Wrangles put Sh10bn ICT project in peril

The government may be forced to move a Sh10 billion project to build an ICT park from Salama on the Nairobi-Mombasa highway to Thika if disagreements between shareholders of Malili Ranch, its director and area politicians, which threatens to derail the project persist.

The threat comes amid reports in some sections of the press, which Business Daily could not independently confirm, that the shareholders were threatening to block the project, unless they are paid more for their land.

They allege that they were short changed in the land transaction by brokers who bought the land from them at through-away prices only to sell it later to the government at higher prices.

The government through the Ministry of Information entered into agreement with the directors of Malili Ranch on June 17 last year to purchase 5,000 acres of land at Sh200, 000 per acre through their lawyer E.K Mutua and Company Advocates.

The government initially paid a deposit of Sh400, 000 out of the total Sh1 billion, but settled the balance in January this year.

Information Communication Permanent Secretary Bitange Ndemo says the wrangles will not hold back the project and, if they persist, the government may be forced to move the project to Thika where it has already received an offer of 3,000 acres.

“We cannot sit back and wait as the regional politics derail this multi-billion shilling project,” said Dr Ndemo. “We have several land offers from Thika which we may be forced to look at now if this continues.”

Dr Ndemo said even if the government relocates the project to Thika, Malili Ranch will remain a public property ,but the locals will have lost the development opportunities that would have come with the project.

Malili Ranch is owned by 606 farmers with 7.8 acres each.

Each shareholder was to be paid Sh1.56 million.

Taking into account the transaction legal charges each farmer was to get Sh1.4 million, but this was later revised to Sh1.1 million.

The government intends to put up facilities to support Business Process Outsourcing (BPO) ventures and a science park that are key to achieving Vision 2030 development plan.

Other projects also lined-up include a convention centre, shopping mall, hotels, international schools and health facilities.

The private partnership project is estimated at around Sh10 billion and the government expects it to create 40,000 jobs.

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