The Adani project was due to a mediation agreement signed between a Chinese firm Anhui Construction Engineering Group Co Ltd that is in joint venture agreement with China Aero-Technology International Engineering Corporation that had initially won a contract for the modernisation, maintenance and operation of JKIA but KAA had terminated its contract. The Chinese firm was fronted by tycoon Jimmi Wanjigi during the Mwai Kibaki era.
Subsequently, KAA has initiated a process for public participation to fasttrack the process of contracting Adani Airport Holdings also known as Adani Group to go ahead with its JKIA concession request.
Documents seen by Nairobi Exposed show that a disagreement had arisen between the contractors who are Anhui Construction Engineering Group Co Ltd that is in joint venture agreement with China Aero-Technology International Engineering Corporation and KAA relating to the design and build contract for the construction of the Greenfield Passenger Terminal Complex and associated works that was once linked to Wanjigi.
Consequently, Anhui Construction Engineering Group Co Ltd that is in joint venture agreement with China Aero-Technology International Engineering Corporation filed a request for arbitration before the International Chamber of Commerce on March 17 2022, concerning the dispute.
However, the parties agreed to stay those arbitral proceedings to refer the dispute to mediation before a panel of this mediation say the mediation proceedings were conducted in line with the mediation rules, agreed and adopted between the parties, mediation terms of reference and mediation fees agreement.
Finally, the parties agreed on a gross compensation amount of Sh4,792,805,342 and the compensation due to the contractor that is Anhui Construction Engineering Group Co Ltd that is in joint venture agreement with China Aero-Technology International Engineering was to be less the advance payment received by the contractor and applicable taxes, as well as full and final settlement of the contractor’s claim.
It is emerging that Anhui Construction Engineering Group Co Ltd that is in joint venture agreement with China Aero-Technology International Engineering as the contractor had already received advance payment of Sh4,178,476, 664 and was subsequently paid a final settlement of Sh604,329,659 to pave way for KAA to enter into a new contract with Adani Airport Holdings said to be in excess of Sh129 billion.
That is how Wanjigi related firms were paid by the Ruto regime to allow a new firm takes charge of the modernisation of JKIA brokered by KAA chairperson Caleb Kositany, Jayesh Saini, Kipchumba Murkomen, Sen Aaron Cheruiyot.
Jimi Wanjigi Brainchild behind Kwacha Group, Arror & Kimwarer and Anglo leasing saga.
The Kwacha Group of Companies, which once epitomized substantial wealth and power in Kenya, became caught in a network of scandals that eventually led to its collapse.
Founded by the influential businessman and Oligarch Jimi Wanjigi, the conglomerate thrived on lucrative government contracts and political connections.
However, its meteoric rise was marred by controversies, including involvement in the Anglo Leasing scandal, land-grabbing allegations, and the 2017 election crisis.
The tale of Kwacha Group serves as a stark reminder of how corruption and political intrigue can dismantle even the most formidable business empires.
The Genesis of Kwacha Group of Companies
Kwacha Group of Companies was established in the late 1990s by Jimi Wanjigi, a man who had already made a name for himself as a powerful and influential businessman in Kenya.
The conglomerate rapidly expanded its portfolio, with interests ranging from real estate, construction, and finance to energy and infrastructure development.
Kwacha Group’s success was closely tied to Wanjigi’s political connections, which allowed the company to secure lucrative government contracts and partnerships with multinational corporations.
Wanjigi’s influence in the corridors of power grew as he became a key figure in financing political campaigns and brokering deals behind the scenes – Deep state His association with various political figures, including former President Daniel arap Moi, President Mwai Kibaki, and later Raila Odinga, solidified his status as one of Kenya’s most powerful businessmen – Deep state.
Scandals and Controversies
However, the success of Kwacha Group was marred by numerous scandals and controversies that would eventually lead to its downfall.
These scandals not only tarnished Wanjigi’s reputation but also exposed the deep-seated corruption and impunity that plagued the Kenyan business and political landscape.
1. The Anglo Leasing Scandal
One of the most significant scandals that Kwacha Group was embroiled in was the Anglo Leasing scandal, which rocked Kenya in the early 2000s.
This multi-billion shilling scam involved the awarding of non-existent contracts for the procurement of security equipment by the Kenyan government.
Kwacha Group, through its subsidiaries, was implicated in the scandal, with allegations that it had been awarded several of these bogus contracts.
The Anglo Leasing scandal exposed the close ties between Wanjigi and top government officials, raising questions about the role of Kwacha Group in facilitating these fraudulent deals.
