NSSF in Trouble After Chinese Contractor Demands KES 6.9 Billion Compensation

The National Social Security Fund (NSSF) is in trouble after China Jiangxi, a Chinese contractor, demanded a 6.9-billion-shilling compensation for the delayed construction of Hazina Trade Centre in Nairobi’s city center.

The Chinese firm says the construction stalled on the 15th floor and that they have only received 2.5 billion shillings for the project.

The tower, which already had eight floors was to be completed by China Jiangxi between mid-2013 and July 2016 following a contract with the NSSF.

Four of the floors housed Nakumatt supermarket and the retailer had moved to court four years ago to protest the construction of other floors above it. They claimed that the construction was a hindrance to their business.

The compensation claim was rejected by NSSF and through Tana & Associates, a quantity surveyors consultancy, it was recommended that the contractor is paid a sum of 20 million shillings every week for all the weeks they have been on the site. This amounts to 1.8 billion shillings.

The particulars of the compensation take into consideration 8.7 million shillings for expenses, 9.8 million shillings for idle equipment on the site, and 1.7 million shillings for any other incurred losses.

The Public Works Ministry, is, however, reviewing the contract claims and will prepare a report to be released after two weeks before providing the rightful share to China Jiangxi.

The claim under evaluation, which was revealed by Anthony Omerikwa, the NSSF managing trustee to the MPs on a visit to the site, has been met with criticism.

MPs told the NSSF management, that the public could not be subjected to paying billions of shillings to the Chinese contractor for work not done.

“This is pure robbery and I see a conspiracy between NSSF and the contractor to swindle taxpayers billions of shillings,” Kiminini MP Chris Wamalwa said.

The NSSF concluded to cap the tower to only 15 floors, lowering the construction to about 4 billion shillings from the initial cost of 6.7 billion shillings.

On March 21, Mr. Omerikwa told MPs that terminating the contracts will expose NSSF to costly measures.

Mvita MP Abdulswamad Nassir told the NSSF that MPs would not continue holding any more meetings with them while the public continued losing billions of shillings saying that the matter is not finding any closure.

The MPs resolved to involve the Director of Public Prosecutions and the Ethics and Anti-Corruption Commission to investigate the “cash cow.”