MLOLONGO

AnAfricaneconomicmiracle?

6000inhabitants,fiveclinics,twoprimaryschools,twochurches,noendofpubs,twosupermarkets,a
boomingconstructionindustryuptoandincludingfivestoreysbuildings,fourfillingstations,onecasinowithlive
entertainment,acybercaf,photocopyingcentres,butnoslums,nobeggars,nostreetchildren,nobanks,no
governmentpresenceand(almost)nocrime:notbadforaplacethatasrecentlyas1984wasnomorethanthe
usualexpanseofAfricanbushonanarrowstripofland(50x1000metresapprox)betweentheoldandthenew
alignmentoftheMombasaroad,some15kmfromNairobiCityCentre.
Inmid1980sthesandtradersfromMachakosdistrict,some30kmfurthereast,foundthatbydumpingtheir
lorryloadsalongtheoldalignmentoftheMombasaroad,notmorethan50mfromthenew,theyavoidedthe
weighbridgecharges.SmallerlorriescomingfromNairobididnothavetopay.Theavoidancewasthereforefully
legal,takingplaceundertheveryeyesofthepolice.Asamatteroffactthetradecontinues:heapsofsandstill
waitforbuyersnexttothenorthexpanseofsavannah.Twoattemptsweremadeovertheyearstoblocktheold
roadsoastopreventlorriesfromusingit.Thefirstwasabulldozerdigginganephemeralditchacrossit.The
secondwasthepoliceerectingalowlyingbarrierhighenoughtoletacarthroughbutnotalorry.Thiswas
effectiveforthecoupleofweeksittookthelorriestoopenadetouraroundit.
Soonafterthesandtradebegan,thefirstshopsstartedappearing.Theymostlysoldfoodanddrink,butinno
timeotherserviceswereprovidedfor:tailors,clinics,alocksmith,shoemakersetc.Itdidnottakelongbefore
woodenshacksgavewaytostoneandcementbuildings.Bythe1990sMlolongowasbooming,whileofficially
continuingnottoexist.Eventodayitisuselesstolocateitonamap.Aninterestingphenomenonisthatneither
politicians,norstreetpreachers,norNGOsfindareadyaudienceinafullyemployedpopulation.Andthe
inhabitantsdonotlookforwardtohavingsuchoperatorsintheirmidst.
WhatistheexplanationofsuchanextraordinaryphenomenonupsettingalltheclichsaboutAfrica?
AsHenryGeorge(183997)usedtosay,capitalistAandworkerBdonotdividebetweenthemselvesthewealth
producedbyB.TheydividewhatislefttothemafterlandownerCrakesinhisrent,usurerDhisinterest,tax
collectorEhisextortions,andawholelineofparasitesfromFtoZtheirmoreorlessvisiblecuts.Itisevident
thattheMlolongodwellersavoid,orevade,someofthat.Notall,forsure,otherwisetheplacewouldnotdiffer
muchfromanearthlyparadise.Atentative,necessarilyincomplete,analysisfollows.
Land
WhatstrikesavisitorfirstisthedifferencebetweenthenorthsideofthenewMombasaroadwhereMlolongo
lies,andthesouth,whichsportsafewbuildingsandavastexpanseofundevelopedsavannah.Thedifferenceis
landspeculation.
Landisnotfreeoneithersideoftheroad,butthesystemoftenureisleaseholdinthenorthandfreeholdin
thesouth.Result:theleasepricepaidtotheMavokoMunicipalitywouldbewastedbyanyonenotdevelopingthe
landpaidfor.Hencetheboomingconstruction.
Onthesouthside,thelandownersitsonhisdailyappreciatingbutemptyproperty,unwillingtoselland
waitingtomakeakill.TheperversesystemoftaxationthatKenyahasinheritedfromtheBritishrewardstheidle
landownerssloth,whilepunishingtheworkingpeoplesindustry.Theperversionconsistsinthefactthatthe
valueoftheidlepropertyincreasesbythedaynotbecauseofwhatitsownerdoes,butbecauseofwhatthe
peopleontheothersideoftheroaddo.IftheattentionoftaxcollectorEwasdivertedawayfromthefruitsof
Mlolongopeopleslabourtowardstheimmoral(butlegal)earningsofthatrepresentativeofclassC,Mlolongo
wouldtakeoffeconomicallywaybeyondthedreamsofeveryacademiceconomist.
Location,location,location
Mlolongoisfarfrombeingselfsufficient.Itgrowsnofoodandproducesnogoodsinanyquantitytospeak
of.Thereisplentyofwork,whichkeepseveryonebusy,butfewstablejobs.Itsmainassetis,withoutdoubt,its
strategiclocation.
WhereasthedistancefromNairobiCityCentreissome15kilometres,thatfromitsoutlyingindustrialarea
eastofthecityisnomorethan58km,alongbutnotexhaustingwalkinthecoolofthemorningsandevenings.
ThesamedistanceseparatesitfromAthiRiverandKitengela,ontheoppositesite.Theemployeesofthe
twobigcementfactorieslocatedtherefindcheaperaccommodationinMlolongothanineitherAthiRiveror
Nairobi.
Theweighbridgestation,whereallthelorriescomingfromMombasamuststoptoweighinandpay
accordingly,isanetassetforMlolongo.Theclientelefromthestoppinglorriesaddsnotonlytoitscolourbut
alsotoitsincome,makingitpossible,just,toavoidtheusurersgrasp.

