CAPF is an alliance of civil society organizations in Kenya focussing on governance. It uses its combined expertise, experiences and programmatic resources to improve the regulation, management and culture of political party financing in Kenya. Its goal is to promote stable, vibrant and accountable political parties in Kenya. CAPF is steered by a Co-ordination Committee of five organizations: Centre for Governance and Development (CGD), Centre for Multi-Party Democracy in Kenya (CMD-K), Transparency International Kenya Chapter (TI-K), the Institute for Education in Democracy (IED), and the Caucus for Women Leadership (CWL). Other members are Community Aid International(CAI), Pioneers for Change (PfC) and the International Institute for Legislative Affairs (ILA)

This publication looks at the Election Campaign Financing Bill 2012. The Bill is currently with the Attorney General. It is yet to be considered by the Cabinet for introduction into Parliament. The Bill takes forward the agenda for campaign and political financing reform set out in Article 88 (4) (i) of the Constitution. It covers among other issues; the regulation, management, expenditure and accountability of election campaign funds during election and referendum campaigns.

This publication describes the background to the Election Campaign Financing Bill 2012. It reviews the current status of campaign and political finance regulations in Kenya. It summarises various provisions and policy issues of the Bill. It highlights key areas of controversy and public views.

It offers a summary of the public views and reactions to the Bill. Nevertheless, no deadline has been set for the Bill to reach Parliament. Its journey to Parliament will be tracked. The Bill has many good provisions but it also has its limitations. There have been calls for the provision of public funding of individual candidates in election campaigns. Such funding, it is argued, will level the playing field by curbing financial abuse in elections. The funding of individual candidates should substitute or complement private donations.

The Coalition for Accountable Political Financing (CAPF) maintains that rules that govern public funding for election campaigns should treat all players equally.

Transparency in Campaign and Political Financing

capf bill digestIssue No. 01/12

August 2012

ELECTION CAMPAIGN FINANCING BILL, 2012

About the CAPF

Summary of main points

2The CAPF Bill Digest

Elections are expensive. Candidates and political parties need resources to compete for power. A lot of money is needed before, during and after elections. Campaign financing refers to the manner in which candidates and political parties gather, utilize, and recover funds for electoral campaigns. It has to do with how money is raised, how it is spent and how it is recouped by individuals who either succeed or fail to be elected.

What is Campaign Financing?

Source of Income

Campaign and political financing is a complex phenomenon. Historically the subject has been hidden behind a veil of secrecy. Lack of transparency, makes it difficult to measure its impact on political processes. Candidates and parties obtain resources from various sources both legal and illegal. Legal sources include: personal funds, public funding, donations, and contributions in cash or in-kind. These contributions come from ordinary supporters, wealthy individuals or corporations, among others. Illegal avenues include: criminal sources, drug money, money laundering, and corruption. One such criminal avenue is the pyramid schemes that impoverished many Kenyans before, during and after the 2007 general elections.

Conceptual Framework - How Money Can Influence Politics

Party and Candidates Campaign Funds

Post-Elec on

Party Membership

dues and income generating activities

Small/Medium DonorsIllegal Sources (including

use of State resources

Legal Sources (brochures, rallies, transport, food, T-

Shirts posters, TV ads, Radio broadcast

Big Donors

Vote buying, Media Bribes, Other Bribes,Electoral violence,Corruption Scandals

Patronage jobs, Highappointments, voting inParliament, PublicProjects in homeconstituencies

Kickbacks/BribesVotes for sale, Giftstravel and favors,deny opposition &foes of govt acess tocontracts, corruptionScandals

Pre - Election

EXPENDITURE

Election Day

EXPENDITUREVote buying, Media Bribes, Other Bribes,Electoral violence,

Agent fees, Security,Coordination, Campaign

Managers

Candidate’s personal funds

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Various measures have been introduced to correct the problems associated with campaign and political financing in Kenya. Some of these measures, included in the new Constitution 2010, were meant to curb corruption. Others like the Election Campaign Financing Bill 2012 are yet to be enacted. The main challenge is that these legislations are scattered in different statutes. They are consequently enforced by different agencies.

