The looting of Kenya

· Leak of secret report exposes corrupt web
· More than £1bn moved to 28 countries
· Property in London, New York , Australia

Xan Rice in Nairobi
Friday August 31, 2007
The Guardian

The former Kenyan president Daniel Arap Moi. Photograph: Juda Ngwenya/Reuters

The breathtaking extent of corruption perpetrated by the family of the former Kenyan leader Daniel Arap Moi was exposed last night in a secret report that laid bare a web of shell companies, secret trusts and frontmen that his entourage used to funnel hundreds of millions of pounds into nearly 30 countries including Britain.

The 110-page report by the international risk consultancy Kroll, seen by the Guardian, alleges that relatives and associates of Mr Moi siphoned off more than £1bn of government money. If true, it would put the Mois on a par with Africa's other great kleptocrats, Mobutu Sese Seko of Zaire (now Democratic Republic of Congo) and Nigeria's Sani Abacha.

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The assets accumulated included multimillion pound properties in London, New York and South Africa, as well as a 10,000-hectare ranch in Australia and bank accounts containing hundreds of millions of pounds.

The report, commissioned by the Kenyan government, was submitted in 2004, but never acted upon. It details how:

· Mr Moi's sons - Philip and Gideon - were reported to be worth £384m and £550m respectively;

· His associates colluded with Italian drug barons and printed counterfeit money;

· His clique owned a bank in Belgium;

· The threat of losing their wealth prompted threats of violence between Mr Moi's family and his political aides;

· £4m was used to buy a home in Surrey and £2m to buy a flat in Knightsbridge.

Kroll said last night it could not confirm or deny the authenticity of the report.

The Kroll investigation into the former regime was commissioned by President Mwai Kibaki shortly after he came to power on an anti-corruption platform in 2003. It was meant to be the first step towards recovering some of the money stolen during Mr Moi's 24-year rule, which earned Kenya the reputation as one of the most corrupt countries in the world.

But soon after the investigation was launched, Mr Kibaki's government was caught up in its own scandal, known as Anglo Leasing, which involved awarding huge government contracts to bogus companies.

Since then, none of Mr Moi's relatives or close allies has been prosecuted. No money has been recovered. Three of the four ministers who resigned after the Anglo Leasing scandal was exposed have since been reinstated.

Last night, the Kenyan government confirmed that it received the Kroll report in April 2004. But Alfred Mutua, the government spokesman, said it was incomplete and inaccurate, and that Kroll had not been engaged to do any further work.

"We did not find that the report was credible. It was based a lot on hearsay." He said the leaking of the report was politically motivated and insisted Kenya was working with foreign governments to recover the stolen money. "Some of the money is in UK bank accounts. We have asked the British government to help us recover the funds, but so far they have refused."

The report was obtained by the website Wikileaks, which aims to help expose corruption. The document is believed to have been leaked by a senior government official upset about Mr Kibaki's failure to tackle corruption and by his alliance with Mr Moi before the presidential election in December.

On Tuesday Mr Moi said he was backing Mr Kibaki for a second term, saying he was disappointed that "selfish individual interests have been entrenched in our society". Mr Moi remains an influential figure in Kenya and his endorsement is expected to go some way to ensuring his successor's re-election.

In the Kroll report the investigators allege that a Kenyan bank was the key to getting vast sums of money of out of the country via its foreign currency accounts. The same bank had already laundered $200m (£100m) on behalf of the late Mr Abacha, with the assistance of a Swiss-based "financier".

"It is believed that twice as much was laundered through the same system by the Mois," the report said.

Kroll confirmed last night that it had previously done work for the Kenyan government. A company spokesman was given extracts of the report seen by the Guardian. "We cannot confirm or deny that this report is what it purports to be," he said. "Nor can we talk about the scope, content or results of any work we have done for the government of Kenya, which remains confidential."

Gideon Moi is an MP and Philip Moi is a businessman. Daniel Arap Moi's spokesman did not return calls last night.

