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Kenya’s lost moment and the arrival of the Chinese company
eboomerang
#1 Posted : Wednesday, November 30, 2011 5:43:04 PM
Rank: Member


Joined: 6/27/2011
Posts: 301
Location: Nairobi
I've been meaning to write an article on this topic but never really made time to do it, but finally I managed to put it together.

The final article is 2 pages long :) and may make a interesting read for the weekend ama when riding home.

Feedback of any form will is welcome.

First few lines of the article...

article wrote:

Have you ever sat back to think what it really meant to Kenya when government hired or contracted Chinese construction companies to build the roads and other pieces of infrastructure in Kenya?

In order to be objective and avoid being drawn into a patriotic bias in this entire issue, I tried to get to understand the ramifications of that move by looking at the entire situation from a pure business perspective.

The governments reasoning behind the decision to use Chinese contractors was to deal with the issue of “cowboy contractors”, as they are locally referred.

The solution applied by government is a classic example how we can fail to identify our real problems at the expense of providing lasting and sustainable solutions. Consider this, the fact that we would end up selecting a cowboy contractor could be a symptom of a largely flawed tendering process and weak legislation than it is a problem about the ability to construct. You many even follow further in the chain and find out that the sourced construction material are of poor quality and the work force largely made up of half-baked engineers. The point here is that by using Chinese companies, we have not really addressed the question why/how we ended up having cowboy contractors in Kenya. Instead, we have just managed to paint atop the rust.

Nonetheless, let’s now take a look what the current scenario looks like from a business point of view. What do these deals mean for the Chinese company? (and the Chinese government to a certain extent).


To read the entire article check the blog entry: http://wp.me/p1B0a4-1g


youcan'tstopusnow
#2 Posted : Wednesday, November 30, 2011 8:42:32 PM
Rank: Chief


Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
Excellent article brother.Applause I especially liked this:

"What would be wrong if government identified such a company, we’ll call it company X and invested into it with an aim of helping the company to grow to a regional construction giant? There is so much growth in the construction business in the entire Sub-Saharan region that the opportunity should not have gone unnoticed."

And will the statement below ever become untrue in our lifetimes?Sad

"A significant problem we have is a sheer lack of strategic foresight in what we do and absolute laziness in addressing the real roots of our problems, we tend to always address the symptoms while the real problems continue to abide."
GOD BLESS YOUR LIFE
eboomerang
#3 Posted : Wednesday, November 30, 2011 8:58:27 PM
Rank: Member


Joined: 6/27/2011
Posts: 301
Location: Nairobi
youcan'tstopusnow wrote:
Excellent article brother.Applause

Thank you!
GGK
#4 Posted : Wednesday, November 30, 2011 9:29:29 PM
Rank: Member


Joined: 11/21/2006
Posts: 608
Location: Ruiru
Nice piece.
Probably a few policy makers visiting this forum would benefit from your foresight.
"..I am because we are. "― Ubuntu, Umtu,
eboomerang
#5 Posted : Wednesday, November 30, 2011 9:49:08 PM
Rank: Member


Joined: 6/27/2011
Posts: 301
Location: Nairobi
GGK wrote:
Nice piece.
Probably a few policy makers visiting this forum would benefit from your foresight.

Thanks.

Let's see. Some time back I tried to send in a similar article to some media house but I never got any feedback.
GGK
#6 Posted : Wednesday, November 30, 2011 10:05:13 PM
Rank: Member


Joined: 11/21/2006
Posts: 608
Location: Ruiru
eboomerang wrote:
GGK wrote:
Nice piece.
Probably a few policy makers visiting this forum would benefit from your foresight.

Thanks.

Let's see. Some time back I tried to send in a similar article to some media house but I never got any feedback.


Nation finds joy in engaging some colonial relic called Bloomfield instead of publishing such stuff. The online blogs are godsend
"..I am because we are. "― Ubuntu, Umtu,
youcan'tstopusnow
#7 Posted : Wednesday, November 30, 2011 10:52:46 PM
Rank: Chief


Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
GGK wrote:
eboomerang wrote:
GGK wrote:
Nice piece.
Probably a few policy makers visiting this forum would benefit from your foresight.

Thanks.

Let's see. Some time back I tried to send in a similar article to some media house but I never got any feedback.