A number of provisions in the new Constitution touch on campaign and political financing directly or indirectly. These include the constitutional provisions on: registration and operations of political parties, affirmative action, elections, reasonable and equitable allocation of media airtime to political parties, campaign financing, leadership and integrity, devolution, Bill of Rights and national values and principles.

The following are the existing legislations and proposed laws dealing with campaign and political financing problems in Kenya:

The a. Public Collections Act 1960. This was the first piece of legislation designed to regulate campaign and political financing. Passed just before independence, the legislation was designed to regulate collection of money or property from the public. The Act, though outdated, regulates many aspects of public collection activities including party membership fees and appeal for campaign funds by politicians.

The b. Public Officers Ethics Act 2003. This Act aims to advance the ethics of public officers. It provides for a Code of Conduct and Ethics for public officers. It requires financial declarations by public

officers. It determines various Commissions responsible for specific public officers. It requires every public officer to submit a declaration of the income, assets, and liabilities of his spouse or spouses and dependent children every two years. The Act impacts heavily on campaign and political financing. It bans public officers from using their offices or work places as venues for collecting harambees. It requires that no public officer should misuse or misappropriate public property.

The c. Independent Ethics and Anti-Corruption Commission Act 2012. This Act established the Independent Ethics and Anti-Corruption Commission pursuant to Article 79 of the Constitution. It provides for the prevention, investigation, and punishment of corruption, economic crime and related offences. The Act considers corruption to include bribery; fraud; embezzlement or misappropriation of public funds; and abuse of office. Its impact on campaign and political financing affects the misuse of administrative resources for campaign purposes. This often includes the expenditure of covertly allocated public funds by the ruling party.

The d. Public Procurement and Disposal Act 2005 and Public Procurement and Regulations of 2006. This Act established procedures for procurement and the disposal of unserviceable, obsolete or surplus stores and equipment by public entities. The Act deals with the most common form of corruption in campaign and political financing which involved provision of financial or other resources by private interests to political parties or candidates in return for favourable treatment by elected representatives. This type of corruption has resulted in many financial

Current Policy and Legal Framework

Campaign Expenses

Expenses can also be legal or illegal. Legal expenses include: printing of promotional materials such as brochures, posters, t-shirts, and caps. It also includes transport, logistics, public rallies, door-to-door campaigns, and media publicity. Illegal expenses include: bribery whether of the media and election officials; vote buying, and hiring of youth for the purpose of violence.

Refunding Campaign Expenses

Once in power, candidates and political parties have used their offices to recoup their election expenses. This can be done through legal or illegal means. Some legal mechanisms include: jobs through patronage; appointments to high office; and improvement of socio-economic conditions in favoured regions. Illegal mechanisms include: kick-backs/bribes, acceptance of gifts, land grabbing, corrupt procurement, fraudulent acquisition of government property, manipulation of privatization processes and policy concessions.

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scandals in Kenya. The Act establishes bodies such as Public Procurement Oversight Authority, Public Procurement Oversight Advisory Board, and Public Procurement Administrative Review Board. They are all responsible for regulation of public procurement processes to prevent corruption.

The e. Political Parties Act 2011.This particular Act was passed pursuant to Article 92 of the Constitution. It provides for; the registration and regulation of political parties; the roles and functions of political parties; the establishment and management of the political parties fund and other matters necessary for the management of political parties. The Act established Political Parties Fund administered by the Registrar of Political Parties. It regulates the source of funds of a political party, the distribution and the purpose for which the Fund may be used. The Act makes it compulsory for a political party to declare its assets and liabilities ninety days before a general election. It requires all political parties to keep and audit their accounts.

