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Wednesday, November 24, 2010

THE TRUTH OF IMPORTED "MITUMBA" (USED) GOODS

At the moment, our country Kenya, is awash with imported "mitumba" (used) goods ranging from fighter jets, navy boats, railway wagons, ATMs, plant and machinery, vehicles, underwear and God knows what else. This from the outside may look fine and acceptable because we think that we are getting a bargain. But how many of us would like to be described as used goods? If not, them why this penchant for anything that has been used and discarded elsewhere? What makes us not demand to be given only what is new and of top quality? Are we really that cheap as a people? Let's look at two examples to enable us understand this complex.
Firstly, in the '70s and early '80s, we had a very vibrant cotton industry in this country that was supported by many small scale farmers particularly in the semiarid ares who supplied the many ginneries with lint that later went to the yarn and cloth factories. We had such big names as Kisumu Cotton Mills (KICOMI), Rift Valley Textile Mills (RIVATEX), Mount Kenya Textile Mills (MOUNTEX) and many others. However, in the late '80s, our political leaders in collusion with outside forces figured out that they could make more money if they imported ready made clothes, yarn and clothing materials, where they could fiddle with the import duty. In their schemes, they also figured out that because the majority of citizens may find it hard to clothe themselves from the imported apparel, so they started importing mitumba, which was available at the world markets at near zero prices and thereby make a killing in the process. So in one clean swoop, our political leaders in cahoots with business associates and imperialists, killed the cotton industry thereby making farmers destitute and with heavy job losses from the factories, distribution, wholesale, retail and the tailors. Thus this important industry was killed and when we were awarded a trade facility through AGOA so as to export clothes to the US at the beginning of this Century, the same political class formed Export Processing Zones (EPZ), and invited investors from Asia, who came in with their yarn and equipment to manufacture clothes that they exported as of Kenyan origin without paying any taxes to the country. Shame!
Secondly, through an industrialization program that was mooted in the '70s, it was felt that we could start motor vehicle assembly plants where we would import completely knocked down (CKD) kits for the purpose. This was meant to create jobs as well as help in technology transfer of assembling vehicles such that once we had the capacity we could build vehicle manufacturing plants in the future. Therefore, Associated Vehicle Assemblers (AVA), Thika Vehicle Assemblers (TVA) and the General Motors assembly line were established. This spawned the birth of industries that started manufacturing brake linings, rubber liners, upholstery, window shields, etc. Whereas we all know that this is the route that has been taken by Asian Countries before the start of their current vehicle manufacturing plants, our political leaders became "smarter" and with the advise of their imperialist friends, they repealed the laws that were meant to protect this nascent industry, and instead started importing ready units so that they could cream out the import duties. The Vehicle assembly factories were reduced to mere shells and jobs were lost in all the related lines. Thus we killed our vehicle manufacturing plants quest because of greedy politicians.
In conclusion, if you look at our import bill from the the used vehicles and spare parts , you will find that it's enormous. We all know that you need to convert the Kenya Shillings to some foreign currency so as to import those goods. Therefore, for instance, the US Dollars that we are burning on those mitumba jalopies, have to come from the tea and coffee that is grown by our rural folks who have to break their backs to produce it, only to be paid a pittance, because we have no say on how much our produce should fetch at the world stage. Yet when we import used cars and parts from Dubai, Malaysia or wherever we have no choice but to pay the price on offer. Now, who is the bigger fool in this case? In all this, our politicians and associates will ensure that they get their fat cuts from the import duties not levied. And who owns the oil distribution companies that supply all the fuel to those contraptions on the roads? you guessed right, it's the politicians and their imperialist friends, who love the ubiquitous Nairobi gridlocks because the longer they take the more cash we fork out in petrol bills to line their pockets. In addition to this, they own the Banks and Insurance companies that expedite the transactions. Now you know; that's the truth and nothing but the whole truth about importation of mitumba in this country. Caution though, next time you want to brag about your "latest" model of Toyota whatever, please, remember the poor tea grower who produced the dollars that financed your import!

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