Category: Business

How Britain’s khat ban devastated an entire Kenyan town

 Khat's psychoactive ingredients -- cathinone and cathine -- are similar to amphetamines but weaker, and can help chewers stay awake and talkative. (Pic: AFP)
Khat’s psychoactive ingredients – cathinone and cathine – are similar to amphetamines but weaker, and can help chewers stay awake and talkative. (Pic: AFP)

In a quiet and unassuming town tucked away in a hilly part of eastern Kenya, the British home secretary Theresa May’s name is spoken with barely concealed anger. Since her role in the ban of the town’s most valuable export, she’s become a universally vilified figure.

For more than two decades, Maua enjoyed booming business propelled by the growth and sale of khat, known locally as miraa, a popular herb whose leaves and stems are chewed for the mild high they offer.

But last year the UK, home to one of khat’s biggest markets, declared the stimulant a class C drug and banned all imports, prompting Maua’s rapid descent into economic purgatory.

Since the early 1990s, Britain has imported between 2,500 to 2,800 tonnes a year, according to the Home Affairs committee. Although in its initial findings the committee could not find a compelling health or social reason to ban khat, May’s argument – that continuing to allow trade in the UK would spawn off an illegal export corridor to other European countries where it is banned – won out in what became a controversial cultural debate.

Now, a year after the legislation was signed, residents in Maua have been hit hard by a shrinking local economy that has left many facing poverty.

Losses

Edward Muruu is one of the earliest pioneers of the khat export trade. A retired headmaster at a local primary school, he says he has experienced unprecedented losses since the ban came into effect.

“I used to ferry miraa (khat) from Maua to Nairobi four times a week using 27 Toyota Hilux trucks, where it was repackaged for export. I used to make around £2 100 a month. Now I am lucky if I bring in £250 per month,” he says.

With the European market gone, the only place left for Muruu to sell his stimulant is Somalia, where consumers now dictate how much they pay – and it’s not much.

“The other issue with the Somali market is that the only people who can transport miraa to Mogadishu are Kenyan Somalis, meaning that the rest of us drivers have been put out of work,” says a former worker of Muruu’s, who only identified himself as Kanda.

According to Kanda, if non-Somali drivers attempt the trip they are attacked along the journey. For a town of its size and location, Maua has a disproportionately large number of residents of Somali heritage, most of whom are involved in the khat trade as middlemen. They are also big consumers themselves.

‘Miraa was the heartbeat of this town’

The effects of the London ban have reached everybody in the khat micro-economy, from the big name traders like Muraa to the small fish who depend on the trade for their survival.

Although Muraa has made investments that have cushioned him against the blows of a deeply depleted income, those at the lower end of the food chain have not been so lucky.

Miriti Ngozi, chairman of the Miraa Traders Association, says that many farmers and traders are no longer able to pay school fees or even buy enough food for their families.

“You have to understand that in this region, subsistence farming has long been overshadowed by the more prestigious miraa farming. Now that people are no longer making money from miraa, they do not have money to buy food and many families are sleeping hungry,” he says.

Yet many remain reluctant to uproot their khat crops and plant maize instead, holding on to the hope that their fortunes might one day return.

Pius Mbiti, a trader in his early 30s, is a qualified vet but says that he makes most of his income from picking and selling the stimulant.

“On a good day I used to make up to £12 which, when supplemented with earnings from my vet practice, was enough to take care of my family. But since the ban I am lucky if I make even £2 pounds,” he says.

He cannot rely on animal medicine any more either because farmers no longer have the money to pay for his services.

This narrative is familiar across the town, with the common refrain being that shutting down miraa imports to London is killing businesses indirectly linked to the herb.

“The miraa trade was the heartbeat of this town; it drove everything else. With revenue from miraa so drastically low, people no longer have the money to buy things,” says Lawrence Kobia, who owns a bookshop. He says that his sales have plummeted by more than 40% since last year.

Seizures

In its submissions to parliament, the Home Office committee warned that banning khat would result in the formation of a black market – as seen in the United States and other European countries including Norway and Holland.

Although initially khat sold for between £3 and £4 a kilogram in Britain, the committee reported that if it was banned the price could increase to £318, similar to its price in the US.