NAIROBI

Oh, been long since I blogged but I just have to post this story about Nairobi from http://www.africaalmanac.com/top20townscitys.html

I have highlighted the most juicy part. Enjoy.

7. Nairobi, Kenya. The city of Nairobi has itself alone to blame for not being a better African city than it is today. It had all the opportunities in the past, the infrastructure, and (rare for Africa) decades of uninterrupted stability.

But despite its self-inflicted decline, it is still one of Africa's largest and most interesting cities.

More public facilities, more shopping centres with a wider variety of goods, more entertainment points with greater degrees of fun, csn be found in Nairobi than in any other city in East Africa, as well as the Horn of Africa and Central Africa.

Or as one Ugandan marketing manager visiting the city in 2001 remarked on its position as a major regional city despite the dscline: "Kenya is still Kenya."

Nairobi is the host city of several United Nations agencies as well as other international organizations. It serves as the location of a number of international news agencies' regional bureaus, and has more high-rise buildings than any city of any country in East and Central Africa.

Of the three East African countriee --- Kenya, Uganda, and Tanzania --- Kenya's economy accounts for 60 percent, Tanzania's is at 25 percent, while Uganda's is 15 percent in size.

Nairobi shows this difference in size. It is one of the fastest-growing mobile phone markets on the African continent, has several dozen hotels, restaurants, and coffee shops, large supermarkets, has one of the largest fleets of public buses and taxi vans, yet they never seem enough.

Nairobi also has one of the most internationally-minded populations of any city in Africa. It is not a surprise to encounter a South African who has no clue that Nigeria is in West Africa and not a neighbour of Botswana in the southwest of Africa.

A typical West African urban dweller might find it hard to differentiate Malawi from Lesotho.

The Nairobi crowd tends to be well-informed on average, because of the fact that the country is heavily dependent on foreign tourism for national revenue, and also that Kenya has been host to numerous refugee populations from neighbouring countries.

What stands out most about Nairobi is the people.

All Kenya's neighbours tend to be traditional in outlook --- Tanzania to the south with Roman Catholic and Muslim-dominated populations, Ethiopia to the north and Eritrea to the north-east, mainly Muslim and Orthodox Christian, Somalia to the northeast, Muslim, Uganda to the west, just silghtly Roman Catholic-dominated, but also Anglican Protestant, and Sudan to the northwest, Muslim.

The societies are male-dominated, with well-defined, subsidiary roles for women, and a certain demure public behaviour expected of them.

Kenya and Nairobi in particular, has a different culture, where it appears that both men and women behave in a masculine manner.

All across the streets on a weekday are hundreds of thousands of these good-looking Kenyans walking briskly, the conversations revolving around the corporate and the pursuit of money. Pregnant women will casually disembark from a slow moving bus even before its reaches the stop, while holding another baby in their arms.

Open, cooperative and warm in manner, yet unsentimental, very direct and aggresive at the same time, is the Nairobi character. Kenyans freely and laughingly describe themselves as "rough" and "fast".

The taxis play unbearably loud club re-mixes of hit disco music, as pasengers sit unperturbed in silence.

Despite Kenya's relative high economic standards, public buses remain congested, with as many people seated as stand in the bus corridor, with few showing discomfort on their faces.

Life for them, it seems, is not life if it is not one of hustle and rough-edged. They seem to expect and be comfortable with that.

The Nairobi people are easy to approach and interact with, but this drive and their "rough" collective personalities can leave people from more traditional and polite societies feeling emotianally exhausted after some time.

Many visitors from the countries that neighbour Kenya often find this trait disorienting and even unmannerly.

However, it is this upfront and direct demeanor, the Tom Boyish yet sophisticatedly feminine trait among the women and girls, that makes for the exciting and rigorous city that Nairobi is --- loud street corner evangelists, charming female radio Disc Jockeys, the sizzle of the nightclubs and recreational centres, and sense of something happening all the time.