By Silas Apollo
The Kenyatta family has for decades been at the centre of Kenya’s politics, either managing the country’s governance structure directly or indirectly influencing decisions in many areas.
The family, regarded as one of the richest in the country and the region – with business interests cutting across various sectors of the economy, has held considerable sway and say, dictating how things are run and sometimes managed.
And in the last couple of months since the election of President William Ruto and the defeat of Azimio leader Raila Odinga, a candidate fronted by former President Uhuru Kenyatta, the Kenyattas have faced perhaps one of the biggest threats to their influence, control, and even existence.
The elevation of Dr. Ruto to the presidency has seen the Kenyatta business empire subjected to constant scrutiny, fueling speculations of a possible decline and whether it is likely to continue thriving.
Not only has the election of Dr Ruto affected the Kenyatta dynasty’s business structure, but individual family members, including former President Uhuru Kenyatta, have also had to adjust their routines and lifestyles to fit into the new reality.
One such recent onslaught against the family business empire was in March this year when the government decided to limit the importation of powdered milk into the country, effectively shutting down operations of one of the Kenyatta-owned businesses, Brookside Dairies.
While announcing the decision, the government said the move was to protect local producers. However, a few weeks later, the government reopened the doors following bilateral discussions.
Brookside is one of Uganda’s leading milk producers and exporters alongside Pearl Dairies, Jesa Farm Dairy, Amos Dairies Uganda Limited, Paramount Dairies Limited, GBK Dairy Products Limited, and Lakeside Dairy Limited.
The Kenyatta-owned firm, together with Pearl and Amos dairies, was also expected to sign export agreements with Algeria in June this year after Uganda widened its search for a market for its milk following trade wars with its East African neighbours.
Besides Brookside, the Kenyattas also have interests in the banking sector with significant stakes in the NCBA bank, possessions in the hospitality sector with the Heritage group of hotels, and media interests through Mediamax Group, among other ventures.
The March decision by Treasury cabinet secretary Njuguna Ndung’u to direct the Kenya Revenue Authority to claim a Sh350 million Capital Gains Tax on the NCBA bank group merger also highlighted some of the delicate balance the family now faces.
Ndung’u, in the letter, which is now the subject of a court case filed by NCBA to challenge the decision, argued that the exemption given to the CBA-NIC merger was in question. Capital Gains Tax is levied on profit from selling a property or an investment.
Some pundits have argued that the recent government decisions on the
Kenyattas form part of our politics’ nature and style.
“Our politics is largely built around loyalty and interests. Every new administration would want to remodel things to fit into their new way of governing, which sometimes comes with the inconvenience of those they believe are their opponents,” political and governance commentator Mark Bichachi told the Nairobi Law Monthly.
While supporters of the Kenyattas, including politicians like Mr Odinga, have linked the recent onslaught against the family to politics and vengeance, those critical of the former Head of State have been on the view.
Former President Kenyatta, while responding to one such recent attack against his family when police officers raided the home of his son in Karen, accused Dr Ruto of using state power to exert revenge.
Mr Kenyatta, who did not fall short of reminding his successor that power is transient and temporary, warned against personal attacks against individual members of his family, including his mother and the family matriarch, former first lady Mama Ngina Kenyatta.
The former Head of State has also previously defended his family business, instituting that their businesses were operating above board, paying taxes, and employing thousands of Kenyans.
Early in the year, Mr Kenyatta was also forced to condemn attacks on his family-owned Northlands Estate in Ruiru after unknown youths stormed and destroyed the property, and made away sheep, among other things.
The March invasion, which occurred during the Azimio la Umoja One Kenya Coalition-led protests, was also tied to politics, with supporters of Mr Kenyatta accusing leaders allied to Dr Ruto of planning the attacks, allegations the government dismissed.