The f. Independent Electoral and Boundaries Commission Act 2011. The Act provides a comprehensive mechanism, pursuant to Article 88 and Chapter Fifteen of the Constitution, for the appointment and effective operation of the Independent Electoral and Boundaries Commission. The Act sets out the functions of Independent Electoral and Boundaries Commission to include the regulation of money that may be spent by or on behalf of a candidate or party in respect of any election. The Independent Electoral and Boundaries Commission is, therefore, the main enforcement body responsible for overseeing and controlling of the operations of campaign and political financing practices.

The g. Election Act 2011. It gave effect to Article 82 and 88 (4) of the Constitution. It consolidated and amended the law relating to elections. The Act has implications for campaign and political financing regulations. It makes provision for political parties to access state owned media services. It prohibits public officers from publicly indicating support for or opposition to a political party or a candidate. It bars them from engaging in campaigns or activities of political parties. It also prohibits the use of public resources by candidates during elections and empowers the Independent Electoral and Boundaries Commission to demand a full account of all public resources at the disposal of the candidates. These candidates could

be members of parliament, county governors, deputy county governors, or members of county assemblies. It also criminalizes bribery of voters and election officials.

The h. Public Appointments (Parliamentary Approval) Act 2011. The Act provides for the procedures of vetting persons nominated for public appointments. It impacts on campaign and political financing. In the past, public appointments in Kenya were never vetted by law, by parliament or any other branch of government. Consequently, the Executive used its unfettered powers to make such appointments. Public offices, the judiciary and other state organs were filled on the basis of political patronage, tribalism, and nepotism. Many private individuals donated large sums of money for election campaign to political parties or candidates in return for public appointments. This fuelled the impunity and fed the culture of corruption. It resulted in lack of independence for those appointed. It also enhanced incompetence and loss of public confidence in the public service and other state organs.

The i. Independent Offices (Appointment) Act 2011. This Act provides the procedure for identification and recommendation for appointment of holders of independent offices.

The j. Leadership and Integrity Act 2012. This Act gives life to Chapter Six of the Constitution. It establishes procedures and mechanism for effective administration of Chapter Six of the Constitution. It promotes ethics, integrity and servant leadership among state officers.

The k. Public Finance Management Act 2012. This Act outlines the framework for both the national and county budgets. It establishes parameters for interaction. It details the discretion the executive has. It spells out what public finance information should be availed to whom and when. It details how and when the government should consult with the legislature or citizens on public spending. It gives elaborate information on how government officials will be held to account for mismanagement of public funds. With regards to elections it provides for the National Treasury to prepare a pre- and post- election economic and fiscal update. The update will detail both direct and indirect election expenses and any other expenses related to the election as specified in regulations or instructions.

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The Election Campaign Financing Bill 2012 is the first legislative initiative specifically designed to regulate campaign financing. It provides for the regulation, management, expenditure and accountability of election campaign funds during election and referendum campaign in Kenya.

Unregulated campaign financing is a major concern in Kenya. Significant money in elections contest often creates an uneven playing field. Large sums of money give certain parties and/or candidates undue advantage over others. Very often the candidates with the most money always wins the election or party nomination process. This undermines internal party democracy. Most often, the uneven playing field results from the fact that the ruling party or the incumbent candidate control political apparatus. They use power to their own advantage and to the disadvantage of challengers. In the past, the ruling party’s access to state financial resources, skewed the playing field, and escalated the cost of political and electoral contests.

Still political competition has with time raised the financial requirements for entry to electoral competition very high. Those without money have been excluded from the process. Certain sectors of society find themselves excluded from the political process. Women, youths and marginalized groups who are financially challenged are often excluded from the process. Without laws to regulate the amount of money that can be received from donors for campaigns and individuals; candidates and parties spend unlimited amounts of money.

Elected officials become more accountable to those who finance their campaigns than to their constituents. This encourages corruption and unethical practices. Because of escalating costs of seeking election, some people running for office have abandoned their principles, spending the rest of their tenure paying back their election obligations. Elected officials are also tempted to “sell access” or spend an inordinate amount of time with big contributors. Their time is diverted away from constituents, further exacerbating detachment from voters.

