Latest news with #Rendeavour
The Star
3 days ago
- Business
- The Star
Private city, public fight
TO many, Tatu City on the outskirts of Nairobi looks like a success. The first city entirely built by a private company to be operational in east Africa, with some 25,000 people living and working there, it accounts for around two-thirds of all foreign investment in Kenya. Its low-tax status has attracted more than 100 businesses including Heineken, coffee brand Dormans and the biggest call-centre and cold-chain transport firms in the region. But to some local politicians, Tatu City has looked more like a target for extortion. A parade of governors have, according to the city's owners, demanded land worth millions of dollars in exchange for building permits. A few years ago, a governor 'drove around with us, just pointing at different plots of land, saying 'I want that, I want that'', said Preston Mendenhall, Kenya country head for Rendeavour, the company building the city. The American responded with a tactic rarely attempted in Kenya: going public. More than once, Mendenhall has held press conferences detailing the alleged extortion attempts of local politicians. 'They thought that we, as foreign investors, would leave the country,' he said. '(But) we're looking at a 50-year time horizon. For us to challenge somebody, if need be in public, who is trying to extort us... we believe that's the right thing to do.' Last year, he publicly accused local governor Kimani Wamatangi of demanding 22ha of Tatu City, worth US$33mil, free of charge. Wamatangi – who did not respond to a request for comment – denied the accusation. It's a risky strategy. 'I'm subject to four defamation cases. It's their intimidation tactic and they're used to getting what they want,' said Mendenhall. 'But the first case goes back to 2015 and we haven't had a hearing yet, so I'm not too worried.' The waiting game appears to be paying off. The first governor who targeted them, Ferdinand Waititu, is now in prison from a separate corruption case. Wamatangi was arrested in April by anti-corruption officers who found some US$13,000 in cash in his home, also in an unrelated case. A worker inspecting the condition of goods preserved in sub-zero storage at cold chain solutions provider, Cold Solutions Kenya Sez Ltd, at their plant in Tatu City in Ruiru, Kiambu county. — AFP World-class facilities Meanwhile, Tatu City is slowly but steadily growing. The resident population is still small, but the 2,000ha site already includes a supermarket, health clinic and two schools with 5,000 pupils. There are 2,400 homes ranging from studios to lakeside mansions and 2,000 more on the way. Many are attracted by the fact that it has its own electricity and water supply to prevent cuts that are highly common across Africa. 'That is why we chose Tatu City,' said Hannington Opot, commercial director of Hewa Tele, which is currently building a factory to produce medical-grade oxygen for hospitals – a chemical process requiring uninterrupted power and water. Cold Solutions, which provides storage for food and pharmaceutical partners, also highlighted the infrastructure. 'We wanted to put a stake in the ground and say that Africans can build world-class facilities. And it marries nicely with what Tatu is trying to do,' said managing director Fredd Kambo. Unity Homes has built over 1,500 apartments. Buyers are attracted by the 'playgrounds, parks, the fact they can drink the water from the tap... and knowing no one will build two centimetres in front of your balcony', said commercial director Mina Stiernblad. By far the hardest Tatu City is the most advanced of six cities Rendeavour is building across Africa – in the Democratic Republic of Congo, Ghana, Nigeria, Uganda and Zambia. Kenyan corruption has made it 'by far the hardest', said Mendenhall. Anger over corruption was one of the key drivers of mass protests in Kenya last year. But Rendeavour's founders made their fortunes in the free-for-all of 1990s Russia and are unfazed. The owners have faced their own allegations, including claims of tax evasion. But investigations have been ongoing for years without resulting in any charges. Mendenhall says they are just more extortion attempts by 'bad actors'. He emphasised that many in the Kenyan government are 'incredibly supportive'. 'They understand the vision of this project, understand the number of jobs that it's created,' he said. And for all the corruption attempts, Mendenhall has great faith in Kenya. 'Kenya is really an economic hub of the region (and) we think Nairobi will become the capital of Africa,' he said. — AFP