Their predictions turned out to be true: there has been a proliferation of the stimulant in London since the ban. While the border police have no statistics on seizures, the London Metropolitan police says it has handled a number of khat-related offences.

A spokesperson said that in the first six months after the ban came into effect, a total of 68 warnings and 14 penalty notices were issued. In addition, 36 people were arrested for possession of the herb, four of whom were later charged.

In the meantime, the Kenyan government is trying hard to get the ban lifted, with President Uhuru Kenyatta even promising the farmers in Maua as recently as February that he will petition to have the market reopened for them.

The farmers, however, see this as a cheap political move to whip up support, complaining that no tangible rewards have come from promises made by politicians regarding the matter in the past.

But the squabbling over high-level politics in Kenya and the workings of the parliament in Britain are meaningless to the miraa farmer in Maua, whose only worry is where the next meal will come from.

Uganda’s ‘Uber for motorcycle taxis’ shows it pays to be safe

The SafeBoda app. (Pic: AFP)
The SafeBoda app. (Pic: AFP)

When Silver Tumwesigye, a sharply-dressed Ugandan motorbike taxi driver known by his nickname ‘Silverstone,’ had an accident six years ago it was a double blow.

First he had to pay for surgery for his head injury and weeks of hospital treatment, then he suffered months of no income as he recovered at home.

Motorbike taxis, known as “boda-bodas” in Uganda and elsewhere in East Africa, are an affordable and effective – but dangerous – way of cutting through the traffic clogging Kampala’s streets.

Now a startup, dubbed “Uber for motorcycle taxis” after the popular ride-sharing company, hopes to make them safer and more reliable.

Silverstone survived his accident but the loss of his daily income of around 20 000 shillings ($5) threatened his family with destitution.

“I was so worried – not about me, but about my children, my wife,” said the 36-year-old father-of-four. “I struggled to pay the rent and school fees.”

Close to 40 percent of trauma cases at Uganda’s main Mulago Hospital are the result of boda-boda accidents, according to a joint study in 2010 by the hospital and the country’s Makerere University.

Like similar services in other developing world urban hubs like Jakarta, SafeBoda hopes to ease traffic in the Ugandan capital connecting customers with a registered driver nearby with the tap of a finger.

The company has enlisted 75 drivers at 20 “stages” – the boda-boda version of taxi ranks – since its launch in November. Each receives driving lessons, motorcycle maintenance and customer service training, and a first aid course taught by the Uganda Red Cross Society.

Drivers pay a membership fee of 10 000 shillings a week and are given a smartphone, a bright orange reflective vest and helmet, and a spare helmet for customers.

“The boda-boda industry got a bad name,” said SafeBoda’s 28-year-old co-founder Ricky Rapa Thomson.

“We want to say we are safe bodas. We should create a good reputation that will lead to more business, so we make more money and become more successful,” said Rapa, who has been a boda driver for four years and also runs motorbike tours of the city.

Rigorous vetting

It was on one of his tours that a visitor from Britain suggested meeting 30-year-old Belgian social entrepreneur Maxime Dieudonne, to help him develop an app to increase safety and provide better service.

Rapa teamed up with Dieudonne, Scottish development economist Alastair Sussock, 29, and the Rwanda-based mobile tech company HeHe Labs to create SafeBoda.

Sussock said the start-up conducts a “very lengthy process of driver training and multiple interactions and recommendations for drivers”.

“The recent issues in India with Uber, with one of the drivers accused of raping a passenger, shows the challenges on background checks or lack of any checks,” he said.

Sussock said that while this made SafeBoda different from Uber, Lyft and other apps which allowed drivers to sign up very easily, it ensured a “higher quality of drivers”.

Rigorous vetting means there are now 250 boda-boda drivers on the SafeBoda waiting list. Silverstone plans to join up, saying that his accident taught him the hard way that safety pays.

The SafeBoda app is also evolving and will soon add another Uber-like touch, allowing customers to rate drivers.

The company hopes to have at least 1 000 boda-bodas across Kampala by the end of the year, before expanding regionally, and perhaps even farther.

“There’s a couple of other countries like India that could be really interesting,” said Sussock.

