Hostname: page-component-586b7cd67f-g8jcs Total loading time: 0 Render date: 2024-11-25T02:01:09.208Z Has data issue: false hasContentIssue false

Myths and Realities of Kenyan Capitalism

Published online by Cambridge University Press:  11 November 2008

Extract

Most discussions about development in the periphery during the 1950s to the 1980s tended to fall into two main camps. Those in the so-called ‘dependency school’ maintained that indigenous bourgeoisies, unlike their metropolitan counterparts, could not lead the accumulation and transformation process while in junior partnership with foreign capital, which entrenched a system that transferred resources to metropolitan economies through, for example, the repatriation of profits, loyalty payments, and other licencing schemes. In other words, ‘real’ capitalism in the periphery was improbable, if not impossible. On the other hand, orthodox Marxists, liberal scholars, and, subsequently, ‘modified’ dependentistas, held that foreign investments in the periphery need not forestall the emergence of transforming social forces, and that development was likely to be accelerated if/when some elements of the domestic bourgeoisie participated in joint ventures with international capital.

Type
Articles
Copyright
Copyright © Cambridge University Press 1993

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

1 Cf.Frank, André Gunder, Capitalism and Underdevelopment in Latin America (New York, 1969),Google Scholar and Santos, T. Dos, ‘The Crisis of Development Theory and the Problem of Dependence in Latin America’, in Bernstein, Henry (ed.), Underdevelopment and Development (Harmondsworth, 1981), pp. 7295.Google Scholar

2 For example, Warren, Bill, Imperialism: pioneer of capitalism (London, 1980);Google ScholarKitching, Gavin, Development and Underdevelopment in Historical Perspective: populism, nationalism and industrialization (London and New York, 1982);Google Scholar and Sender, John and Smith, Sheila, The Development of Capitalism in Africa (London and New York, 1986).CrossRefGoogle Scholar

3 Including such modernisation theorists as Rostow, W.W., ‘The Take-Off into Sustained Growth’, Agarwala, A.N. and Singh, S.P. (eds.), Economics of Underdevelopment (Oxford, 1958),Google Scholar and Hoselitz, Bert, Sociological Aspects of Economic Growth (New York, 1960).Google Scholar

4 For example, Cardoso, Fernando and Faletto, Enzo, Dependency and Underdevelopment in Latin America (Berkeley and Los Angeles, 1979),Google Scholar and Evans, Peter, Dependent Development (Princeton, 1979).Google Scholar

5 For the principal background to the ‘Kenya debate’, see Leys, Colin, Underdevelopment in Kenya: the political economy of neo-colonialism, 1964–1971 (London, 1975);Google ScholarSwainson, Nicola, ‘The Rise of a National Bourgeoisie in Kenya’, in Review of African Political Economy (Sheffield), 8, 0104 1977, pp. 3955;Google Scholar Steven Langdon, ‘The State and Capitalism in Kenya’, in ibid. 8, January—April 1977, pp. 90–8; and Kaplinsky, Raphael (ed.), Readings on the Multinational Corporation in Kenya (Oxford and Nairobi, 1978).Google Scholar For the actual debate, see Leys, Colin, ‘Capitalist Accumulation, Class Formation and Dependency: the significance of the Kenyan case’, in Socialist Register (London), 1978,Google Scholar‘Kenya: what does “dependency” explain?’, in Review of African Political Economy, 17, 0104 1980, pp. 108–13, and ‘Kenya Debate Ten Years On’ Ontario, 1991; Steven Langdon,‘Industry and Capitalism in Kenya: contributions to a debate’, Conference on the African Bourgeoisie, Dakar, 1980,Google Scholar and Multinational Corporations in the Political Economy of Kenya (New York, 1981);Google Scholar and Kaplinsky, Rafael, ‘Capitalist Accumulation in the Periphery — the Kenyan Case Re-examined’, in Review of African Political Economy, 17, 0104 1980, pp. 83105,CrossRefGoogle Scholar and ‘Capitalist Accumulation in the Periphery: Kenya’, in Fransman, Martin (ed.), Industry and Accumulation in Africa (London, 1982).Google Scholar

6 See Cowen, Michael, ‘The British State and Agraian Accumulation in Kenya’, in Fransman (ed.), op. cit. pp. 142–69,Google Scholar and Colin eys ‘Accumulation, Class Formation and Dependency: Kenya’, in ibid. pp. 170–92.