Malay Mail
06-05-2025
- Business
- Malay Mail
‘They wanted free land': How a bold Nairobi megacity is standing up to corrupt officials
NAIROBI, May 7 — To many, Tatu City on the outskirts of Nairobi looks like a success. The first city in East Africa to be fully built by a private company, it now houses some 25,000 residents and workers and accounts for around two-thirds of all foreign investment in Kenya. Its low-tax status has drawn more than 100 businesses, including Heineken, coffee brand Dormans, and the region's largest call-centre and cold-chain transport firms. But to some local politicians, Tatu City has appeared more like a target for extortion. According to its owners, successive governors have demanded land worth millions of dollars in exchange for building permits. A few years ago, one governor allegedly 'drove around with us, just pointing at different plots of land, saying 'I want that, I want that',' said Preston Mendenhall, Kenya country head for Rendeavour, the company developing the city. Mendenhall responded with a rarely used tactic in Kenya — going public. On multiple occasions, he has held press conferences to expose what he describes as extortion attempts by local politicians. 'They thought that we, as foreign investors, would leave the country,' he said. 'But we're looking at a 50-year time horizon. For us to challenge somebody, if need be in public, who is trying to extort us... we believe that's the right thing to do.' Last year, Mendenhall publicly accused local governor Kimani Wamatangi of demanding 22 hectares of Tatu City land, valued at US$33 million, free of charge. Wamatangi, who did not respond to AFP's request for comment, denied the accusation. It is a risky approach. 'I'm subject to four defamation cases. It's their intimidation tactic and they're used to getting what they want,' said Mendenhall. 'But the first case goes back to 2015 and we haven't had a hearing yet, so I'm not too worried.' The long game seems to be working. The first governor who targeted the project, Ferdinand Waititu, is now in prison over a separate corruption case. Wamatangi was arrested last month by anti-corruption officers who found US$13,000 in cash at his home, also in an unrelated investigation. 'World-class facilities' Meanwhile, Tatu City continues to grow steadily. Though its resident population remains small, the 2,000-hectare site already includes a supermarket, health clinic, and two schools with 5,000 pupils. There are 2,400 homes completed — ranging from studios to lakeside mansions — and 2,000 more under development. Many investors are drawn by the city's independent electricity and water supply, helping to avoid the frequent service disruptions common in many parts of Africa. 'That is why we chose Tatu City,' said Hannington Opot, commercial director of Hewa Tele, which is building a factory to produce medical-grade oxygen — a process that requires uninterrupted power and water. Cold Solutions, a logistics firm serving the food and pharmaceutical sectors, also praised the infrastructure. 'We wanted to put a stake in the ground and say that Africans can build world-class facilities... and it marries nicely with what Tatu is trying to do,' said managing director Fredd Kambo. Unity Homes has built over 1,500 apartments. Buyers are drawn to the city's green spaces, clean tap water and building regulations. 'They know no one will build two centimetres in front of your balcony,' said Unity's commercial director Mina Stiernblad. 'The hardest' Tatu City is the most advanced of six new urban developments that Rendeavour is building across Africa — in the Democratic Republic of Congo, Ghana, Nigeria, Uganda and Zambia. Kenya has proven to be 'by far the hardest', said Mendenhall, due to entrenched corruption. Public anger over corruption was a key driver of the mass protests seen in Kenya last year. Yet Rendeavour's founders, who made their fortunes during Russia's chaotic 1990s era, remain undeterred. They have also faced accusations, including claims of tax evasion, but investigations have dragged on for years without any charges. Mendenhall says these are just further efforts by 'bad actors' to pressure the company. He also stressed that many in the Kenyan government remain supportive of Tatu City. 'They understand the vision of this project, understand the number of jobs that it's created,' he said. And despite the setbacks, Mendenhall remains optimistic. 'Kenya is really an economic hub of the region... we think Nairobi will become the capital of Africa,' he said. — AFP
