Cabinet rich list: Please show us how to invest

Alice Wahome before the Committee on Appointments at the Mini Chambers,County Hall,Nairobi . August 1st,2024 [Elvis Ogina ,Standard]

Poor Eric Muuga. At a net worth of ‘only’ Sh31 million, the Cabinet Secretary nominee, is the poorest of President William Ruto’s rich list of CSs.

There are two other strugglers, not quite past the magical Sh100 million mark and we truly feel for them; will certainly be looked down by the other 18 dollar millionaires on the Cabinet.

Ours is a government defined more by net worth of individuals rather than strength of their character and managerial know-how – for the latter should be the criteria by which we judge our public servants. 

I did basic calculation and found the average net worth of the Cabinet Secretaries is Sh700 million while the median is around Sh500 million. Their combined net worth is just shy of Sh15 billion. If you throw in President Ruto and his Deputy’s wealth, the figure may as well double, or triple! During the vetting, one could feel the anger of a people who barely eke a living hustling, when they see CSs casually throwing a billion as their net worth with such nonchalance. It is annoying.

It is not a crime to be rich. Absolutely not. In fact, it is good. But what we fail to understand for most of these nominees is not only how astronomical their wealth is, but more importantly, how talented they are in acquiring wealth. Few can give a comprehensive breakdown of how they came into such filthy wealth. On the other hand, perhaps they can, only that it would be tantamount to admitting to a grand heist. I have a feeling that when the powers that be are choosing CSs, they first ask for their bank statements, then a pledge of loyalty and finally, their academic qualifications showing their suitability. 

Return on investments world over is measured against certain parameters, such as performance of the stock market, interest rates on commercial and government paper, exchange rates (for those who invest overseas) among others.

In Kenya, all key parameters have in the recent been against a rapid accumulation of wealth; in fact, many investors have lost money as the economy takes a hit from every side; foreign investors have fled the NSE making it underperform for instance while, as much as the economy is said to be growing at 5.5 per cent, many investors cannot feel it as runaway interest rates and low purchasing power hit their margins.

Perhaps we have failed in appreciating our CSs’ knack for investment. We should consult them for investment advice since they seem to buck the trend when it comes to making money. Most nominees who have made a comeback to the Cabinet, have grown their net worth spectacularly since they joined government.

Their net worth have grown by double digit figures, a rate of return that would make the savviest investors choke with envy. And the figures involved are not tiny: on average, they have all somehow raked in over Sh100 million in 18 months. Conservatively, we are looking at a net return of over Sh7 million a month. Net return mind you, not gross return. Yet, this cannot be attributable to their salaries; it must be something else. And we all know what that is. Perhaps they get an irresistible urge to dip their sticky fingers every so often into the public kitty? Or maybe, some magnanimous ‘investor’ transferred some of that wealth into their bank accounts in form of a kickback in exchange for a concession on a contract? Your guess is as good as mine.

It would have been in order if they are vetted by independent parties who can ask them proper questions as to their source of wealth. Although Parliament is mandated to do this, a kind of public participation (not mere window dressing) should be encouraged, where a committee of independent inquisitors drill down into the source of wealth.

They would be asked to show their business model that has such good interest rates; why their land and houses have gained such value while around them everything is falling apart and most importantly, whether they would be good enough to provide free lessons to other investors as they walk the proverbial route to investment utopia.

-The writer is a communications consultant and journalist