In Kenya, a privately governed municipality battles against corrupt government officials
Nairobi's Thorny Paradise: Tatu City
At first glance, Tatu City on Nairobi's outskirts may appear to be a model of success. With around 25,000 residents and 100 plus businesses call it home, it accounts for two-thirds of foreign investment in Kenya. Major brands like Heineken, Dormans, and leading call centers have set up shop here. But beneath the surface lies a bitter struggle between ambition and corruption.
Local politicians have viewed Tatu City as a prime target for extortion. According to its owners, governors have demanded land worth millions in exchange for building permits. Preston Mendenhall, Kenya country head for Rendeavour, the company behind Tatu City, recalls a governor who literally pointed at plots he wanted, demanding them in plain sight.
Instead of caving, Mendenhall and his team opted for an audacious move – going public. Several times, they've held press conferences, airing allegations of extortion attempts by local officials. The politicians thought foreign investors would flee, but Mendenhall remains unfazed. "We're playing the long game," he says. "If we need to challenge someone, and public is the right place to do it, we will."
One of the most notable incidents came when Mendenhall publicly accused Governor Kimani Wamatangi of demanding 54 acres (22 hectares) worth $33 million. Wamatangi, who did not comment on the allegations, was later arrested last month by anti-corruption officers in an unrelated case, with $13,000 in cash found in his home.
The strategy is risky, with Mendenhall facing four defamation cases as a result. Yet, he remains unbothered, seeing it as intimidation tactics by corrupt actors. One case has been ongoing since 2015, and he remains optimistic.
Tatu City's adversity is gradually being overshadowed by growth. Already, the 5,000-acre site includes shopping complexes, healthcare facilities, schools, and more than 2,400 homes ranging from studios to luxurious lakefront mansions, with another 2,000 in the pipeline.
Attracted by a stable electricity and water supply, businesses like Hewa Tele, which is building a medical-grade oxygen factory, and Cold Solutions, which provides storage for food and pharmaceuticals, have set up shop. Unity Homes, which has constructed over 1,500 apartments in Tatu City, cites the neighborly feel and amenities like playgrounds, parks, and clean drinking water as major draws for buyers.
Tatu City is the most advanced of six cities Rendeavour is developing across Africa, but it has been the hardest due to Kenya's endemic corruption. Yet, Rendeavour's founders, who made their fortunes in the wild West of 1990s Russia, display little fear. They've faced their own allegations, such as tax evasion, but no charges have been brought. "It's the same old intimidation tactics," says Mendenhall, emphasizing that many in the Kenyan government are supportive.
Despite the challenges, Mendenhall remains hopeful. "Kenya is an economic powerhouse of the region, and Nairobi is destined to be the capital of Africa," he says. "We're proud to contribute to this vision."
Political Turmoil and Economic Street Fight
Tatu City represents both an economic boom for Kenya and a battleground between corruption and progress. Reports suggest that corrupt officials have attempted to extort facilities and services from the city, creating obstacles to its development [2][3]. However, Rendeavour has resisted these attempts, positioning itself as a leader against corruption in private enterprise.
Economic Impact
Economically, Tatu City is a boon for Kenya, attracting foreign investment, creating jobs, and fostering a business-friendly environment [1]. The public-private partnership model underpinning Tatu City's growth has been praised for driving economic development and job creation, while also highlighting the potential for private urban developments to contribute to national progress [1].
Summary
- Tatu City's development has been marked by political challenges, including alleged extortion attempts by corrupt officials [2][3].
- Despite the adversity, Tatu City continues to thrive economically, attracting foreign investment, creating jobs, and contributing to Kenya's development goals [1].
- The city's growth underscores the potential for private urban developments to have a significant impact on national progress, even in complex political environments [1][2][3].
Financing for Tatu City's infrastructure development relies on foreign investment, with businesses contributing significantly to this funding source.
The economic growth of Tatu City, fueled by these businesses, has led to job creation and development, making it a significant contributor to Kenya's progress.