Money
Asthereareneitherbanksnorotherlendinginstitutions,thelocalsmustrelyonoutsidersspendingenoughon
theirservicesastoallowthemtoimportfoodstuff,mitumbaandothernecessities,whilepayinglocalwages.
Putitanotherway,theyareoutofreachofusurerDsgrasp,andmoneycirculatesinsteadofbeinghoarded.
Everysingleconstructionisanentrepreneurs,capitalistlabourerinonetherearenoloafersandnopensioners
thatonecansee.Perhapsonedaytheywillappear,butnotnowthattheplaceissoyoung.
TaxmanE
Heiscertainlynotconspicuous.PeopledopayVAT,butonlyonstufftheyimportfromNairobiandother
centreswherethetaxmanisactive.Hecouldnotbebotheredwithaplacethataccordingtohisrecordsdoesnot
evenexist.Howmanypeoplepayincometaxisanybodysguess,andtheweighbridgedealswithpeoplebringing
inlorryloadsmeasuredintensoftonnes,notofkilograms.Itisanobstaclelessinthewaytodevelopment.
Bribery,corruptionandparasitismFZ
Whenapettybureaucratrealisesthathe/shehaspoweroverhisfellowcitizens,itbecomesextremely
difficulttoresistthetemptationnottoturnthatpowerintoasourceofextraincome.Invoicesfromexportimport
companies,forinstance,usuallyincludetheitemfacilitation,meaningbribespaidtocustomofficialstolet
importeditemsthrough.SuchofficialsdonotexistinMlolongo.Whethertheywillonedayisanybodysguess.
Forthetimebeingitisabureaucratfreearea,andthelocalsareverydeterminedthatitstaythatway.
Setbacksanddifficulties
Theabsence,orinconspicuousness,ofsomanyeatersoflabourerswagesgoesalongwaytoexplainthe
unusualprosperityofMlolongo,butitdoesnotmeanthatpeopletherewallowinopulence.Thereisnopovertyin
thesenseofdestitution,butwagesarelow.Thepopulationisbigenoughtohaveattractedtherethepower
company.Ithasconnectedtheplacetothegrid,butsincethewatersupplyisamunicipalmonopoly,theyare
stillwithoutwater.Everyfamilyneeds40litresaday,whichtheybuyfromvendorsat20centsperlitre.And
thereisnoseweragesystem.Everyshopcumdwellingspaceownerhasbuilthisownseptictankunderthe
property,butintheoutlyingareasnorthoftheroadtherearestillopensewerswaitingtobedealtwithsomehow.
Hopesforthefuture
TheMlolongopeopleareasyetunawareoftheongoingmonetaryrevolutionwithwhichthousandsof
communitiesaresteppingoverthedangerofrecessioninsomanypartsoftheworld.WithArgentinaleading,
theyaretakingcontroloftheirowncurrencies,thusbypassingthebankingsystem,creatingemployment,
stimulatingsmallenterprisesandavoidingcrushingtaxation.
Thefirststepwouldbetocreateasmallcompanytoharvesttherainwaterfallingofftheroofssoastosolve
theimmediateproblemsecond,tocreateanothercompanytoplanandexecutetheirseweragesystemand
third,tosinkaboreholecapableofgivingabundantwatertoalltheinhabitants.
ButatthispointtheywoulddoubtlessattracttheattentionoftheeverpowerfulAtoZparasites.Whocan
tell?
SilvanoBorruso
silbor@strathmore.ac.ke
26thDecember2002