Nairobi (AFP) – To many, Tatu City on the outskirts of Nairobi looks like a success. The first city entirely built by a private company to be operational in East Africa, it currently houses around 25,000 people who live and work there. Tatu City accounts for approximately two-thirds of all foreign investment in Kenya, with its low-tax status attracting more than 100 businesses, including Heineken, coffee brand Dormans, and the largest call-center and cold-chain transport firms in the region.
However, some local politicians view Tatu City more as a target for extortion. A parade of governors have, according to the city’s owners, demanded land worth millions of dollars in exchange for building permits. Preston Mendenhall, Kenya country head for Rendeavour, the company behind Tatu City, recounted a few years ago when a governor “drove around with us, just pointing at different plots of land, saying ‘I want that, I want that.'”
In response, Mendenhall employed a tactic rarely seen in Kenya: going public. More than once, he has held press conferences to detail alleged extortion attempts by local politicians. “They thought that we, as foreign investors, would leave the country,” he explained. “(But) we’re looking at a 50-year time horizon. For us to challenge somebody, if need be in public, who is trying to extort us… we believe that’s the right thing to do.” Last year, he publicly accused local governor Kimani Wamatangi of demanding 54 acres (22 hectares) of Tatu City, worth $33 million, free of charge. Wamatangi, who did not respond to an AFP request for comment, denied the accusation.
This strategy comes with risks. “I’m subject to four defamation cases. It’s their intimidation tactic, and they’re used to getting what they want,” Mendenhall stated. “But the first case goes back to 2015 and we haven’t had a hearing yet so I’m not too worried.” The waiting game seems to be paying off, as the first governor who targeted them, Ferdinand Waititu, is now in prison from a separate corruption case. Recently, Wamatangi was arrested by anti-corruption officers who discovered some $13,000 in cash in his home, also in an unrelated case.
Meanwhile, Tatu City continues to grow slowly but steadily. Although the resident population is still small, the 5,000-acre site already includes a supermarket, a health clinic, and two schools with 5,000 pupils. There are currently 2,400 homes, ranging from studios to lakeside mansions, with 2,000 more under construction. Many are drawn to Tatu City due to its own electricity and water supply, which helps prevent the power and water cuts common across Africa.
Hannington Opot, commercial director of Hewa Tele, emphasized, “That is why we chose Tatu City,” as the company is currently building a factory to produce medical-grade oxygen for hospitals—a process requiring uninterrupted power and water. Cold Solutions, which provides storage for food and pharmaceutical partners, also highlighted Tatu City’s infrastructure, stating, “We wanted to put a stake in the ground and say that Africans can build world-class facilities… and it marries nicely with what Tatu is trying to do,” according to managing director Fredd Kambo. Meanwhile, Unity Homes has built over 1,500 apartments, attracting buyers with “playgrounds, parks, the fact they can drink the water from the tap… and knowing no one will build two centimeters in front of your balcony,” explained commercial director Mina Stiernblad.
Tatu City is the most advanced of six cities Rendeavour is building across Africa, which includes projects in the Democratic Republic of Congo, Ghana, Nigeria, Uganda, and Zambia. Mendenhall noted that Kenyan corruption has made it “by far the hardest” among these projects. Anger over corruption was one of the key drivers of mass protests in Kenya last year. However, Rendeavour’s founders, who made their fortunes in the free-for-all of 1990s Russia, remain unfazed. Despite facing their own allegations, including claims of tax evasion, investigations have been ongoing for years without resulting in charges. Mendenhall explained that these inquiries are merely more extortion attempts by “bad actors.”
He emphasized that many in the Kenyan government are “incredibly supportive,” as they recognize the vision of Tatu City and the number of jobs it has created. For all the corruption attempts, Mendenhall maintains a strong belief in Kenya’s potential. “Kenya is really an economic hub of the region (and) we think Nairobi will become the capital of Africa,” he asserted.
© 2024 AFP
