Kempinski blocks building of rival China firm’s hotel

Politics and policy

The front garden and entrance of Kempinski hotel. PHOTO | FILE 

By BRIAN WASUNA, bwasuna@ke.nationmedia.com

In Summary

• Nairobi’s top hotel says the developer has failed to respond to key issues it has raised against the proposed facility.

Five-star hotel Villa Rosa Kempinski has stopped Chinese real estate firm Avic International from constructing a Sh9.6 billion complex in its neighbourhood along Chiromo Road in Nairobi’s Westlands.

The complex, which includes a 35-floor five-star hotel, had received the green light from a number of regulatory agencies, including the National Environment Management Authority (Nema) before Kempinski filed a petition with the environment tribunal, seeking orders against its construction.

Kempinski, which is one of Nairobi’s premier hotels, last week got an order from the Nema tribunal stopping construction of the complex until an appeal it has filed against Avic is heard and determined.

Kempinski reckons that Nema granted Avic an Environmental Impact Assessment (EIA) licence before concerns it raised about the multibillion-shilling complex were addressed.

It says Avic has not explained how it plans to deal with noise pollution, storm water drainage and air quality issues during construction.

The complex, which includes a 43-floor office block and four apartment blocks, will double up as Avic’s Africa headquarters. Two of the apartment blocks will have 24 storeys, while the other two will have 25 and 28 floors respectively.

Kempinski has opposed the project through its parent company Simba Corporation, which is owned by the family of billionaire businessman Adil Popat.

The tribunal last Thursday directed Avic to stop work on the project until the appeal is determined, a decision that is likely to delay work on the project for months.

“The Nema tribunal has received an appeal from Simba Corporation Limited against Nema’s decision to issue you with an Environmental Impact Assessment licence. The purpose of this letter therefore is to direct that all activities relating to the appeal must be stopped until it is heard and determined by the tribunal,” Nema says in a letter to Avic.

Avic is expected to file its defence by October 7, failure to which will see Kempinski allowed to proceed with the matter, the tribunal said.

The complex has been pitched as Avic’s signature property that will also mark the Chinese firm’s entry into the Kenyan hotel industry.

But it now looks like a potentially vicious battle for control of the top end of the hospitality industry has been stirred, pitting Kempinski against Avic whose hotels will stand barely 100 metres apart.

READ: Chinese firm to build 43-storey block in Nairobi

Kempinski says in its appeal before the environment tribunal that its plea to various authorities has failed, and wants Avic’s licence revoked.

Documents filed before that tribunal show the hotel has written to Nema, the Ministry of Environment and Natural Resources, National Land Commission, Kenya Power, Nairobi Governor Evans Kidero and various roads authorities raising questions on the proposed construction in vain.