Despite widespread public outrage and numerous investigations, the scandal was never fully resolved, and many of those involved, including Wanjigi, were never held accountable.
He managed to bribe his way out through the Justice system to be cleared off of wrong doing and now thinks he is the best man to save Kenya.
2. The SGR Project Controversy
Another controversy that engulfed Kwacha Group was its involvement in the Standard Gauge Railway (SGR) project, one of Kenya’s most ambitious infrastructure projects.
The project, which aimed to connect the port city of Mombasa to the capital, Nairobi, was financed by Chinese loans and managed by the China Road and Bridge Corporation (CRBC).
Kwacha Group was reportedly involved in the procurement of land and other services for the SGR project.
However, the project was mired in allegations of corruption, inflated costs, and irregular land acquisitions.
Wanjigi was accused of using his political connections to secure lucrative contracts for Kwacha Group, further fueling public anger over the mismanagement of the project.
3. The Safaricom IPO Scandal
In 2008, the initial public offering (IPO) of Safaricom, Kenya’s leading telecommunications company, was another flashpoint in Kwacha Group’s controversial history.
The IPO, which was one of the largest in Kenya’s history, was marred by allegations of insider trading, irregular allocation of shares, and manipulation of the stock market.
Wanjigi, through Kwacha Group, was accused of being one of the key beneficiaries of the Safaricom IPO scandal. It was alleged that the company had acquired a significant number of shares at a discounted rate before the IPO and later sold them at a massive profit.
The scandal raised concerns about the transparency and integrity of Kenya’s financial markets, with many blaming Wanjigi and his associates for exploiting their political connections for personal gain.
4. The Land Grabbing Allegations
Kwacha Group also found itself at the center of several land-grabbing allegations, particularly in Nairobi and the coastal region.
The company was accused of acquiring large tracts of public land through dubious means, often displacing communities and engaging in legal battles with various government agencies.
One of the most high-profile cases involved the attempted acquisition of a piece of land belonging to the University of Nairobi.
Kwacha Group’s involvement in these land-grabbing schemes highlighted the pervasive corruption in Kenya’s land sector, where powerful individuals and companies often exploited their influence to amass vast amounts of wealth at the expense of the public.
This led to Wanjigi and 3 other persons being banned from visiting United States of America. Yes, he is a persona-non-granta
5. The 2017 Election Crisis
Perhaps the most politically charged scandal involving Kwacha Group was its alleged involvement in the 2017 Kenyan presidential election crisis.
Jimi Wanjigi, who had by then aligned himself with the opposition, was accused of financing and orchestrating anti-government protests and activities aimed at undermining the legitimacy of President Uhuru Kenyatta’s re-election.
During the height of the crisis, Wanjigi’s properties, including his residence and offices, were raided by police, leading to the discovery of a cache of weapons and ammunition.
While Wanjigi denied any wrongdoing, the incident further fueled speculation about Kwacha Group’s involvement in destabilizing the country for political gain.
6. Arror & Kimwarer Involvement.
Jimi Wanjigi was paid Sh 6.5billion as commission agent for Arror & Kimwarer dams. Detectives at the Directorate of Criminal Investigations (DCI) linked two companies owned by Jimi Wanjigi to Arror and Kimwarer dams scandals where taxpayers lost Ksh 21 billion in an irregular advance payment to troubled Italian firm – CMC Di Ravena.
According to documents, Wanjigi’s company Tyl Limited which was incorporated in the Isle of Man – a self-governing British Crown dependency in the Irish Sea between Great Britain and Ireland, was used as a conduit to transfer hundreds of millions from Italy, London, Comoros Island and finally Nairobi. Money laundering.
The Decline of Kwacha Group of Companies
The numerous scandals and controversies surrounding Kwacha Group eventually took their toll on the company’s fortunes.
By the late 2010s, the conglomerate was facing financial difficulties, with several of its subsidiaries struggling to stay afloat.
The political climate had also shifted, with Wanjigi’s influence waning as he fell out of favor with the ruling elite.
In 2018, Kwacha Group was hit with a major blow when the Kenyan government launched a crackdown on companies and individuals linked to corruption.
Several of the company’s assets were seized, and its bank accounts were frozen as part of ongoing investigations into its involvement in various scandals.
Wanjigi’s legal battles intensified, with numerous court cases filed against him and his company.
The once-mighty Kwacha Group was now a shadow of its former self, with many of its projects stalled and its reputation in tatters.
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