KICC Renovation Costs Under Scrutiny Amid Allegations of Inflation
As the KICC remains a crucial venue for international conferences, events, and tourism in Kenya, the allegations of inflated costs and corruption are particularly concerning.
Lilian Sifuma
The Kenyatta International Convention Centre (KICC), a landmark building in Nairobi, Kenya, has recently undergone extensive renovations.
However, the process is now mired in controversy due to allegations of inflated costs by the subcontractors involved.
The Kenyan parliament has summoned the Chinese contractor, China Wu Yi, to address concerns over the renovation expenses, which have reportedly escalated to Ksh3.2 billion (approximately $25 million). This is a significant increase from the original contract amount of Ksh1.94 billion (roughly $15 million), according to the Ministry of Defense and the Kenyan Defence Forces (KDF), who supervised the project.
The Tourism and Wildlife Committee in the National Assembly is leading an investigation into the matter. During hearings, subcontractors testified that China Wu Yi owes them Ksh 674.6 million (around $5.2 million) for their work, of which only Ksh 114 million (approximately $880,000) has been paid.
The subcontractors allege that they were pressured into signing contracts with the promise of receiving 17 percent of the total Ksh3.2 billion contract amount. They have accused China Wu Yi of unethical practices and delaying payments despite assurances from former Chief of Defense Francis Ogolla, and the Permanent Secretary for Defense that they would be compensated promptly upon completion of their work.
The National Assembly's Tourism and Wildlife Committee is committed to ensuring transparency and accountability in the use of public funds. They have summoned representatives from China Wu Yi to provide explanations and evidence regarding the inflated costs and unpaid dues.
As the KICC remains a crucial venue for international conferences, events, and tourism in Kenya, the allegations of inflated costs and corruption are particularly concerning. Ensuring the integrity of the renovation process is essential for maintaining its status and attracting more visitors to the country.
The authorities are urged to thoroughly investigate these allegations and hold any parties found responsible for wrongdoing accountable.
If you have a real estate press release or any other information that you would like featured on the African Real Estate Blog Post, do reach out to us via email at [email protected]
