Tag: Jospong Group of Companies

  • Tragedy As City Hall Hands Corrupt Ghanaian Firm Multimillion Garbage Collection Tender

    Tragedy As City Hall Hands Corrupt Ghanaian Firm Multimillion Garbage Collection Tender

    Nairobi County has awarded a controversial 20-year waste management contract worth billions of shillings to Zoomlion Ghana Limited, a corruption-tainted foreign company previously blacklisted by the World Bank and recently dropped by Ghana’s government over integrity concerns.

    The deal, signed by Governor Johnson Sakaja’s administration, grants the Accra-based firm exclusive rights to manage the 76-acre Dandora dumpsite and operate an integrated solid waste management system across the capital in what civil society groups are now calling a procurement scandal that threatens to drain taxpayer resources while handing over a strategic public asset to a firm with a documented history of corruption.

    Investigations by Kenya Insights have established that Zoomlion was the sole bidder in a tender process that bypassed international competitive bidding protocols, raising serious questions about transparency and adherence to public procurement laws.

    The contract, awarded under Tender NO: NCC/ENV/RFP/109/2025-2026, was opened on January 8, 2026, but critics argue the procurement violated requirements for Public Private Partnership projects by sidelining the Public Procurement Directorate.

    Zoomlion’s troubled history reads like a catalogue of corruption scandals that would ordinarily disqualify any company from handling public funds. In 2013, the World Bank debarred Zoomlion Ghana Limited and two affiliates, Accra Compost Plant and Zoom Alliance, for two years after finding that the company had paid bribes to facilitate contract execution and invoice processing on the Emergency Monrovia Urban Sanitation Project in Liberia.

    The company and its subsidiaries were barred from bidding on World Bank-funded contracts worldwide, a sanction that remained in effect until 2015 when Zoomlion entered into a Negotiated Resolution Agreement with the Bank, acknowledging misconduct and accepting responsibility.

    In Ghana, Zoomlion’s relationship with state agencies has drawn persistent scrutiny over allegations of fraudulent billing, overbilling and questionable contracts.

    The company became embroiled in the infamous GYEEDA scandal in 2013, one of Ghana’s biggest corruption cases, when investigative journalist Manasseh Azure Awuni exposed massive corruption in the Ghana Youth Employment and Entrepreneurial Development Agency.

    A government-appointed ministerial committee corroborated the findings, revealing that about 80 percent of the funds allocated for the youth employment programme went to private businesses and corrupt officials while only 20 percent reached the youth the programme was meant to serve.

    Executive Chairman of the Jospong Group of Companies (JGC), Dr. Joseph Siaw Agyepong. Photo by courtesy.
    Executive Chairman of the Jospong Group of Companies (JGC), Dr. Joseph Siaw Agyepong. Photo by courtesy.

    Between 2009 and 2012, nearly 500 million dollars was spent on GYEEDA, with Zoomlion and other Jospong Group companies among the main beneficiaries.

    The committee found that Zoomlion had received millions in payments for work not done and was overcharging the state. For instance, the company charged the government 25 million cedis more than warranted for providing tricycles.

    The committee recommended discontinuation of Zoomlion’s contract, but successive Ghanaian governments failed to act on these findings.

    Instead of being punished, Zoomlion continued receiving payments even after its contract expired in February 2013.

    A cabinet sub-committee report revealed that despite President John Mahama’s directive to terminate the sanitation contract, Zoomlion continued rendering services to the state from 2013 onwards, accumulating debts of over 450 million cedis.

    The Ghanaian Auditor-General repeatedly flagged Zoomlion for financial irregularities.

    One report exposed how a waste bin contract awarded on a sole sourcing basis to the Jospong Group was inflated by at least 130 million cedis.

    Another revealed that 98 million cedis was awarded to 11 companies under the Jospong Group to undertake fumigation when Zoomlion, the parent company, had already been paid for the same work.

    The Ghanaian government pays Zoomlion 850 cedis per sweeper per month under the Youth Employment Agency initiative, but only 250 cedis goes to the workers, with Zoomlion pocketing the remaining 600 cedis as management fees. This arrangement has been described as exploitative by labour rights advocates.

    In June 2025, Ghana’s newly elected President John Mahama terminated Zoomlion’s long-standing Youth Employment Agency contract, citing transparency concerns and fair compensation issues for workers. The decision marked a significant shift after years of controversy surrounding the company’s operations.

    Despite these well-documented scandals, Nairobi has rolled out the red carpet for Zoomlion.