There is justified concern and fear that once large corporate or single donors fund parties and candidates, they would dominate political decisions. Their influence over the political

process is in proportion to the amount of money they contribute. Corruption pervades politics and undermines the rule of law. Such corruption is caused when politicians accept money from illegal sources or stem from the broader system of political patronage. In other cases, elected and appointed officials pay the political party for a place on the party appointment or contribute substantial amount of money to secure their nomination. Payback time begins the day after the election. State owned enterprises were popular sources of campaign financing for members of parliament and political appointees. They were known to contribute substantial amounts of money to ruling parties in general elections.

Political corruption is a national problem. It poses a major threat to the country’s economic growth, democracy, and stability. Entrenched political corruption has led to public disillusionment with many public institutions. From the; National Social Security Fund, National Hospital Insurance Fund, Goldenberg to Anglo Leasing scandals, Kenya has witnessed some of the greatest corruption scandals in Eastern Africa. Political corruption in Kenya is a cancer that seeps through state institutions and drips from individuals with access to state resources and state power. Nearly all major financial and corruption scandals in recent times have been linked to campaign and political financing.

Unregulated campaign financing also creates macro-economic instability. A lot of money is normally pumped into the economy every election year resulting in a situation where too much money is chasing after a few goods. Since the re-introduction of multi-party politics in 1991, the year following the election year has been characterised by high inflation rates, the worst being 1993.

Why Election Campaign Financing Bill in Kenya?

6The CAPF Bill Digest

The objective of the Election Campaign Financing Bill 2012 is to provide for the regulation, management, expenditure and accountability of election campaign funds during election and referendum campaigns. It contains 27 provisions divided between six parts.

Part I of the Bill provides for preliminary matters, interpretation of terms and definitions.

Part II provides for the functions and powers of the Commission.

Part III provides for the establishment of Expenditure Committees (Party Campaign Expenditure Committee, Party Candidate Expenditure Committee, Party Expenditure Committee and Independent Candidate Expenditure Committee) and Submission of Expenditure Reports.

Part IV provides for Campaign Expenses and modalities for disclosure of funds by candidate and political party as well as spending limits.

Part V provides for Contribution and Donations. It sets out sources of campaign finances, prohibition on contribution, contribution by an organization and offences.

Part VI contains general provisions such as registration and dissolution of Expenditure Committees, Records, Audit of Accounts, Claims and objections, General penalty and Regulations.

The Election Campaign Financing Bill 2012

Key Issues in Election Campaign Financing

Due to the nature of campaign financing, this section seeks to focus on some of the most prominent policy issues proposed in the Bill. For the most part, the Bill only deals with regulation of campaign financing (income and expenditure) there are no provisions on public funding. However, Part VI (on regulations), clause 27 (2) (gives the Commission powers to make regulations prescribing mechanisms and procedures for reporting and monitoring the spending limits.

Powers of the Commission to Regulate Election Campaign Financing

In accordance with Article 88 (4) (i) of the Constitution, and section 4 of the Independent Electoral and Boundaries Commission Act 2011, the Bill would make the Commission the main enforcement body. It would be responsible for the supervision, administration and regulation of campaign financing. Part II, clause 1 (on the powers of the Commission) and Part VI, clause 27 (on the powers of the Commission to make regulations) would confer various powers on the Commission.

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Expenditure Committees

For the purposes of regulating election campaign financing during nominations, elections or a referendum, clause 2 of the Bill would establish party candidate expenditure committees; party expenditure committees; independent candidate expenditure committees; or referendum campaign expenditure committee. These committees would be registered by the Commission – in the case of a general election, at least three months before the general elections; or in the case of a by-election, within seven days after the notice of a vacancy issued by the relevant Speaker. The committees would work as compliance bodies to ensure that candidate and party comply with campaign finance regulations.

