How Kidero Got Money to Build Nairobi Luxury Apartments - EACC

  • Former Nairobi Governor Evans Kidero. Insert: a view of Gem Apartments in Nairobi.
    Former Nairobi Governor Evans Kidero. Insert a view of Gem Apartments in Nairobi.
  • The Ethics and Anti-corruption Commission (EACC) has doubled down in its quest to recover millions allegedly lost from City Hall during the term of Former Governor Evans Kidero.

    In new court documents, the anti-corruption body revealed that the former county head reportedly used funds from City Hall to upgrade luxurious apartments, he owns in Riverside Drive.

    According to EACC, Ksh58.8 million was lost in the entire scheme following a botched land deal between City Hall and a non-existent company.

    The institution alleged that Kidero wired Ksh14.4 million to a contractor who was involved in the construction works of his apartments. This is after he had authorised payment from the county government coffers to a non-existent company.

    Former Nairobi Governor Evans Kidero at Milimani Courts on October 02, 2018
    Former Nairobi Governor Evans Kidero at Milimani Courts on October 02, 2018

    In the deal, a law firm in Nairobi was hired to represent the county and demanded millions in legal fees. 

    The law firm's managing director was paid Ksh58 million of which he retained Ksh11.5 million before transferring Ksh7 million and Ksh15 million to different entities.

    In documents filed by EACC, Kidero then allegedly forwarded the money to the contractor for the apartments.

    The EACC faulted the former county boss for acquiring proceeds of crime and unjust enrichment through the Ksh14.4 million payouts.

    “The legal fee claim was a fraudulent scheme set to defraud the county government of Nairobi as the said fee claim was founded on a false claim, by a non-existent company and intentionally filed by an unqualified person with the intention of rendering the suit incompetent,” the EACC noted.

    The commission is seeking to recover the money from Evans Kidero and is alternatively seeking one of the apartments to be held in trust on behalf of City Hall.

    “In the alternative and without prejudice, a declaration that the plaintiff (EACC) is entitled to trace the aforesaid amount into serviced apartments (known as Gem Apartments) on a land parcel known as LR. No 205/46 within Riverside Area, in Nairobi County and that the 1st defendant holds the property in trust for the county government of Nairobi,” says the EACC in court documents filed at the anti-corruption court.

    GemSuites' fully serviced one and two-bedroom apartments attract foreigners and the wealthy who part with Ksh540,000 per month as rental charges, minus room service, food and entertainment. 

    A spot check by established that some of the apartments are also leased for short-term stays of up to eight hours. A one-bedroom stay goes for Ksh9,500 for day bookings where guests can check-in at 9 am and check out by 5pm on the same day. 

    A one-bedroom at Evans Kidero's GemSuites Luxury Apartments