    The timing of the contract award has raised eyebrows, coming just weeks after President William Ruto and Governor Sakaja announced a joint initiative to clean up the capital and relocate the Dandora dumpsite.

    Ruto committed over Sh4 billion from the national government to support waste management improvements, with garbage collection set to begin on April 1, 2026.

    During the 2025 Devolution Conference in Homa Bay, President Ruto commended Zoomlion Ghana Limited for its advanced, technology-driven waste management facilities after visiting the Jospong Group stand.

    Interestingly, a City Hall delegation comprising teams from the Department of Environment and Procurement is scheduled to travel to Ghana tomorrow, February 15, for a benchmarking tour of Zoomlion’s facilities.

    The timing has sparked criticism from procurement experts who question why due diligence would be conducted after awarding the contract rather than before.

    Sources familiar with the tendering process told Kenya Insights that the procurement was structured to favor Zoomlion, with the tender framed as a local procurement despite the nature of the project warranting international competitive bidding under PPP regulations.

    This approach eliminated competition and deprived Kenyan companies of the opportunity to bid for the lucrative contract.

    The company’s executive chairman, Dr Joseph Siaw Agyepong, faces ongoing legal troubles in Ghana.

    In late 2025, he and three others were dragged to court for contempt, accused of flouting High Court orders by entering disputed land and allegedly hiring thugs to destroy properties despite the existence of a court order and penal notice served upon them.

    The application, filed by Royal Bell Investment Ltd, Terraform Development Ltd and other parties, avers that Jospong and the other respondents would not abate their contemptuous conduct unless convicted and punished by imprisonment.

    In Mombasa, Zoomlion’s parent company, Jospong Group of Companies, is under investigation by the Ethics and Anti-Corruption Commission over a Sh17 billion, 35-year waste management contract signed by Governor Abdulswamad Shariff Nassir.

    The Centre for Litigation Trust, a Mombasa-based civil society group, has demanded transparency on the procurement process, public participation and whether the deal complies with public procurement and environmental management laws.

    The Nairobi contract gives Zoomlion control over waste collection, haulage, sorting, recycling and disposal for two decades, effectively creating a monopoly that locks out local companies and potentially costs Kenyan jobs.

    The 20-year tenure means the contract will outlast at least three gubernatorial terms, binding future county governments to a deal whose terms remain largely opaque to the public.

    When contacted for comment, Governor Sakaja had not responded by the time of going to press. However, in a recent interview with Nation, Sakaja defended his collaboration with the national government, insisting that unlike the defunct Nairobi Metropolitan Services arrangement, the current framework is not a transfer of functions but a support mechanism.

    He clarified that there would be no formal document under Article 187 of the Constitution transferring county functions, and emphasized that Nairobi’s unique status as Kenya’s capital demands a funding structure that reflects its national and international obligations.

    “We have not ceded any functions. A transfer of functions is not what we are discussing and it is not something we will do,” Sakaja said, adding that Nairobi requires closer collaboration with the national government because it carries responsibilities far beyond those of an ordinary county.

    The governor cited Section 6 of the Urban Areas and Cities Act, 2019, which recognizes Nairobi as Kenya’s capital and calls for formal cooperation between county and national governments on funding and service delivery.

    According to Sakaja, Nairobi hosts the Presidency, Parliament, Judiciary, foreign embassies, key national institutions and global offices and therefore needs a special financing model similar to other major cities worldwide.

    “Paris, with a population of 2 million, has a budget of Sh13 trillion yet Nairobi, with over 6 million people, has a budget of about Sh38 billion. If we want to compete with international cities, we must embrace special financing and strategic partnerships,” he said.

    The controversy threatens to undermine President Ruto’s ambitious plan to transform Nairobi’s waste management system and restore the capital’s image. The president announced plans to build a modern waste treatment facility at Dandora by 2027 to produce fertilizer and generate energy from garbage.

    Civil society activists are now calling for the tender to be cancelled and the procurement process reopened to ensure transparency, competition and value for taxpayers’ money.

    Anti-corruption campaigners warn that the deal could replicate Ghana’s experience, where despite Zoomlion’s near-total monopoly over sanitation contracts and billions spent over two decades, Ghana remains one of the dirtiest countries in Africa.

    The deal also raises questions about Kenya’s commitment to supporting local enterprises, as the contract hands over a strategic public asset to a foreign company with a documented history of corruption allegations, inflated billing and poor service delivery.

    Nairobi generates approximately 3,000 metric tonnes of waste daily, making waste management a lucrative sector that could generate significant revenue through recycling and waste-to-energy projects if managed transparently and competitively.

