Well-connected individuals have secured a stake in a company at the centre of a Sh45 billion smart driving licence project, raising fresh concerns over the growing footprint of politically connected individuals in lucrative public-private partnership (PPP) ventures.
Company registry documents reveal that Faryd Abdulrazak Sheikh and Jabir Abdul Nassir Abdalla Al-Kindy acquired a combined 41.17 percent stake in Pesa Print, the firm angling for the 21-year multi-billion-shilling project.
The two made their entry through Simbabanc Investments and Cropharmony Africa, companies registered in August and October 2023, respectively—just weeks after the National Treasury approved the project's feasibility study in July 2023.
The smart driving licence initiative is being executed as a PPP involving Pesa Print, the National Bank of Kenya, and the National Transport and Safety Authority (NTSA). It aims to transition Kenya to second-generation driving licences embedded with biometric and digital security features over a 21-year concession period.
Kenya’s second-generation, chip-embedded driving licence was first introduced in March 2017, when the NTSA signed a Sh2.03 billion contract with a consortium led by NBK for the supply of five million smart card licences.
The project was initially slated to run for three years, ending in March 2020. However, it is now four years behind schedule, according to Auditor-General Nancy Gathungu.
Following the Kenya Kwanza administration’s rise to power in 2022, the government began shifting its approach toward PPPs as a preferred mode of financing infrastructure and service delivery.
It was during this transition that Faryd and Jabir entered the scene, acquiring a substantial stake in Pesa Print.
Faryd is linked to the Sh600 million Mombasa Dolphin Resort, a hotel in Shanzu, Mombasa, which was among the properties listed in 2021 in Parliament by then Interior Cabinet Secretary Fred Matiang'i as associated with the then Deputy President Ruto and accorded round-the-clock police protection.
For long hidden from public scrutiny, the Daily Nation has found details showing that Jabir is one of the shareholders of North Mogor Holdings, the company through which President Ruto is reported to have acquired 1,000 acres in Kilgoris, Narok County – another property flagged by Dr Matiang'i as belonging to Dr Ruto.
While Dr Ruto publicly dismissed ownership of some of the properties in Matiangi's list, he did not dispute the inclusion of the Dolphin Resort or Murumbi Farm, which sits on the 1000-acre land in Kilgoris.
The two companies – Simbabanc and Cropharmony – share the same registered address of Faryd. Faryd’s Simbabanc holds 51 shares in Pesa Print, while Jabir’s Cropharmony holds 19 shares, giving the two allies a combined 41.17 per cent stake.
Pesa Print founder David Njane says the decision to bring Faryd into the project was based on the latter's technical capability.
Mr Njane noted that Faryd owns Greenbo Africa, a company that supplies prefabricated materials for smart terminal construction and is a manufacturer of industrial-grade towers.
“Do you want us to go to China to get towers while we can get them locally?” wondered Mr Njane, who has 58.83 stake in Pesa Print, largely through his firm Kenya Twelve Ventures (50 shares) and himself (50 shares).
Asked why he brought in Jabir, he noted that the two are partners at Greenbo. However, a search of the company's records shows that Greenbo Africa is owned equally by Faryd and a Mr Eli Bouzaglo.
Even in a related firm, Greenbo Engineering, Jabir's name does not feature either as a shareholder or director.
We also asked NTSA Director-General George Njao why the authority had opted for direct procurement instead of competitive bidding for the project. He had not responded to our query by the time of going to press.
Njane, on his part, explained that given that they were the only ones with the technology, the government opted for direct procurement, a provision allowed in the PPP Act.
Njane, who started Pesa Print over 10 years ago, says the firm won a competitive tender in 2015 to supply smart licences in the previous administration of Uhuru Kenyatta.
However, in 2021, the government opted to convert the contract into a PPP model to ease fiscal pressure. By then, the government owed Pesa Print close to Sh2 billion in pending bills.
It was only after the Kenya Kwanza administration assumed office that things started moving, albeit slowly, Njane added.