7 Swainson, , The Development of Corporate Capitalism in Kenya, p. 18.Google Scholar

8 Holtham, Gerald and Hazlewood, Arthur, Aid and Imequality in Kenya: British development assistance to Kenya (London, 1976), p. 27,Google Scholar and Hazlewood, Arthur, The Economy of Kenya: the Kenyattaera (Oxford, 1979), p. 13.Google Scholar

9 See Beckman, Bjorn, ‘Imperialism and Capitalist Transformation: critique of a Kenyan debate’, in Review of African Political Economy, 19, 0912 1980, pp. 4862,CrossRefGoogle Scholar and Kitching, Gavin, ‘Politics, Method, and Evidence in the “Kenya Debate”’, in Bernstein, Henry and Campbell, Bonnie K. (eds.), Contradictions of Accumulation in Africa (Beverly Hills, 1985), pp. 115–51.Google Scholar

10 Coughlin, Peter, ‘What's Going On in the Glass Manufacturing Industry?’, in Industrial Review (Nairobi), 02 1989, p. 5.Google Scholar

11 Lall, Sanjaya, ‘Structural Problems of Industry in Sub-Saharan Africa’, in World Bank, The Long-Term Perspective Study of Sub-Saharan Africa, Vol. 2, Economic and Sectoral Policy Issues (Washington, DC, 1990), p. 92.Google Scholar

12 Ibid. pp. 95–6. For an assessment of this popular belief, see Himbara, David, ‘The Role of Indigenous Entrepreneurs in Kenya Industrial Development’, Ph.D. dissertation, Queen's University, Kingston, Ontario, 1992, ch. 5.Google Scholar

13 Some of the largest foreign investments in Kenya are form Asia, mainly India. These include Raymond Woollen Mills (about 2,700 employees), PanAfrican Paper Mills (2,000), partly owned by the Government, and Auto Spring (350), in which some Africans have shares.

14 Bluestone, Barry and Harrison, Bennett, The Deindustrialization of American (New York, 1982), p. 5.Google Scholar See also, Standohar, Paul D. and Brown, Holly E., Deindustrialization and Plant Closure (Lexington, 1986).Google Scholar For the British case, see Blackaby, F. (ed.), Deindustrialization (Ibadan and London, 1979).Google Scholar

15 Cf.Seers, Dudley, Schaffer, Bernard, and Kiljunen, M. L., The Underdeveloped Europe: studies in core-periphery relations (Brighton, 1979),Google Scholar and Seers, Dudley, Vaitsos, C., and Kiljunen, M. L., Integration and Unequal Development: the experience of the EC (London and New York, 1980).CrossRefGoogle Scholar

16 See, for example, Harris, Nigel, The End of the Third World (London, 1986).Google Scholar

17 Hirschman, Albert O., ‘The Search for Paradigms as a Hindrance to Understanding’, in Uphoff, Norman and Ilchman, Warren (eds.), The Political Economy of Development (Berkeley and Los Angeles, 1972), pp. 64 and 68.Google Scholar

18 Foster-Carter, Aidan, ‘Korea and Dependency Theory’, in Monthly Review (New York), 37, 5, 10 1985, p. 30.Google Scholar

19 Lipietz, Alain, Mirages and Miracles: the crisis of global fordism (London, 1987), p. 3.Google Scholar

20 Leys, , ‘The Kenya Debate Ten Years On’, p. 9.Google Scholar

21 See Swainson, Nicola, ‘Indigenous Capitalism in Postcolonial Kenya’, in Lubeck, Paul M. (ed.), African Bourgeoisie: capitalist development in Nigeria, Kenya, and the Ivory Coast (Boulder, 1987), p. 150, and Leys, ‘Accumulation, Class Formation and Dependency’, p. 185.Google Scholar

22 Republic of Kenya, Committee of Review of Statutory Boards Report (Nairobi, 1979), p. 22.Google Scholar

23 Republic of Kenya, Report and Recommendations of the Working Party on Government Expenditures (Nairobi, 1982), pp. 41–3.Google Scholar

24 Republic of Kenya, Development Plan, 1989–1993 (Nairobi, 1989), p. 161.Google ScholarPubMed

25 Ibid. p. 159.

26 Republic of Kenya, Report of the Controller and Auditor General, 1979/1980 (Nairobi, 1981), p. xlvii.Google Scholar

27 Development Plan, 1989–1993, pp. 159–60.

28 Ibid. p. 161.

29 Financial Review (Nairobi), 02 1988.Google Scholar

30 The Weekly Review (Nairobi), 26 10 1990.Google Scholar

31 For more details, see ibid. 7 April 1987 and 2 June 1989; Financial Review, 3 August 1987; and Kenya Times (Nairobi), 23 08 and 12 October 1989.Google Scholar

