‘Cultivating the African’: Barclays DCO and the Decolonisation of Business Strategy in Kenya, 1950–78

ABSTRACT

While there is a great deal of recent research on the response of British business to decolonisation and a wide range of literature examining the alleged ‘neo-colonial’ relations between business and state in the post-colonial period, few studies of business attempt to straddle the awkward periodisation defined by the official hand-over of political responsibility. Barclays Bank DCO embarked on its decolonisation strategy in Kenya in anticipation of political and economic change and continued to follow that same strategy after the formal transfer of power from London to Nairobi. The article demonstrates the precise nexus of political and commercial reasons for Barclays’ approach in Kenya and outlines its successes and failures in responding to political and economic change in a newly emerging nation. In so doing, it emphasises that this particular British business, while not always in complete control of events on the ground, was more than a victim or beneficiary of circumstances about which it knew little and could do less. Rather, Barclays was an active participant in the process of decolonisation, reorganising and adapting its business model and employment structure to suit the times in Kenya.

KEYWORDS:

• Barclays
• banking
• Kenya
• Africans
• decolonisation

Acknowledgements

This article is based on research conducted while at the University of York in 2012. I am grateful to Barclays Bank for allowing access to their files, and to the archivists at the Barclays Group Archives. In particular thanks must go to Maria Sienkiewicz and Nicholas Webb for their help in navigating the files. I am also hugely indebted to Dr. Gerard McCann for his invaluable guidance during the research and writing of this piece.

Disclosure Statement

No potential conflict of interest was reported by the author.

Notes

1. East African Standard, March 19, 1960, quoted in Tignor, Capitalism and Nationalism, 357.

2. Tignor, Capitalism and Nationalism, 357.

3. Wasserman, Politics of Decolonization, 174; Leys, Underdevelopment in Kenya, 254.

4. Cain and Hopkins suggested that Decolonization was a ‘gentlemanly capitalist’ response to the declining usefulness of empire in the task of preserving the strength of sterling. Cain and Hopkins, British Imperialism: Innovation, 265–90; White, ‘Business and Politics of Decolonization,’ 544.

5. Fieldhouse, Black Africa, 9–12; Fieldhouse, Merchant Capital; Misra, Business, Race and Politics; White, Business, Government and End of Empire.

6. Tignor, Capitalism and Nationalism, 391.

7. Ibid., 11.

8. Stockwell, The Business of Decolonization, 225.

9. Tignor, Capitalism and Nationalism, 317.

10. Decker, ‘Decolonising Barclays Bank DCO?,’ 419–40.

11. Jones, British Multinational Banking, 148; Baster, The Imperial Banks, 235.

12. Jones, British Multinational Banking, 149–50.

13. Decker, ‘Decolonising Barclays Bank DCO?,’ 422.

14. Bostock, ‘The British Overseas Banks’, 159; McWilliam, ‘Banking in Kenya,’ 24.

15. Crossley and Blandford, The D.C.O. Story, 183.

16. Jones, British Multinational Banking, 302; McWilliam, ‘Banking in Kenya,’ 24; Engberg, ‘Commercial Banking in East Africa,’ 189–90.

17. Jones, British Multinational Banking, 305–06.

18. Ogot and Ochieng’, eds, Decolonization and Independence in Kenya, 51–60.

19. Chege, ‘Swapping Development Strategies’, 255.

20. Hornsby, Kenya: History since Independence, 49.

21. Heyer, ‘Agricultural Development Policy in Kenya’, 106.

22. Letter to Mr. Whitcombe from T. J. Everard, 28 Aug. 1959, 0029-0335, Barclays Group Archives (hereafter BGA).

23. Notes on Local Director’s Visits to the New Branches at Kisii and Musoma, 3–10 and 14–17 Feb. 1955, 0029-0335, BGA.

24. Ibid.; Notes on the Local Director’s Visit to Branches in the North of Kenya, 12–20 Jan. 1957, 0029-0335, BGA; Notes on the Visit of the Local Director (J. E. C. Innes) to Thika, Fort Hall and Nyeri Branches, 12/13 June, 1959, 0029-0335, BGA; Crossley and Blandford, The D.C.O. Story, 171.

