongoing maritime disputes.

There are also concerns that a continued border dispute could impact the fight against terrorism in the region, as Kenya has troops in Somalia fighting against al-Shabab.

Related: Somali civilians bombed by US airstrikes, targeted by al-Shabab

Okafor-Yarwood said countries with disputed maritime borders need to consider solutions beyond expensive, unending legal fights over delineation.

Joint management zones are one possibility.

“Joint management agreement, or arrangement is two countries coming together to agree to manage resources in the disputed area jointly,” Okafor-Yarwood said. 

Countries like Senegal and Guinea Bissau have used this to solve maritime disputes in the past.

While the court verdict is final, it’s not enforceable. All eyes will be on what the two countries do next. Source: The World

Image: Gerardo Menoscal/Agencia Press South/Getty Images 

The offshore links of presidents Guillermo Lasso of Ecuador and Volodymyr Zelenskyy of Ukraine will be officially scrutinized, while Kenyan President Uhuru Kenyatta is due to discuss financial transparency with U.S. President Joe Biden. 

For a second week, findings drawn from the largest-ever leak of offshore data are roiling parliaments, tax authorities and transparency groups.

And in a remarkable coincidence, U.S. President Joe Biden is scheduled to meet his Kenyan counterpart, Uhuru Kenyatta, this Thursday, Oct. 14, to discuss “the need to bring transparency and accountability to domestic and international financial systems”.

Kenyatta is one of more than 330 current and former politicians and high-level officials named in the Pandora Papers as beneficiaries of secret accounts.

The Associated Press reported that the Pandora Papers revelations are expected to be brought up during the Oval Office meeting.

Since the weekend, new countries joined more than a dozen nations that had already vowed investigations stemming from the Pandora Papers, a groundbreaking investigation by the International Consortium of Investigative Journalists and 150 media partners in more than 110 countries around the world. 

On Sunday, Ecuador’s legislature voted to launch an investigation into the offshore finances of President Guillermo Lasso to determine whether the head-of-state may have broken the law by moving money into tax havens, according to news reports.

Reporting by ICIJ and its partners showed that Lasso has had ties to 10 offshore companies and trusts in Panama, South Dakota and Delaware.

In response, Lasso told ICIJ that “all past use of any international entity” was legitimate and none of the offshore entities were related to his public service. Lasso also reportedly said that he dissolved his offshore entities in order to enter the presidential election.

The legislature said that the investigation of Lasso’s offshore activity would examine whether Lasso went against the norm that “prohibits candidates and public officials from having their resources or assets in tax havens,” according to AFP. The investigation will reportedly occur over the next 30 days.

In Ukraine, the National Agency for Prevention of Corruption is examining declarations by President Volodymyr Zelenskyy and the head of Ukraine’s Security Service, Ivan Bakanov. NAPC Chairman Oleksandr Novikov said the agency would take into account information published as part of the Pandora Papers investigation. 

The Pandora Papers revealed that Zelenskyy and some of his close associates owned shares in an anonymous offshore entity. Documents show that Zelenskyy owned a stake in a shell company registered in the British Virgin Islands called Maltex Multicapital Corp, which is described in leaked records as holding shares in film-production and distribution companies. Zelenskyy did not respond to ICIJ partners’ repeated requests for comment during the reporting of the Pandora Papers.

In Canada, national tax authorities announced they were examining Pandora Papers information about local taxpayers. The Canada Revenue Agency said it was currently “identifying how to integrate Pandora Papers information” with the agency’s data and was “working with our international partners to pool resources and share information to develop an accurate picture of what the data is telling us,” according to Canada’s CTV News.

Last week, the Toronto Star, one of ICIJ’s partners in Canada, revealed the offshore holdings of numerous high-profile Canadians, including billionaires, an Olympian, and a pornography magnate. The CRA’s announcement follows calls from Ottawa legislators for investigations in response to those reports.

“According to the parliamentary budget officer, we lose over $25 billion each and every year to overseas tax havens,” said finance critic Peter Julian of the New Democratic Party, according to the Toronto Star. “It’s simply an untenable situation when you have the ultra-rich getting away with so much, and so many Canadians struggling with so little.

In Costa Rica, authorities announced that the local tax agency will address the involvement of Costa Rican taxpayers using offshore maneuvers revealed in the Pandora Papers.

In authoritarian Azerbaijan, where elections are rigged and political opponents repressed,  an opposition party is demanding an explanation  from the country’s president, Ilham Aliyev, over the naming of Aliyev and some of his family members in the Pandora Papers

According to the website JAMnews, the Movement for Democracy and Prosperity, an Azerbaijani opposition group led by a U.S. based activist, has called on the Aliyevs to publicly explain significant real estate deals with offshore connections.

“No one doubts that dirty corruption money is the source of this business. For the reason that it would take Ilham Aliyev 3,070 years to accumulate such an amount, given his average salary for the reporting period,” said the statement from the group. By  and , ICIJ

 

Vaccination exercise by the Nairobi Metropolitan Service targetting matatu operators at the Central Bus Station on September 17, 2021. MERCY MUMO

Vaccine divide hurting low income country economies - IMF

In Summary

•Covid had affected consumer demand and overall, "risks to economic prospects have increased."

•The biggest risk is a resurgence of Covid variants, especially in countries with slow vaccination progress.

 

The economic recovery has weakened in most rich nations due to the impact of the Delta variant of coronavirus, the International Monetary Fund (IMF) says.

The fund cut its 2021 growth forecasts for advanced economies - in particular the US, Japan and Germany - blaming continued health risks, supply chain issues and high inflation.

But it thinks most rich countries will grow faster than expected in 2022. 