Nation finds joy in engaging some colonial relic called Bloomfield instead of publishing such stuff. The online blogs are godsend

Bloomfield talks a lot of bull!
GOD BLESS YOUR LIFE
simonkabz
#8 Posted : Thursday, December 01, 2011 3:18:54 AM
Rank: Elder


Joined: 3/2/2007
Posts: 8,776
Location: Cameroon
Very informed article. But with the kind of works done by the ministry of public works, I beg to sleep.
TULIA.........UFUNZWE!
accelriskconsult
#9 Posted : Thursday, December 01, 2011 8:25:04 AM
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Joined: 4/2/2011
Posts: 629
Location: Nai
eboomerang you do have a point but I must also point out that our contractors are very far away from constructing the overhead passes the Chinese have built.

Additionally, the quality of work on our cowboy contractor built roads and even the quality of houses suggest that we will never ever think long term, never realise that roads and houses are part of a country's capital account and therefore must be built to last.

The moment we fix our life expectancy and give people hope of living longer, perhaps then we shall start seeing structures built for posterity - by our very own briefcase companies.
Chaka
#10 Posted : Thursday, December 01, 2011 10:04:25 AM
Rank: Elder


Joined: 2/16/2007
Posts: 2,114
@eboomerang,
Will check out your article later but my view is that Kenyan Contractors are not serious,these guys do not know how to repair potholes and cannot even built a proper road bump!(Does KEBS have a standard for a road bump?).They cannot even mix cement and ballast properly !My suggestion is for gava to force some of them to be attached to the Chinese contractors so as to be shown how things are done.After the attachment,they should be given a mini-project to do and then evaluated....
simonkabz
#11 Posted : Thursday, December 01, 2011 10:22:56 AM
Rank: Elder


Joined: 3/2/2007
Posts: 8,776
Location: Cameroon
Chaka wrote:
@eboomerang,
Will check out your article later but my view is that Kenyan Contractors are not serious,these guys do not know how to repair potholes and cannot even built a proper road bump!(Does KEBS have a standard for a road bump?).They cannot even mix cement and ballast properly !My suggestion is for gava to force some of them to be attached to the Chinese contractors so as to be shown how things are done.After the attachment,they should be given a mini-project to do and evaluated....

Exactly as I thought.
TULIA.........UFUNZWE!
eboomerang
#12 Posted : Thursday, December 01, 2011 11:19:12 AM
Rank: Member


Joined: 6/27/2011
Posts: 301
Location: Nairobi
@simonkabz, @chaka, @accelriskconsult
I can understand the kind of frustration you are expressing and the desire to get things done once and for all.

But, look at it this way, the government is the parent, and when the children (local companies) become errant, from a parent's point of view the solution is not to adopt other children.

Hence the reason I keep saying that we are addressing the wrong problem.

How comes the Chinese are able to make a difference? are they more ethical than we are? if that is the case why not start pushing compulsory ethical education in to the school systems early enough in order to change the social fabric of this country?
tom_boy
#13 Posted : Thursday, December 01, 2011 11:42:14 AM
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Joined: 2/20/2007
Posts: 767
Nice article. My input is that he who pays the piper calls the tune. So as to unravell why chinese are doing our roads, one has to dig deeper and find out how China and Kenyan barons are dancing, economically. Dont be fooled, its a dance and wanjiku is the dance floor. The financier dictates the executor. Case in point, world bank refusing to fund mombasa rd project because the contractor was not their preferred person.
They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
eboomerang
#14 Posted : Thursday, December 01, 2011 11:56:00 AM
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Joined: 6/27/2011
Posts: 301
Location: Nairobi
tom_boy wrote:
Nice article. My input is that he who pays the piper calls the tune. So as to unravell why chinese are doing our roads, one has to dig deeper and find out how China and Kenyan barons are dancing, economically. Dont be fooled, its a dance and wanjiku is the dance floor. The financier dictates the executor. Case in point, world bank refusing to fund mombasa rd project because the contractor was not their preferred person.

Obviously world bank has had their share of trouble with our cowboy contractors.

All it would take for government to do it is for example create a national company partly owned by private investors and bring in a highly competent CEO. That is a model that has proven successful to Kenya (I'm looking at Safaricom).

