Richard Ngatia Fights To Keep KNCCI Job As David Langat Eyes The Seat

A month before his term expires, Kenya National Chamber of Commerce and Industry (KNCCI) boss Richard Ngatia faces an uphill battle to keep his job given that businessman David Langat, founder of the DL Group of Companies, is likely to try to unseat him with the backing of President William Ruto. Langat is thought to be preferred to the chamber’s current number two, Eric Rutto.

David Lang’at is among prominent entrepreneurs and corporate executives appointed to the National Investment Council by President William Ruto, with others including alcohol  tycoon Humphrey Kariuki and Head of M-Pesa Sitoyo Lopokoiyit.

Lang’at is among businessmen who backed President Ruto’s State House bid in the 2022 polls. He has, however, mostly managed to keep a low profile for much of the over three decades he has spent rising in the world of business.

He made his fortune in the import and export business, before expanding into agribusiness, real estate, energy, hospitality, insurance and, more recently, special economic zones (SEZs). According to his firm, DL Group, importing and exporting goods including electronics and furniture was among the earliest activities engaged in after establishing the business in the eighties.

Some of Lang’at’s ventures include DL Teas, DL Farms, Selenkei Investments and Cedate (energy), Nyali Mall, Sunrise Resort and Spa, Niconat Insurance and Africa Economic Zones Ltd.  DL Teas owns farms in Kericho and Nandi and according to DL Group has a production capacity of about 11,000 tonnes per year, DL Farms comprises 1,000 acres under crop and 500 acres for livestock,  and Selenkei and Cedate are managing development of solar PV projects to be located on 600 acres of land near Eldoret town, with an ongoing 94 MW Project having an investment of $170 Million (Ksh20.8 billion).

More ventures in Lang’at’s portfolio include furniture dealer DL Furniture, fire fighting equipment provider Firefox and a partnership with Israel’s Magical Security Systems to provide provide design, installation and maintenance of integrated security systems in East Africa.

Mr. Scandals

At KNCCI, Ngatia is loathed by a section of management who feel like he runs the organization as if it’s his own household. This has seen Ngatia battle numerous court battles with disgruntled colleagues in the hierarchy who feel squeezed by his mismanagement.

In 2019, Nairobi Chambers directors took Ngatia to court for meddling in the affairs of the organization that saw him force Geoffrey Kimani an accomplice into office just in time for a MasterCard project that blew up.

At the time, it was reported that Equity Bank had gotten into a partnership with KNCCI and set aside Sh200 billion for the chambers to access as part of the COVID-19 financial support for businesses. However, it turned out this was just a bluff and didn’t move beyond the cameras. It didn’t take off as Equity Bank being a partner with MasterCard had gotten wind of the misuse of funds by the chambers and took a long step back. There was nothing to show that this loan hit the accounts.

In the MasterCard case, it’s said while the beneficiaries were to strictly be members of the chamber and from Nairobi county, preliminary results showed some beneficiaries were outside the county. Only a forensic audit would reveal the extent of the alleged crime.

MasterCard at the time, wrote a protest letter to the body demanding for a refund of their money earlier given and was misused, KNCCI instead on their website, uploaded a planted story claiming to have received again money from MasterCard but this was a damage control, nothing had happened at that time.

President Ruto and Richard Ngatia.

Ngatia who was an aspirant for Nairobi Governorship on the former President Kenyatta’s Jubilee Party ahead of the August 9, 2022 General Election is also battling other corruption allegations mostly from the health sector where he’s regarded as one of the ‘healthcare mafias’ or ‘Covid-Millionaires’

Recently, an activist moved to court to have the businessman probed over the “irregular” procurement of Sh10.2 billion Computed Tomography Scanners (CT Scanners).

The lobby group called for forensic investigations into the tender for the supply of the machines, controversially awarded by the Ministry of Health in 2017 to Megascope Healthcare (K) Limited, a firm linked to Mr Ngatia.

Mr Frank Awino of the Human Rights Crusaders under the Concerned Citizens Kenya- a civil society organisation, says that the procurement of the 37 SCT Scanners was a gross violation of Article 227 of the Constitution and the Public Procurement and Asset Disposal Act that should not be allowed to “just slip away.”