INFUSING INTEGRITY IN ELECTIONS: A CASE FOR REGULATING CORPORATE CAMPAIGN CONTRIBUTIONS IN KENYA UNIVERSITY OF NAIROBI OUMA KENVINE ODHIAMBO G62/82471/2015 A Research Project Submitted in Partial Fulfillment of the Requirements for the Award of the degree of Master of Laws (LLM) of the University of Nairobi October 2019 TABLE OF CONTENTS TABLE OF CONTENTS .............................................................................................................. ii DECLARATION ..……………………………………...………………’……………………......v DEDICATION …………………………………………………………………..……………….vi ACKNOWLEDGEMENT ………………………………………………………….….……......vii LIST OF CASES ……………………..……………………………………………..…………. viii LIST OF MUNICIPAL LAW, STATUTES AND REGULATIONS ………………………..….ix LIST OF INTERNATIONAL AND REGIONAL TREATIES, INSTRUMENTS AND DECLARATIONS …………………………………………….………xi LIST OF FOREIGN LAWS…………………………………………………………….….……xii LIST OF ABBREVIATIONS ……………………………………………………...…….……. xiii ABSTRACT ………..…………………..…………………………………………………...….. xv Chapter One: Introduction ...........................................................................................................1 1.1 Introduction. ......................................................................................................................................... 1 1.2 Background …………...…. ………...……………..………………………………...………..3 1.3 Statement of the Problem ……………………......…………………………………..………. 3 1.4 Objectives…………………………...………….……...…………………………………..… 4 1.5 Research Questions..……………………………………...………………………………..… 4 1.6 Hypothesis …………………………………………………..…………………………..…… 5 1.7 Justification……………..…………………………………...……………..…………......…...5 1.8 Literature Review …………………………………………………...……………………..… 6 1.8.1 The Link between Corporations and Political Processes ……………..……….….. 7 1.8.2 Elections, Private Sector, Money and Politics in Kenya ……..…….…….....…….10 1.9 Conceptual and Theoretical Framework …………………..……………….……….……… 22 1.9.1 Conceptual Framework ……………….……...……………………….…….……. 23 1.9.2 Theoretical Framework ……………………………………...…………………… 27 1.9.2.1 Libertarian Theory ……………………………………………...………… 27 1.9.2.2 The Egalitarian Theory ………………………………………………….... 28 1.9.2.3 Critical Legal Theory ………………………...…………………………… 32 1.10 Research Methodology ……………………...……………………………...…...…………35 ii 1.11 Chapter Breakdown ………………………………...................………...…………………37 1.12 Conclusion …………………………………………...…………………………………… 38 Chapter Two: Historical Context of Campaign Financing in Kenya .....................................40 2.0 Introduction ......................................................................................................................……40 2.1 Kenya during the Pre-Colonial, Colonial and Post-Colonial Periods …………....…...…......40 2.1.1 Pre-Colonial Period ................................................................................................40 2.1.2 Colonial Period ………………………………………………………………….. 41 2.1.3 Post-Colonial Period …………..………………………………………..……….. 48 2.1.3.1 Pre-2010 Phase ……………………………………………………….. 48 2.1.3.2 Post-2010 Phase ……….……………………………………………… 55 2.2 Conclusion …………………………………………………………………...…...…………59 Chapter Three: Regulation of Corporate Campaign Contributions in Kenya ......................60 3.0 Introduction .............................................................................................................................60 3.1 International Legal Framework ………………………….………………………….....…… 61 3.2 Regional Legal Framework ……………………………………………………….……..…. 63 3.3 Kenya’s Regulatory Framework on Corporate Campaign Contributions ……...…….....….. 65 3.3.1 The Constitution of Kenya ……………………………………………………... 65 3.3.2 The Political Parties Act …………………..………...…………………………..72 3.3.3 The Election Campaign Financing Act ………………………………………… 79 3.3.3.1 Regulation and Mandate of IEBC ………..……………………..….…….. 79 3.3.3.2 Contributions and Donations Limits ………………….……………….…. 80 3.3.3.3 Expenditure Accounts, Authorized Expenditure and Spending Limits....…86 3.3.3.4 Disclosure Requirements ……………………………….……..…….…… 92 3.3.3.5 Expenditure Reports ……………………………………………..………. 94 3.3.3.6 Offences and Penalties …………………...…………………...………….. 95 3.3.4 Political Parties’ Rules and Regulations …………………………………..…… 96 3.4 Challenges faced in the Implementation of the Campaign Finance Laws………….………..97 3.5 Conclusion …………….………………………………………….......…..……….………..100 Chapter Four: A Case Study of the Goldenberg Scandal in Kenya’s Electoral Process ....102 4.0 Introduction ...........................................................................................................................102 4.1 The Goldenberg Scandal and the 1992 General Elections ………………..……….……… 103 iii 4.1.1 Political Context .....................................................................................................103 4.1.2 The Goldenberg Scandal in Context (1991-1993) ………………..