With Safaricom, we Kenyans have some benefits even if not all. E.g. We can buy shares, they created a platform for local people to build their businesses(mPesa), jobs etc.

If you gave someone like T. Naikuni the correct incentives, he can equally build a successful construction company from the ground up.



Obi 1 Kanobi
#15 Posted : Thursday, December 01, 2011 12:12:33 PM
Rank: Elder


Joined: 7/23/2008
Posts: 3,017
Eboom.

I absolutely like your way of thinking and agree with your analysis.
"The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
kiterunner
#16 Posted : Friday, December 02, 2011 12:24:33 AM
Rank: Member


Joined: 7/9/2011
Posts: 730
Location: Nairobi
Excellent thoughts, it makes a lot of sense, i hope Sonko stumbles on it and introduces it in parliament or to the govt :)

Our policy makers need more eboomerangs and Ndemos in their midst
our goals are best achieved indirectly
butterflyke
#17 Posted : Friday, December 02, 2011 8:29:17 AM
Rank: Elder


Joined: 5/1/2010
Posts: 3,024
Location: Hapa
eboomerang wrote:
tom_boy wrote:
Nice article. My input is that he who pays the piper calls the tune. So as to unravell why chinese are doing our roads, one has to dig deeper and find out how China and Kenyan barons are dancing, economically. Dont be fooled, its a dance and wanjiku is the dance floor. The financier dictates the executor. Case in point, world bank refusing to fund mombasa rd project because the contractor was not their preferred person.

Obviously world bank has had their share of trouble with our cowboy contractors.

All it would take for government to do it is for example create a national company partly owned by private investors and bring in a highly competent CEO. That is a model that has proven successful to Kenya (I'm looking at Safaricom).

With Safaricom, we Kenyans have some benefits even if not all. E.g. We can buy shares, they created a platform for local people to build their businesses(mPesa), jobs etc.

If you gave someone like T. Naikuni the correct incentives, he can equally build a successful construction company from the ground up.





@eboomerang...another great article. i like your analysis. however, even the point of creating the company as you suggest is so likely to be prone with problems right from the start. many forces will be fighting to get their foot in not for national good but personal enrichment....i think with what has happened, most recently the wana at milimani, hope is standing on very weak legs.
Float like a butterfly, sting like a bee. - Muhammad Ali🐝
eboomerang
#18 Posted : Friday, December 02, 2011 3:46:05 PM
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Joined: 6/27/2011
Posts: 301
Location: Nairobi
butterflyke wrote:

@eboomerang...another great article. i like your analysis. however, even the point of creating the company as you suggest is so likely to be prone with problems right from the start. many forces will be fighting to get their foot in not for national good but personal enrichment....i think with what has happened, most recently the wana at milimani, hope is standing on very weak legs.

You are right. There may be challenges but, I believe it can be done.

One person (a proven and seasoned CEO) can make the difference and the investment should be partly owned by private investors.

Nationalize the company so as to have a very direct accountability system.

At the moment it feels like we threw out the baby with the bathwater.

Maybe I'm too optimistic :)
Gathige
#19 Posted : Friday, December 02, 2011 4:54:27 PM
Rank: Elder


Joined: 3/29/2011
Posts: 2,242
@eboomerang

Nice article sir.

The Chinese model is basically a "government in business". The state literally owns a stake in each major company and foreign operations financed through state banks. Through years of innovations( remember Chinese medicine which is just "dawa za kienyeji") they have perfected their social and economic spheres and with a large population they are guaranteed a market. Their exploits abroad is after successes at home. Their savings rate is among the highest in the world through which they have enough reserves to lend. The state controls the currency and thus not affected by external shocks.They even have more dollars than the US Reserve bank!

My 2 cents!
"Things that matter most must never be at the mercy of things that matter least." Goethe
eboomerang
#20 Posted : Friday, December 02, 2011 5:08:05 PM
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Joined: 6/27/2011
Posts: 301
Location: Nairobi
Gathige wrote:
@eboomerang

Nice article sir....

The Chinese model is basically a "government in business". The state literally owns a stake in each major company and foreign operations financed through state banks.

My 2 cents!

Thank you and your comments are spot on!

I have been circumventing to also raise this point but glad you brought it up.


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