25. Tignor, Capitalism and Nationalism, 317.

26. Local Director’s Visit to Certain Kenya Branches, 5–11 Feb, 1961, 0029-0335, BGA.

27. Jones, British Multinational Banking, 307.

28. McWilliam, ‘Banking in Kenya’, 26.

29. Hornsby, Kenya: History since Independence, 49.

30. Memorandum to the General Managers—Loans to African Co-operative Societies and Farmers—Kenya, 19 Nov. 1962, 0011-2128, BGA.

31. Local Director’s Visit to Mount Kenya Branches, 8/12 Sept, 1959, 0029-0335, BGA.

32. Jones, British Multinational Banking, 311.

33. The Role of Commercial Banking in Agriculture, no date, 0029-1134, BGA.

34. Letter to the General Managers, London, from Local Director, Nairobi, 3 Feb. 1961, 0029-0371, BGA.

35. Notes on the Visit of the Local Director (J. E. C. Innes) to Thika, Fort Hall and Nyeri Branches, 12/13 June, 1959, 0029-0335, BGA; Local Director’s Visit to Certain Kenya Branches, 5–11 Feb. 1961, 0029-0335, BGA. In the Gold Coast only 19 of 28 Barclays branches open in 1958 were able to report profits. See Stockwell, The Business of Decolonization, 162.

36. Notes on the Visit of the Local Director (J. E. C. Innes) to Thika, Fort Hall and Nyeri Branches, 12/13 June 1959, 0029-0335, BGA; Memorandum to East African Advances Department, 10 April 1962, 0011-2128, BGA.

37. Uche, ‘Accounting and Control’, 239–60.

38. Extract from Mr Dyson’s Report on his Visit to East Africa, Jan/Feb 1962—African Business, 0011-2128, BGA; Report on Visit to Mount Kenya Branches by Mr P M Moulding, 21–24 March 1962, 0029-0330, BGA; Memorandum to East African Advances Department, 10 April 1962, 0011-2128, BGA.

39. Branch, Kenya: Between Hope and Despair, 8.

40. Extract from Mr Dyson’s Report on his Visit to East Africa, Jan/Feb 1962—African Business, 0011-2128, BGA.

41. Local Director’s Visit to Mount Kenya Branches, 8/12 Sept, 1959, 0029-0335, BGA.

42. Diary Entry, 3 May 1965, 0080-3373, BGA.

43. Jones, Multinational Banking, 315–16.

44. Tignor, Capitalism and Nationalism, 317.

45. Report on a Visit to Mount Kenya Branches by Mr C. N. Pearce, Local Director’s Assistant, 18–22 Sept. 1961, 0029-0335, BGA; Report on Visit to Mount Kenya Branches by Mr. P. M. Moulding, 21–24 March 1962, 0029-0330, BGA.

46. Jones, Multinational Banking, 316.

47. Report on a Visit to Mount Kenya Branches by Mr. C. N. Pearce, Local Director’s Assistant, 18–22 Sept. 1961, 0029-0335, BGA.

48. Meru Branch Staff Position, 22 March 1962, 0029-0330, BGA.

49. Report on Visit to Mount Kenya Branches by Mr. P. M. Moulding, 21–24 March 1962, 0029-0330, BGA.

50. Jones, Multinational Banking, 316.

51. Meru Branch Staff Position, 22 March 1962, 0029-0330, BGA.

52. Report on Visit by E. V. Whitcombe and H. G. Aspinall to Kisumu, Uganda, Tanganyika, and Mombasa, 28 Feb.–10 March 1962, 0029-0030, BGA.

53. Local Director’s Visit to Certain Kenya Branches, 5–11 Feb. 1961, 0029-0335, BGA.

54. Report on Visit to Mount Kenya Branches by Mr. P. M. Moulding, 21–24 March 1962, 0029-0330, BGA.

55. Stockwell, The Business of Decolonization, 225.

56. Tignor, Capitalism and Nationalism, 391.

57. Diary Entry, 3 May 1965, 0080-3373, BGA.

58. Mr. A. W. Wilkinson, Visit to East Africa, 20 March–8 April 1965, 0029-0605, BGA; Visit to Kenya, 17–21 Sept. 1968, 0080-4277, BGA.