The Bill would require each committee to open an expenditure account and submit details of the account to the Commission at the time of their registration. The committees would be expected to manage campaign expenditure and report; contribution by the candidate; the political party; any person, organization, or any other lawful sources. All political parties would be required to prepare and submit their expenditure rules to the Commission at least three months before elections.

Disclosure System in the Bill

There exist important variables in disclosure regulation. These include who discloses what, to whom and when; and who gave what, how much, when, to whom and for what. The provisions in the Bill only cover income and expenditure. It has nothing on liabilities and assets. Part IV of the Bill requires a candidate who intends to contest in the nomination of a party, to open a bank account to manage their expenses to do so at least thirty days before the party nomination day. The Bill requires candidates to open different bank accounts for party nomination campaigns and the general election campaigns.

The Bill would confer powers on the Commission to investigate all matters relating to election campaign financing. The Commission would be authorized to enter into any premises in which books and documents of a candidate, a political party or a referendum committee or where material relevant to the subject matter of the investigation or examination is kept. It would have powers to request any person for information relating to party nomination expenses and election campaign expenses of a candidate, a political party or a referendum committee.

It would make regulations: providing for spending limits for the different elections; providing guidelines for expenditure rules for political parties and independent candidates; prescribing procedures for registration and dissolution of the various expenditure committees; prescribing the manner in which contributions may be made; prescribing procedures for disclosure of amount of contributions made to a candidate or a party, the nature of these contributions and the intended expenditures by a candidate or a party; prescribing mechanisms and procedures for reporting on and monitoring the spending limits; and prescribing the manner in which records shall be prepared and maintained.

Functions and Powers of the Commission

Proposed disclosure system in the Bill:

It requires a candidate who has been nominated by a political party to contest in an election; or an independent candidate, to open such an account at least thirty days before that election. Any expenditure incurred for campaign that is not managed through the official bank account of the candidate would be illegal. All expenses relating to a candidate’s campaign are to be paid or managed through the bank account. A candidate will be required to keep an accurate record with supporting documentation of all transactions relating to the bank account.

The Bill imposes duties and obligations to candidates. They must disclose their personal contribution/s or donations received. They must disclose the sources of their funds and the details of the donors at least thirty days before election.

Clause 27 (d) and (e) gives the Commission powers to make regulations prescribing the manner in which contributions may be made and procedures for disclosure. This includes the amount of contributions made to a candidate or to a party, the nature of these contributions and intended expenditures by a candidate. The candidates would have independent responsibilities to disclose. They will be required to file reports wherever they receive and spend money for campaigns. In this regards, the role of Expenditure Committees as established in Clause 5, 6, 7, 8, and 9 would be to act as compliance bodies and maintain detailed records to meet the legal disclosure requirements.

However, disclosure systems that requires only candidates or political parties to submit reports often risks creating loopholes in financial transactions. To deal with this problem Clause 18 would require any person or organization which contributes to a particular party, or candidate to channel their contribution through the established party or candidate bank account.

The Bill criminalises failure by individuals or parties to disclose the expenditure details with supporting documents. Indeed the Bill requires the candidate, political party and an organization/person to submit similar reports to the Commission.

Who discloses?Political Parties•Party Candidate•Independent Candidate •Organization which intends to campaign •in support of a candidate or a political party

What is disclosed? Bank account•The amount of funds in the account of •the Party CandidateThe sources of the fund•Contributions or donations in cash or in •kind receivedDetails of donors•Expenditure•

To whom & when? To the Candidate or Political Party where •an organization intends to campaign in support of a candidate or a political partyParty Expenditure Committee•The Commission for Independent •CandidateMembers of the Public on request•Thirty days before election day•

Sanctions for failure to discloseDisqualification from contesting in the •electionFine on the candidate or the political party•

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Spending Limits

Without limits on total expenditure, campaign costs will inevitably and endlessly escalate. The objective of setting spending limits is to offer a level playing field in which any candidate or party can participate. Over the last few years there has been growing concern that candidates and parties spend too much money in election campaigns. The proposals in the Bill are meant to avoid excessive increases in the cost of electoral politics, and control inequalities between parties and candidates. Clause 13 of the Bill confers powers on the Commission to set spending limits for expenditure for campaign purposes of a party candidate nomination, general election, and a by-election. The limit would be set not to exceed a certain percentage within a reasonable period before election date.