News.com.au
06-05-2025
- Business
- News.com.au
How a privately owned city in Kenya took on corrupt officials
To many, Tatu City on the outskirts of Nairobi looks like a success. The first city entirely built by a private company to be operational in east Africa, with some 25,000 people living and working there, it accounts for around two-thirdsof all foreign investment in Kenya. Its low-tax status has attracted more than 100 businesses including Heineken, coffee brand Dormans, and the biggest call-centre and cold-chain transport firms in the region. But to some local politicians, Tatu City has looked more like a target for extortion. A parade of governors have, according to the city's owners, demanded land worth millions of dollars in exchange for building permits. A few years ago, a governor "drove around with us, just pointing at different plots of land, saying 'I want that, I want that'," said Preston Mendenhall, Kenya country head for Rendeavour, the company building the city. The American responded with a tactic rarely attempted in Kenya: going public. More than once, Mendenhall has held press conferences detailing the alleged extortion attempts of local politicians. "They thought that we, as foreign investors, would leave the country," he said. "(But) we're looking at a 50-year time horizon. For us to challenge somebody, if need be in public, who is trying to extort us... we believe that's the right thing to do." Last year, he publicly accused local governor Kimani Wamatangi of demanding 54 acres (22 hectares) of Tatu City, worth $33 million, free of charge. Wamatangi -- who did not respond to an AFP request for comment -- denied the accusation. It's a risky strategy. "I'm subject to four defamation cases. It's their intimidation tactic and they're used to getting what they want," said Mendenhall. "But the first case goes back to 2015 and we haven't had a hearing yet so I'm not too worried." The waiting game appears to be paying off. The first governor who targeted them, Ferdinand Waititu, is now in prison from a separate corruption case. Wamatangi was arrested last month by anti-corruption officers who found some $13,000 in cash in his home, also in an unrelated case. - 'World-class facilities' - Meanwhile, Tatu City is slowly but steadily growing. The resident population is still small, but the 5,000-acre site already includes a supermarket, health clinic and two schools with 5,000 pupils. There are 2,400 homes ranging from studios to lakeside mansions and 2,000 more on the way. Many are attracted by the fact it has its own electricity and water supply to prevent cuts that are highly common across Africa. "That is why we chose Tatu City," said Hannington Opot, commercial director of Hewa Tele, which is currently building a factory to produce medical-grade oxygen for hospitals -- a chemical process requiring uninterrupted power and water. Cold Solutions, which provides storage for food and pharmaceutical partners, also highlighted the infrastructure. "We wanted to put a stake in the ground and say that Africans can build world-class facilities... and it marries nicely with what Tatu is trying to do," said managing director Fredd Kambo. Unity Homes has built over 1,500 apartments. Buyers are attracted by the "playgrounds, parks, the fact they can drink the water from the tap... and knowing no one will build two centimetres in front of your balcony," said commercial director Mina Stiernblad. - 'The hardest' - Tatu City is the most advanced of six cities Rendeavour is building across Africa -- in the Democratic Republic of Congo, Ghana, Nigeria, Uganda and Zambia. Kenyan corruption has made it "by far the hardest", said Mendenhall. Anger over corruption was one of the key drivers of mass protests in Kenya last year. But Rendeavour's founders made their fortunes in the free-for-all of 1990s Russia and are unfazed. The owners have faced their own allegations, including claims of tax evasion. But investigations have been ongoing for years without resulting in any charges. Mendenhall says they are just more extortion attempts by "bad actors". He emphasised that many in the Kenyan government are "incredibly supportive". "They understand the vision of this project, understand the number of jobs that it's created," he said. And for all the corruption attempts, Mendenhall has great faith in Kenya. "Kenya is really an economic hub of the region (and) we think Nairobi will become the capital of Africa," he said.
