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Issue 415 -- Jan. 09-15, 2010

Front Page

News Headlines

Local and Regional Affairs

Police Seek Killers Of Three In South Minneapolis

WFP Sees No Quick Solution To Somalia Crisis

Somaliland Gets Thousands More Children Into School

CPJ: Puntland Press Under Fire

Ottawa Somalis Fear CSIS Targeting Youth

Ransom Cash Fuels Boom In Little Mogadishu

Editorial

Somaliland’s Foreign Policy Needs To Be Articulated To The Foreign Media

Features & Commentary

Africa Goes To Polls: 2010 Key Elections

International News

Opinion

Time For A New Somalia Policy

Congratulation To Borama Mayor

Ransom Cash Fuels Boom In Little Mogadishu

By Tristan McConnell
Eastleigh, Kenya, January 09, 2010 – “That shopping centre,” said my Somali translator pointing to a garish multi-storey building clad in tinted glass, “was built with pirate money.”
As we bumped along yet another traffic-clogged street that was more rubble than road the translator pointed out a series of half-built high-rise apartments, shopping malls and hotels.
“People talk of global recession, but here there’s no recession,” he laughed.
Above the banging and clattering of the construction boom the ear-piercing calls of the muezzins echoed. Beat-up buses disgorged the newest arrivals fresh from Somalia, and on Twelfth Street a row of wooden kiosks awaited the daily delivery of khat, a popular narcotic herb.
Women in burkas walked alongside open sewers and past piles of festering rubbish, and knots of young men hung about outside the neighborhood mosques clutching copies of the koran and mobile phones.
“Keep your head down – all the [al-]Shabaab go to that mosque,” the translator warned as we drove past one.
Everywhere people spoke Somali not Swahlili because although this is a suburb of the Kenyan capital Nairobi it is Eastleigh, otherwise known as Little Mogadishu.
When the Somali-Canadian rap star K’naan wanted to film an authentic video for his hit song Soobax he came here to Eastleigh: it was the closest thing to the no-go zone of his hometown Mogadishu.
Last month property investors in Nairobi were told that while the slowing global economy had hit remittances sent back to Kenya from family members abroad, investment flows from within the Horn of Africa – and specifically from Somalia – had risen to meet the shortfall.
“We are basically saying that the Kenyan diaspora has been replaced by this retired ‘pirate’ cash,” said Kenneth Kaniu, an investment manager at Stanbic Investments East Africa.
One property agent moaned that pirate money was overheating the market. “They pay over the odds for anything and everything,” the broker told The Times. “And they pay cash!”
By some industry estimates property prices in Eastleigh have more than doubled in the past year.
It is reckoned that Somali pirates made at least £50 million from ransoms in 2008 but with war convulsing their country there is little hope of secure investments.
Kenya is particularly popular, partly because of its large ethnic Somali community – some Kenyans, some Somali refugees – but also because it has yet to pass a proposed anti-money laundering law.
In a matter of minutes cash can be transferred from a pirate town to Eastleigh via clan-based Islamic "hawala" agencies and invested in Kenyan property and businesses. The Government has now decided to carry out an audit of city property.
It is not just retired pirates and their money that are making new homes in Eastleigh.
This month Kenyan police, backed by the paramilitary General Service Unit, made a rare appearance in Eastleigh rounding up 300 Somalis acting on intelligence reports that Islamist fighters were taking refuge in the enclave.
It is thought some of those arrested were fleeing members of the Hizbul Islam opposition group that has lost a number of recent battles in southern Somalia against its former ally al-Shabaab.
For the most part Kenyan security is invisible in Eastleigh which, with its radical madrassas and mosques, its thriving business community and growing refugee population, is becoming a fertile recruiting ground for al-Shabaab as well as a valuable source of funding.
Source: Times Online, Wednesday, January 06, 2010
 

 






 

















 

 


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