In setting the spending limits, the Commission is required to take into consideration the difference in the geographical size of the electoral constituency. It should consider whether it is a presidential, governorship, parliamentary, or county assembly election. It should also consider the population in the electoral constituency; and the communication infrastructure in the electoral constituency. No candidate or political party would be expected to exceed the limit and where circumstances forces a candidate or a political party to exceed the spending limit, that candidate or political party is to file a report with the Commission specifying the reasons for exceeding the limit.

The Bill further confers powers on the Commission to disqualify a candidate or political party that exceeds spending limit prescribed, without justification, from contesting in elections. After an election such a candidate or party would be barred from contesting in the next by-election. However, the proposal on spending limits needs to include private individuals and organizations or third parties who may wish to campaign on behalf of a candidate or a political party. Otherwise wealthy supporters or political action groups would continue to spend money directly for the benefit of one candidate or in order to prevent the election of another. To be more effective, spending limits will need to apply to political interest groups as well.

Limits and Bans on Contributions and Donations

The Bill sets out who a candidate or political party can receive and cannot receive donations and contributions from. It explains what the funds may and may not be used for. Candidates may receive contributions and donations in cash or in kind from any person, organization or any other legal sources including harambees for purposes of financing election into a party list; a candidate’s nomination at party level or campaign for an election. A candidate, who has been nominated by a political party to contest in an election, may in addition receive contributions or donations from the political party that nominated him or her.

The Bill would prohibit contributions from persons who are not citizens of Kenya. This would include foreigners; a foreign government; a foreign organization; a foreign inter-governmental organization; and an organization that receives foreign funding. It also prohibits funding from; public officers; anonymous contributors or donors; state organs or public entities; an entity where government is a shareholder; a person that has received tax waiver or who has been guaranteed a loan by government in terms of the laws relating to public finance management. It also prohibits funds from corrupt practices, drug money, laundered money or any other illegal source.

The Bill would further require a candidate who receives contributions and donations to use such contributions and donations only to pay for lawful and allowable expenses relating to: party nominations; election campaign; and election onto a party list. The candidate would be required to assign a monetary value to every contribution in-kind received, at the prevailing market rates, including personal property, real property or services other than volunteer services. The candidates would also issue a receipt for and document each transaction every time a contribution is received; and keep documentary evidence for any campaign expense transaction. The Commission would make regulations prescribing the manner in which contributions may be made and procedures for disclosure. These regulations include the amount of contributions

10The CAPF Bill Digest

made to a candidate or a party, the nature of these contributions and the intended expenditure by a candidate or a party and limits on donations.

Prominent issues in the Bill

The Bill would also make provisions for other issues such as: registration and dissolution of expenditure committees; records and finance report of candidates; audit of accounts and claims and objections.

While the Commission would prescribe the manner for registering expenditure committees under clause 22 they would stand dissolved on submission of the final expenditure reports. Clause 23 would require a candidate, or a political party, a referendum committee or an organization registered to campaign in support of a candidate, a political party or referendum committee to keep records of funds received for campaign expenses. The records should indicate the amount and the nature of funds received; names, postal, physical and electronic addresses of contributors; funds spent for nomination expenditure and campaign expenditure; and in case of an organization registered to campaign in support of a candidate, a political party or referendum committee, the name of the candidate, the political party or the referendum committee that the organization supported.

