Tatu City Residents Spark Racism Claims, Want License Revoked

Residents living at the 5,000-acre residential complex with homes, schools, businesses, a shopping district and a medical clinic, are up in arms with the SEZ management...

Marvin Chege Marvin Chege
Nov 11, 2022 - 13:50 Updated: Nov 11, 2022 - 14:07
0
Tatu City Residents Spark Racism Claims, Want License Revoked
Entrance to Tatu City. /THE STAR

Petitions from two different international organizations have demanded the Tatu City Special Economic Zone (SEZ) License be revoked.

In a petition to President William Ruto, the petitions filed by the residents of Tatu City are claiming racial bias, high cost of utilities, and colonial high-handedness from the foreign management team at the multi-billion development.

"Local Kenyan staff are exploited and mistreated. Many have complained of racist behaviour and high-handedness from their bosses. And for complaining they have been fired.  Additionally, despite the over Ksh10 billion by local investors, they continue to be treated like colonial subjects rather than Kenyan citizens. Residents have had to live with contaminated water, that caused skin irritations, stomach infections and general ill health.

"Moreover, residents pay double for electricity, for half as much service. Meanwhile, Tatu-City’s wazungu (foreign) investors always receive clean and fresh water, properly priced electricity and better services in general. In light of the above, we feel that Tatu City has abused its status as a Special Economic Zone, to exploit its local investors and staff. As such, we ask for the revocation of its license, and an investigation into the legality of the conduct of Tatu City's Management" reads the petition seen by Viral Tea.

New Zealander Stephen Jennings and founder of Rendeavour undertaking various development projects in Africa, including Tatu City. /BUSINESS TODAY

A Special Economic Zone (SEZ) is a special area allocated by the government to private companies to operate without the encumbrances of taxes, levies or license fees. There are areas basically set up to incentivize the private sector to invest.

So far there are 15 SEZs in Kenya. Anyone who invests a company or a home in an SEZ pays only 10 per cent of corporate tax and not the 33 per cent other Kenyans would ordinarily pay. This means anyone who invests in an SEZ saves 23 per cent of their tax bill.

"It, therefore, means that this tax break should translate into bills-electricity, water and even internet. But in Tatu the case is different. The cost of power in a two-bedroom apartment in Tatu city is twice as much as that home in the neighbouring Kamiti locality," it added.

People Daily newspaper reported that a row is brewing between residents and investors in Tatu City, Kiambu County over alleged discrimination by project owners over what they say is unsafe water, being denied access to the internet, delays in approval of houses and exorbitant power supply rates.

They expressed fear that there could be an outbreak of diseases, including cholera, because of suspect water sources. For the past three weeks, residents say, there has been a serious shortage and contamination of water.

Some of the tenants who did not want to be named for fear of being victimised said Tatu City has been supplying salty water that they cannot use to cook or do laundry.

“It’s been quite challenging for us in the last three weeks. Personally, I’ve been receiving salty water that is in most cases also smelly. As a result, I’ve been forced to use distilled water which is quite expensive,” a resident who sought anonymity told journalists.

The residents, some of whom claimed to have developed health problems such as skin discolouration and stomach pains, urged investigative bodies to probe Tatu City for supplying them with contaminated water. They added that they had already petitioned the Water Services Regulatory Board (WASREB) to intervene.

According to residents, the SEZ management has also locked out electricity and internet providers on the grounds that the services can only be supplied by the Tatu City management.

“In all cases, these services are twice as expensive as those in non-SEZ areas. Electricity costs for example cost twice as much in Tatu as it would cost in the nearby Kamiti area. Tatu has also blocked internet providers from setting up shop. Tatu’s internet is so slow and has frequent downtime. You can barely make a call without it dropping,” a resident told journalists.

They further called on the government to protect Kenyan investors against racism by Tatu City owners insisting that there has been a great deal of white privilege in the city in Ruiru Constituency.

An aerial view of Tatu City. /FILE

“Foreign companies, particularly American firms, enjoy SEZ benefits. Kenyan firms on the other hand are subjected to colonial treatment,” an investor in the facility said.

Residents manager Fred Ndegwa said their tenants had repeatedly complained of lack of water for weeks and when they get the commodity, it’s usually smelly and salty. He blamed the situation on Tatu City management which is contracted to ensure the supply of water, electricity and other utilities.

“Tatu City is supposed to provide residents here with water, electricity, a good sewerage system and ensure that everything is running to capacity as it should. This is, however, not the situation nowadays as Tatu management has been supplying residents with salty water. We have a binding contract with them in which they promised to provide us with fresh water but we are now consuming saline water,” stated Ndegwa.

“Let us be allowed to bring in competitive service providers to improve service delivery to those living here."

Residents and investors have called on the government to suspend Tatu City SEZ status. Efforts to get a response from Tatu City management for comment by Viral Tea did not succeed.

Tags: