The ambitious Tatu City project, a sprawling mixed-use real estate development near Nairobi, is now mired in controversy as Kenyan authorities intensify investigations into alleged money laundering and tax evasion.
The Directorate of Criminal Investigations (DCI) and the Kenya Revenue Authority (KRA) are examining the flow of funds within multiple companies tied to the project, following suspicions that substantial sums may have been channeled out of the country through offshore accounts.
According to a report published by Daily Nation on November 11, 2024, the probe has unearthed documents suggesting that millions intended for Tatu City’s growth and development may have been diverted into foreign bank accounts via an intricate web of companies.
Directors from firms like Green Zeal Properties and First Superflex have submitted statements to the DCI, responding to accusations of potential financial misconduct within the project, which has raised concerns about corporate transparency and regulatory compliance.
The DCI’s Economic and Commercial Crimes Unit has reportedly focused on several Tatu City affiliate companies, including Gunga Properties, Jojga Properties, Purple Saturn, and Sagium Properties, which allegedly orchestrated paper transactions to disguise the transfer of funds.
Investigators are now seeking court approval to access bank records, account opening documents, and other financial details that may clarify the origin and movement of funds within these entities.
Nearly 60 companies across sectors—ranging from real estate to manufacturing—have been implicated in these investigations, according to sources familiar with the matter.
In addition to the ongoing financial audit, former Tatu City CEO Lucas Omwando has claimed that certain funds earmarked as loans were instead funneled through offshore accounts, a move that created a false impression of legitimate business operations.
An aerial photo of Tatu City development projects in Kiambu. Photo: The Star Source: Facebook
These allegations have brought renewed attention to the potential misuse of corporate structures in Kenya as vehicles for concealing tax liabilities and laundering funds.
The Tatu City investigation highlights Kenya’s ongoing efforts to strengthen financial oversight and accountability within large-scale investment projects.
As the case develops, it could set a precedent for how the country handles corporate governance and cross-border financial scrutiny, particularly within high-stakes real estate ventures.