    Critics warn that awarding such a critical contract to a company with Zoomlion’s track record could expose Nairobi residents to poor service delivery while draining potential profits through corruption and overbilling, patterns well-documented in Ghana.

    The Dandora dumpsite has operated for decades as a major environmental and public health hazard. In February 2026, the Environment and Land Court awarded Sh25.8 million in damages to 1,032 waste pickers who suffered constitutional rights violations due to prolonged exposure to air pollution at the site.

    The court found both Nairobi County and the National Environment Management Authority jointly responsible for failing to protect workers from harmful pollution, adding legal pressure on the government to address longstanding concerns at the dumpsite.

    Legal experts have warned that the structure of the Nairobi-Zoomlion deal, particularly the 20-year tenure and exclusive access to Dandora dumpsite, could expose the county to litigation from companies that were denied the opportunity to compete for the contract.

    The Public Procurement and Asset Disposal Act, 2015 requires that PPP projects above certain thresholds must be approved by the PPP Directorate and involve competitive bidding processes that ensure value for money and protect public interest.

    By framing the tender as a local Request for Proposal while incorporating PPP elements, City Hall appears to have circumvented these safeguards, a move that could render the entire contract legally challengeable.

    Governance experts have expressed alarm at the pattern emerging in Kenya where counties are awarding waste management contracts to Zoomlion despite the company’s well-documented corruption scandals in Ghana. After Nairobi and Mombasa, there are concerns that other counties may follow suit, creating a nationwide monopoly for a foreign company whose track record suggests taxpayers will not get value for money.

    As Nairobi embarks on what officials describe as a transformative waste management era, the decision to partner with a corruption-tainted foreign firm threatens to turn what could have been a historic opportunity into yet another scandal that benefits a select few at the expense of taxpayers and the environment.

    The saga also highlights the broader challenge of corruption networks that transcend borders, with politically connected companies moving from one African country to another, securing lucrative government contracts despite their tainted reputations, while local businesses that could deliver better value struggle to access opportunities.

    For Nairobi residents who have endured decades of poor waste management, uncollected garbage and mountains of trash in estates, the promise of transformation rings hollow when delivered through a company whose home country terminated its contracts for the very failures Nairobians hope to escape.

  • Irregular Sh17 Billion Waste Tender To Ghanaian Firm Leaves Mombasa County Govt Exposed

    Irregular Sh17 Billion Waste Tender To Ghanaian Firm Leaves Mombasa County Govt Exposed

    Court orders rushed as scandal deepens over secretive deal with foreign conglomerate

    A storm is brewing over Governor Abdulswamad Nassir’s administration as disturbing details emerge about a colossal Sh17 billion waste management contract awarded to a Ghanaian firm amid allegations of secrecy, constitutional violations and complete disregard for public participation.

    The High Court in Mombasa has certified as urgent a petition that threatens to blow the lid off what could be one of the most questionable procurement deals in Kenya’s devolution era, with the county government now cornered and forced to answer hard questions about how public funds are being managed behind closed doors.

    The Centre for Litigation Trust has gone to court demanding answers about the mysterious tender awarded to Jospong Group of Companies, a Ghanaian conglomerate, for a 35-year waste-to-energy processing plant in Mwakirunge that has never been debated by elected representatives in the County Assembly.

    Justice Jairus Ngaah, in a ruling delivered on December 4, declared the petition urgent and gave the county a mere seven days to file responses, setting up a dramatic legal showdown that could expose systemic governance failures in the coastal county.

    At the heart of the controversy is a tender process that appears to have been conducted in the shadows, bypassing constitutional requirements that mandate county assemblies to scrutinize such massive financial commitments involving devolved funds.

    The constitutional principles at stake are not minor technicalities but fundamental pillars of Kenya’s democratic governance: the rule of law, public participation, accountability and transparency.

    The Centre for Litigation Trust, led by its Executive Director Julius Ogogoh, has painted a damning picture of a county government that has stone-walled legitimate requests for information and conducted a tender process that violated every principle of open governance.

    The lobby group had written to the county on October 24 seeking basic details about the tender, only to be met with deafening silence.

    What information is Mombasa County so desperate to hide? The questions are straightforward yet explosive. How many entities applied for this lucrative tender? Who was shortlisted? What were the evaluation criteria and score sheets for each bidder? Is this a public-private partnership, and if so, was it tabled before the County Assembly as required by the Urban Areas and Cities Act 2011? What are the exact contract details, including its value, duration and specific terms?

    The county’s refusal to provide these basic details has raised alarm bells across the Coast region, with many wondering what Governor Nassir’s administration is hiding from the public.

