Upgrade on Essay- “Suffering Without Bitterness”

Here is the essay, now added as a post following useful pointers from various friends.

“Suffering Without Bitterness”

 

This was the title of a famous book that was written by Jomo Kenyatta, the first President of post-colonial Kenya over sixty years ago. There are concerns today that the Asian communities in Kenya are not coping too well after the riots that followed the general elections. Many hundreds of them have not exercised the choice that they have to leave because they want to continue to work and live in Kenya. There are no real signs of panic but informal observers and some parts of the international media report on some early signs of stress amongst Kenyan Asians. It must be noted that the Asians who have chosen to stay there are almost certainly Kenyan citizens and the expatriates who have chosen to remain in the country made their decisions many years ago. Both groups of people remain committed and that is the best demonstration of their faith in the country.

 

Soon after the riots that followed the elections in Kenya, there were concerns that some 2,200 Asians, some with families may try to leave the country by the end of this year. This figure was an estimate provided by the Financial Times in London and presumably they had checked their facts with suitable parties. The authorities in Kenya do not appear to have made any statements to calm down concerns in the Asian communities. To be fair, the government has not made life difficult for the Asians in Kenya either. There is no evidence of selective persecution. The uncertainties in the minds of Asians stem from fear for their safety and the protection of their assets.

 

A recent visit to neighbouring Uganda has shown that Asian expatriates who have arrived after 1972 have settled well and most are embarked in technical work, contracts, building construction and engineering- covering a wide area of specialisms, all critical skills for a developing country which is coping with rapidly growing population and needs huge investment in its schools and hospitals. The new Asian expatriates are not only providing the skills; they are also taxpayers. In Kenya where the Asian participation in business and economics is much more significant, contributions to tax revenues must be substantial. As they are also exporting goods and services to overseas customers their contribution to the national income must also be growing.

 

What is not known is whether Asian leadership in Kenya has tried to have a dialogue with the government. It could be argued that the Asians may have to ‘feel the heat’ like everybody else; the country has had a few problems and many hundred Kenyans have been reported to have lost their lives. However, many of the Asians do have the choice to leave. It would be most unfortunate if critical decisions were made as a result of failure by Asian leaders to consult with the Kenyan authorities and to secure pledges of support. Could the latter also not retort that Asian people should not expect any special privileges and that after all, many other nationalities have coped with the aftermath of the elections?

 

These are difficult times even though the highly risky period that affected the security of all people in Kenya seems to have passed. The impact of the expulsion of Asians from Uganda was also felt in Zambia, Malawi and Zimbabwe. In Zambia, Asian participation in trade, large-scale commerce and industry was not as significant as that in East Africa. But it was not until the 1980s, the next decade after the Ugandan Asian expulsion, that confidence appeared to have returned. Many Asian entrepreneurs invested in small industries, which supported the import-substitution, polices of the government. It was possible to raise venture capital and a few Asian businesses moved up the enterprise hierarchy – they were reinvesting their profits from the trading enterprises into small-scale manufacturing and more capital-intensive businesses. Apart from the emergence of these significant wealth-creating ventures, the authorities were keen to retain the contribution of doctors, teachers and skilled professional Asians.

 

Returning to the Kenyan situation, it would be good to see the evidence of efforts that may have been made by Asian leaders to placate the concerns of their fellow Asians. However, do the leaders enjoy respect and credibility? The rationale for selecting leaders may not have changed despite the lessons that were learnt from neighbouring Uganda. It would be reasonable to expect that faith-based communities elect or appoint leaders on the basis of their religious and community credentials. Not always true. Asian leaders with little or no knowledge of faith were appointed to run temples in Uganda. The main credentials were again, mostly but not always, success in business. Volunteering can be costly and it is far easier for a self-employed business owner to take a few hours off to attend to a wedding or a funeral in the community. A schoolteacher with heavy timetabled commitments cannot be expected to vacate the school rota at short notice. So success in business created a self-perpetuating cycle of consolidation of mostly weak and under-recognised leaders in the Asian community.

