Conflict of Interest Storm Brews as Politically Linked Tycoons Eye Sh45 Billion NTSA Deal

NAIROBI — A Sh45 billion public-private partnership (PPP) project between the National Transport and Safety Authority (NTSA) and a private firm has sparked national controversy after revelations that tycoons closely linked to State House have acquired a major stake in the company poised to land the lucrative deal.

At the centre of the storm is Pesa Print Ltd, a tech firm tasked with rolling out second-generation, biometric-embedded smart driving licences.

While the project is still in contract negotiation stages, company registry records now show that Faryd Abdulrazak Sheikh and Jabir Abdul Nassir Abdalla Al-Kindy—individuals with long-standing business and personal ties to President William Ruto, have quietly acquired a 41.17% stake in the firm through recently registered vehicles, Simbabanc Investments and Cropharmony Africa.

The project, projected to run for 21 years, is estimated at Sh45 billion, raising serious concerns over conflict of interest, procurement transparency, and the growing trend of politically connected elites capturing critical state contracts.

From Private Hands to State Pockets?

The timing of the share acquisition has raised eyebrows.

Both investment vehicles; Simbabanc and Cropharmony, were registered just weeks after the National Treasury approved the project’s feasibility study in mid-2023.

Critics argue this sequence of events suggests insider knowledge and strategic positioning by powerful individuals to benefit from State-backed projects.

Faryd, a flamboyant Mombasa-based businessman, is no stranger to presidential proximity.

He is co-owner of the Sh600 million Dolphin Resort, a property once listed in Parliament as associated with President Ruto.

He is also the contact person in several companies co-owned by First Lady Rachel Ruto, her children, and other close allies—including Amaco Insurance, Koilel Farm Ltd, and Urban Groove Apartments.

Meanwhile, Jabir is linked to North Mogor Holdings, a firm that owns a vast 1,000-acre property in Kilgoris known as Murumbi Farm—flagged by former Interior CS Fred Matiang’i as part of Dr. Ruto’s estate, though the president never denied this specific claim.

Direct Procurement or Direct Favouritism?

The NTSA is yet to respond to media queries on why it opted for direct procurement rather than open competitive bidding for such a high-value contract.

Pesa Print founder David Njane defends the decision, claiming his company is the only one with the necessary technology and that it was owed nearly Sh2 billion from a prior contract, prompting the switch to a PPP model.

Njane insisted the inclusion of Faryd and Jabir was due to technical capability, citing Faryd’s ownership of Greenbo Africa, which supplies materials for smart terminal construction.

However, records show Jabir holds no stake in either Greenbo Africa or its sister firm Greenbo Engineering—raising questions about his true role in the deal.

“If these guys are as powerful as you say, why are we still facing delays and endless approvals?” Njane posed defensively.

Ties That Bind — From Weddings to Boardrooms

Further cementing the political closeness, President Ruto and Defence CS Aden Duale attended the high-profile 2024 wedding of Faryd’s son.

Duale publicly hailed Faryd as a “dear friend,” underscoring a relationship that now appears to have significant business undertones.

Records further show links between these businessmen and Kazi ni Kazi Ventures, a firm wholly owned by the ruling United Democratic Alliance (UDA) party.

One of Jabir’s associates, Abdul Karim Abdulrak, is both a shareholder in North Mogor Holdings and a director at Kazi ni Kazi. Other directors include UDA insiders and family members of high-ranking politicians.

Conflict of Interest Bill Already Compromised

Ironically, these revelations come just days after President Ruto signed the long-awaited Conflict of Interest Bill into law—a legislative measure expected to enhance transparency in government contracting.

However, Parliament had already diluted key clauses, weakening its capacity to prevent politically-linked firms from accessing State tenders.

With politically connected networks now permeating infrastructure, ICT, and financial services deals, legal experts and civil society are urging immediate regulatory oversight.

“This is the textbook definition of state capture through proxies,” one transparency advocate told The Informant. “We cannot continue having billion-shilling projects going to firms where political ownership is concealed behind shell companies.”

As contract negotiations continue, eyes now turn to Parliament, the Public Procurement Regulatory Authority (PPRA), and the Ethics and Anti-Corruption Commission (EACC) to probe the procurement process and affiliations.

Meanwhile, millions of Kenyans await their smart driving licences—unaware that the rollout may have less to do with innovation and everything to do with insider privilege.