This whole sage dates back to the Local Manufactures (Export Compensation) Act, Cap. 482 Assented on 12 June 1974, effective 1 November 1974
Its purpose was to encourage local manufacturing and exports by providing compensatory payments to exporters of certain Kenyan-made goods specifically goods wholly produced in Kenya or using imported materials not exceeding 70% of the ex-factory value.
The payment was made after export is completed and after foreign currency from the sale has been received in Kenya by an authorized dealer, or settled under government-to-government arrangements.
The section that Pattni exploited provided for exceptions that allowed advance payments for certain precious metals if the exporter provides a bond or commits to producing proof of payment within 90 days.
At the time, Kenya had a developing manufacturing sector that was primarily focused on serving the domestic market.
The government wanted to shift the focus toward exports to earn more foreign currency and integrate with global trade.
The Act incentivized manufacturers to look beyond local sales by offering cash compensation for eligible exports.
2. Offset High Input Costs Due to Import Dependence
Kenyan manufacturers often used imported raw materials, which were expensive due to customs duties.
The Act offered compensation to neutralize the cost disadvantage, effectively making Kenyan goods more competitive abroad.
In the 1970s, Kenya, like many developing countries, faced a shortage of foreign exchange reserves.
By promoting exports, the Act aimed to bring in hard currency, supporting national development and balance of payments stability.
How the Act Tied in with Goldenberg
1. Goldenberg Used the Act’s Export Compensation Scheme
The Export Compensation Scheme (established under the Act) was intended to reward Kenyan manufacturers who exported goods—especially to earn foreign exchange.
Under this law, exporters could claim cash refunds of up to 20% of the value of goods exported, as long as those goods originated in Kenya and foreign exchange was properly repatriated.
2. Goldenberg International Falsified Exports
Goldenberg International Ltd., run by businessman Kamlesh Pattni and backed by powerful state officials, claimed they were exporting Kenyan gold and diamonds.
In reality, Kenya had virtually no gold or diamond exports of the scale they claimed.
They smuggled gold from Congo, repackaged or falsified documents, and pretended it was of Kenyan origin.
3. Fraudulent Compensation Claims
Goldenberg submitted fraudulent claims under the Export Compensation Scheme.
The government, through the Central Bank of Kenya and Treasury, paid Goldenberg over KSh 5.8 billion (~10% of GDP at the time) in fake export compensation.
Some estimates put the total fraud at over KSh 100 billion, especially when factoring in interest and ripple effects on the economy.
To enable Goldenberg’s operations, the Central Bank of Kenya (CBK) occasionally had to supply foreign exchange (USD) to banks or intermediaries involved.
In some cases, CBK sold USD to Goldenberg-linked banks (like Exchange Bank) below market rates, thinking the exports were legit and forex had been earned.
This led to an artificial demand on reserves without a corresponding real inflow.
Goldenberg and its associates used the shilling payments to buy real USD on the black market or through insider banking channels, then moved it offshore.
The CBK printed excess money to keep paying Goldenberg and others.
This caused:
Inflation
Devaluation of the Kenyan shilling
Reduced confidence in the formal forex system
When Pattni says he didn’t do it. He’s actually correct. They used him as a patsy to raid the central bank reserves.
Here’s a chart showing the Kenyan Shilling’s devaluation (USD/KES exchange rate) alongside the Balance of Payments (BoP) deficit as a percentage of GDP from 1973 to 2024:
The blue line shows the steady devaluation of the shilling over time.
The red dashed line shows how the BoP deficit worsened, peaking around 1998 (during and after the Goldenberg fallout), then stabilizing in the 2000s
Moi was so stupid he even needed a muhindi to steal his own country’s money, just like the current fucker who needs Adani to screw his own country. Kwani hii ukimwi humaliza.mtu na miaka ngapi?
he didn’t. He knew how to steal, he just NEEDED an official reason to do it. You see, how Moi maintained order for 25 years is that everything he did, not matter how fucked up it was, he always had legitimacy attached to it.
When pattni started talkiing to kanyotu, the kanyotu went back to moi and told him they had found an official way to siphon out central bank reserves. it would also present them with an opportunity to print money, while still appearing to maintain a veil of offficialness. That’s how the jirongo was born.
it allowed moi to create an official reason to print bags of cash in the 200 denomination just before the 1992 elections when he knew multiparty was inevitable. Also blaming an indian for the theft would play into the anti-colonial midset back then when most people who go independence back in the 1970s were still alive and in the midlife 40s and 50s.
But pattni pia hakutoka nil. He discovered how a government system can be mnaipulated and has been selling that knowledge all over africa
My family benefited extensively from the goldenberg scandal by association. So much so that we closed a multi million (US dollars) deal in Canada as recently as 2010 with a Kenyan-Canadian of Indian decent that was implicated in the goldenberg scandal and orchestrated the largest bank fraud in Kenyan history. Go figure. If Moi was dumb .. we would be in jail. We ain’t tho’.. are we. We here .. doing the fuck we want .. with pure impunity. How come .. coz we have dossier’s pon’ dossier’s of government compliance.
