R 141458Z JUL 08
FM AMEMBASSY NAIROBI
TO SECSTATE WASHDC 6439
NSC WASHDC
INFO AMEMBASSY KAMPALA 
AMEMBASSY ADDIS ABABA 
AMEMBASSY DJIBOUTI 
AMEMBASSY DAR ES SALAAM 
AMEMBASSY ASMARA 
AMEMBASSY KIGALI

UNCLAS NAIROBI 001725 
 
 
FROM THE AMBASSADOR 
DEPT FOR AF/E AND A/S FRAZER 
 
E.O. 12958:  N/A 
TAGS: PREL PGOV KE ZI
SUBJECT: Prime Minister's Visit Advances U.S. Policy 
 
Ref:  (A) Nairobi 1659, (B) State 66179 
 
 
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Summary 
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¶1. (U) Prime Minister Odinga's June 16-19 visit to the U.S. was a 
huge success and advanced U.S. policy to support the coalition 
government, to bolster the PM's role to supervise and coordinate the 
functions of government, to press for institutional reforms, and to 
highlight the U.S.-Kenyan partnership.  This message reports on the 
visit and identifies follow-up items. End summary. 
 
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Odinga Emphasizes Coalition Unity 
--------------------------------- 
 
¶2. (U) During his June 16-19 visit to Washington, Prime Minister 
Raila Odinga conveyed a consistent message of the commitment he and 
President Kibaki share to make their coalition government work and 
to achieve results. He said that they are coordinating closely, have 
established cabinet sub-committees to streamline government work, 
have harmonized policy agendas, and have begun to move forward on 
institutional reform. The fact that Odinga traveled with Minister of 
Transport Mwakwere and Minister of Defense Haji, both from Kibaki's 
Party of National Unity (PNU), highlighted Kenyan government unity. 
Throughout the visit Mwakwere and Haji made public and private 
statements supportive of the coalition government and Odinga's role 
as Prime Minister. Odinga heard a consistent message from U.S. 
officials, Members of Congress, and the private sector on the need 
for the coalition government to deliver on promises to carry out 
institutional reforms (constitutional, electoral, and land).  The 
very warm reception Odinga received in all quarters highlighted the 
importance Americans attach to democratic progress in Kenya. 
 
¶3. (U) U.S. objectives for the visit were:  to emphasize U.S. 
support for the coalition government, to bolster the role of the 
Prime Minister to supervise and coordinate the functions of 
government, to emphasize the importance of rapid progress on 
institutional reform, to highlight the U.S.-Kenyan partnership, and 
to achieve specific deliverables to support these objectives. 
These included signing of a Safe Skies agreement, announcement of 
the resumption of the Peace Corps program, and announcement of the 
Administration's Kenya supplemental request sent to Congress. 
 
¶4. (U) Meetings with Secretary Rice (ref B), National Security 
Adviser Hadley, USAID Administrator Fore, and Assistant Secretary 
Frazer were the centerpiece of the visit, and emphasized the U.S. 
commitment to work with the coalition government to achieve results 
on institutional reform. As in other meetings, Odinga delivered an 
unequivocal message that he and President Kibaki share a commitment 
to make the coalition government work and to achieve results on 
institutional reform.  In addition to reviewing the full range of 
bilateral issues, A/S Frazer emphasized the need for the Kenyan 
government to do more in the search for Rwandan war criminal Kabuga. 
 
FOLLOW-UP:  Odinga agreed to energize Kenyan government efforts on 
Kabuga, and we are pressing for action. 
 
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Zimbabwe 
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¶5. (U) During his meetings with the Secretary, NSA Hadley, and A/S 
Frazer, and in public comments, Odinga emphasized his view that the 
upcoming elections were a sham, and that African countries must 
mount effective efforts to restore democracy to Zimbabwe.  A/S 
Frazer urged Odinga to help mobilize the AU's Peace and Security 
Council.  During discussions with Members of Congress, in remarks at 
the Center for Strategic and International Studies (CSIS), during a 
CNN interview, and in other media appearances, Odinga staked out an 
unequivocal position on Zimbabwe (see ref A for further reporting on 
the Kenyan government's position). 
 
FOLLOW-UP:  We are urging the Kenyan government to exert stronger 
leadership within the AU on Zimbabwe. 
 
