NSSF scales down Hazina Towers to 15 floors

Hazina Trade Towers will not feature in the league of Africa’s tallest buildings after all. The National Social Security Fund says it would complete the building at its current height owing to structural weaknesses that cannot support the initial planned of 180 metres.

The building, which houses the Nakumatt Lifestyle outlet, is currently on the 15th floor even though it was expected to go up to the 39th floor.

Construction was stopped last October over safety concerns, where the beams were found not be strong enough to support a building of such a height. NSSF said after considering other options that included strengthening the beams, it has decided to complete it at its current height.

Anthony Munyiri, an NSSF trustee, said the Fund is seeking approvals from the County Government of Nairobi to complete the building. “We have decided to stop at 15th flour and are currently waiting for approvals from the County Government so that we can complete it as it is,” he said yesterday during NSSF’s Annual General Meeting in Nairobi.

The stalling of the building last year is among the many challenge that it has faced since it opened in 2003. The anchor retailer Nakumatt Supermarket is seeking compensation for loss of business to its Lifestyle branch, a matter that is still pending in court.

Legal action

The tender process to select a contractor was also queried and there were allegations that it had been done irregularly. At the same time, the Nairobi County Government required the contractor to undertake another environmental audit.

The move to halt construction of the building comes amid concerns by the Auditor General on the construction of the building as well as the relations with Nakumatt, which appear to have also stood in the way of the Fund completing the building.

“NSSF should take legal action against the tenant (Nakumatt Holdings) to secure completion of the building and safeguard members’ contributions,” said the Auditor General in his report on NSSF’s finances contained in the Fund’s annual report.

The pension scheme had received approvals to increase the number of floors from two to 39 in 2010 and awarded a Sh6.7 billion contract to China Jiangxi International Kenya to complete the building. According to the Auditor General, the contractor has already been paid Sh1.9 billion and warned that the money could be lost if construction does not resume.

“An audit inspection carried out on January 14, 2016 revealed that the work had stalled after reaching 15th floor or at 38 per cent,” said Ouko in his report.

At the AGM, Central Organisation of Trade Unions Secretary General Francis Atwoli, questioned the contractor’s capacity but also noted that the project was too big to be handled by one firm.

In addition to the Hazina Trade Centre, China Jiangxi has been contracted to put up a number of NSSF’s projects that have stalled including the Nyayo Estate Embakasi Phase 6. Atwoli is a member of NSSF’s board of trustees.

According to NSSF, the projects have stalled due to approvals taking longer than expected.