Cosmas Butunyi
13 July 2008
Nairobi — The burnt-out shell of Wedco Centre on Oginga Odinga Street in Kisumu evokes uncomfortable memories of the post-election violence that rocked the country at the beginning of the year.
On December 29 rioters descended on the building, looting property from the businesses inside before setting it ablaze.
Many other buildings in the town met a similar fate. Nyanza Provincial Commissioner Paul Olando says that the time for reconstruction has come in order to erase the painful memories of the violence.
"These buildings are the face of violence in Kisumu and we need to rebuild them," he said. Businesses located in Kisumu's central business district suffered losses estimated at Sh6 billion.
Reconstruction is already under way on some buildings, and preparations are in the works for others. Mr Maurice Khaduli, building manager at Wedco Centre, says reconstruction plans there are at an advanced stage.
Tender documents
"A team of engineers has inspected the building to ascertain the extent of damage, and the consultants are preparing tender documents for the reconstruction," he said, adding that reconstruction coud involve flattening that part that was burned. The building has been fenced off.
PC Olando recently led a delegation of officials from the provincial administration and the local business community on a tour of some of the buildings and businesses that were destroyed in the violence.
He challenged business people who lost property to stop moaning about their losses and focus instead on rebuilding. Some are already back in business.
Powerlite Electrical Shop, looted and vandalised, reopened its doors to customers this month after prolonged closure. Other traders, though raring to pick up the pieces, are in a financial bind.
They say they have been left to their own devices after their insurance companies refused to honour their claims, citing the cause of losses. Losses due to politically instigated violence are not compensated, according to most insurance companies' rules.
However, Kenya Orient Insurance Limited recently broke with tradition and presented cheques amounting to Sh6.5 million to some of the victims of the violence in Kisumu for reconstruction.
Insurance companies
"The insurance companies have refused to accept that this was an accident and are instead referring us to the government who are responsible for maintaining law and order," says Hitesh Dhanani, director of Ukwala Supermarket, that was housed at the Wedco Centre.
Without compensation, he reckons that reconstruction will be an uphill task. The supermarket chain lost stocks, fittings, furniture and cash, all valued at over Sh200 million, during the violence.
Mr Dhanani said that losses are growing due to the supermarket's continued closure. Its 150 employees have been at home, without income, for the past six months.
He would like the government and the Municipal Council of Kisumu to support their efforts to get back to business by sharing the losses.
"We have written to the council to reduce charges for signboard displays in order to help us rebuild the business," he said.
While explaning that the government cannot afford to compensate all the businessmen, Mr Olando has appealed to insurance companies to act faster on claims forwarded by the businessmen.
"They should do this within the law and communicate their decisions in a timely manner to their clients so as to end the guessing game," he said.
But he says the government will support in the reconstruction where possible. The first to benefit from government assistance will be small business enterprises.
Mr Olando says that his office is preparing a list of small business people who lost property in the violence for possible support.
The chairman of the Western Kenya branch of the Kenya Association of Manufacturers Fidel Muasya feels that the government can do much more. Among other incentives, Mr Muasya has recommended tax breaks and exemptions for the affected traders.
"This will allow them to channel the resources towards reconstructing their businesses," he said.
Improving infrastructure in this region, he says, would also boost reconstruction efforts as losses from wear and tear would be reduced.
With a section of retailers still smarting from the effects of the post-election violence, manufacturers are also feeling the pinch.
"We are currently operating at about 80 per cent capacity due to the reduced purchasing power of the affected traders, but we hope that this will improve after reconstruction," Mr Muasya said.
Government buildings that were damaged or destroyed in the violence are to undergo reconstruction as well after the government received a Sh153.6 million loan from the World Bank to repair or rebuild its buildings affected by the violence in Nyanza and Rift Valley provinces.
Government offices
Official reports indicate that government offices in Nyanza, including the provincial works offices in Kisumu, suffered the greatest damage.
Nyanza Provincial Works Officer Stephen Koge says bid documents are being prepared, and the ministry's architects are on the ground studying the damaged facilities to establish the extent of work required.
Ground is being prepared for reconstruction at the offices of the Lake Victoria Water Services Board on Ring Road. Already, a wall has been built around the building and the burnt shells of vehicles hauled to the yard behind the complex.
Patrick Ombogo, the board's chief executive officer, says he is seeking funds to rebuild the section that was burnt down which housed a block of offices and a water quality laboratory.
The building was not insured, and the board has to seek alternative sources of funds for reconstruction.
As for the vehicles, the board plans to sell the shells to scrap metal dealers while awaiting compensation from the insurance companies.
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