Background: President William Ruto, David Ndii and impeached DP Rigathi Gachagua. Front row from left: Mary Wambui Mungai, Mithika Linturi, Moses Kuria, Nelson Koech and Silas Kibet.
During a joint interview with media houses on January 5, 2023, President William Ruto maintained that his administration intended to form a judicial commission to investigate State capture, which would then tell Kenyans a corruption story of astronomical proportion, exposing previous regimes.
This was a follow-up promise to numerous 2022 campaign pledges in which he said that, within 30 days of being elected, a State capture commission would come to life and end the deep-rooted culture of taxpayer-funded contracts going to public officials or the politically connected elite.
Nevertheless, President Ruto kicked the can down the road in the interview, even as he said that honouring that specific campaign pledge could derail his focus on fixing the economy and other pressing issues.
“Our plate is full, we have to balance between sorting out the economy, which we are almost in the red, or swing this big thing that will drain our energy. However, I want to promise you that that story will be told,” President Ruto said.
The 30 days have snowballed into 778, the story of corruption in Kenya is yet to be told, and the shoe is now on the other foot.
At least eight projects intended to be flagships in the Kenya Kwanza administration are mired in controversy, stemming from conflict of interest on the part of public officers or politically connected tycoons. Some, benefiting the President’s family directly.
Weston Hotel and Amaco Insurance, where President Ruto’s family hold significant stakes, have benefited from numerous government contracts.
State House spokesperson Hussein Mohamed maintained that the President is keen on empowering relevant government institutions so they can ensure fair play in contracts funded by the taxpayer, as he pushes for legislation that will address conflict of interest.
For the specific contracts and their details, including conflict of interest, Mr Mohamed referred Nation to the procuring entities and investigative agencies, saying, they are the ones with the details regarding what transpired.
Upholding integrity
“The President is committed to upholding integrity, promoting transparency and good governance, including the fight against corruption through the mandated institutions by ensuring their operational and financial independence,” Mr Mohamed said.
“This is why, among the many mechanisms he is championing in the fight against corruption, he continues to engage with the Parliamentary leadership to expedite the enactment of the Conflict of Interest Bill and has promised to veto it if it does not establish a high standard for accountability, integrity and anti-corruption. He is also advocating for the digitisation of procurement processes to enhance transparency and minimize opportunities for corruption,” the State House spokesperson added.
Senators mutilated the Bill by removing tough measures designed to discourage public officials from doing business with government but it is yet to be passed by Parliament as the changes must be considered by the National Assembly.
Disclosures in the Public Procurement Information Portal (PPIP) indicate that Weston Hotel is among entities that have won more government contracts since the Kenya Kwanza administration ascended to power in 2022. President Ruto’s wife Rachel and daughter Charlene are the majority shareholders of the hotel.
The President is still listed as a director of the hotel, meaning he is an employee of Weston Hotel.
First Lady Rachel holds 15,013 shares directly, while Charlene has 10,013 shares in her name.
Matiny Ltd owns 539 shares in Weston Hotel. Rachel owns six shares in Matiny Ltd, while Charlene owns one share. Dubai-based Premier Group Holdings Ltd owns 3,000 shares.
Of the contracts disclosed in the PPIP, Weston has bagged 37 deals worth Sh57.9 million.
The biggest chunk of this came from the ICT ministry, which contracted Weston Hotel to provide catering services during the Connected Africa Summit, where President Ruto delivered the opening remarks, between April and May, 2024.
The Ruto family also has interests in Amaco Insurance.
President Ruto’s family owns 190,000 shares, or 15 percent of Amaco, through Yegen Farms Ltd. First Lady Rachel Ruto and daughter Charlene are the listed shareholders of Yegen Farms Ltd.
The Rutos have more than doubled their Amaco stake over the past two years. In July 2022, they owned 50,000 shares through Yegen Farms.
Records from the Business Registration Service (BRS) indicate that they have since acquired an additional 140,000 shares.
Amaco Insurance has bagged tenders worth at least Sh60 million from over 10 State-owned institutions since 2022.
Majority shareholder
The insurer’s majority shareholder, Mr Silas Kibet Simatwo, has been a close friend and associate of President Ruto for decades. On March 15, President Ruto appointed Mr Simatwo chairperson of the Digital Health Agency, an institution tasked with digitising the healthcare sector.
When we asked Mr Simatwo on September 19 whether his appointment smacks of conflict of interest, he maintained that he relinquished all his interests in Amaco Insurance.
“Your inquiry is noted. I don’t seem to understand the conflict of interest bit. Just for your information, I sold all my stake in Amaco and I am no longer chairman or director,” Mr Simatwo responded through his Amaco Insurance corporate email address.
