Jubilee Development - Lamu port construction update

We are trying to adjust of tendering process for more inclusion but it also mean reversing a lot of world bank and imf forced legislation on us. Since nyayo era upto grand coalition a lot of laws were changed to lock out cowboy contractors who basically got contracts, got paid and did useless work. National Construction Authority NCA law categorized all grade A to D contractors in Kenya. All contractors must be registered, graded and vetted by them to qualify for any public project. Now they list all their staff details including attaching all qualifications papers, all equipments, all assets, all financials and all construction CV’s. All those documents are vetted and site visitation conducted to verify them. Then all get a grade score. It ended briefcase contractors days like the late jacob juma who got all contracts in western Kenya then subcontracted to others. In grade A only 2 local firms made it, the rest are Chinese, Japanese, Israeli, Indian and Turkey firms. All these big builds are advertised to them. The rest can’t even bid. Now an amendment has been introduced where Grade A firms can pick other local firms in lower grades for a joint project but they must satisfy NCA that they have a workable role as partners not just inclusion for the sake of it. However I fully back three Chinese firms in Kenya. China Wu Yi as the biggest in Kenya and the region. They aren’t just producing great final products for public and private projects but heavily investing here. They are currently building a 10 billion prefab materials factory plant in Athi River. They have bought more land to build another huge manufacturing plant for building materials. They will be using their own materials either produced by themselves here or bought here for their projects. They have hired 1000’s of Kenyans on permanent positions. Now Kenyans are taking over its management, they now have only 10 Chinese expatriates in that whole organization. Second is CRBC company, a subsidiary of Chinese giant CCCC in Kenya. The builders of SGR and Lamu port. The work speaks for itself, they built the SGR to perfection on budget, 18 months ahead of schedule. They have 10 management and 1000 inspectors. Their follow through is religious. They are now poised to be the biggest investors in Kenya. They bagged the Dongo Kundu SEZ project. They will invest $400 million on the new 3 berth oil jetty there that 3 oil megaship can discharge oil simultaneously, a gas terminal as well and enough storage to last 6 months. They will also build 3 container terminals to export goods from the SEZ. Lastly they will spend $ billions for the Dongo Kundu and Naivasha SEZ they are doing. The full amount is under lock and key. Kwanza Naivasha SEZ will be the biggest in Africa. This is why President Uhuru stayed longer in China. Lastly Aviv international, for a firm that builds planes, satellites and stealth planes is also a great contractor. They built Two Rivers for Centum then got impressed by its potential and bought 30% of it at a premium. That 30% buy in returned 70% of Centum investment in Two rivers without them seeding much shareholding. This is why their CEO is paid handsomely. They will break even in 3 years from that project once the last build is done, the hospital. The mall, business park and hotel are done. They still have 25 acres unused whose value continue to appreciate by 10% annually. Avic went on to build the tallest building in subsaharan Africa, Global Trade Centre in Westlands. 47 storeys commercial skyscraper, 37 storey Marriott hotel, and four other 25 storey apartment skyscrapers. This are all serious investors in our economy. They need to be applauded not condemned.

Our children will enjoy but it calls for. You can’t have your cake and eat it