MPs raise alarm over Sh1.5bn KICC project

The management of Kenyatta International Convention Centre (KICC) is on the spot over the construction of a prefabricated exhibition and conference centre that will cost the taxpayer at least Sh1.5 billion.

The matter has caught the attention of the National Assembly’s Public Investments Committee (PIC) that is keen to establish how the project — a temporary structure with capacity to handle between 15,000 and 20,000 delegates — was conceived and why it would cost so much money.

Documents in our possession and before PIC, which is investigating the matter, show that M/S Parbat Siyani Construction Limited, a local firm, will be paid Sh799,015,957.78 for the structure alone, according to an April 11 letter of award issued by KICC chief executive Nana Gecaga.

SCANDAL

The cost is, however, exclusive of civil works and furnishing as per the minutes of the KICC board of November 21, 2018, which is likely to cost about Sh700 million.

“We are pleased to notify you that you have been awarded the above tender at the price of Sh799,015,957.78 inclusive of all taxes subject to there being no appeal in the ensuing 14 days from the date of this letter,” Ms Gecaga, whose term ends in January 2020, says in the letter.

PIC chairman Abdulswamad Shariff said the project “smells” of a big scandal in the offing. He wondered why so much money would be invested in a prefabricated facility.

“To put such an amount of money in a prefab is very disturbing. On this one, they will just have to come and explain how it was done,” Mr Sharif said.

“It should not be forgotten that not long ago, NHIF did a similar thing on a disputed land in Karen, Nairobi. It went ahead to pay the contractor over Sh2.5 billion for no work done. I am seeing the same thing happening with KICC,” he said.

APPROVAL

It is also important to note that the project, to be completed within six months from the date of the award, was not budgeted for in the 2018/19 estimates of KICC and was awarded without the approval of the Treasury.

According to the Public Finance Management Act, any capital expenditure above Sh5 million must be clearly stated in the budget of the procuring entity.

Interestingly, the project was awarded in total disregard of a court order of January 31 that barred KICC management from doing anything on the piece of land because it is an unallocated government land.

It has also been established that no feasibility study was undertaken to establish the project’s viability.

An environmental impact assessment report is also not available, an indication that it may not have been undertaken prior to the contract award.

PUBLIC LAND

A 2010 advisory by the Ministry of Lands warned the KICC management against developing the land.

The ministry, which advises the government and its agencies on land use policy and physical planning, recognises the land as “symbolic and an integral part of pragmatic urban design of Nairobi’s central business district”.

The land is currently used as parking space for various State agencies, which have valid lease agreements with KICC. They include Parliament, the Treasury, the Central Bank of Kenya, and the Public Procurement Oversight Authority.