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Nairobi fails to confirm PPP on Dandora waste energy project

Nairobi fails to confirm PPP on Dandora waste energy project
Garbage at the Dandora dumpsite in Nairobi. PHOTO/Print
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Nairobi’s acting attorney has failed to acknowledge that a public-private partnership (PPP) exists between the county and a private developer for the Sh47 billion Dandora Waste to Energy project.

Members of the National Assembly’s Justice and Legal Affairs Committee last week asked County Secretary Christine Ireri and Finance executive Charles Kerich about the county’s growing appetite for PPPs, with lawmakers claiming the  county was signing agreements without involving ward reps.

MPs wanted the officials to table all agreements related to signed PPPs but no credible documents were produced.

Unclear circumstances

Top on the list is the Dandora energy project, whose tender was awarded in July 2023 under unclear circumstances.

The awarding of a tender for the project was stopped after it was challenged in court.

Ireri acknowledged the existence of a law on PPPs but could not confirm if there is a PPP regarding the Dandora project.

“I’m not aware of any PPP that the county government of Nairobi has entered into but I understand that any PPP project must be procured under the PPP Act 2021,” she said.

The committee had asked whether ward reps had any role to play before a county reaches a PPP agreement.

“The involvement of the county assembly is provided for under Section 64, subsection 5 of the PPP Act,” she added.

’Controversial and illegal’

But Majority Leader Peter Imwatok disagreed with Ireri, explaining that Section 65 of the Act outlines the role of the county assembly on the signing of PPPs with the private sector.

“The county attorney is misleading the committee, because Section 65 states that subject to Section 64, any county government intending to enter into a PPP must seek approval from the county assembly,” Imwatok.

Committee chairman Jared Akama (Mugumu-Ini) said he was aware of at least six PPPs singed by the county without involving the county assembly.

PPPs related to the Dandora and Eastleigh Market projects were described as controversial and illegal by committee members.

Governor Johnson Sakaja is believed to have fallen out with former county attorney Lydia Kwamboka, who had reportedly advised him against signing the Dandora PPP, which relevant authorities believe was irregularly awarded to a Chinese firm.

’Illegal project’

The Dandora project is illegal because there was no public participation, and it violates procurement laws and Public Procurement Regulatory Authority (PPRA) regulations, said governance expert Eliud Wekesa, who commented on the issue in August 2023.

“This one is a direct illegality and anyone who moves to court will easily stop it,” he said.

The project attracted immense attention after Kenyans shared their misgivings to the PPRA and lobby groups. Some of the 36 prequalified companies complained that the decision to award the contract to the Chinese company had been predetermined.

Negotiation stage

Despite the concerns, county officials proceeded to award the tender to the firm on 25 July 2023.

Information on the county’s website indicates that on 2 August 2024, Environment Chief Officer Hibrahim Otieno confirmed the Dandora project was proceeding.

“It is the first time we have gotten to a position we could say we have moved further than in any other administration in the waste-to-energy project,” Otieno said.

The process, he added, began in 2013 but only now was the county at the negotiation stage.

The plant is a PPP project that will help tackle the issue of solid waste management in Nairobi, he said.

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