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MCC 
--- 
 
¶6. (U) A meeting with Millennium Challenge Corporation (MCC) Chief 
Executive Officer Danilovich served to emphasize the need for the 
coalition government to take substantial additional steps to combat 
corruption in order to qualify for a full compact program.  Odinga 
expressed strong interest in accelerating efforts to achieve a 
compact, but MCC officials left him in no doubt about what the 
Kenyan government needs to do in order to qualify pursuant to the 
MCC's indicators.  After stating that "we went to the edge of the 
precipice and did not like what we saw," Odinga called the coalition 
government "a promising experiment."  Odinga stressed his 
determination to ensure greater accountability and anti-corruption 
efforts, including through reform of the judiciary.  Odinga said 
that he wants to put an adviser on governance into the PM's office 
in order to assist in these efforts. 
 
FOLLOW-UP: Without making any commitment, MCC officials indicated 
that they would consider support for this. 
 
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USAID 
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¶7. (U) Odinga had a constructive meeting with USAID Administrator 
Fore, who indicated that the U.S. wants to be as helpful as possible 
in supporting the coalition government and its efforts on 
institutional reform.  As he had in other meetings, Odinga said that 
the coalition government is making progress and "beginning to work 
very well." Odinga identified as a particular priority facilitating 
the return of IDPs to their homes.  Fore informed Odinga about the 
Administration's request to Congress for supplemental funding for 
Kenya. 
 
FOLLOW-UP:  As he did with MCC, Odinga requested support for a 
governance adviser, and for an adviser on agriculture as well. 
Without making any commitment, Fore agreed to look into this. 
 
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OPIC and EXIM 
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¶8. (U) During meetings at OPIC and EXIM Odinga emphasized his desire 
to attract more American investment to Kenya.  OPIC officials noted 
that Kenya is on the list of countries that can benefit from 3 
billion dollars in private equity funds.  OPIC indicated that it 
wants to focus on promotion of micro-credit and low/medium cost 
housing. Kenya's Equity Bank already benefits from one of the 
private equity funds, and Kenya's Housing Finance Corporation is 
interested.  EXIM Bank officials indicated that EXIM currently has 
460 million dollars in exposure in Kenya.  Odinga said that, in 
order to attract American investment, he wants to eliminate 
obstacles:  reducing Kenyan government bureaucratic red tape, 
fighting corruption, countering crime, passing anti-money laundering 
legislation, reforming the judiciary, and improving the country's 
infrastructure. He also wants the Kenyan government to set up a 
one-stop shop for investors. 
 
FOLLOW-UP:  EXIM officials indicated that Kenyan ratification of the 
Cape Town Treaty would be helpful in lowering financing fees, and 
the Embassy will press for this. 
 
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Department of Transportation 
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¶9. (U) At the Department of Transportation, Odinga and the Secretary 
of Transportation signed an Open Skies agreement. Odinga emphasized 
his commitment to taking the steps necessary to secure category one 
status for Kenya's international airport and to sign a Safe Skies 
agreement in order to facilitate direct flights between the U.S. and 
Kenya. 
 
FOLLOW-UP:  We are intensifying work with the Department of 
Transportation and the Kenyan government to address security and 
safety issues. 
 
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Peace Corps 
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¶10. (U) At the Peace Corps, Director Tschetter highlighted the 
return of the Peace Corps to Kenya.  Odinga stressed the importance 
he attaches to the U.S.-Kenyan partnership.  The Director emphasized 
the need to reach agreement on an updated bilateral agreement on the 
Peace Corps. 
 
FOLLOW-UP:  The Director indicated interest in coming to Kenya to 
sign a revised bilateral agreement once it is completed.  We are 
working with the government to finalize the agreement. 
 
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World Bank and IMF 
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¶11. (U) During meetings at the World Bank and IMF, officials 
expressed a positive view of the coalition government and indicating 
interest in expanding engagement. 
 
