A company linked to a controversial Turkish businessman close to President William Ruto has won a multi-billion shilling deal to build affordable houses, making him one of the top beneficiaries of the State housing scheme.
MHOA Africa Limited, which is owned by Harun Aydin, is part of a joint venture expected to build at least 100,000 homes under the scheme, which is partially funded by the housing levy.
Official company ownership records at the State-owned Business Registration Services (BRS) show that he owns a 50 percent stake in MHOA Africa, which is in the joint venture with Demir Group.
A search of BRS database revealed that Mr Aydin’s passport number is similar to one displayed on a police card during his arrest in August 2021, thrusting him into the national limelight.
He was part of a team scheduled to accompany then Deputy President Ruto to Uganda for an aborted trip that was blocked by Immigration officials.
Dr Ruto was dramatically stopped from flying out while the Turkish businessman was deported after two days of detention, with the State terming the latter a suspect of terrorism financing and money laundering.
The affordable housing deal looks set to raise questions about crony capitalism where politically connected businesses appear to profit from a close relationship with state power.
Mr Aydin’s firm was registered in March 2023, just six months after Dr Ruto defied the odds by winning the fiercely contested presidential election against opposition leader Raila Odinga, who had the backing of former President Uhuru Kenyatta.
The joint venture of Demir Group and MHOA Africa are among the two firms tapped under the top category A, which is tasked with building over 100,000 homes under the affordable housing deal.
The firm, together with Poly Technologies Inc, was selected following a tender of November 2023 where the Hosing department sought Master Builders.
The Master Builder are expected to design, finance and construct the homes on public land as an incentive.
Alternatively, they can construct houses on public land and access benefits like fast-tracked approvals and tax exemptions besides the State shepherding the sale of the homes.
Mr Aydin owns MHOA Africa together with his partner, Hamit Demir, also Turkish, with a 50 percent stake in the firm.
The Ministry of Housing reckons that over 200 companies bid for the affordable housing deals and 199 firms were pre-qualified across four categories.
Category A where Mr Aydin is playing out targeted investors building over 100,000 homes. Category B is between 10,000 homes and 100,000 while category C is for between 1,000 and 9,999 houses. Category D sought investors keen on developing less than 1,000 units.
Besides MHOA Africa and Poly Technologies Inc, a third local firm-- Manyota Limited-- was selected to construct between 10,000 and 100,000 units.
The firm is majority-owned by businessman James Njukia Ihura and his family.
Alice Wahome, the Cabinet Secretary for Lands, Public Works, Housing and Urban Development did not respond to a request for comment.
Housing and Urban Development Principal Secretary Charles Hinga acknowledged receipt of our queries but had not responded by press time.
Mr Aydin was unresponsive to an email sent to his address provided to BRS.
President Ruto insisted on Mr Aydin’s innocence during his deportation, terming him a ‘victim’ unfairly targeted by the authorities amid his falling out with Mr Kenyatta.
“Turkish investor, Aydin Harun, is a victim of top-down arrogance bred by patronage and cartels that criminalise enterprise,” the then Deputy President posted on his Twitter (now X) account on August 7, 2021.
“Importers’ goods declared contraband, Africa spirits closed, Keroche harassed, now an investor with valid papers labelled a terrorist. Tragedy of political pettiness.”
Then Interior Cabinet Secretary Fred Matiang’i said Mr Aydin was deported over money laundering links and illegal movement into and out of Kenya.
Dr Matiang’i added that the businessman was not charged in court because of Kenya’s cordial relations with Turkey.
Mr Aydin was among the guests who attended President Ruto’s State House Luncheon in the early days of his presidency.
The affordable housing law requires employers to deduct 1.5 percent of gross monthly pay to workers and match the contributions towards the housing levy.
The levy sparked an outcry from the opposition and many Kenyans, who feel burdened by the raft of taxes introduced under President Ruto’s administration.
It was implemented around the same time as the controversial healthcare insurance levy, which requires people to contribute 2.75 percent of their monthly salaries to a social healthcare programme.
The Ruto administration has set a goal of building 250,000 houses every year on public land using funds from the levy.
Currently, the Affordable Housing Board is selling some 4,888 units comprising studios, one-, two- and three-bedroom units in different parts of the country at between Sh640,000 and Sh5.4 million.