And it warned developing ones may fall back due to a growing "vaccine divide".

The global economy contracted sharply in 202, but rebounded strongly in the first half of this year as countries unlocked.

However, in its latest World Economic Outlook, the IMF said "momentum had weakened" since then as the highly transmissible Delta variant of coronavirus stopped "a full return" to normality.

IMF chief economist Gita Gopinath pointed to the supply chain disruption that many countries have faced due to surging demand and supply chain bottlenecks, warning it was "feeding inflation in many countries".

She added that the health risks from Covid had affected consumer demand and overall, "risks to economic prospects have increased".

While the IMF cut its projection for global growth in 2021 only marginally to 5.9%, it said this masked large downgrades for some rich countries.

  • Notably it expects the world's largest economy, the US, to grow by only 6% this year, down from the 7% the fund forecast in July .
  • And it said Japan and Germany, the third and fourth largest, would expand by 2.4% and 3.1% respectively - down from 2.8% and 3.6%.

The UK's economy is forecast to grow by 6.8% this year, down from the previous forecast of 7.0%.

However, the fund expects most advanced economies to return their pre-pandemic growth trends next year as supply chain issues ease, and to exceed it by about 1% in 2024.

By contrast, it thinks most emerging and developing economies (excluding China) are likely to fall back next year and remain 5.5% below their pre-pandemic forecast by 2024.

"These divergences are a consequence of the 'great vaccine divide' and large disparities in policy support," Ms Gopinath said.

"While over 60% of the population in advanced economies are fully vaccinated and some are now receiving booster shots, about 96% of the population in low-income countries remain unvaccinated." 

The global community needed to "step up" to ensure equitable vaccine access for every country, she added.

The post lockdown recovery is getting messy. That is the message from the IMF's twice yearly review of the world economy.

"Longer than expected" supply disruptions are feeding into inflation, and led to downgrades to growth this year for the US and UK. The biggest impact though has been felt in developing economies where a lack of vaccinations, and exposure to rising commodity and food prices has hit prospects.

While global inflationary pressures should abate in general in the middle of next year, the IMF groups the UK alongside the US and some emerging economies as places where there are "upside risks" from rising prices.

The biggest risk is, of course, a resurgence of Covid variants, especially in countries with slow vaccination progress. The UK's vaccine rollout success is singled out in contributing to a rebound in the economy.

After a sharper downgrade to 2021 prospects for the US than UK, the PM and chancellor will be able to claim the IMF is predicting Britain has the highest growth in the G7 this year.

This should be taken with a pinch of salt. Certainly ground that was lost is being made up, but a bigger fall than any other G7 nation in 2020, because of having suffered the worst pandemic first wave, makes a reopening of the economy appear like a boom. Argentina is growing even more than the UK, but it also lost just under a tenth of the value of its economy last year.

But the big picture is now supply problems and price rises. The problem is that it makes central banks, including the Bank of England, more likely to raise interest rates more quickly.

On fiscal policy, the IMF said countries would have to tread fine between controlling inflation and giving their economies enough stimulus to recover.

However, despite "a high degree of uncertainty", the fund thinks current high levels of inflation globally will return to pre-pandemic levels by mid 2022.

It said that debt in many countries was at record levels due to emergency pandemic spending, and employment remained significantly below pre-pandemic levels.

The IMF added that once health outcomes improved, countries would have to adopt "credible" revenue and spending plans while seeking to balance their books.

The fund also warned against "unnecessary policy accidents" that might rattle financial markets and harm the global recovery - ranging from a failure to lift the US debt ceiling in a timely way to escalating trade tensions. Source: BBC/The Star

About IEA Media Ltd

Informer East Africa is a UK based diaspora Newspaper. It is a unique platform connecting East Africans at home and abroad through news dissemination. It is a forum to learn together, grow together and get entertained at the same time.

To advertise events or products, get in touch by info [at] informereastafrica [dot] com or call +447957636854.
If you have an issue or a story, get in touch with the editor through editor[at] informereastafrica [dot] com or call +447886544135.

We also accept donations from our supporters. Please click on "donate". Your donations will go along way in supporting the newspaper.

Get in touch

Our Offices

London, UK
+44 7886 544135
editor (@) informereastafrica.com
Slough, UK
+44 7957 636854
info (@) informereastafrica.com

Latest News

Iran bans Pagers, Walkie-Talkies on flights

Iran bans Pagers, Wa...

The Islamic Republic's Civil Aviation Organization has banned the carriage of electronic communicati...

Raila now sings Ruto's song defending JKIA-Adani deal

Raila now sings Ruto...

ODM leader Raila Odinga. [File, Standard] ODM leader Raila Odinga has defended the government deal...

US Silent as Over 10...

UN Secretary-General António Guterres attends the United Nations General Assembly (UNGA) at the Uni...

Gang violence wrecking South Sudanese communities

Gang violence wrecki...

3 young men accused of beheading 2 women in Kapuri at a police station in Juba’s Gudele suburb in A...

For Advertisement

Big Reach

Informer East Africa is one platform for all people. It is a platform where you find so many professionals under one umbrella serving the African communities together.

Very Flexible

We exist to inform you, hear from you and connect you with what is happening around you. We do this professionally and timely as we endeavour to capture all that you should never miss. Informer East Africa is simply news for right now and the future.

Quality News

We only bring to you news that is verified, checked and follows strict journalistic guidelines and standards. We believe in 1. Objective coverage, 2. Impartiality and 3. Fair play.

Banner & Video Ads

A banner & video advertisement from our sponsors will show up every once in a while. It keeps us and our writers coffee replenished.