Regional insurer, African Trade and Investment Development Insurance (ATIDI), is among three beneficiaries of a transfer of land that hosts Capitol Hill police station in Nairobi's Upper Hill area, it has emerged.
Prime Cabinet Secretary Musalia Mudavadi defended the proposed de-gazettement of the police station before a Senate committee.
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He said the process is intended to facilitate the transfer of the prime land to ATIDI, financial sector regulators and St John Ambulance Kenya.
In a submission to the Senate Standing Committee on National Security, Defence and Foreign Relations on Monday, Mudavadi said the government made the decision following a series of approvals dating back to 2018. The Prime Cabinet Secretary is also in charge of the Ministry of Foreign and Diaspora Affairs.
The submission explained the government's plans for the strategically located property amid controversy over the decision to close a police station in one of Nairobi's busiest commercial districts.
Mudavadi said the approximately 2.001-hectare (five-acre) parcel was gazetted in 2011 for use by the National Police Service.
However, the process leading to its de-gazettement began in 2018 after Cabinet approved its allocation to other institutions.
Under the proposed arrangement, ATIDI will receive two acres for the construction of its headquarters, while another two acres have been earmarked for financial sector regulators.
The allocation is intended to facilitate the construction of a consolidated headquarters for Kenya's financial sector regulators.
The proposed complex is intended to bring together key regulatory institutions currently operating from separate offices across Nairobi, particularly within the Upper Hill financial district.
The agencies include the Central Bank of Kenya, Capital Markets Authority, Insurance Regulatory Authority, Retirement Benefits Authority, Sacco Societies Regulatory Authority, Financial Reporting Centre and the Nairobi International Financial Centre Authority.
At present, the regulators are spread across multiple locations. The CMA and IRA operate from offices along Longonot Road in Upper Hill, RBA is headquartered at Rahimtulla Tower, SASRA and FRC are housed at UAP Old Mutual Tower and NIFCA is based at Kasneb Tower II.
The government argues that establishing a common headquarters would improve coordination among the agencies, reduce operational fragmentation and strengthen Nairobi's position as a regional financial hub.
The planned complex would also complement ongoing efforts to develop the Nairobi International Financial Centre.
A further one-acre will be allocated to St John Ambulance Kenya, an announcement President William Ruto made on Sunday.
Mudavadi told senators that the allocation to ATIDI was first approved by Cabinet in 2018. The regional insurer, in which Kenya is a leading shareholder, provides political risk, trade credit and investment insurance across Africa.
"The African Trade Insurance Agency is allocated the land for construction of its headquarters to help drive much-needed investment insurance capacity in Africa and Kenya in particular," he said.
The Prime Cabinet Secretary said the subsequent allocations to financial sector regulators and St John Ambulance were approved as part of broader government plans for the parcel.
St John Ambulance is receiving the land in exchange for a smaller parcel near Parliament Buildings.
The disclosure comes amid mounting questions from legislators, security stakeholders and members of the public over the rationale for de-gazetting a police station in Upper Hill.
The area hosts major government offices, diplomatic missions, financial institutions and corporate headquarters.
The Upper Hill District Association strongly opposed the government's decision to close and de-gazette the station. Residents and business owners said the move would create a critical security vacuum. They also called for transparency in the process.
In his response, Mudavadi said the process was neither arbitrary nor recent.
He said all necessary approvals had been obtained to facilitate the transfer of portions of the property to the designated institutions.
Mudavadi also rejected claims that the closure of the station would create a security vacuum in Upper Hill.
He said the Inspector General had already put in place measures to ensure continuity of policing services, including the relocation of administrative and operational functions, redeployment of officers and reassignment of security responsibilities to neighbouring facilities.