 

As the dynamics of business would have it, only very few Asians could afford to invest the time, money and effort to cope with the demands of the community. Asian leadership became narrowed into hands of not more than ten wealthy families. Their achievements in business were not sometimes enough to satisfy their urge for recognition and consequently a few even became leaders of religious bodies that they were most ill prepared to lead.  There was a dilemma; how could these people become so successful in business and then fail to transfer their leadership skills to community organisations that elected them? A good part of the answer lies in their management styles – they were dominant in family controlled businesses where they had absolute authority. They were not used to teambuilding and consultation. Looking back at building contracting firms, the proprietors probably never had meetings with staff and were not accustomed to being challenged by people from lower stations in life.

 

This remains a concern now for Kenya. If Asian leaders had blossomed and taken control of key community institutions for the very same reasons as in Uganda and assuming that they came from the same stock, then Asian communities in Kenya today may be leaderless. Success in family businesses may have propelled them into leadership positions in temples, schools and sports clubs but in the main they are going to be unsuitable for tasks that involve dealing with power relationships which could impact on their own businesses. You cannot afford to alienate a government minister whose colleague is going to issue the work permits of your own employees.

 

The Asian leaders in Kenya today are probably not astute politicians either. Politics is about passion and representation and some people with singular but positive vision can and do move mountains. The Asian leadership in Kenya today almost certainly operates with a major handicap unless they learn to create degrees of freedom for themselves. Freedom to negotiate comes by winning confidence of the people on the other side of the table. Have Asian leaders secured the confidence and respect from the political leadership in Kenya?

 

The Asian leaders in Kenya cannot ask for special treatment even if it was legitimate and possible. They are probably still divided by religious and caste-based distinctions. It is possible that their intra-Asian business and religious rivalries will militate against joint community representation as far as talking to Kenyan ministers is concerned.

 

A final factor lies in the Asian leaders’ perception of their role at such an uncertain time when instability is affecting everybody including native Kenyans. ‘What are you expecting us to achieve?’ they might ask. First they have to recognise their self-interest in this situation. Many Asian businesses also employ other Asians and sometimes only the members of the extended family, if not the village clan from India. If there was a hasty exodus, they also stand to lose.

 

The second responsibility they have is to acquire urgent understanding of what their communities want and what reassurance they may be seeking. Only then can they aspire to become effective bridges between the communities that they lead and a government that is temporarily distracted by other demands. Asian leaders should have the hard evidence to put together a case for the communities they represent. Should the concerns of the Asian communities escalate, those who can leave may want to leave against their wishes. Kenya may also pay a heavy price.

 

In the meantime the Asian communities in Kenya may have to suffer without bitterness. How these famous words have come to haunt a completely different people at an unexpectedly different time. The Asians in Kenya are NOT suffering from any political intolerance, or from racial and physical attacks from Kenyans. Many of them are victims of uncertainty which Asian leadership can help to reduce by being…leaders.

________________________________________________________________________

A number of friends have responded to the above.

 

Talking to recent visitors from Kenya suggests that the resolve of a few Asians seems to be weakening. They want to see more assurance of their personal security and less uncertainty about their future plans. Howevere, only a few of them will accelerate plans to leave and even they could change their minds if normality returns in line with their expectations.

 

However, for most the unhappy problems arising from the elections seem to have been resolved and life has returned to normal. A number of people also challenge my assertions about leadership. The Asians do not need leaders - each Asian resident or nor-resident has a private network for information and advice and access to worldwide media makes their lives very predictable and safe. This is very good especially if such a view is shared by a large majority.

 

It would be good to hear from Kenyan Asians who have committed themselves to Kenya as the country of their choice and how they will form a symbiotic relationship with the country. Kenya needs investment capital and skills, and yes, even their expertise in trading and running shops is a critical lubricant for a developing economy.

