PHOTO CAPTION: Home Bridge Limited Managing Director Peter Karoki, Project Manager Daniel Murage, Sales Manager Rawlings Mwanza and Estate Manager Fred Ndegwa during a presser at Lifestyle Heights, Tatu City.
Local investors at Tatu City have demanded the cancellation of the project’s Special Economic Zone (SEZ) license until all cases in court and arbitration are resolved.
Speaking during a media briefing on Friday, November 18, Peter Karoki, the Managing Director, Home Bridge Limited, accused the Tatu City management of abusing its SEZ status to exploit Kenyan stakeholders and staff, with many complaining of racist behavior and high-handedness from their foreign bosses.
Mr Karoki claims that as local investors, they have been forced into agreements with Tatu City that are inconsistent with the spirit and laws that establish special economic zones; where all amenities should be cheaper.
For instance, Tatu City buys power at Sh.7.80 per hour kilowatt, the same as what other Kenyans pay, but Tatu city sells the same power to residents at Sh12.60 per hour Kilowatt.
Mr Karoki also raised concerns over unfair treatment, whereby the Tatu City management slows down the approval process for local investors to build more houses, and yet when American and European companies apply for the same, their building plans are fast-tracked.
They have further requested a probe launched into Tatu City’s legal and financial dealings, claiming the project has previously been sued in local courts for contract breaches, wrongful contract termination, tax fraud, tax evasion and other crimes.
They find it absurd that Tatu City still holds an SEZ license despite being embroiled in over 15 cases in court.
Even worse, Tatu City allegedly invokes international tribunal mechanisms when cases are advancing in local courts.
In their contract with local investors, there are clauses that bind local investors to international arbitration mechanisms.
In some instances, Tatu City proceeded to the London Court of International Arbitration (LCIA) as parallel cases continued in Kenya.
“Why should a foreign investor who has sworn to abide by Kenyan laws go ahead and institute parallel proceedings in international jurisdictions?
Is that not contempt for Kenya’s laws and Kenya’s legal jurisprudence?” Mr Karoki’s statement reads in part.
They have called on President William Ruto to revoke Tatu City’s SEZ license until all matters in court are heard and determined.
The local investors also want a public inquiry to be instituted to probe the questionable conduct of Tatu city’s foreign owners.
This fresh development comes just days after residents living in the 5,000-acre mixed-use complex with homes, businesses, schools and social amenities protested the shortage of safe water, exorbitant power supply rates and denial of access to internet services.
Local internet providers like Safaricom, Zuku, and JTL have been locked out on the grounds that the services can only be supplied by the Tatu City management.
An online petition that circulated across social media platforms called on the government to protect Kenyan investors against racism by Tatu City owners, insisting that there has been a great deal of white privilege in the city located within Ruiru constituency.
The petition opposed foreign companies, particularly American firms, enjoying rates consistent with government-designated Special Economic Zones (SEZ) while on the other hand, Kenyan firms are subjected to colonial treatment.
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