Enabling works begin at Ruiru’s private Tatu City

The developer of Kenya's first privately administered and managed city has signed a Sh300 million contract with two firms, setting pace for the main construction as enabling works begin. Tatu City Ltd on Wednesday signed an agreement with construction firms Gibb Africa and SS Mehta. Gibb Africa will carry out detailed engineering design for the main works and supervision of the enabling works contract.

SS Mehta's work includes site clearing and bulk earthworks for road corridors and the main electrical intake station and sub-station to serve Tatu City Central. The works commenced mid-April and will last another three to four months. Tenders for roads construction, electrical installations, water and sanitation, and gas piping will be advertised in the next two months, according to Arnold Meyer, the firm's chief executive. “Actual construction of the project will begin in the fourth quarter of this year,” he said.

Initial construction will comprise 3,000 residential units, 86,000 sq. metres of office space, 31,000 sq. metres of retail floor space, public service transport interchanges, health facilities and recreational parks. The first residential occupants and business tenants are expected to start moving in by late 2013. When completed – in a decade – Tatu City will house an estimated 70,000 residents while an additional 30,000 people will be visiting daily.

The city will cost an estimated $2.5 billion (more than Sh210 billion), a figure Meyer said will be revised to reflect inflationary adjustments. “The cost and all other features remain the same as in the masterplan. The only problem we have now is inflationary pressure,” said Meyer.

The development is backed by Russia's Renaissance Partners. Local ownership is through Tatu City Ltd in which former CBK Governor Nahashon Nyagah, Bidco CEO Vimal Shah and Josphat Kinyua constitute the board of directors.

Vision 2030's director-general Mugo Kibati said Tatu City's fruition will propel Kenya's economy. “I am confident that this project will be realised within the timeframe,” said Kibati. “It's existence is testament that 70 per cent of Vision 2030 will be implemented by the private sector... we need to see more of these in terms of quality of infrastructure and real estate.”

The second phase of the project, which will be built in 10 phases, is scheduled to begin in the second quarter of 2013 and will comprise a techno-park. The city is set on 1,000Ha hived of a 5,000Ha coffee farm. The National Environment Management Authority (NEMA) and the Ruiru Municipal Council have issued requisite approvals for the project. Meyer said the developer acquired 53 licences when planning the project.