Commercial Projects

Sh23bn Project in Limbo After NEMA Hits the Dislike Button

Watchdog asks developer to redesign the project or seek an alternative site.

Updated on

February 7, 2020

A project that seeks to deliver a 61-floor luxury hotel in Watamu, Kilifi County, is now in limbo after the National Environment Management Authority (Nema) declined to approve the Sh23 billion venture, citing the project’s failure to comply with zoning plans.

In a letter dated January 30, Nema acting director general Mamo Bora Mamo told the developer – Palm Exotjca Ltd – that the watchdog could not issue an environmental impact assessment license for the Palm Exotjca project as currently fashioned.

Instead, Nema directed the developer to redesign the project in conformity with the existing zoning plans and physical planning laws regarding survey and coast foreshore reservations and stability.

“You are advised to redesign the project to conform to the existing planning framework or seek an alternative site,” Mr Mamo told Palm Exotjca Ltd.

If approval had been granted, the investors – led by Italian neurosurgeon Giuseppe Moscarino would have commenced work on the project that sits on a 2.4-acre parcel of land at Dabaso, Turtle Bay Road in Kilifi.

Palm Exotjca, whose architectural design borrows from simple traditionally crafted art pieces of Kenya’s rich culture from the coast, is fashioned as a mixed-use facility comprising a 270-bed five-star hotel, a high-end mall, executive offices and apartments, a casino, and restaurants.

Dutch company Drees and Sommers has been hired to undertake the project.

At 370 metres, the building – designed by Italian architect Lorenzo Pagnini – would have been 50 metres taller than The Pinnacle, which is under construction in Upper Hill, Nairobi.

Despite its magnificence, Nema said the project would adversely affect the outstanding universal values of Watamu as a United Nations Educational, Scientific and Cultural Organization (Unesco) biosphere reserve.

The project owners, Nema added, had not observed the precautionary principle: taking measures to assess the harm that might be caused by such a massive project to stability, density parameter and proximity to fragile marine environment.

It waits to be seen if Palm Exotjca Ltd will exercise its right to appeal against Nema’s decision. Last October, hundreds of Watamu, Gede and Dabaso residents who attended a public hearing said they wanted the project to begin immediately to open up the area.