TIMC takes its first look at Kenya
by James A (Jim) McCoy, Jr
Some countries with ties to China have their own category here, others are covered as part of a region. Egypt, for example, is covered under the MENA (Middle East – North Africa) category. Kenya is found under the category of Africa; or you can search for Kenya.
My online followers are aware of my previous coverage of Kenya in connection to the Crisis in Kenya project, where I had begun work with a security agency there. I wrote of the poaching and terrorist activities that are funded in part by income from poaching.
I am looking at Kenya here now because of the recent Chinese port project but first I will take a brief look at the Fragile State Index (FSI) and Global Crypto Adoption Index (GCAI).
The FSI shows us that Kenya remains to be highly unstable.The graph shows us that Kenya moved up slightly, nearing the point of collapse, before falling back down. Despite changing its trajectory, this coastal African country remains highly unstable and unsustainable.
When looking at the GCAI, we see Kenya rising with Kenyans trading cryptocurrencies directly with each other (“peer to peer transactions” or P2P) more than elsewhere in the world.
Here again, we see a correlation between the FSI and GCAI. This seems to be for two reasons: Instability breeds crime and terrorism and cryptocurrency empowers people.
What is driving the rise of cryptocurrency in Kenya?
First there is the general weakness of African currencies, especially due to the pandemic. People need to protect themselves from the effects of the declining currencies. Kenya has its own cryptocurrency known as Sarafu.
Sarufu is a community inclusion currency, or CIC, allowing people to give or take credit without having to deposit Kenyan shillings or other currency in a bank. Outside of Nairobi and other more populated areas, villagers may not have access to the national currency. Without access to cash or credit, they cannot trade and are thus locked into poverty. The chronic poverty breeds crime and terrorism. Sarufu is empowering the rural population and allowing them to trade among themselves and work their way out of poverty without needing to rely on the government to provide access to capital; they create their own capital directly through their own labor.
Sarufu certainly accounts for the majority of growth in cryptocurrency transactions among the population, if not the total value of the transactions.
Kenya, of course is plagued by poaching, which requires money laundering and wherever there is money laundering there is ties to other crime and terrorism. Kenya has been a prime target of al-Shabab, an al-Qaida affiliate originating in Somalia. My research has shown a correlation between corruption and terrorism and corruption worsens the terrorism situation in Kenya. Terrorist operations account for some of the rise on the GAIC as cryptocurrency provides cover for financial transactions related to terrorism.
As China invests more in Kenya, I will cover Kenya in more detail. Over the next few days, I will be writing more about Kenya and China.
Please join our fight against poaching and terrorism:
About the Author:
James A (Jim) McCoy, Jr - I have been living and teaching in China for nine years. Originally hired to teach a course on Globalization with a focus on the global financial crisis of 2008, I went on to teach American Government, Political Science, American History, and other courses. My previous experience as a Systems Analyst brought an opportunity to teach a semester of AP Computer Science using JAVA. I have a BA in International Business and earned an MA in Intentional Relations during my time as a Teacher. My interests in terrorism grew out of my MA studies and the partial PhD studies that pursued in Homeland Security. Technology has always had a place in my heart and I found a way to combine my interests in technology and terrorism. I am currently studying Cybersecurity, Ethical Hacking, and Cyberforensics. As I continue to teach, I am developing an online business that includes writing and consulting. I publish a blog at www.thisismychina.com. I currently reside in Tianjin, China with my partner Claire and our two daughters YoYo and Li Li (age 2 ½ and 5).
The article was originally published at: http://www.thisismychina.com/2021/08/24/timc-takes-its-first-look-at-kenya/