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Kenya’s Ethics and Anti-Corruption Commission (EACC) has uncovered a trail of cash allegedly stolen from City Hall and used to upgrade luxurious apartments owned by former Nairobi Governor Evans Kidero.
Business Daily reported that part of the loot was wired from City Hall through a fake legal contract to the former governor on Jan. 7, 2014. Kidero mainly trades through five companies — Gem Investments, Gem Apartments, Gem Suites, Orro Limited and Argenti Limited.
However, Kidero allegedly carried out the transaction through a company known as Cups Ltd., which is associated with his former Chief of Staff George Wainaina. The EACC stated that a day later Kidero moved Ksh 14.4 million ($134,516) to one Virji Meghji, who was involved in construction works at his Gem Suites Riverside apartments.
The apartments are situated on Nairobi’s Riverside Drive and attracted monthly rents of Ksh 540,000 ($5,044), paid in dollars.
The EACC has launched a bid to recover Sh14.4 million from Kidero, alternatively seeking one of the apartments to be held in trust on behalf of City Hall.
Meanwhile, City Hall has lost Ksh 58.8 million ($549,275) in the scheme, in which 10 people allegedly participated. The EACC wants the money refunded or to seize the assets, including land and vehicles belonging to the accused persons.
Business Daily also reported that Nairobi ward representatives had called on the EACC to investigate a Ksh 1.7-billion ($15.9 million) AAR Insurance Kenya medical cover contract for City Hall staff in 2020. They claimed that the contract was fraudulent. Some Kenya officials were allegedly making money from the AAR-City Hall deal with payments withheld and redirected to well-connected individuals.
Kidero is a Kenyan politician and the former governor of Nairobi County. He served as the CEO of Mumias Sugar for eight years before resigning in 2012. He owns hundreds of acres of land worth billions of shillings. His properties are valued at least Ksh 9 billion ($84.07 million), making him one of Kenya’s wealthiest people.