For the last six years Juma Katongole, 32, has ferried passengers around Kampala’s notoriously potholed roads. He joined the SafeBoda programme soon after its launch.

The father-of-four has gained three new regular customers and reckons he takes home an extra 10 000 shillings a day.

“In the future I’m planning on building a house because I’m still renting,” he said. “I’m happy and customers are also happy with SafeBoda, they appreciate it,” he said.

Nairobi: Men’s chastity belts for sale

(Pic: AFP)
The chastity belt displayed on a mannequin. (Pic: AFP)

A men’s clothing store in Nairobi has an interesting new product for sale: chastity belts with an iron padlock for $20 each.

The product was designed to help men to protect themselves from being sexually harassed by their wives, after a woman was charged in court for chopping off her husband’s penis because of a quarrel over money.

Maendeleo ya Wanaume, a men’s lobby group,  wants women who chop off man’s genitals to be sentenced to life imprisonment or to the death penalty.

 

Togo’s taxi drivers left behind by growing economy

(Pic: Flickr / Claudio Riccio)
(Pic: Flickr / Claudio Riccio)

Swarming the streets of Togo’s capital Lome, thousands of motorcycle taxi drivers are just some of those left behind by the recent economic growth spurt in the crushingly poor nation.

Some have college degrees and work multiple jobs but still take home as little as $1.60 a day transporting passengers in the west African country that is gearing up for presidential elections on Saturday.

“There is no work,” said 31-year-old Gabriel, a driver who holds a high school diploma. “Everyone is a motorcycle taxi driver. There are thousands of them – too many.”

While Togo now hits six percent economic growth per year, more than half the country of roughly seven million survives on less than $1 per day as the nation claws its way back from 14 years of international sanctions.

“Young people are being suffocated by unemployment in Togo,” said Maurice Toupane, a researcher at the Institute for Security Studies in Senegal’s capital Dakar.

“Many young people are leaving the country for Nigeria and the holders of university degrees find themselves driving motorcycle taxis.”

The drivers – known locally as Zemidjan or zem – do not own their bikes, instead they  have to slowly pay back the cost.

It is no easy feat to come up with the money on what the drivers make. They might earn about 7.50 euros per day, but three euros goes on paying for the bike and three more on fuel.

On the really lean days they can dip into the community fund called a “tontine” that aims to help people take home 1.50 euros to their family every night.

For many drivers, the motorcycle taxi is their second job. Among the 15 or so drivers waiting for customers in Lome one day recently was a woodworker, a tailor and a cobbler, who was putting a new sole on a shoe.

Unemployment
The thaw in Togo’s economy began with the country’s current leader, President Faure Gnassingbe, who is running for a third five-year term.

He took over in 2005 after the death of his father Gnassingbe Eyadema, who had ruled with an iron fist for 38 years.

During Eyadema’s reign the European Union suspended aid in 1993 in response to a “democratic deficit”.

The gross national product, life expectancy and the number of children at school all dropped during that period and state businesses were left abandoned.

In that era “the country was bled dry by 14 years of international sanctions,” said Kako Nubukpo, Togo’s minister of long term strategy.

The money began to flow again in 2007 when the EU decided Gnassingbe possessed “good will”, after reforms leading to press freedom, multi-party politics and abolition of the death penalty.

Gnassingbe has taken a proactive approach by cleaning up public finances, embarking on large infrastructure projects and offering free primary school, all things that he has reminded people of during the election campaign.

Additionally, the GDP has doubled in 10 years and public debt has remained relatively low.

But the improvement in the economy cannot hide unemployment that is close to 29 percent, with a majority of young people out of work, said Nubukpo.

And those gains that have been made – driven by commodity prices – are mostly benefiting the wealthy, according to the United Nations.

Two-thirds of Togolese, meanwhile, still make their livings as subsistence farmers.

The majority of the motorcycle taxi drivers are in their 20s, reflecting the demographics of a country where three quarters of the population is under 35. The nation doubles in size every 25 years.

“It’s a sprint between the speed at which our society modernises and its capacity to include young people,” Nubukpo said. “We must give some hope to young people otherwise we run the risk of a social explosion.”