Don’t matter what u care. Just telling the truth. I don’t have to.. but I did. Why u so worked up cuz. Chill. Funny how illiterate I may be .. but either way. You have nothing on me. Absolutely nothing. Yet I brag less. I’m uncivilized, uneducated, uncouth.. barbaric and backwards.. right. How come I have dual citizenship, wealthier, more connected and btwn me and you .. I could get the audience of the Kenyan presidency if need be as a matter of urgency. Not just Zakayo .. even Ubako reached out. In fact we moved back after his absolute assurance.. nigger go figure. Let me help you out .. we armed as fuck. Thats why. No other entity is armed as we are. We own or have direct control over more than half those arms.
but if you are all that, why are you still seeking validation from the poors you stole from? Maybe it’s becuase your theft was phalic and no matter how much you achieve in life, you will know it is all based on a lie. That will creep through your life, and while you can lie to the whole world, at night when you’re curled up all alone, and the images of starving children haunt you becuase you stole their money, you get a stomach ache out of nowhere
imagine this boy whose brain you stunted could have been the one to solve a nagging prostate cancer than has plagued your family for five generations. He could have been the boy who discovered the cure aids, and the upele on your skin but alas you gave him brain damage so you could live in canada and develop snow blindnes
Validation. Bro .. get your act together..I don’t seek validation for fuck all. Neither do I give a shit for that boy … who obviously isn’t even one of my own .. and even if he was; it would still mean nothing to me in the grand scheme of things. See, we don’t get emotional about simplified yet perceived versions of our lives. If we did, we wouldn’t survive. Not with your successive governments.. continuously oppressing and suppressing our people, to near submission.. and trust me they almost did. Until our people reached out. We gambled our entire livelihoods, got rid of some of our most significant assets, to stand up for them. And we succeeded .. even more than we expected. You can lament all the negativity you want .. but we yet again, saved our people. Enda ground .. we are the most prominent Pokot family that’s Apolitical.. and without a doubt the most armed in Kenya. By far. You have no idea how armed we are .. no idea.
how were you opressed when a kanjin has been president or vice president in kenya longer than all combined tribes in africa. Even in the world, there is no tribe that has had over 40 years combined leadership in presidency or VP when they make up less than 10% of the total population. Bro how are you opressed when you had moi for 24 years letting you have a free pass for ANYTHING?
There is a huge difference between Pokot and Kalenjin especially (Nandi,tugen, kipsigis and keiyo). Our closest Kalenjin cousins are the Marakwet. Ok. Which would make Turkana our closest blood brothers
..so to speak. Either way.. no goverment to date did anything significant for the Pokot people.. not even Moi. They did stuff for individuals… my family being one of the biggest beneficiary, I never denied that .. but for the community, Moi did fuck all. My father single handedly saved the Pokot people from imminent destruction by diverting military grade weapons to them by virtue of his position within the regime (military position - I ain’t lotodo son), and later when he was bursted, he successfully managed to negotiate to save guard the Moi family as a compromise. Mzee Moi agreed … I mean he had little choice .. we were already armed as fuck and he was rapidly given extensive powers. Not even the powerfully thought entities like Biwott had shit on him. He was eventually taken out by a “freak accident” .. but he already had us moved out, and financially secured for generations. The damage was already done. The Legend was already born .. we live by that legacy to date. You can never convince my people to go against us. Their loyalty to us is unquestionable.. it amazes me. We don’t do politics but no Pokot politician would dare go against us. They consider it too risky … out of perception than real threat. They all respect our validation.. granted by the people.
unaongea na mlionwa war kama burukenge. it marked the first time that kenya used napalm to blow terrorists hiding deep in the caves of pokot. Hadi leo pokoto wako na grudge na nkaissery hadi leo ju ya Operation Nyundo. You did not negotiate. Mliekwa chini. To add insult to inury he received a state funeral instead of prosecution
The worst part of it is that you are a beneficiary of a government that allegedly persecuted your people, and you’re happy about it
Ooh fuck off. You know that’s a lie. Major Nkaissery did fuck all bro. It’s well documented. Except the part that he was working under my father’s instructions. Excuse me. But I know more than you do. I bet you wasn’t even born. They bombed a bunch of caves that were pretty much unoccupied.. by then military intervention within the borders sounded like a big deal. But no, it wasn’t. I doubt any Pokot was killed. I was a kid then .. but I know the operational planning was at my hse in upper Hill rather than military HQ. Bro .. chill. We been in the game for a minute. I’m not speculating.. Imma giving u classified info .. so to speak. Kama 'tuliomwa war" mbona tuko active to date. Fuck sakes 2025 .. near 30 yrs later. Bro
Believe or not. There has been no successful operational mission/maneuver against the Pokot people that has by military terms/or perspective, effectively degraded their capacity to engage in further embodiments of their vitality. Tell me one that effectively degraded us. Just one.
We already are our own country. We have no functioning law and order. Tiaty .. Mimi ndo kusema, nigger couple months ago, your Presidency had to ask us for assurance to visit. But you wouldn’t know that …would you. Ofcourse not. But he did. We get paid … we good. Ok.Anyways. See it however u want. Don’t change nothing. I was just saying..prolly kidding. Lakini kama huko Na enuff balls, we can quit the talking, come hapa Nakuru.. nitakuonesha stockpiles of weapons and ammunition tunayo, hapa town. Si kapedo.. zii hapa hapa town. If you have balls, and its not far from my neighbourhood. And if I don’t .. come back here and declare to all. Nigger I always keep my word .. come thru uone.
so what’s the purpose of your country? To faill all of the MDGs successfully? Like you yourself are hiding in first world canada while subjecting your fellows to living like neolithic people in the 21st century. is that an achievement?
Man it was nasty business. The shlling just collapsed by 150% in less than 12 months. Ni kama uamke next year time kama hii upate shilling ni 450. That just means you have lost all the value of your money
The blue line shows the steady devaluation of the shilling over time.
The red dashed line shows how the BoP deficit worsened, peaking around 1998 (during and after the Goldenberg fallout), then stabilizing in the 2000s