 

Are Kenyan Asians engaged in state-run agencies or nationalised businesses if any have  become available to new investors? In most parts of East and Central Africa, parastatal companies have been returned to the private sector following privatisation. Have Kenyan Asians looked at these firms as possible investment opportunities?

 

Finally, how are Kenyan Asians contributing to corporate social responsibility?

 

 

 

 

Asian Enterprise and CSR

At one time the mere mention of Asian businesses used to create serious critical debate and consternation.  Were they doing the ‘right’ things? Were they investing for sustainability? Did the Asians promote good employment practices? Were they investing in the right sector? Trading enterprises based on import and export, but moslty importing were considered to less beneficial than manufacturing. Behind all this, one of the major concerns, often not articulated clearly was: were the Asian traders not taking unacceptably high profits in a low margin sector of the economy?

It appears that in Uganda these issues are not taking centre the stage at present. It also seems that many Asians have moved higher in the enterprise value chain; they seem to be investing in areas which require major investment, syndicated finance with international partners and banks and they are going into areas which reflect high cost of entry into ‘difficult’ business sectors. They are taking major risks.

However, during the early seventies the centre for Asian retailing used to be Nairobi. How has this changed? This web-log invites contributions that would help to address the following areas of interest:

• What types of concerns still prevail about Asian enterprise?      
• Have the Asians moved into higher value-added industries that may be considered to be more suitable for secure economic development? These terms need to be explained. 
• Has Asian dominance of retailing been reduced by emerging African traders?
• How are Asian businesses involved in corporate social responsibility, or CSR?
• Are these questions important and valid?

The most successful example of social responsibility that can be recalled is investment in the townships of Lugazi and Kakira, where Asian business ‘dynasties’, that is, the Mehta and Madhvani families provided schools, hospitals, sports fields, safe shopping centres and also good health and welfare facilities. But these sugar factories were remote islands of employment and like mining towns anywhere in the world, the Asian entrepreneurs had to provide the living accommodation and facilities for a civic society.

 

How well is CSR being practiced today by Asian businesses? It would be good to hear from them.

 

The Story of the Limes

The first travel note seems to have gone all around extended “Rafikiland” in such a whiz. I am reminded of the DHL adverts on the telly in which parcels travel at nearly the speed of light. A private note to some friends is now competing with Harry Potter for international attention.

 Kampala is now the place to be for rat runs, that is how taxi drivers have created new routes to get from one place to another by avoiding known areas of congestion. So, if you want to go to Kololo from Norman Cinema (now a church), you no longer take the straight and narrow way to Bombo Road past those sleepy upside down bats. Besides the bats are too busy to worry too much about your slow progress. So, to go to Kololo, you go downhill to old the Chor Bazaar (where you could buy your car light which had been stolen on the previous day), past the old rainwater sewer at the bottom of the valley. The sewer itself has benefited from extensive upgrading by Chinese contractors- the walls are now steeper to allow even more rainwater to gush past the old Ramgharia School on its way to Nakivubo.  Back to my journey to Kololo, we went up towards the Sikh Temple in Old Kampala (Rashid Khamis Road) and past the Temple, did a right turn and then a beeline to end of the road to reach one end of the Makerere Hill Road. Then we went down to Aga Khan School and the new university and started the climb to reach the Makerere University’s main gate only to slide effortlessly into Wandegeya before going past Mulago junction to Kololo. That took 35 minutes and we were only on the outskirts of Mulago. The trip to Kololo was abandoned. 

I have said previously that central Kampala has no buses. It is the day of the matatu - white Japanese minibuses with chequered flag-like lines on their sides. I realised very quickly that the chequered lines have a purpose - to facilitate race-driving ambitions of the matatu drivers. They come tearing through the traffic and screech to what should be a sudden halt at the junction; except that they have merely slowed down and have no intention of stopping. If your taxi is in their way, you have to stop. Since the road is already congested, the matatu driver sticks the sharp angular side of his minibus between your taxi and the car in front. Full marks for guessing who joins the gap in the road when the traffic moves. In the meantime, the young matatu driver (all of them are very young) is constantly revving his engine to remind you of his intentions…Louis Hamilton is tame compared to the matatu driver.

