This archive report was first published on 12 August 2019.
On August 12, 2019, the Ethics and Anti-Corruption Agency (EACC) revealed a shocking case of bribery and corruption in the construction of the Kisumu Mall, a 4.2 billion shilling project.
The mall, built by the Lake Basin Development Authority, was allegedly constructed at an exaggerated amount after a Chinese firm, Edermann Property, bribed government officials to secure the contract.
According to EACC documents, the firm conspired with government officials to receive corruption kickbacks, leading to the mall being unoccupied for almost two years after its completion.
"The Intelligence received with regard to the aforesaid project indicated that certain specified key persons involved in the project received financial and other inducements to facilitate the documented irregularities in favour of the main contractor," the EACC documents stated.
Despite the expose, Edermann Property has continued to build properties in Kenya, including over 4,600 units, and has partnered with the government in the delivery of President Uhuru Kenyatta's Big Four agenda of affordable housing.
Simultaneous raids on the homes of ex-LBDA Chairman Onyango Oloo recovered documents showing he had a property from the Chinese firm, raising concerns of conflict of interest.
Another politician implicated in the scandal is Bobasi MP Innocent Momanyi Obiri, whose firm Quantech Consultancy was procured as the project's quantity surveyor. He has sought a court injunction stopping his impending arrest.
