The Kenyan parliament's Committee on Delegated Legislation met on October 8 to review proposed Privileges and Immunities orders for the Ford Foundation and the Africa Finance Corporation. Prime Cabinet Secretary Musalia Mudavadi and officials from both organisations appeared before the committee. MPs expressed concerns that the protections should not restrict how Kenyan authorities enforce the law, particularly with regards to the Ford Foundation's proposed immunity.
MPs took issue with the provisions sought for the Ford Foundation, arguing that any immunity granted must be bounded and should leave intact the country's sovereignty, its accountability mechanisms, and the ordinary application of statutes. The committee also raised questions about the Africa Finance Corporation's application, with Ainabkoi MP Samuel Chepkonga asking why the corporation warranted special treatment compared to other foreign financial institutions operating in Kenya.
Gichugu MP Robert Gichimu sought to establish whether the privileges contemplated for AFC matched those it enjoys in other jurisdictions. Likuyani MP Innocent Mugabe sought clarification on whether the Ethics and Anti-Corruption Commission would keep its power to step into corruption cases involving the corporation. However, the report of the sitting does not record answers to either question.
Officials from the Africa Finance Corporation told the committee that the corporation would remain subject to Kenyan law, operating within a framework modelled on the arrangements that govern diplomatic missions. However, the specifics of that framework were not disclosed during the meeting. AFC Director Fola Fagbule asked the committee to back the proposal, pointing to the economic openings the corporation's Nairobi base could create, especially in infrastructure financing and investment.
The proposed immunity for the Ford Foundation and AFC stems from two earlier decisions. In February, the Cabinet approved a plan for the Ford Foundation to open a Nairobi office. In April, Kenya and AFC signed a Host Country Agreement that clears the way for the corporation's first regional office outside Lagos, to be located in Nairobi.
The Africa Finance Corporation has directed more than KSh168.92 billion ($1.3 billion) into Kenyan energy, transport, and industrial projects since 2017. Over the next three to five years, it aims to mobilise upwards of KSh259.68 billion ($2 billion) across the region, with about KSh260 billion of additional investment targeted through the Nairobi operation. Its existing Kenyan projects include the Dongo Kundu Integrated Industrial Park and the Naivasha Special Economic Zone II.
The committee has not concluded its review, and the draft orders must still move through the remaining parliamentary stages before any privileges and immunities take effect. The precise limits of those protections have not been made public. The review process will determine the extent of the immunity granted to the Ford Foundation and AFC and how it will be implemented.
Key points
- MPs are pressing for tighter safeguards on proposed immunity for the Ford Foundation and Africa Finance Corporation.
- The Africa Finance Corporation aims to mobilise upwards of KSh259.68 billion ($2 billion) across the region over the next three to five years.
- The proposed immunity stems from two earlier decisions, including the Cabinet's approval of a plan for the Ford Foundation to open a Nairobi office in February.
