Crony Capitalism Fears as Ten Firms Take 60.5% of Kenya State Tenders

(NAIROBI, KENYA) – Ten firms captured more than half of the KES217.45 billion ($1.51 billion / £1.19 billion / €1.40 billion) reported public tenders in the year ended June 2025, deepening the concentration of lucrative government business among a handful of suppliers.

Public Procurement Regulatory Authority (PPRA) data shows the 10 suppliers were awarded 11 contracts worth KES131.67 billion ($912 million / £718 million / €850 million), representing 60.5% of the 25,994 reported during the year. The biggest awards were concentrated in infrastructure, water, housing and transport projects, with three Chinese firms in the roster.

This marks a pivot back to Chinese state contractors for major infrastructure, including Sinohydro at KES23.63 billion ($164 million / £129 million / €153 million), China Communications Construction Company at KES16.95 billion ($117 million / £92.4 million / €109 million) and Jiangxi Construction Engineering (Group) Co. Ltd at KES6 billion ($41.6 million / £32.7 million / €38.7 million).

Some of the local firms that clinched multi-billion shilling deals were backed by powerful people, highlighting crony capitalism, where business success relies on a close relationship between entrepreneurs and government officials.

The concentration of 60.5% of disclosed State contracts among top 10 suppliers marks a sharp increase from the previous financial year when the top 10 suppliers won 38 contracts worth KES73.9 billion ($512 million / £403 million / €477 million), equivalent to 28.1% of the KES262.76 billion ($1.82 billion / £1.43 billion / €1.70 billion) awarded through 34,224 contracts.

Other top winners were Linzi Finco LLP at KES42.52 billion ($294 million / £232 million / €274 million), Shyam General Merchants at KES10.44 billion ($72.3 million / £56.9 million / €67.4 million) and Miliki Development at KES8.34 billion ($57.8 million / £45.5 million / €53.8 million).

The biggest beneficiary was Linzi Finco LLP, which secured a KES42.52 billion ($294 million / £232 million / €274 million) contract for the Talanta Sports City project. It disclosed Thomas Kimeu Mulwa, managing director of Liaison Group, as its beneficial owner.

Linzi Finco’s single award accounted for nearly a third of the value captured by the 10 leading suppliers, while the five biggest firms took the bulk of the KES131.67 billion.

Former President Daniel arap Moi’s long time aide Joshua Kulei holds an estimated 33% indirect stake in Liaison Capital, which is one of the two partners behind Linzi Finco LLP. Mr Kulei is the second largest shareholder in Liaison Capital, behind Mr Mahihu, who holds 42%. Mr Mulwa owns 20%, while the Liaison Group (I.B) Staff Pension Scheme has a 5% stake.

Through Linzi Finco, the shareholders are positioned to earn management and financing income from the 15 year infrastructure bond used to fund Talanta Sports City, with repayments supported by revenues linked to the Sports, Arts and Social Development Fund.

Chinese State owned contractor Sinohydro Corporation won a KES23.63 billion ($164 million / £129 million / €153 million) contract from Lake Victoria North Water Services for the Keben Dam Water Supply Project in Nandi County, making it the second largest deal.

The Keben project had been abandoned during the administration of former President Uhuru Kenyatta when it was estimated to cost $56.1 million (£44.2 million / €52.3 million) or about KES7.51 billion ($52.0 million / £41.0 million / €48.5 million) using current exchange rates. It was later revived by the Kenya Kwanza administration at a tripled cost following an expansion of its design and water treatment capacity.

Another Chinese State owned company, China Communications Construction Company, secured a KES16.95 billion ($117 million / £92.4 million / €109 million) contract at the Kenya Ports Authority (KPA) for the construction and financing of Berth 19B and associated infrastructure at the Port of Mombasa. The project is aimed at easing congestion at the port. The company disclosed Wing Tak Kevin Chan as its beneficial owner.

Shyam General Merchants Limited ranked fourth, winning two contracts worth a combined KES10.44 billion ($72.3 million / £56.9 million / €67.4 million). The company, whose beneficial owner is disclosed as Harish Meghji Rabandia, secured KES5.42 billion ($37.5 million / £29.6 million / €35.0 million) for the construction and financing of the Milimani mixed use affordable housing project and KES5.02 billion ($34.8 million / £27.4 million / €32.4 million) for the construction and financing of the Kanduyi Airstrip in Bungoma.

Both tenders were awarded by the State Department for Housing, underlining the scale of procurement supporting the government’s affordable housing and infrastructure plans.

Miliki Development Company won a KES8.34 billion ($57.8 million / £45.5 million / €53.8 million) contract from KPA to widen port roads. Miliki’s beneficial owner in the KPA tender was disclosed as Tian Yisheng, although disclosures in other tenders won by the same company list Pamela Jelimo Saina, Scholastica Jepkenei, Simon Thuo, Stanley Moses Kahenya and Anastasia Wambui Thuku as the beneficial owners.

Stecol Corporation also won a KES8.34 billion ($57.8 million / £45.5 million / €53.8 million) tender for part of the KPA road widening project and disclosed Scholastica Jepkenei as its beneficial owner, pointing to its link with Miliki.

Miliki’s postal address is shared by business woman Mirriam Jepkosgei Saina and her husband Juma Wahoga Maulidi. Ms Saina was among the importers of fertilisers under President William Ruto’s initiative to lower the cost of food. Through her company, First Quality Supplies, she supplied 25,000 tonnes of CAN fertiliser.

Besides the KES8.34 billion tender that made it to the top 10 disclosed tenders by value, Stecol won a KES2.17 billion ($15.0 million / £11.8 million / €14.0 million) tender for the Kipkundul-Kapyego-Kamelei Road, in which it disclosed Power Construction Corporation of China Ltd as the beneficial owner. In another award worth KES1.75 billion ($12.1 million / £9.54 million / €11.3 million) for upgrading and landscaping Kenyatta Road, it did not disclose beneficial ownership.

Other major awards were KES6.22 billion ($43.1 million / £33.9 million / €40.1 million) to Landmark Holdings Limited for Phase 1B of the affordable housing project in Makongeni, Nairobi. The company disclosed Manjit Singh Sethi, Perminder Singh Sethi, Harveer Singh Sethi, Sahib Singh Sethi and Satveer Singh Sethi as beneficial owners.

Jiangxi Construction Engineering (Group) Co. won a KES6 billion ($41.6 million / £32.7 million / €38.7 million) contract to install fibre optic cable along a 38 kilometre road, with Shaohua Lin disclosed as the beneficial owner.

Chaju Builders Limited secured KES5.56 billion ($38.5 million / £30.3 million / €35.9 million) for the Nasewa industrial park affordable housing and mixed use development project in Busia, with Cornel Opiyo Osano named as beneficial owner. Official data shows Mr Osano is also the main shareholder of Grand Royal Swiss Hotel in Kisumu.

Over the same period, Victoria Engineering Company Limited won KES3.68 billion ($25.5 million / £20.1 million / €23.8 million) for upgrading a road in Turbo to bitumen standard. Its beneficial owners were disclosed as Joy Waithira Njenga, Felix Mukaria Kiambi and Lilian Nasimiyu.

The concentration of lucrative tenders among a small number of suppliers comes amid persistent concerns over beneficial ownership disclosure and failure of many firms to load the tender award details in the public procurement information portal (PPIP). PPRA data shows that 14,819, or 57%, of the 25,994 contracts reported during the year lacked beneficial ownership information.

Kenya Top 10 State Tender Winners by Value (Year Ended June 2025)

Key Procurement Indicators