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Congress 
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¶12. (U) Odinga met extensively with Members of Congress.  These 
meetings included:  members of the House Appropriations 
Sub-committee, Congressman Chris Smith, Senate Senator Isakson from 
the Senate Subcommittee on African Affairs, Congressman Payne, 
Senate Subcommittee on African Affairs Chairman Feingold, Senator 
Bill Nelson, and Members of the International Conservation Caucus. 
Odinga made cogent presentations on the coalition government, noting 
the commitment he and President Kibaki share for 50/50 power-sharing 
and to institutional reform.  He noted that he and the President are 
meeting weekly to coordinate efforts, and that five cabinet 
sub-committees have been established to ensure that the large 
40-member cabinet works effectively.  He pointed out that the PNU 
and his Orange Democratic Movement (ODM) have already harmonized 
positions in order to set new goals through the government's Vision 
2030 document. Odinga appealed for support for the supplemental 
request sent to Congress for Kenya and appealed for additional 
assistance, including through expediting consideration for Kenya for 
an MCC compact program.  Members of Congress expressed support for 
the coalition government, emphasized the need for the coalition to 
achieve results on institutional reform, and raised a wide array of 
issues, including the need to do more to fight corruption and to 
address poverty and inequitable distribution of wealth.  The Members 
of Congress also stressed the need to intensify reconciliation 
efforts in order to facilitate the return of internally displaced 
persons.  Mwakwere, who was one of the PNU's hardliners during the 
crisis, admitted that "we were living in a fool's paradise ignoring 
fundamental problems, but we realized we had to work together to 
save the country. Even we are surprised by how well we are emerging 
from the crisis," Mwakwere said.  "Kenya is on the right track now." 
 During his meetings on the Hill, Odinga strongly and repeatedly 
praised the U.S. for the decisive role it played in helping Kenya 
resolve its crisis. Members of Congress were very positive regarding 
the role the U.S. played. 
 
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Odinga's Policy Addresses 
------------------------- 
 
¶13. (U) In addition to press interviews, Odinga made two major 
public statements during an address to CSIS and at a lunch sponsored 
by Coca Cola.  Septel reports text of Odinga's speech at CSIS. 
During these public remarks Odinga strongly praised the decisive 
role the U.S. played to resolve the Kenyan crisis, and stressed the 
commitment he and President Kibaki share to make the coalition 
government work and to achieve results.  The Prime Minister said 
Kenya's stability before the crisis masked smoldering grievances, 
particularly with respect to land problems and inequitable 
distribution of wealth.  These manifested themselves through 
inter-ethnic violence, much of it carried out by unemployed youth. 
He emphasized the need to revise the constitution to limit the 
powers of the presidency and to provide for effective checks and 
balances.  He also highlighted the importance of the coalition 
government acting in a transparent and accountable way in order to 
build credibility with the Kenyan people.  "We must work to 
re-establish the social fabric by dealing with longstanding 
grievances," Odinga stated.  "Kibaki and I are determined to lead a 
partnership," Odinga said. Odinga underscored his desire to further 
expand the U.S.-Kenyan partnership, particularly by attracting more 
U.S. investment.  In that regard, Odinga was guest of honor at a 
well-attended dinner hosted by the Corporate Council on Africa 
(CCA).  The CCA indicated that Kenya is one of the four countries it 
is targeting in Africa for expanded engagement. 
 
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Meeting with Kenyan Diaspora 
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¶14. (U) During his visit Odinga met with several hundred 
representatives of the Kenyan diaspora at an event facilitated by 
George Washington University.  At the request of the diaspora 
representatives, the Ambassador made brief remarks and accepted a 
vote of thanks for the role the U.S. played to resolve the crisis. 
Odinga talked in moving terms about the need to foster "unity in 
diversity."  He reassured the diaspora that he and Kibaki are 
working together closely and well, and that the government is moving 
ahead on the institutional reform agenda.  In a theme that he echoed 
elsewhere, Odinga appealed to the diaspora to become more engaged in 
helping Kenya.  He indicated that he is establishing an office 
within the Prime Minister's office to engage with the diaspora. 
 
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Positive Reaction to the Visit 
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¶15. (U) Reaction in Kenya both during and after Odinga's visit was 
extremely positive.  The visit was covered extensively in the Kenya 
media, which emphasized the tangible results from the visit. 
Reaction focused on U.S. engagement to support the coalition 
government and to strengthen the Prime Minister's role to coordinate 
and supervise the functions of government.  The fact that the visit 
to the U.S. was Odinga's first official visit outside of Kenya as 
Prime Minister highlighted the coalition government's recognition of 
the unique and decisive role the U.S. played to help resolve the 
crisis.  Importantly, when the Ambassador informed President Kibaki 
in May about the planned Odinga visit, the President without 
hesitation replied "good, that's useful and the right thing to do." 
The coalition government and the Kenyan people continue to look to 
the U.S. as the principal player to keep post-crisis Kenya on 
track. 
 
 
RANNEBERGER