Moi-era contractors in Kenya, many of whom prospered during the regime of the late President Daniel arap Moi, are now “squirming” as their assets are seized and auctioned
. Since January 2025, at least five prominent construction companies from that era have faced auctions to settle unpaid bank loans and other debts.
This financial distress is attributed to a major shift in Kenya’s infrastructure development landscape. The contractors who once secured large, government-funded projects have lost ground to new market realities, including dominance by Chinese firms and a different political climate.
Key factors driving the financial woes
1. Shift away from state patronage:
- For decades, contractors like Crescent Construction and Nyoro Construction benefited from political patronage under the Kenyatta and Moi administrations, allowing them to secure lucrative, large-scale projects.
- With the election of President Mwai Kibaki in 2003, the “Look-East” policy opened the door to Chinese firms, who have since dominated the sector.
2. Legacy of government debt:
- Many of these older firms are owed billions of shillings in pending bills for work completed, with some of the debts dating back to the Moi era.
- For example, Nyoro Construction is owed Sh500 million by the Ministry of Roads, and Westbuild is owed over Sh553 million for two road contracts.
- Government arrears have been a long-standing issue and have crippled many local contractors.
3. Succession and mismanagement issues:
- Older firms have suffered from succession challenges and financial mismanagement.
- Crescent Construction, for instance, became technically insolvent following the death of its founding director in 2020, leading to a rise in creditor claims and employee theft.
Recent examples of auctions
- Crescent Construction Company: The firm recently faced an auction for a 5.24-acre piece of land to pay off legal fees.
- Nyoro Construction Company: The company has seen its equipment, including an excavator, seized to settle debts.
- Other unnamed firms: At least three other companies from that era have faced auctions since the start of 2025.
Context of broader government changes
This move to auction assets is happening amid other significant governmental changes aimed at improving transparency and addressing outstanding debts:
- The government has integrated its e-procurement portal with the Kenya Revenue Authority (KRA) system to nab tax cheats among suppliers.
- The Treasury announced a plan to pay contractors directly into their project bank accounts.
- These measures highlight a move towards a more accountable and transparent system that is less favorable to firms that thrived on political connections and opaque dealings in the past
