FRAUD: China Wu Yi Probed Over Sh3.2B Bloated KICC Renovation Tender

The National Assembly has launched an investigation into claims that the government spent Sh3.2 billion to renovate the Kenyatta International Convention Centre (KICC) ahead of the Climate Summit last year. This amount significantly exceeds the Sh1.9 billion initially approved by Parliament for the refurbishment of the iconic city’s facility.

The revelation came to light during a session of the National Assembly’s Tourism and Wildlife Committee, where local contractors raised concerns about their unpaid dues. They revealed that they had signed a prorated contract with China Wu Yi Company Limited, the main contractor for the renovation, based on a total contractual sum of Sh3.19 billion.

The local contractors, who claim to have completed 80% of the work, were informed by China Wu Yi that their full payments were contingent on the company receiving its full payment of Sh3.2 billion. However, they have only received Sh550 million of this amount.

The contractors, including architects, project managers, contractors, interior designers, fit out specialists, and furniture suppliers, have petitioned Parliament for assistance in receiving their unpaid dues of Sh674.6 million. They also expressed shock at learning from media reports that the project cost approved by Parliament was Sh1.98 billion, not Sh3.2 billion.

The committee has summoned the Ministry of Defense and China Wu Yi to provide clarification on the matter. They have been instructed to furnish the committee with the original contract for the renovation works.

MPs expressed disbelief at the discrepancies in the figures, with Kuresoi North MP Alfred Mutai stating that Sh3.2 billion is enough to build a new KICC. “If it is true that Sh3.2 billion was used, we must be told if it was just renovation or construction of another KICC,” he said.

The local companies involved in the project include Flolizz Contractors, Michelangelo, Frejed Engineering, Finetops Enterprise, Homes & Natures, Muga Electricals, and Global Exhibitions Incorporated. The total value of their contracts amounts to Sh3.2 billion.

More Fraud claims 

China Wu Yi (Kenya) Company Limited is not new to tender fraud allegations, the Chinese firm that has won big construction tenders in Kenya, was recently mentioned in a suit where Transport CS Murkomen sued Senator Cherargei for claiming that he had received $100 million bribe to favour China Wu Yi in road contracts in Kenya.