G47 Ugatuzi Tower Project Scaled Down Amid Office Glut

The G47 Ugatuzi Tower, originally planned as a 50-storey landmark for the Council of Governors (CoG) and the Ministry of Devolution, has been scaled back after years of delays.

According to the Local Authorities Pensions Trust (Laptrust), which is undertaking the project in partnership with the County Pension Fund (CPF), the building’s height has been reduced to 34 floors due to falling demand for offices and rising construction costs.

This comes four years after a ground-breaking ceremony was held on December 4, 2020, for the construction of the tower at the junction of Chaka Road and Argwings Kodhek Road in the Hurlingham area of Nairobi, at a cost of Sh5 billion.

Although Laptrust attributes the scaled-back vision to a market glut and rising costs, sources familiar with the matter suggest the adjustments are primarily due to growing concerns and disquiet among union members about the use of workers’ pension funds.

The project, which was first proposed in 2016, has been shrouded in mystery, with only a few details—such as budget, location, and render images—made available to the public.

The building’s height remained speculative after the groundbreaking, as were other details such as the architects, contractors, timelines, and the environmental impact assessment.

Challenged in court

In February 2021, the Kenya County Government Workers Union moved to court to stop the project, claiming that the plan had not been subjected to public participation.

The union also sought to prevent the pension trust from erecting the tower on land that belongs to the workers, citing concerns that the project could jeopardise their pension funds.

“Public interest favours conserving workers’ pensions from wastage and investments that contravene the Constitution. It will be against the public interest if retirees cannot access their pensions due to illegal investments arising from the Ugatuzi Towers,” the union said.

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The association argued that the Sh5 billion budget represented a large portion of the workers’ pension, which could be misused if the project proceeded as planned.

“To date, members and other stakeholders remain unaware of the project’s specifics, apart from what is in the public domain,” the union said, adding that the joint venture was unlawful.

Although the union lost the case, its concerns appear to have been addressed through the changes to the plan.

Laptrust has now submitted the revised plans to the National Environment Management Authority (Nema) for approval. The G47 Ugatuzi Tower, which will be built on 1.294 acres, is now estimated to cost Sh3.05 billion.

Laser Property Services, the development manager for the project, states that the re-evaluation of the plan will enable the pension scheme to deliver an iconic tower.

“The scheme is now better positioned to deliver an iconic, state-of-the-art building that will be certified green in line with IFC (International Finance Corporation) Edge green building standards,” said Anthony Mutisya, executive director of Laser Property Services.

The IFC created the Excellence in Design for Greater Efficiencies (Edge) certification to promote and recognize builders and developers who implement energy- and water-efficient designs in new construction.

Edge-certified buildings consume at least 20% less energy or water than traditional buildings, making them more cost-effective to operate while also minimising their carbon footprint.

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