The PPP Directorate has said the project is still undergoing the required evaluations. It is now in the third stage of the PPP framework, with contract negotiations underway between Pesa Print, National Bank of Kenya, and NTSA.
The Pesa Print founder maintained that if Jabir and Faryd indeed had political clout, he would not have experienced the delays he has faced.
"If these guys are as powerful as you say, why are we being given more steps to follow?" Njane questioned.
Njane insisted that the political affiliation of the other shareholders had no bearing on the operations of his company, which he praised as “fully Kenyan company…that offered a local solution for local problems”.
“We designed the licences from scratch, using Kenyan artists,” he said.
Asked about his involvement in the project, Faryd directed us to Pesa Print.
Jabir, a more reserved figure, will gain attention for his ownership of North Mogor Holdings. The land in Kilgoris, known as Murumbi Farm, has sparked debate over historical land rights and political acquisitions.
We have since established that the other shareholder of North Mogor Holdings Limited is Abdul Karim Abdulrak.
Mr Addulrak is also a director at a firm known as Kazi ni Kazi Ventures, which was registered on May 16, 2023. The sole shareholder of the company is the United Democratic Alliance (UDA), President Ruto’s political party, which holds 100 ordinary shares and 100 preference shares. Ordinary shares confer voting rights and dividends that fluctuate with company profits, while preference shares offer fixed dividends and priority in asset distribution but typically do not carry voting rights.
Other directors of Kazi ni Kazi include Francis Mureithi Wambugu, who has twice unsuccessfully contested the Embakasi East parliamentary seat, first on a Jubilee Party ticket in 2017 and then on a UDA ticket in 2022.
Businessman Samuel Mburu Kamau, the husband of Nakuru Governor Susan Kihika, is also a director, alongside UDA official Joseph Mulili Kituku and lawyer Adrian David Kamotho Njenga, a member of UDA’s Electoral and Nominations Dispute Committee.
Faryd’s business partner in Dolphin Resort, Charles Tela Alusala, is also linked to other firms, including Easton Industrial Park Ltd, co-owned with President Ruto’s daughter June Ruto.
Alusala, a professional accountant, also holds stakes in Jipe Fisheries alongside First Lady Rachel Ruto.
First Lady Rachel Ruto.
Photo credit: File | Nation Media Group
Alusala is listed as a shareholder of Amaco Insurance, where the President’s family also owns a significant stake.
At Amaco, Alusala owns 100,000 shares, equivalent to 10.83 per cent of the insurer.
Through Yegen Farms Ltd, the President’s family owns 190,000 shares, or 15.83 per cent of Amaco. First Lady Rachel Ruto and her daughter Charlene own all shares in Yegen Farms, where Alusala is listed as the contact person.
Alusala is also listed as the contact person at Koilel Farm Ltd, where the First Lady and her son, Nick, are co-owners, and Urban Groove Apartments Ltd where Rachel Ruto and Charlene are shareholders.
President Ruto’s close personal connection to Faryd was underscored in 2023, when he attended the wedding of Faryd’s son, Idris Farid, to Salma Konse.
Health Cabinet Secretary Aden Duale, who accompanied the President, posted a congratulatory message on social media praising the occasion and underscoring Faryd’s personal relationship with the President.
“At the invitation of our dear friend, Faryd Abdulrazak Sheikh, I had the honour of accompanying H.E President @WilliamsRuto to the wedding of his son, Idris Farid, and Salma Konse,” Duale wrote in a tweet.
“To the two souls with but a single thought, and the two hearts that beat as one - Idris and Salma - we wish you life and love; health and happiness!”
Last week, President Ruto signed the Conflict of Interest Bill into law, which was intended to improve transparency in public appointments and contracts. However, lawmakers diluted several key provisions of the law, significantly weakening it.
The passage of the bill was part of Kenya’s programme with the International Monetary Fund (IMF), which has demanded more transparency and accountability in public spending.
The growing footprint of politically linked firms in infrastructure, ICT, and financial services is prompting fresh calls for regulatory oversight.