59. Letter to Divisional General Manager, EWA, London, 28 Feb. 1969, 0011-0873, BGA.

60. Kenya, no date, 0080-5348, BGA.

61. Comparative Banking Statistics, no date, 0080-4290, BGA.

62. Kenya—Agricultural Advances, Barclays Bank International, 30 June 1968–71, 0029-1134, BGA; Agricultural Advances as a Percentage of Total Advances, 0029-1134, BGA.

63. Text of a Speech given by Fred Seebohm on ‘The New Look of Aid and Development’, 30 Nov. 1967, 0029-1134, BGA.

64. Visit to Uganda and Kenya by Mr. G. J. B. Green, 17 June–2 July 1968, 0029-1051, BGA; see also Kenya Government,  African Socialism.

65. Some Dimensions of Economic Growth—Extension and Credit, 0029-1200, BGA.

66. Letter to J. C. Nelson, I.B.R.D., 2 Sept. 1966, 0029-1135, BGA; Comparative Banking Statistics, no date, 0080-4290, BGA.

67. Mr. A. W. Wilkinson, Visit to East Africa, 0029-0605, BGA; Kenya and Seychelles Branches, 0038-0959, BGA.

68. Letter to General Managers, London from Local Directors, Nairobi, 17 March 1965, 0029-0605, BGA.

69. Ibid.; Branch Results Year Ended 30 Sept. 1969, 0080-4290, BGA; Extract from Kenya Board Minutes, 21 Aug. 1969, 0080-5348, BGA.

70. Branch Results Year Ended 30 Sept. 1969, 0080-4290, BGA; Extract from Kenya Board Minutes, 21 Aug. 1969, 0080-5348, BGA.

71. Visit to Kenya, 17–21 Sept. 1968, 0080-4227, BGA.

72. Branch Results Year Ended 30 Sept. 1969, 0080-4290, BGA; Extract from Kenya Board Minutes, 21 Aug, 1969, 0080-5348, BGA.

73. Letter to the Divisional General Manager, EWA, London, 28 Feb. 1969, 0011-0873, BGA.

74. Ibid.

75. Visit to Kenya, 17–21 Sept. 1968, 0080-4227, BGA; Notes on Letter to the Divisional General Manager, no date, 0011-0873, BGA.

76. Visit to Kenya, 17–21 Sept. 1968, 0080-4277, BGA.

77. Notes on Letter to the Divisional General Manager, no date, 0011-0873, BGA.

78. Tignor, Capitalism and Nationalism, 383–85; Kenyan Government, African Socialism.

79. Kenyan Government, African Socialism, 19–20.

80. Ibid., 18–21, 26–27.

81. Branch, Defeating Mau Mau, Creating Kenya, 198.

82. Economic and Political Considerations, 12 Aug. 1977, 0080-5956, BGA.

83. Notes for Meeting on Wednesday, Advances to Agriculture, 1966, 0029-1134, BGA.

84. Economic and Political Considerations, 12 Aug. 1977, 0080-5956, BGA.

85. Mboya, The Challenge of Nationhood, 83–86; Kenyan Government, African Socialism, 12–13.

86. White, British Business in Post-Colonial Malaysia.

87. Ogot and Ochieng’, Decolonization and Independence in Kenya, 84–85, 97; Hornsby, Kenya: History since Independence, 197.

88. Ogot and Ochieng’, Decolonization and Independence in Kenya, 87.

89. Hornsby, Kenya: History since Independence, 198.

90. Himbara, ‘The “Asian Question” in East Africa’, 3.

91. White, British Business in Post-Colonial Malaysia.

92. For the most recent interpretation of these issues, see Branch, Kenya: Between Hope and Despair.

93. Himbara, ‘The “Asian Question” in East Africa’, 2.

94. Economic and Political Considerations, 12 Aug. 1977, 0080-5956, BGA. The number of branches continued to steadily increase, reaching 31 in 1970 (with 19 loss-making), 34 in 1975 (with 16 loss-making) and 40 in 1980. See Report on Visit to Kenya by Sir Charles Troughton, 12–23 Feb. 1981, 0156-0095, BGA.

