Invest in Tatu City at your own risk, ex-CBK chief warns

August 7, 2018
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He defended Kenyan shareholders saying they are the brain child of Tatu City and called on the Director of Public Prosecutions to investigate the foreign investors/CFM BUSINESS

, NAIROBI, Kenya, Aug 7 – Former Central Bank of Kenya Governor Nahashon Nyaga has cautioned people interested in investing in Tatu City to do so at their own risk, saying foreign investors have taken control.

While appearing before a parliamentary committee on land to shed light on a tax evasion petition filed by Kiambu residents, Nyaga denied the claims adding that court battles have put its progress at a standstill.

“If conducted as ordered by various court proceedings then the shareholders will be safe but I must warn that the property is under control of foreign investors and directors now and if anyone purchases the land they are not given full ownership so in case something happens and the foreigners take off its at your own peril,” Nyaga warned.

He defended Kenyan shareholders saying they are the brainchild of Tatu City and called on the Director of Public Prosecutions to investigate the foreign investors.

“The harm being done is not just against me and the shareholders but against the entire Republic of Kenya. It is my prayer that the DCI will intervene and all the matters surrounding Tatu City resolved,” said Nyaga.

He further said that the Kenyan shareholders have made strenuous efforts to use all available civil and criminal avenues to unearth the fraudulent conduct on the part of the foreign shareholders.

He called on the lands committee led by Kitui South MP Rachael Nyamai to interrogate the matter surrounding Tatu City and bring it to a closure.

The MPs were however not fully satisfied with Nyaga’s submission and questioned how a shareholder and a director of such a property allowed foreign investors to take over what he terms his.

“You said you are the chairman, director and a shareholder of Tatu City but you cannot access some documents and you even have to go through a security search. It is like building your own house then a stranger throws you out. Is that possible?” Githunguri MP Gabriel Kago wondered.

In the petition filed by residents of Kiambu County, Tatu City directors are being accused of evading tax amounting to Sh1.5 billion.

In the same petition, over 1,300 local shareholders claim they bought shares from the two companies – Tatu City Ltd and Kofinaf Company Ltd – in 2007 for Sh200,000 each at the firms’ invitation, but have not been compensated for their investments despite a court order.

In 2016 a multi-agency task-force comprising representation from the Ethics and Anti-Corruption Commission, Directorate of Criminal Investigation, Office of the Director of Public Prosecutions among others was formed to investigate Tatu City, but the report of its findings is yet to be made public or made available to genuine owners of the land.

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