The Bill would provide that the Commission should upon request, make available for inspection information submitted by a candidate, a political party or a referendum committee. This would be subject to a prescribed fee; and confidentiality requirements of the Commission. The Auditor-General may, on the request of the Commission, audit the accounts relating to the campaign expenses of a candidate, a political party or referendum committee. The Bill would also provide that any person who objects to any matter related to campaign finance expenditures submitted by a candidate, political party or a referendum committee may file a claim to the Commission.

Public Reactions to the Bill

CAPF received numerous views to the Election Campaign Financing Bill 2012. Public fora on political campaign financing reforms were held in; Nyeri, Machakos, Kisumu, Nairobi, Eldoret and Mombasa. The fora brought together opinion leaders to discuss political and campaign finance reforms in Kenya and the draft Election Campaign Finance Bill 2012. CAPF also held stakeholders’ meetings with individuals, groups and organizations. CAPF analyzed and collated the views of the public from which it prepared reports and a position paper on the proposed draft Bill. Many of these can be found on CAPF Website at: www.capf.or.ke

The people’s views were broad and diverse. They were influenced by a variety of social and economic factors. Such factors included; the influence of money in politics and the problems associated with money. The people’s views were essentially shaped by their expectations of the proposed Bill, and concerns and limitations of the proposals in the Bill.

People’s Expectations

The people’s expectations were wide and varied. The public expected the Bill to cover a wide range of issues. It expected the Bill to manage the behaviour of political parties and state officers before, during and after elections.

Many demanded a comprehensive regulation, oversight and monitoring of campaign and political financing regime; one that goes beyond the official campaign period and involves the role of citizens and civil society organizations. They said that the regulation of campaign and political financing was too important to be restricted to the election period alone as provided for in the Election Act 2011. Others pointed out that regulation and monitoring by government agencies alone would not be sufficient and that provisions must be made for civil society, media and citizens to participate in monitoring if effective oversight is to be achieved.

11The CAPF Bill Digest

The public also expressed concerns that the Independent Electoral and Boundaries Commission may not have sufficient capacity and capability required to regulate and enforce campaign and political financing regulations. Many observed that enforcement of the legislation would require coordinated frameworks for all the agencies responsible for implementing various laws and rules such as Public Officers Ethics Act, Political Parties Act, Public Collection Act, Leadership and Integrity Act, Public Procurement and Disposal Act, Public Appointment (Parliamentary Approval) Act, Public Finance Management Act, and Independent Ethics and Anti-Corruption Commission Act. Indeed many pointed out that there has been a proliferation of substantive provisions on campaign financing and many of the provisions on these legislations have not been enforced.

Public campaign funding to candidates over 6. and above public funding for political parties is necessary for the realization of the objectives of the Election Campaign Financing Bill 2012 .

It is suggested that the programs of the unit should be, as follows:

Monitor the fundraising and spending activities a. of candidates and political parties during election period, by itself, or in partnership and collaboration with civil society organizations who are performing similar monitoring work. Receive original copies of the contribution and b. expenditure reports of candidates, political parties, and organizations which participated in the elections.Receive duplicate copies of the contribution and c. expenditure reports submitted by candidates, campaign committees, and political parties.Compile and analyse the reports as soon as they d. are received and make an initial determination on the basis thereof as to whether there was faithful compliance by the candidates, political parties, donors, and campaign committees with the regulations. Develop and manage a logical filing or recording e. systems for all the campaign finance reports. Digitize the information contained in the reports. Create and develop a web site or a web page that f. may be linked to the Commission’s main website. Digitized information may be published and made available to the public on this website. Create, develop, and improve reporting templates g. and recommend the same to the Commission to enable the Campaign Finance Committee to obtain all the information it needs to perform its function.