We went to Nakasero market to buy some limes to make a cooling drink. It took half an hour from the old Bombay Stores corner to go downhill to the market. At the junction of the Allidina Visram Street, it was the matatus that had created the right of way, going from left to right and vice versa. When you finally reach the market, there is of course no parking space available but cars are parked three to the kerbside anyway. The best way to shop is to let your driver go in circles, looking for a parking space that he will probably never find, while you enter the market with some trepidation - a ’school’ of totos (shortened version of  ‘mutoto’ or children)  have started walking with you. You wonder whether they know where you are going! You even wonder whether you know where you are going. They will try to meet your every need. Inside the market I was offered padlocks, flimsy toy aircraft that would split into two after one crash landing, agarbatti, spoons, combs, scarves, hairnets, ladies underwear, a ruler and a screwdriver. If there was any connection between the last three items, I am afraid I did not match the vendors’ imagination - I was only looking for limes.  All the ‘alleged’ limes actually looked like small lemons. When you asked for limes, you were offered more lemons. Then a cheeky little boy said, “This is lime” with great conviction. I was reminded of Einstein and the apple. He was holding a large yellow lemon with a skin as thick as a crocodiles tail.  Finally we did see some overgrown limes and made arrangements to buy six of them. The best price, according to the top toto was Shs 3000/- “Only for you sah, reeeally, sah!” I looked at him with suspicious interest but in an inquisitive, penetrating way. I saw rich talent, was there the beginning of a rogue trader who would be trading in hedge funds and currencies and probably making horrendous losses in 20 years time? On the other hand he could be a future president of Google or even the country when he grows up…. He burst out laughing, responding to my serious scrutiny. The rest of the school of totos also enjoyed a jolly good laugh. ” Do you think I am a muzungu?” I asked. Twenty totos replied in unison,” Muzungu!, muzungu!”. The price of limes suddenly crashed, faster than sub-prime mortgages. The limes were on offer for Shs 800/-. Six hundred is what I offered and they accepted. I took out a Shs 5000/- note but they did not have any change. One of the totos offered an ingenious solution - why don’t I go into the main market to buy other things and then come back to them with exact change? Very slick. This was too much. In the meantime I thought about my taxi driver who must have been on his 1645th round of the market still looking for a parking space. I dug deep into my pockets and found £3.15. I offered that to the chief toto for six limes. He promptly declined. I knew that he was thinking of Ugandan Shs 500/- coins, which are now the main unit and looks amazingly like a £1 coin. I begged to explain that each £1 that I was offering them was equal to Shs 3000/- at the bank. My hopes began to rise when the totos suddenly became very receptive to the proposal - they were in for a quick mega profit while I was getting tired. Then they had a quick consultation amongst themselves and the chief toto announced with great dignity,” We want dollaas”. I pleaded that £1 equals to 2 US dollars. They were not interested. I was starting to give up the idea of buying limes when the taxi driver bust on to the scene - he had found parking after 43 minutes. The driver asked them something with a terse question in Luganda. They accepted £2 for six limes. The taxi driver protested, reminding me that I was being robbed. I told him to leave me with the “deal”. Those were the most expensive limes that have ever been traded in East African history- six limes for Shs 6000/-. My new “rogue trader” was happy, I was happy but the taxi driver was sulking. After reaching my hotel, the Sheraton, the limes were cast aside. It was time for a cool 5.6% Nile Beer. I put the dusty limes in the fridge and was seriously reprimanded. It was also not a smart idea to reach out for another beer when we had spent the afternoon looking for the limes.

I hoped that my newly discovered entrepreneur, who was not more than 12 years old, was safe at home. I wondered whether he had realised the profit he was sitting on.