A Peek into the Controversial Tatu City near Nairobi
Kenyan privately-owned urban center combats corrupt public employees
Take a gander at Tatu City, a bustling hub on the outskirts of Nairobi, and it seems like a thriving success. This pioneering city, built entirely by a private company, hosts roughly 25,000 residents and workers — accounting for about two-thirds of foreign investment in Kenya. Its low-tax status has attracted heavyweights like Heineken and Dormans, plus the region's biggest call-center and cold-chain transport firms [1][2][3].
But to some local politicians, Tatu City has looked more like a ripe target for shakedowns. Over the years, a succession of governors have allegedly demanded land worth millions, in exchange for building permits [2][3].
"One governor drove around with us pointing at plots, saying 'I want that, I want that,'" said Preston Mendenhall, Kenya country head for Rendeavour, the company behind the city's development. Incensed by these attempts, Mendenhall took a bold move — going public [2][3].
Time and again, he's held press conferences detailing the extortion attempts of local pols. "They thought we'd skedaddle, as foreign investors," Mendenhall said. "But we're planning for a 50-year timeline. If we need to call 'em out in public, even going toe-to-toe with powerful figures, so be it — that's what we believe is right [2]."
In 2021, he publicly accused Kiambu Governor Kimani Wamatangi of demanding 22 hectares of Tatu City land, worth $33 million, tax-free [1][2][3]. Wamatangi denied the allegation, but Mendenhall faces four defamation cases. "I'm in the hot seat for four defamation cases. It's a ploy used by vultures, blindsiding with defamation suits — but I'm not sweating it. The first case started in 2015, and we haven't had a hearing yet" [2].
It's a high-stakes game, but it seems to be paying off. The first governor who targeted them, Ferdinand Waititu, is currently behind bars due to unrelated corruption charges [2]. Wamatangi was detained last month on unrelated corruption charges too, with officers discovering over $13,000 in cash in his home [1].
Tatu City continues to expand slowly but steadily. Home to a supermarket, health clinic, two schools with 5,000 pupils each, and more, the 2023-hectare site boasts 2,400 residences, from studios to lakefront mansions, with another 2,000 in progress [1][2][3]. The draw? A reliable power and water supply, offsetting the common power outages and water woes prevalent across Africa [2][3].
Companies like Hewa Tele, building a factory producing medical-grade oxygen for hospitals, and Cold Solutions, offering storage for food and pharmaceutical partners, appreciate the reliable infrastructure [3].
Unity Homes has constructed over 1,500 apartments. Buyers are attracted to the amenities, including playgrounds, parks, drinkable tap water, and a distinctive sense of space — knowing that no one will encroach on their balcony [2][3].
There are six cities like Tatu City that Rendeavour plans to develop across Africa, but Kenya has been their toughest nut to crack. Corruption allegations have dogged them, yet they remain unfazed. Several accusations against Rendeavour and its owners, including tax evasion, have lingered for years without outcome [3].
Mendenhall dismisses these allegations, describing them as part of a larger game of extortion by "shady operators." Many within the Kenyan government strongly support their vision, appreciation the jobs their project has created [3].
Mendenhall is optimistic about Kenya's future, viewing it as a critical regional economic hub. "Nairobi's destined to become the capital of Africa," Mendenhall said, despite facing persistent corruption challenges and public outrage [3].
In the midst of Tatu City's rapid growth, finances play a significant role, attracting Heavyweights like Heineken and Dormans, as well as major call-centers and cold-chain transport firms, due to its low-tax status (business).
The city's steady expansion is also beneficial for local businesses, as evidenced by companies like Hewa Tele and Cold Solutions, who appreciate the reliable infrastructure provided (business).