What the people said in all public fora may be summarized as follows:

To strengthen the implementation of campaign 1. and political financing laws the agencies responsible must come up with priorities, strategies and parameters for ensuring compliance with the rules and regulations. The Political Parties Act 2011 and Election Campaign Financing Bill 2012 jointly set out a variety of rules and regulations on funding and accounts of political parties. They establish the administration of candidates and party expenditure committee, campaign expenses and contributions and donations. The rules and regulations have to be enforced 2. and complied with for the campaign and political financing laws to work. The agencies and institutions responsible for enforcing campaign and political financing provisions can only detect possible violations through: monitoring, complaints and referral.Since the Independent Electoral and Boundaries 3. Commission is tasked with regulating campaign and political financing, it must enhance its capacity to enforce the laws and regulations on campaign and political financing. A unit should be established within the 4. Commission specifically dedicated to the monitoring, examination, auditing, and reviewing of campaign and political financing documents and reports. The role of such a unit is to ensure the Commission performs its statutory duty to enforce the laws on campaign and political financing. The unit must make sure that election spending is 5. kept at a minimum. It must ensure opportunity for public service is equalized. It should also ensure that the required reports are truthful, transparent and accessible to the public and that they are submitted on time.

What the people said:

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“This publication is made possible by the generous support of the National Democratic Institute for International Affairs (NDI). The contents are the responsibility of Centre for Governance and Development (CGD) and do not

necessarily reflect the views of NDI.”

A publication of:

Audit all the reports submitted before it and h. determine whether candidates, political parties, donors, and committees complied with the regulations. Conduct inspection of the books and records i. of candidates and political parties, which are required to be kept for a period of 10 years and summon individuals and issue subpoena where necessary. Make an initial evaluation of complaints of j. overspending, receipt of contribution from unauthorized sources, or use of state resources for election or during election period and submit its evaluation to the Campaign Finance Committee.Coordinate with other law enforcement agencies k. on the conduct of formal investigation of those who, on the basis of the Campaign Finance Committee initial determination, may be liable for criminal or administrative offences.

Finally, the people said that enforcement of campaign finance regulations should be conducted before, during and after elections. Many people said that election campaigns in Kenya do not stop with elections. In many cases candidates start their campaigns at least 2 to 3 years before the election date. The people believed that detection and uncovering campaign and political finance irregularities and violations will only be possible if candidates and parties are required to submit these reports regularly before, during and after election period. The law should, therefore, require the agencies involved to constantly monitor campaign and political financing activities. It should ensure that individuals or organizations file their complaints on alleged violations and the basis for the allegations. The law should also make certain that referral of possible violations discovered by other agencies are referred to the Independent Electoral Boundaries Commission.

Coordinate with the Commission as regards l. providing regular media updates on the candidates and parties’ expenditure status.Coordinate with the Commission and the Auditor m. General, Public Officers Ethics and Integrity Bodies, the Central Bank, Kenya Revenue Authority, the Anti-Money Laundering Body, Anti-Corruption Commission, the Kenya Police and other government institutions to enable it to perform its function more effectively.Engage and partner with civil society organizations n. such as the Coalition for Accountable Political Financing, and Transparency International to achieve the objective of effectively enforcing campaign and political financing regulations. Come up with plans and recommendations on o. how the Commission can provide a more effective enforcement mechanism of campaign finance regulations.

Conclusion

Published by the CEnTrE For GovErnAnCE And dEvELoPMEnT (CGd) P.o. Box 4037 - 00506, nairobi. Tel. 020-3861813/4, 0720-238904. E-mail : admin@cgd.or.ke

research and Compilation: dr. Charles otieno Editorial: Caleb Atemi Quality Control: Kennedy Masime design: James Mugo

The Elections Observation Group (ELOG) is a coalition of Kenyan Civil Society organisations, established in 2010 to provide a permanent national platform, through which citizens can monitor elections in Kenya and the Africa region. ELOG’s purpose is to promote participatory democracy through comprehensive monitoring and observation of elections.

CAPF is working on one of ELOG’s seven thematic areas. It’s contribution towards the development and enactment of the Political Parties Act, 2011, and the development of the draft Election Campaign Financing Bill, 2012 has substantially augmented ELOG’s work by enhancing it’s ability to comprehensively monitor the electoral process, particularly the implementation of the Political Parties Act, 2011 and political financing.