95. Visit to Kenya by General Manager, 1967, 0080-4532, BGA.

96. Letter to Mr. Rodway, 25 March 1968, 0080-5957, BGA.

97. Letter to the Divisional General Manager, EWA, London, 28 Feb. 1969, 0011-0873, BGA.

98. Mr. Ambrose’s Visit to East Africa and Mauritius—Staff Matters for Discussion—Kenya, Oct. 1969, 0080-5348, BGA.

99. Statement of Mr. Tuke, 25 July 1972, 0080-3386, BGA.

100. Letter to the Local Director, Barclays Bank regarding the Kenyanisation of British International Staff, 21 July 1972, 0080-4492, BGA.

101. Letter to the Director, Kenyanisation of Personnel Bureau, 1 Aug. 1972, 0080-4492, BGA; W. Duncan—Discussion with Governor, Central Bank, 22 Oct. 1973, 0080-4495, BGA; H. U. A. Lambert’s Visit to Kenya, 1975, 0080-0102, BGA.

102. Note for Mr. H. U. A. Lambert—Local Staff, Group 4 and above, 1 Dec. 1975, 0080-4927, BGA.

103. D. V. Weyer Visit to Kenya, 15–20 Nov. 1977, 0080-0107, BGA.

104. Hornsby alleges that localization was undertaken after a government request in 1972. In reality the impetus for the shift came from within Barclays. See Hornsby, Kenya: History since Independence, 242.

105. Jones, Multinational Banking, 281.

106. Letter to Sir Frederic Seebohm, 8 April 1970, 0080-3583, BGA.

107. Letter to Sir Michael Blundell, 16 April 1970, 0080-3583, BGA; for Ghana, see Stockwell, Business of Decolonization, 145.

108. Letter to Sir Michael Blundell, 16 April 1970, 0080-3583, BGA; Note by Mr. Crankshaw, 21 April 1970, 0011-1588, BGA.

109. Kenya, 1970, 0011-1588, BGA.

110. Ibid.

111. Bayart, The State in Africa, 224–27; Holmquist, Weaver and Ford, ‘Structural Development of Kenya’s Political Economy’, 79.

112. Letter to Kibaki, 17 Aug. 1970, 0011-1588, BGA; Kenya Local Incorporation, 4 Sept. 1970, 0011-1588, BGA.

113. Cable to W. Duncan, 1 April 1971, 0011-1588, BGA; Telex to Comley, Nairobi, 6 April 1971, 0011-1589, BGA.

114. Note by W. Duncan, 5 Feb. 1971, 0011-1589, BGA; Kenya 9/15 Nov. 1971, 0080-4508, BGA.

115. Mr. Tuke’s Visit to Africa, 21 July–4 Aug. 1972, 0156-0129, BGA.

116. Fifty per cent of MPs would, indeed, lose their seats. See Widner, Rise of a Party-State in Kenya, 35, 95–100.

117. Kenya, 22 Oct. 1973, 0080-4495, BGA.

118. Kenya, 14/17 May 1974, 0080-4488, BGA.

119. Letter to W. Duncan, 25 Oct. 1973, 0080-4495, BGA; Kenya Visit, 23 Oct. 1973, 0080-4495, BGA.

120. Kenya Visit, 23 Oct. 1973, 0080-4495, BGA.

121. Letter to W. Duncan, 25 Oct. 1973, 0080-4495, BGA.

122. Memorandum on Kenya, 12 Nov.1973, 0080-4496, BGA; Letter to Mr. H. R. Reed, Standard Bank, 24 Oct. 1973, 0080-4496, BGA; Note for Chairman, Kenya, 4 Dec. 1973, 0080-4496, BGA.

123. Kenya, Nov./Dec. 1976, 0080-5956, BGA.

124. See Branch, Kenya: Between Hope and Despair; Ford and Holmquist, ‘State and Economy in Kenya’, 153–63; Goldsworthy, ‘Ethnicity and Leadership in Africa’, 107–26.

125. Cf. White, British Business in Post-Colonial Malaysia.