Controversy has dogged construction of the five-storey Mwariro market and developers now are demanding Sh293.35 million they say they pumped into project.
The original deal sealed in 2006 was for Sh403.35 million.
Sammy Kungu and Susan Ngendo, directors of Wema Foundation Trust, a hawkers’ welfare group, have threatened to sue the county for allegedly duping them to hand over the project.
According to stamped documents served to City Hall and seen by the Star, the duo through the foundation, was awarded a contract by the old city council to develop, manage and transfer the market in a public-private partnership.
On Thursday, City Hall confirmed receiving the letters but faulted the developer for failing to submit contract documents signed with the old council to facilitate action.
"Been waiting for him to produce the contract document but he hasn't," Trade CEC Winfred Gathagu said.
But Kungu said the deal with City Hall was a partnership approved by former Town Clerk John Gakuo after several meetings.
"We are developers and not contractors who are paid by the clients. We recoup from investments during operation. The council's contribution was a plot," Kungu said.
Wema Foundation Trust is said to have 3,500 members. They were supposed to be allocated the stalls upon the completion of the market.
The trust was supposed to build the market, manage it for 45 years and transfer it to the county after recouping its investment and profits.
However, the developer handed over the project to City Hall in 2018, with three-floors already completed.
At that time, Kungu says they had already pumped in another Sh293.35 million.
But City Hall, while calling for fair allocation of market spaces last year, claimed to have completed the market at a cost of Sh393 million.
It is reported that City Hall, through World Bank funding, used Sh110 million to construct the remaining two floors and do the finishing work and other installations.
“I was called by the governor and told the President had said I hand over the project to the county and that I will be paid. But I have not seen anything. I have written letters and walked into these officers but nothing is forthcoming," Kungu told the Star.
he pumped into Mwariro market PPP. project,.In the documents, the developer, through Evans Thiga Gaturu Advocates, has written to Nairobi Metropolitan Services boss l Mohammed Badi and acting Governor Anne Kananu. Court action is threatened.
The letters are stamped as received by the authorities.
“Please note my instructions are peremptory and comply immediately before my client takes drastic action in the High Court of Kenya, Nairobi, in an effort to recover his money from you without delay,” the letter dated July 27, 2021, read.
The latest letter followed three others addressed to Kananu. They wrote on May 5, and March 3, 2021. They were stamped as received by the chief officer of finance and planning and the governor’s office.
In the letter, the developers said City Hall was satisfied by the work done at the time of the handover after the county engineers and investigators certified the market in October last year.
According to the document, the deal was approved by the then Ministry of Local Government as required under the Local Government Act Cap 265. The Act empowered local authorities to enter into a partnership venture with theprivate sector.
“Under Minutes 28 of the Town Planning Committee, the council approved a partnership alternative towards the management of market activities in the city,” the document read.
Mwariro was among the 12 sites that the council had identified for constructing markets to decongest the CBD by removing hawkers who had taken over the streets.
Others were Uhuru market, City market, Karen market, Karandini market, Jericho/Mutindwa mass walkway market and Umoja market sites.
Other sides were in Dandora, Makadara and Westlands.
Allocation of the stalls at the Mwariro has been an unresolved issue one year after completion.
City politicians have been accused several times of interfering with allocation of stalls at the market, hence, delaying the commissioning of Mwariro.
On June 29, 2020, Starehe MP Charles Njagua, aka Jaguar, was arrested in connection with alleged incitement of traders at the market.
At the same time, City Hall director of markets and trading Services Fredrick Ndunyu said only 17 families had been affected and 24 traders moved to pave way for the construction of Mwariro.
He confirmed the families were compensated and said the traders would also be compensated and given priority in allocation of stalls.
A month later, Housing and Urban Development PS Charles Hinga announced application forms for available spaces are available and free at the deputy county commissioner's office in Starehe.
However, those who had applied for Mwariro market stalls prior to the press clarification, have been requested to reapply as advised using the application forms.
To date, the city has not announced how many traders have been allocated stalls.
Early this year in February, Nairobi politicians were put on notice on inciting the public to illegally occupy the five new markets, including Mwariro.
President Uhuru Kenyatta personally announced he would commission the market himself, giving a stern warning to politicians conning the public to occupy the stalls.
“Soon I will come here and open Mwariro market but I don’t want to see any incitement on who will occupy these markets. We want to have a fair process to ensure everyone will have an equal opportunity to occupy the stalls," he said.
Traders who had previously occupied the markets were to be given first priority once the market was commissioned.
Six months down the line, Mwariro market remains another completed project but still remains unoccupied.
(Edited by V. Graham)