……….……. 103 4.1.3 The Judicial Commission of Inquiry into the Goldenberg Scandal …...……..........................................................................................................…....106 4.1.3.1 The Findings and Recommendations of the Commission …………..……….. 107 4.2 Lessons from the Goldenberg Scandal ……….….......................................................…… 110 4.3 Conclusion ……………………………………………….…………………….…..…...… 111 Chapter Five: Lessons from Select Jurisdictions on Regulation of Corporate Campaign Contributions..............................................................................................................................113 5.0 Introduction ...........................................................................................................................113 5.1 Rationale ……………………………………………….....………………….………….... 113 5.2 Lessons on Corporate Campaign Financing ……………...……………………….…….... 114 5.2.1 Legal Framework and Electoral Commissions ….……………………...….….. 114 5.2.2 Donations and Contributions …………………………………………….…….. 115 5.2.3 Disclosure Requirements ………………………………………….…………… 117 5.2.4 Limit on Expenses ……………………………………………………………... 119 5.2.5 Powers of the Electoral Commissions to impose Sanctions and Penalty………... 120 5.3 Challenges in Campaign Finance Regulation in the Select Benchmark Jurisdictions ..…... 120 5.4 Conclusion ………………………………………………..…………………….…….........123 Chapter Six: Conclusion and Recommendations ..................................................................125 6.1 Major Findings… ...................................................................................................................125 6.2 Conclusion …………………………………….…..………………………………..…….. 128 6.3 Recommendations ……………………...……...………...…..……………………………. 129 6.3.1 Short Term Recommendations ..............................................................................129 6.3.2 Mid Term Recommendations ……………………..…………………………… 130 6.3.3 Long Term Recommendations ………………………………………………….130 Bibliography …………………………………………………………………..……...………..132 iv DECLARATION I KENVINE ODHIAMBO OUMA do declare that this Dissertation is my original work and has not been submitted elsewhere for examination, award of a degree or publication. Where other people’s work, or my own work has been used, this has properly been acknowledged and referenced in accordance with the University of Nairobi’s requirements. KENVINE ODHIAMBO OUMA Signed: Date: This research project has been submitted for examination with my approval as a University supervisor. Signed: Date: DR. NKATHA KABIRA v DEDICATION To all champions of democracy in Kenya particularly the late Christopher Msando who lost his life pursuing integrity in elections in Kenya. vi ACKNOWLEDGEMENT I acknowledge the immense guidance from my Supervisor, Dr. Nkatha Kabira, who has been steadfast in following up with me on the progress of the research project. Thank you. To my Father and Mother, Elisha and Carren, thank you for teaching me my first word, for introducing me to the world of education, and for always believing in me. To my intelligent, dedicated, and dearest wife, Irish and my daughter Adena, who permitted me to take long nights on end trying to complete this research project and walked with me hours on end. To my siblings, Stephine, Gerishon, Collins, Evance and Diana who never gave up in pursuit of academic excellence while charting their own paths. To my sounding board, Japheth Odhiambo Abudho, thank you for always creating time to give your input and shape my raw ideas into this research project. To my Team at Triple OK Law Advocates, LLP led by James Ochieng’ Oduol and Marysheila Onyango-Oduor for always stepping in to hold fort as I took the time, I needed to finalise this research project. To my best friend Fildas Smith Otieno, you lived a fulfilling life and had an immeasurable impact in our lives. Rest in power! JKF(S) will surely miss you! vii LIST OF CASES Local cases Daniel Torotich Arap Moi v Mwangi Stephen Muriithi & another [2014] eKLR (Court of Appeal). Eric Cheruiyot Kotut v S.E.O. Bosire & 2 Others [2008] eKLR (High Court). Kenya Airports Authority v Mitu-Bell Welfare Society & 2 others [2016] eKLR (Court of Appeal). Orange Democratic Movement (ODM) v National Treasury & 5 Others [2017] eKLR (High Court) Political Parties Forum Coalition & 3 others v Registrar of Political Parties & 8 others [2016] eKLR (Court of Appeal). Raila Odinga & Another v IEBC & 2 Others [Presidential Petition No. 1 of 2017] (Supreme Court). Republic v Judicial Commission of Inquiry into the Goldenberg Scandal & 2 Others Ex-Parte George Saitoti [2006] eKLR (High Court). Republic v Attorney General & 3 Others Ex Parte