VZCZCXYZ0001
PP RUEHWEB

DE RUEHNR #0530 0751510
ZNR UUUUU ZZH
P 161510Z MAR 09
FM AMEMBASSY NAIROBI
TO RUEHC/SECSTATE WASHDC PRIORITY 8844
INFO RUEHDS/AMEMBASSY ADDIS ABABA 0447
RUEHDR/AMEMBASSY DAR ES SALAAM 6398
RUEHKM/AMEMBASSY KAMPALA 3182
RUEHLO/AMEMBASSY LONDON 3116
RUEHFR/AMEMBASSY PARIS 2981
RUEHRO/AMEMBASSY ROME 5417

UNCLAS NAIROBI 000530 
 
SIPDIS 
 
DEPARTMENT FOR AF/E 
LONDON, PARIS, ROME FOR AFRICA WATCHERS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV ECON KE
SUBJECT: THE REFORM AGENDA IN KENYA: ENERGIZING THE PRIVATE 
SECTOR 
 
SENSITIVE BUT UNCLASSIFIED -- ENTIRE TEXT. 
 
¶1.  As  previous reporting has noted, peaceful pressure 
coming from civil society groups, religious organizations, 
the private sector, and the media were instrumental in 
helping resolve the crisis triggered by the December 2007 
disputed elections.  Having undertaken some steps to 
implement relatively easy elements of the reform agenda, the 
coalition government has not moved forward on the really 
tough issues ) tackling the culture of impunity relating to 
violence and corruption.  The strong role the U.S. played to 
help resolve the crisis gave encouragement to these groups to 
speak out.  Pressure on the coalition government from these 
same groups is essential to drive implementation of the 
reform agenda.  While we have been in constant contact with 
these groups, since early this year we have intensified 
engagement to encourage them to act in concert to push the 
reform agenda.  This message reports on the Ambassador,s 
recent meeting with the Kenyan private sector alliance 
(KEPSA). (Septels will report on meetings with civil society, 
religious groups, and the media.) 
 
¶2. The Ambassador opened the meeting with the KEPSA 
leadership by noting the role that they played during the 
post-election crisis.  KEPSA used its vast private sector 
leverage to push for a politicial solution.  This included 
full-page newspaper advertisements pointing out the economic 
and social consequences of the crisis, and a series of 
hard-hitting meetings with Kibaki and Odinga.  In doing this, 
KEPSA mobilized the private sector as never before, and 
brought labor unions into a joint effort.  The Ambassador 
emphasized that the private sector must now play a similar 
role to push for implementation of the reform agenda. 
 
¶3. The Ambassador pointed out that, in addition to KEPSA,s 
power as the umbrella private sector organization, there are 
two other immediate points of leverage.  One is Prime 
Minister Odinga,s desire to lead a trade and investment 
mission to the U.S. before mid-year, and the other is the 
upcoming AGOA forum.  The Ambassador noted that he has 
already made clear to Kibaki and Odinga that these will not 
be fully successful unless specific, substantial action is 
taken to implement the reform agenda, including action to 
tackle corruption. 
 
¶4. The KEPSA leadership readily agreed that the private 
sector needs to play a role similar to what it played to help 
end the crisis.  They admitted, however, that there are those 
in the private sector who want to work with the vested 
interests in the coalition government rather than putting 
themselves on the line to promote change.  The KEPSA 
leadership all see the need for quick, strong private sector 
action, and are working to persuade those who are reticent. 
 
¶5. The KEPSA leadership told the Ambassador that they will 
work on an approach similar to that adopted during the 
crisis:  a combination of public calls for implementation of 
the reform agenda coupled with private pressure through 
meetings with Kibaki, Odinga, and others. 
 
¶6. The KEPSA leadership pointed out that the global economic 
crisis, which has already had a significant negative impact 
on Kenya, complicates efforts to promote reform.  The 
government is distracted by immediate priorities like 
alleviating the food shortages and dealing with the 
burgeoning budget deficit while trying to sustain basic 
programs like health care and education.  However, they said, 
the coalition government has no choice but to proceed with 
implementation of the reform agenda.  They agreed strongly 
with us that tackling corruption is key to both dealing with 
economic pressures and to political reform. 
 
¶7. We are following up with KEPSA. 
RANNEBERGER