32 Kenya Times, 27 October 1989.

33 The headlines in the local media towards the end of 1989 indicated the scale of the problem: ‘Workers Dump Tea Leaves at Factory’, in ibid. 6 November 1989; ‘Coffee Farming on the Verge of Collapse’, in Daily Nation (Nairobi), 6 11 1989,Google Scholar and ‘Riotous Murang'a Tea Farmers Destroy 2,400 Kilos of Tea’, in ibid. 15 November 1989; and ‘Whither Coffee and Tea?’, in Industrial Review, December 1989.

34 International Labour Office, Employment, Incomes and Equality: a strategy for increasing productive employment in Kenya (Geneva, 1972).Google Scholar

35 United Nations Development Programme, A Strategy for Small Enterprise Development in Kenya: towards the year 2000 (New York, 1988).Google Scholar

36 Kenya Association of Manufacturers, ‘Report on Industrial Sub-Contracting Seminar’ organised by the U.N.D.P., the United Nations Industrial Development Organisation (Unido), and the I.L.O., Nyeri, 4–9 March 1990.

37 Republic of Kenya, Sessional Paper No. 1 on Economic Management for Renewed Growth (Nairobi, 1985), pp. 54–5.Google Scholar

38 Development Plan, 1989–1993, p. 164.

39 Republic of Kenya, Ndegwa Commission Report (Nairobi, 1971), pp. 1314.Google Scholar

40 See Himbara, op. cit. ch. 5.

41 See Mangat, J. S., A History of the Asians in East Africa c. 1886 to 1945 (Oxford, 1969), ch. 1, ‘The Nineteenth-Century Origins’.Google Scholar

42 Kenya Government, ‘Mombasa Surveys’, 1958, by a research unit comprising G. E. Bennett, Fred Burke, Surendra Mehta, G. M. Wilson, and Edward Rodwell to look into urban conditions, including race and labour relations; OP(EST)/1/465, Kenya National Archives (K.N.A.), Nairobi.

43 Hollingsworth, Lawrence W., The Asians of East Africa (London, 1960), p. 12.Google Scholar

44 Ibid. p. 28.

45 Mangat, op. cit. p. 55.

46 Ibid. p. 53.

47 Ehrlich, Cyril, ‘Economic and Social Developments Before Independence’, in Ogot, B. A. (ed.), Zamani: a survey of East African history (Nairobi, 1973 edn.), pp. 340–1.Google Scholar

48 Mangat, op. cit. p. 55.

49 Leys, Norman, Kenya (Edinburgh, 1924), p. 92.Google Scholar

50 Ross, W. McGregor, Kenya From Within (London, 1927), pp. 415–16.Google Scholar

51 Huxley, Elspeth, White Man's Country (London, 1935), Vol. 1, p. 204.Google Scholar

52 East African Royal Commission, 1953–1955, Report (London, 1956), Cmd. 9475, pp. 65194.Google Scholar

53 Hill, Mervyn, Director of the Kenya Farmers's Association, to E. A. Vassey, 8 March 1945; Vassey Papers, K.N.A.Google Scholar

54 Mangat, op. cit. p. 171.

55 Company Profiles and Applications for Drawback Rebates, 1952; MCI/6/462, K.N.A.

56 Harris, P. C., Assistant Secretary, Ministry of Commerce and Industry, 10 June 1960; MCI/6/697, K.N.A.Google Scholar

57 Minutes of the 40th Meeting of the Ministry's Ad Hoc Committee, 16 August 1960; MCI/6/696, K.N.A.

58 Interview with Mahendra Nagda, Nalin Group planning/development manager, 1989.

59 Kibaki, Mwai, cited in the Daily Nation, 1 January 1969.Google Scholar

60 Interview with Manu Chandaria, head of the Comcraft Group, 1990.

61 Republic of Kenya, Kenya: export processing zones (Nairobi, 1993), p. 7.Google Scholar

62 For a fuller account, see Hambara, David, Kenyan Capitalists, the State and Development (Boulder, forthcoming), ch. 3.Google Scholar

63 Morara, A. N., ‘Linking Industry for Faster Development’, Seminar on Industrial Sub-Contracting, Nyeri, 4–9 March 1990.Google Scholar