Demolitions: Hope as investors and State pick dialogue team

By MARTIN MUTUA

There was a glimmer of hope for investors along Mombasa Road, among them the Standard Group, when the Government held a marathon meeting with stakeholders and formed a task force to rethink the intended demolitions.

The controversy, touched off by a Kenya Gazette notice to compulsorily acquire businesses worth tens of billions of shillings, will now have to await a decision by Prime Minister Raila Odinga after a report by a committee comprising stakeholders’ representatives and Government officials is handed over to him within two weeks.

The team — formed yesterday after a three-hour meeting chaired by the PM in his Nairobi office — was tasked to consult and agree on an amicable solution.

The Representatives

Members of the committee comprise six representatives of the investors, including the Standard Group Deputy Chairman and Chief Strategist Paul Melly, Sameer Group Managing Director Michael Karanja, a Mr Aku Amrit and Kiran Patel. Also in the list will be a representative from Safaricom Kenya Ltd, and an engineer.

Eight officials, who include PSs in the ministries of Lands, Roads and Local Government, Kenya Urban Roads Authority Director-General, Kenya National Highway Authority Director-General, Director of City Planning, Commissioner of Lands and an infrastructure specialist from the PM’s office will represent the Government.

Raila assured private investors the Government would not interfere with their businesses.

Government as unit

"The Government wants investments protected… We don’t want to scare investors even as we provide proper infrastructure," he added. But he said the Government was concerned with the massive traffic challenges.

"We are willing to find an amicable solution to the matter. This committee will discuss the way forward and in two weeks, it should come up with a decision. Only then shall we announce the way forward," said Raila.

While moving to dispel notions on the different positions taken by Government officials on the matter, the PM said the Government works as one unit. "Government decisions are taken collectively at Cabinet meetings," he added.

Last week, Lands Minister James Orengo and his Roads counterpart Franklin Bett issued a statement announcing demolitions would go on as planned. But Government Spokesman Dr Alfred Mutua and Roads Assistant minister Lee Kinyanjui said the plan had been overtaken by events.

Yesterday, Raila said the Gazette notice that had been published over the demolition was meant to notify the public of the Government’s intention and to invite those affected to negotiate, but not a licence for demolitions.

In a memorandum presented to the Lands and Roads ministers which The Standard has seen, stakeholders said the consequences of the intended compulsory acquisition were far-reaching as it included massive losses in economic productivity and services, capital investment and jobs.

They were concerned that the uncertainty surrounding the move would negatively impact on the country’s investment climate, impact at financial securities and raised risks such as tenancy and trading partners concern regarding business obligations.

Loss of Jobs

They estimated businesses set to be affected, including Safaricom, Sameer Group, the Standard Group, Bobmil, Lab and Allied and ABC Place currently employ more than 20,000 people. Employees were anxious and this has undermined productivity.

Other concerns included opening up of rent-seeking opportunities and the colossal loss of business and investment value estimated at more than Sh50 billion (Sh30 billion for Mombasa Road and Sh20 billion for Waiyaki Way).

Those who attended the meeting included Mr Melly, and Sameer Group Chairman Naushad Merali. Orengo, Bett, and Kinyanjui also attended.