A search on the BRS portal done on October 25, more than one month after Mr Simatwo’s stand on his relationship with the company, indicates that there have been no changes in the company.
Mr Simatwo and his family are still listed as the biggest shareholders of Amaco Insurance, and maintain significant control over the controversial underwriter.
Directly, he owns 40,600 shares.
Through Vomorono Ltd, Mr Simatwo and his family own 150,000 shares. Mr Simatwo, his wife Catherine and daughter Sharon own Vomorono Ltd. Through Joubert & Borman Ltd, Mr Simatwo owns 90,000 shares.
Mr Simatwo owns 660 shares in Joubert & Borman while Amos Kipkorir Biwott holds the other 340 shares.
Kohlberg & Flenders Ltd owns 90,000 shares in Amaco Insurance. Ugandan national Ritah Tebasiima and German national Risto Sievert each own one share. Ms Tebasiima also owns 130,000 Amaco shares in her own name.
Mr Simatwo and Amos Kipkorir Biwott are listed as directors in the company, an indication that they represent the two foreigners’ interests at Amaco.
Manipulate procurement processes
During the impeachment hearings of Deputy President Rigathi Gachagua, motion mover and Kibwezi West MP Eckomas Mwengi Mutuse accused the then second most powerful politician in Kenya of trying to manipulate procurement processes at the Kenya Medical Supplies Authority (Kemsa).
Mr Mutuse claimed that Mr Gachagua intimidated Kemsa officials in a bid to force them to favour Shobikaa Impex in the procurement of mosquito nets worth Sh3.7 billion.
Mr Gachagua admitted in Parliament that his sons own Crystal Kenya, which is Shobikaa Impex’s local agent, although he denied interfering with the procurement process.
The Global Fund cancelled that process after it emerged that qualified bidders, including manufacturers, were unfairly disqualified to favour companies that did not meet Global Fund procurement requirements, including Shobikaa Impex.
While there have been no prosecutions in relation to that incident, President Ruto fired Public Health principal secretary Josephine Mburu, the entire Kemsa board and suspended CEO Terry Ramadhani.
Ms Ramadhani was later appointed Deputy Ambassador for India after investigations cleared her of criminal culpability for the mosquito nets mess.
In November 2023, Ethics and Anti-Corruption Commission (EACC) CEO Twalib Mbarak revealed that Kenyans could have been exposed to losses of Sh30 billion in a dubious series of contracts for the supply of edible oils into Kenya to curb a shortage.
EACC agents investigating contracts that the Kenya National Trading Corporation (KNTC) awarded to several suppliers were at the time doing forensic examination of various documents linked to the deals.
At the same time, the Directorate of Criminal Investigations (DCI) was also investigating the same matter.
In such instances where two agencies are pursuing the same investigation, priority goes to the office where a report or complaint was first made.
In the edible oils deal, the matter was first reported to the DCI, which meant that the EACC had to surrender its pursuit.
On July 30, KNTC CEO Pamela Mutua was charged alongside supply chain and logistics manager Amos Juma Sikuku.
Ms Mutua was accused of violating procurement laws related to a contract the KNTC awarded to Purma Holdings for the supply of cooking oil worth Sh2.5 billion.
Purma Holdings is owned by Communications Authority chairperson Mary Wambui.
In 2021, she was charged with tax evasion alongside her daughter Purity Njoki as directors of Purma Holdings, which was accused of failing to pay Sh2.2 billion to the Kenya Revenue Authority.
The charges were, however dropped in January, 2023, a few months after the company was awarded the edible oils contract.
Other companies associated with Ms Wambui – Charma Holdings, Enterprise Supplies Ltd and Evertec General Trading – also got KNTC contracts for the supply of edible oil, rice and beans.
In total, companies associated with Ms Wambui got contracts worth Sh6.85 billion from the KNTC.
Still in the list of companies that bagged KNTC tenders for the supply of edible oil, rice, beans and fertilisers from the KNTC was Invest Africa FZCO, a Dubai-registered firm.
The KNTC was in 2022 earmarked as the project lead in importing edible oil, rice, beans and fertiliser in a move that was aimed at lowering the cost of living and boosting availability of the consumer goods.
The State agency was under the Trade and Investments ministry, where Moses Kuria was the Cabinet Secretary.
Invest Africa, through its local subsidiary Shehena Commodity Ltd, was awarded a contract for the supply of edible oil worth Sh1.2 billion.
In May, 2023 Invest Africa expanded its local presence with the purchase of a 35 per cent stake in battery dealer Eveready.
