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Inside NSSF’s 25-year-old incomplete Hazina Towers

December 9, 2019
in Investigation
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The National Social Security Fund could be putting up the building with the longest period of construction works in the country.

For the past 25 years, NSSF has been building the Hazina Trade Centre, a block which was envisioned would change Nairobi’s skyline.

It is a block whose design has been changed more than twice and costs reviewed upwards by monumental amounts.

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NSSF intended to build a 39-storey tower over the block, which was then an 8-storey trade centre at Nairobi’s Mohktar Daddah street.
The initial works were to cost Sh3.1 billion and a contract was awarded in 1997 to a firm that built it up to the podium floor at Sh2.8 billion.

The works were stopped in 2004 after the Public Works department advised that it was unsafe to take it beyond 25 floors forcing a downward review of the initial design.

By that time, it had reached the 15th floor and the building was leased to Nakumatt for 20 years before a decision was made to complete it in 2009.

After the tender for completion was awarded to Sementas at Sh5 billion, a group of contractors went to court to challenge the move.

In the process, NSSF awarded the contract to construction firm China Jiangxi International at Sh6.7 billion.

Nakumatt denied the contractor access and they went to court seeking compensation for the delayed works – a case that lasted over 90 months.

The retailer wanted the court to stop the project until 2023, the time when its 20-year lease was scheduled to expire.

At the moment, workers are putting up the roof, working on the interior finishes – curtain walling; internal works – tiling; as well as plumbing and electrical installations.

A lift to be fitted to the building is expected to be delivered in December, works which are expected to be completed by December 31.

Even on completion, critics say the building would not meet its intended purpose as it has been overtaken by events.

This follows developments that have seen blocks in areas such as Westlands and Upper Hill being preferred for offices spaces – the intent of the trade centre.

At the same time, there are questions on why the building’s cost has continued to go up yet the works were scaled down.

The Public Investments Committee (PIC) chaired by Mvita MP Abdulswamad Nassir wants the DCI to probe the reason behind the delayed completion.

They cited the possibility of external forces that are keen on controlling NSSF operations, hence attempting to inflate costs of claims for works done.

Wajir East MP Rashid Kassim, a member of the committee, says it appeared there were no clear directions on the need for the project.

“Was it an intention to steal from public coffers?” the MP asked.

While appearing before the PIC recently, Cotu Secretary General Francis Atwoli said the NSSF board did not approve the project after some issues were flagged in 2004.

The COTU boss said the project has been flawed from the start, citing this as the reason for the attempt to have him and FKE boss Jacqueline Mugo removed from the board.

“This was a flawed project from the word go. If it was in another country, the people who were in management at that time, including the contractor, should be in jail,” Atwoli said.

He said there were no board minutes to support the project as the same was approved by a sub-committee, blaming parliament for not heeding to calls for the project to be suspended.

“When we queried about this project, we were taken out of this board. Until we came back in 2015 and demanded a forensic audit of the project which said the current project was flawed,” the Cotu boss said.

“This is a project that has no board minute attached to it. We expect Parliament to assist the fund to reach a closure to save workers’ monies,” Atwoli said.

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