Int'l Business Times
06-05-2025
- Business
- Int'l Business Times
How A Privately Owned City In Kenya Took On Corrupt Officials
To many, Tatu City on the outskirts of Nairobi looks like a success. Its low-tax status has attracted more than 100 businesses including Heineken, coffee brand Dormans, and the biggest call-centre and cold-chain transport firms in the region. But to some local politicians, Tatu City has looked more like a target for extortion. A parade of governors have, according to the city's owners, demanded land worth millions of dollars in exchange for building permits. A few years ago, a governor "drove around with us, just pointing at different plots of land, saying 'I want that, I want that'," said Preston Mendenhall, Kenya country head for Rendeavour, the company building the city. The American responded with a tactic rarely attempted in Kenya: going public. More than once, Mendenhall has held press conferences detailing the alleged extortion attempts of local politicians. "They thought that we, as foreign investors, would leave the country," he said. "(But) we're looking at a 50-year time horizon. For us to challenge somebody, if need be in public, who is trying to extort us... we believe that's the right thing to do." Last year, he publicly accused local governor Kimani Wamatangi of demanding 54 acres (22 hectares) of Tatu City, worth $33 million, free of charge. Wamatangi -- who did not respond to an AFP request for comment -- denied the accusation. It's a risky strategy. "I'm subject to four defamation cases. It's their intimidation tactic and they're used to getting what they want," said Mendenhall. "But the first case goes back to 2015 and we haven't had a hearing yet so I'm not too worried." The waiting game appears to be paying off. The first governor who targeted them, Ferdinand Waititu, is now in prison from a separate corruption case. Wamatangi was arrested last month by anti-corruption officers who found some $13,000 in cash in his home, also in an unrelated case. Meanwhile, Tatu City is slowly but steadily growing. The resident population is still small, but the 5,000-acre site already includes a supermarket, health clinic and two schools with 5,000 pupils. There are 2,400 homes ranging from studios to lakeside mansions and 2,000 more on the way. Many are attracted by the fact it has its own electricity and water supply to prevent cuts that are highly common across Africa. "That is why we chose Tatu City," said Hannington Opot, commercial director of Hewa Tele, which is currently building a factory to produce medical-grade oxygen for hospitals -- a chemical process requiring uninterrupted power and water. Cold Solutions, which provides storage for food and pharmaceutical partners, also highlighted the infrastructure. "We wanted to put a stake in the ground and say that Africans can build world-class facilities... and it marries nicely with what Tatu is trying to do," said managing director Fredd Kambo. Unity Homes has built over 1,500 apartments. Buyers are attracted by the "playgrounds, parks, the fact they can drink the water from the tap... and knowing no one will build two centimetres in front of your balcony," said commercial director Mina Stiernblad. Tatu City is the most advanced of six cities Rendeavour is building across Africa -- in the Democratic Republic of Congo, Ghana, Nigeria, Uganda and Zambia. Kenyan corruption has made it "by far the hardest", said Mendenhall. Anger over corruption was one of the key drivers of mass protests in Kenya last year. But Rendeavour's founders made their fortunes in the free-for-all of 1990s Russia and are unfazed. The owners have faced their own allegations, including claims of tax evasion. But investigations have been ongoing for years without resulting in any charges. Mendenhall says they are just more extortion attempts by "bad actors". He emphasised that many in the Kenyan government are "incredibly supportive". "They understand the vision of this project, understand the number of jobs that it's created," he said. And for all the corruption attempts, Mendenhall has great faith in Kenya. "Kenya is really an economic hub of the region (and) we think Nairobi will become the capital of Africa," he said. Residents and businesses have been attracted to the highly organised infrastructure AFP Cold Solutions Kenya is one of more than 100 businesses to have set up in Tatu City so far AFP Preston Mendenhall, country head of Rendeavour, has challenged corrupt officials head-on AFP Tatu City was built from scratch by Rendeavour and has attracted more than 100 businesses AFP
