Chris Tomlinson
Globe and Mail
August 15, 2001

NAIROBI — Kenya’s opposition defeated an anticorruption bill yesterday that had been demanded by international donors, saying it was full of loopholes and did not go far enough.

Despite personal lobbying by President Daniel arap Moi, the bill to amend Kenya’s constitution failed to receive the necessary 145 votes. Members of parliament cast 130 votes in favour and 82 against.

“It is not a defeat, but I am disappointed, because they did not take the views of the common people to heart,” Mr. Moi said. Unless he calls a special session of parliament, the bill cannot be presented for a vote again until March.

But Mwai Kibaki, leader of the opposition Democratic Party, said the government bill was full of discrepancies and fell short of what is necessary to fight corruption.

“We are not opposing this bill because we don’t want to fight corruption,” he said. “We want a law that can fight corruption.”

After the vote, a visibly angry Vice-President George Saitoti said: “I am a very depressed person.”

Outside the assembly, a few dozen activists, both for and against the government, threw punches at each other as the news emerged.

The failure of the bill damaged hopes of an early resumption of foreign lending and angered business leaders.

“This is a death knell for the economy,” said Federation of Kenya Employers chairman Wilfred Kiboro.

“Kenyans will continue to get poorer and the economy will disappear,” agreed leading businessman Chris Kirubui.

Business leaders said that without money from international donors, the government will be forced to increase borrowing to finance its budget deficit, leading to higher interest rates.

In 1997, the Kenya Anticorruption Authority was set up to prosecute corruption after donors, including the International Monetary Fund, demanded that the government clean up rampant graft.

The international monitoring group Transparency International has consistently ranked Kenya among the top 10 most corrupt countries.

Kenya’s high court ruled in December that the constitution gives prosecutorial powers only to the attorney-general. The IMF has suspended millions of dollars in budget support payments to Kenya until the authority resumes work, and the World Bank has suspended some development loans.