Alfred Mutua, the Labour Cabinet Secretary nominee and former Governor of Machakos, recently unveiled how a legal battle derailed his ambitious plans to develop Machakos City, resulting in a substantial loss of investment for Kenya. Speaking before the Parliamentary Committee on Appointments, Mutua detailed the challenges he faced, highlighting a five-year court case that thwarted a Ksh 52 billion (USD 400 million) contract with a Dubai tycoon.
The unnamed tycoon, known for developing Dubai Mall, had committed to investing in Machakos by building a hotel, a sports city, and a highway connection. However, Mutua revealed that the project was stalled by a lawsuit initiated by Johnson Muthama and the Wiper Party, leading to significant delays and eventual abandonment.
“The person who built Dubai Mall came to Machakos and committed USD 400 million. He had committed to putting up a sports city and hotel system as well as connecting the highway from Machakos,” Mutua informed the panel. “We signed an MOU which is still in place. But when the case went to court, he took his money to Rwanda and the rest to Angola.”
Investment Shifted to Other African Nations
As the legal proceedings dragged on, the frustrated investors redirected their funds to other African countries, including Rwanda, Angola, and South Africa. Mutua explained that Kenya ultimately lost Ksh 2.1 trillion worth of investments due to the prolonged court battle.
“When we came up with the program of the Machakos new city, we brought investors who signed MOUs worth Ksh 2.1 trillion to bring investments not just in Machakos but across the country,” he elaborated. “John Muthama and the Wiper Party went to court and got an injunction that was issued by the court. Therefore, we could not proceed with that program until the court ruled otherwise. The court took five years (to determine the case). Despite that, we were able to continue (with the projects). When the court threw out that suit and said it had rendered the people of Machakos poorer over time because all the investments were lost, they went to Rwanda, Ghana, and South Africa.”
Delayed Justice and Project Setbacks
In 2020, after the court dismissed the lawsuit, the Machakos administration faced additional setbacks due to allotment disputes and integrity issues within the National Land Commission (NLC). Despite securing necessary approvals from the NLC during his tenure, the project’s momentum was significantly hindered.
The ambitious Machakos City development included plans for an airport with a runway that would double as a Formula One circuit. However, the protracted legal battle and subsequent administrative challenges impeded the realization of these visionary projects.
Impact on Kenya’s Economic Prospects
The loss of such substantial investments has raised concerns about Kenya’s ability to attract and retain international investors. Mutua’s disclosure has reignited discussions on the effectiveness of the judicial system and the need for reforms to prevent similar occurrences in the future.
The fallout from the Machakos City project underscores the importance of a conducive legal and political environment for fostering economic growth and development in Kenya. As the nation strives to recover from the missed opportunities, stakeholders are calling for increased accountability and efficiency in handling investment-related disputes.