Yahoo
06-05-2025
- Business
- Yahoo
How a privately owned city in Kenya took on corrupt officials
To many, Tatu City on the outskirts of Nairobi looks like a success. The first city entirely built by a private company to be operational in east Africa, with some 25,000 people living and working there, it accounts for around two-thirdsof all foreign investment in Kenya. Its low-tax status has attracted more than 100 businesses including Heineken, coffee brand Dormans, and the biggest call-centre and cold-chain transport firms in the region. But to some local politicians, Tatu City has looked more like a target for extortion. A parade of governors have, according to the city's owners, demanded land worth millions of dollars in exchange for building permits. A few years ago, a governor "drove around with us, just pointing at different plots of land, saying 'I want that, I want that'," said Preston Mendenhall, Kenya country head for Rendeavour, the company building the city. The American responded with a tactic rarely attempted in Kenya: going public. More than once, Mendenhall has held press conferences detailing the alleged extortion attempts of local politicians. "They thought that we, as foreign investors, would leave the country," he said. "(But) we're looking at a 50-year time horizon. For us to challenge somebody, if need be in public, who is trying to extort us... we believe that's the right thing to do." Last year, he publicly accused local governor Kimani Wamatangi of demanding 54 acres (22 hectares) of Tatu City, worth $33 million, free of charge. Wamatangi -- who did not respond to an AFP request for comment -- denied the accusation. It's a risky strategy. "I'm subject to four defamation cases. It's their intimidation tactic and they're used to getting what they want," said Mendenhall. "But the first case goes back to 2015 and we haven't had a hearing yet so I'm not too worried." The waiting game appears to be paying off. The first governor who targeted them, Ferdinand Waititu, is now in prison from a separate corruption case. Wamatangi was arrested last month by anti-corruption officers who found some $13,000 in cash in his home, also in an unrelated case. - 'World-class facilities' - Meanwhile, Tatu City is slowly but steadily growing. The resident population is still small, but the 5,000-acre site already includes a supermarket, health clinic and two schools with 5,000 pupils. There are 2,400 homes ranging from studios to lakeside mansions and 2,000 more on the way. Many are attracted by the fact it has its own electricity and water supply to prevent cuts that are highly common across Africa. "That is why we chose Tatu City," said Hannington Opot, commercial director of Hewa Tele, which is currently building a factory to produce medical-grade oxygen for hospitals -- a chemical process requiring uninterrupted power and water. Cold Solutions, which provides storage for food and pharmaceutical partners, also highlighted the infrastructure. "We wanted to put a stake in the ground and say that Africans can build world-class facilities... and it marries nicely with what Tatu is trying to do," said managing director Fredd Kambo. Unity Homes has built over 1,500 apartments. Buyers are attracted by the "playgrounds, parks, the fact they can drink the water from the tap... and knowing no one will build two centimetres in front of your balcony," said commercial director Mina Stiernblad. - 'The hardest' - Tatu City is the most advanced of six cities Rendeavour is building across Africa -- in the Democratic Republic of Congo, Ghana, Nigeria, Uganda and Zambia. Kenyan corruption has made it "by far the hardest", said Mendenhall. Anger over corruption was one of the key drivers of mass protests in Kenya last year. But Rendeavour's founders made their fortunes in the free-for-all of 1990s Russia and are unfazed. The owners have faced their own allegations, including claims of tax evasion. But investigations have been ongoing for years without resulting in any charges. Mendenhall says they are just more extortion attempts by "bad actors". He emphasised that many in the Kenyan government are "incredibly supportive". "They understand the vision of this project, understand the number of jobs that it's created," he said. And for all the corruption attempts, Mendenhall has great faith in Kenya. "Kenya is really an economic hub of the region (and) we think Nairobi will become the capital of Africa," he said. er/rbu/kjm