    The petition argues that this conduct violates Article 35 of the Constitution, which guarantees every Kenyan the right to access information held by the state.

    County Executive Committee Member for Environment and Water Kibibi Abdalla has offered contradictory explanations that have only deepened the mystery.

    In one breath, she claims the tendering process is still ongoing despite the tender already having been awarded.

    In another, she describes it as a World Bank project that was costed in the 2023/24 financial year, raising questions about why it bypassed budget scrutiny in subsequent years.

    Her excuses for failing to provide documents to the County Assembly committee investigating the matter read like a comedy of errors.

    She was on leave, she claimed, and had delegated to Traded CEC Mohamed Osman, who was attending to his ailing father, while County Secretary Jeizan Faruk had travelled with the governor.

    If true, these excuses reveal a county government so poorly organized that a Sh17 billion contract can slip through without proper oversight.

    Members of the County Assembly have expressed outrage at being kept in the dark.

    Bamburi MCA Patrick Mwavule categorically denied that the assembly had ever approved the project, contradicting claims that such authorization existed.

    The assembly’s Environment and Solid Waste Disposal Committee accused the Department of Environment of deliberately evading their invitation to answer questions about the controversial tender.

    The timing of events adds another layer of intrigue to this scandal.

    In early August, just months before the tender controversy erupted, Governor Nassir led a high-profile delegation to Ghana, where they reportedly explored partnerships in waste management and renewable energy.

    Was this trip a legitimate benchmarking exercise or was it the foundation for a pre-determined deal with Jospong Group that would later be rubber-stamped through irregular processes?

    Jospong Group of Companies is no small player.

    The Ghanaian conglomerate, founded by businessman Joseph Siaw Agyepong, operates 76 subsidiary companies across 15 sectors in Africa and Asia.

    Its Environmental and Sanitation division accounts for 60 percent of group operations, with waste management as its flagship business through Zoomlion Ghana Limited and numerous affiliated companies.

    The group has signed similar waste management deals across Africa, including partnerships with Lagos State in Nigeria, Uganda’s capital city authority for the Kiteezi Landfill, and Zimbabwe’s Geo Pomona.

    While Jospong has built a reputation as a solution provider for waste management challenges in developing African countries, questions remain about why Mombasa County felt compelled to bypass competitive tendering processes and public scrutiny to award them this contract.

    Mombasa County produces between 900 and 1,200 tonnes of waste daily, with the current infrastructure capable of collecting only 52 to 56 percent of this volume.

    A 2024 report by Haki Yetu Organization identified over 74 illegal dumpsites in the county, with Likoni and Kisauni being the worst affected.

    The waste management crisis is real, but does that justify circumventing the Constitution and established procurement procedures?

    The county has touted the deal as a job creation initiative, claiming that over 3,000 youth will be employed through 41 youth groups earning between Sh100,000 and Sh150,000 per group monthly during a three-month pilot phase.

    While job creation is laudable, it cannot be used as a smokescreen to obscure questionable procurement practices and the absence of public participation.

    The Centre for Litigation Trust is seeking far-reaching remedies from the court.

    Beyond compelling the county to release all requested information at its own cost, the lobby group wants a declaration that the county’s conduct violated constitutional principles of the rule of law, public participation, human rights, good governance and accountability.

    These declarations, if granted, would set a powerful precedent for how counties must conduct major procurement processes.

    The case has been scheduled for directions on December 15, setting up what promises to be a defining moment for devolution and accountability in Kenya.

    Will Mombasa County finally come clean about how this Sh17 billion contract was awarded, or will it continue to hide behind excuses and bureaucratic doublespeak?

    For Governor Nassir, this scandal threatens to undermine his administration’s credibility barely two years into his tenure.

    His ten-point campaign manifesto prominently featured access to clean water and proper waste management services, but voters did not sign up for secretive deals that bypass constitutional oversight.

    The silence from the county government speaks volumes.

    As pressure mounts from civil society, County Assembly members and now the courts, the administration finds itself backed into a corner with nowhere to hide.

    The seven-day deadline set by Justice Ngaah is ticking, and Kenyans are watching to see whether Mombasa County will finally embrace transparency or continue down the path of opacity and constitutional violations.

    This case is about more than just one tender.

    It is about whether devolution will deliver the accountability and public participation promised in the 2010 Constitution, or whether it will become another avenue for backroom deals that shortchange citizens.

    The stakes could not be higher, and the outcome will reverberate far beyond Mombasa County’s borders.

    As the legal battle unfolds, one question hangs heavy in the coastal air: What exactly is Mombasa County hiding, and why?