Records at the BRS show that Invest Africa is now the beneficial owner of Smith & Gold Productions, a company that Mr Kuria used to win a stadium construction contract in 2017.
Emerging Capital Holdings owns 700 shares in Smith & Gold Productions, while Mr Kuria’s brother Aloise Kinyanjui owns 300 shares.
Invest Africa owns all 999 shares in Emerging Capital Holdings.
Construction of Karatu Stadium has stalled for years, but Smith & Gold Productions has been slowly proceeding with the project.
A past Parliamentary probe showed that at the time Simth & Gold had received 40 percent of the Sh259 million contract sum, only 20 percent of works had been done.
The report showed how works done on many stadiums across the country did not match the amounts paid to contractors.
At the Kenya National Highways Authority (Kenha), Shovels N Trowels Ltd won a Sh1.1 billion contract in February 2023 for road repairs from the James Gichuru roundabout on Waiyaki Way to the Ole Sereni Interchange on Mombasa Road.
Shovels N Trowels is owned by Yvonne Chepkirui Kones, wife of Belgut MP Nelson Koech and daughter of former Bomet East MP Beatrice Kones.
The repairs are to a section damaged during the construction of the Nairobi Expressway.
Another firm, Wolf Paving Works, was to undertake repairs on the section from Ole Sereni to Mlolongo where the Expressway terminates.
For Shovels N Trowels and Wolf Paving Works to get their deals, a deal with China Road and Bridge Corporation was terminated.
At the Agriculture ministry, which was tasked with ensuring the availability of affordable fertiliser in 2023, former CS Franklin Mithika Linturi and a brother of Aldai MP Marianne Kitany were adversely mentioned in investigations into the supply of substandard product.
Mr Linturi and Ms Kitany had a relationship which ended controversially, with the latter filing a divorce case which was dismissed on the grounds that the former CS was already legally married hence their relationship could not be considered a legally binding union.
Mr Collins Ngetich is a brother of Ms Kitany and a close associate of Mr Linturi.
Through Mems Distributors, Mr Ngetich bagged a contract from the National Cereals and Produce Board (NCPB) for the supply of fertiliser worth Sh2.4 billion.
The NCPB operates under the oversight of the Agriculture ministry.
Mems Distributors was to supply the fertiliser in collaboration with Kel Chemicals.
At least 5,840 bags of the product from the Mems Distributors and Kel Chemicals consortium was found to be substandard, sparking an impeachment motion against Mr Linturi and investigations by the DCI.
A National Assembly committee voted to rescue Mr Linturi from impeachment, even as the DCI investigations remain in limbo with nobody being charged over the debacle.
During Parliamentary hearings, Kel Chemicals chief operating officer Devesh Patel claimed that he was summoned to a meeting with senior government officials incuding Head of Public Service Felix Koskei in which a recommendation was made to “punish” him.
Moments later, he was arrested by the DCI and allegedly coerced to write a false statement to the effect that his company manufactured fake fertiliser.
While Mr Linturi survived the impeachment motion, a Cabinet reshuffle on the backdrop of the June, 2024 youth-led protests claimed his plum job.
A case the Law Society of Kenya filed seeking Mr Linturi’s prosecution is still pending determination.
In September, Safaricom PLC revealed that it is part of a consortium that has been awarded a contract for the supply of an integrated technology platform converging the entire healthcare sector, for Sh104.8 billion.
The consortium is to invest its own funds, and get monthly reimbursements from the government starting February, 2025.
Safaricom chairperson Adil Khawaja is a long-time friend of and advocate for President Ruto. He is a partner at Dentons Hamilton Harrison & Mathews.
The law firm is doing legal work, in and out of court, for the Adani Group which recently bagged contracts for a 30-year lease of the Jomo Kenyatta International Airport from the KAA, and the construction of three electricity transmission lines and a substation from the Kenya Electricity Transmission Company Limited (Ketraco).
Both projects, much like the one Safaricom bagged, have attracted controversy and court cases that are still pending determination.
In the Safaricom consortium for the healthcare project, the other participants are UAE’s Aperio Ltd and Kenya’s Konvergenz Network Solutions.
Two local firms — Apeiro Kenya Technology and SIH Africa — were incorporated in respect of the project and are associated with the UAE investor.
SIH Africa owns all shares in Apeiro Kenya Technology.
Apeiro Kenya Technologies Ltd’s directors, without any shares, are Rufus Maina, Inder Deep Singh Virdi, Judy Mwende Gatabaki, and Aswanth Bindhu Lambodaran.
Ms Gatabaki, an IT professional, is the wife of Dr David Ndii. Dr Ndii is one of President Ruto’s economic advisors.