Water pans offer lifeline to female farmers in Kenya

Kenyan farmers pick through their maize crop in a field in the village of Kapsimatwa near the Rift Valley town of Bomet. (Pic: AFP)
Kenyan farmers pick through their maize crop in a field in the village of Kapsimatwa near the Rift Valley town of Bomet. (Pic: AFP)

It’s mid-morning and the sun is blazing. It is so hot that germinating seeds struggle to grow.

In Moi Ndabi, about 44km south of Kenya’s Lake Naivasha in Nakuru County, the vegetation dotted sparingly across the village has turned yellow.

More than 100 people have lined up at the Moi Ndabi borehole to wait their turn to fetch water sold at five Kenyan shillings ($0.05) per 20-litre jerry can.

But about 12km away from the water point in this region of the Rift Valley two greenhouses of different sizes stand adjacent to the homestead of Zainabu Malicha. By the end of March, she hopes to have pocketed at least 1.2m shillings ($13 100) from the sale of the tomatoes she grows there.

For the widow who is now solely responsible for the care of her five children, this venture into agribusiness has transformed her life, which for much of the last two decades has been dominated by hunger, poverty and malnutrition.

“Living in this semi-arid area [used to mean] no viable farming activity,” she says.

Malicha’s business venture relies on a simple water-harvesting technology: a water pan. Constructing the pan – a circular container 20m across – involves digging a dam and covering it with a dam liner. The pan then stores the runoff water during the heavy rains. Once full, it can provide enough water for Malicha for up to four months until the next rainy season.

“Before 2011, when the water pan was constructed, life was hard. Extremely hard. Maize would fail due to [the] scorching sun. Vegetables withered every so often. Going to sleep hungry was common,” Malicha says.

Having made 600 000 shillings ($6 500) from produce grown in the smaller greenhouse, Malicha used the proceeds to set up the bigger one. “I have so much joy now because I can comfortably feed my children with [a] balanced diet and meet the education expenses,” she says.

A few miles from her homestead, Florence Muthoni is also enjoying the fruits of the water reservoir.

Having access to a greenhouse has enabled her to grow watermelons, a crop she once attempted and failed to grow on her hectare (2.5 acres) of land.

“After two months, I harvest and make 135 000 shillings ($1 475). This is good enough to pay for my two sons on parallel programmes in local universities,” says the widow, who has lived in the area since 1992.

On a separate half-hectare of land she has also grown vegetables, some bananas and sugarcane, made possible through using water pans.

“I plan to buy a plot and then rear two Friesian cows. This could raise my profits, and when I finally become old, my children would take over,” she says.

Having the water pan, Muthoni says, has emancipated her from hunger and “opened up her mind to hope for great things” not just for herself but for other women in the village.

Muthoni and Malicha now lead a group of 286 women who form the Chemi Chemi ya Tumaini Jangwani Women Group (Springs of Hope in the Desert Women Group) as chair and secretary respectively.

Even though the water pans led to solutions to the problems of food scarcity and related health issues, their construction was possible only with the assistance of an NGO.

Muthoni says the NGO spent 20m shillings ($200 000) on setting up 50 water pans in the area for the women to irrigate their farms. The amount includes the 560 000 shillings used for their smaller greenhouses.

“We hear the government has loans for women, but how to get them is what we do not know. If it wasn’t for the NGO, we could still be suffering in hunger,” says Muthoni. “We need people to reach out to us in the villages and give us a sense of direction, just like non-governmental organisations do.”

The Kenya Institute of Economic Affairs report (2014), Public Spending in Agriculture in Kenya: Is It Beneficial to Small Scale Women Farmers? (pdf), notes the increasing importance of NGOs as a source of credit to farmers in the country. Although women are the backbone of the agricultural sector, the report showed that many of them had not benefited from agricultural credit.

Worryingly, the lack of gender-disaggregated information on credit beneficiaries continues to hamper balanced distribution of available resources, it says. Despite the creation of government funds specifically for women, only a few have benefited from them. Women make up more than half of Kenya’s population of 44 million.

Through community groups, women can access money from the Women Enterprise Fund , established in 2007, and the Uwezo Fund , launched in 2013. So far 707 435 women have received funding from the WEF while 274 857 have been trained in business management skills, according to statistics from the Ministry of Devolution and Planning.