Nairobi assembly probes stalled urban renewal projects over undelivered houses and land used as loan security
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The Nairobi County Assembly's planning committee has opened investigations into stalled urban renewal schemes, including the Pangani-Ngara "Jevanjee" project, amid concerns that buyers are servicing loans for homes they have not received and that county land titles were used as loan collateral.
The Nairobi County Assembly Planning Committee has stepped up investigations into stalled urban renewal projects amid concerns over delayed housing units and the use of public assets to support private financing. County housing officials, led by Chief Officer Godfrey Akumali, appeared before the committee to explain why several flagship projects have failed to deliver homes to buyers who have already made payments, as well as to former residents relocated with the promise of returning once construction was completed.
The Pangani-Ngara project, commonly known as the Jevanjee project, came under particular scrutiny after the committee raised concerns over the prolonged delay in delivering housing units despite substantial investments and commitments made to prospective homeowners. Planning Committee Chairperson Geoffrey Odhiambo Majiwa said some residents were now servicing loans for houses they had yet to receive.
"Remember there are Nairobians who have already paid for the anticipated housing units, yet the projects have partially stalled and nothing much is happening. Some took loans and are now servicing them without getting their houses. As Chair, I have received several complaints about these urban renewal projects," Majiwa said.
The committee is also investigating claims that private developers used county-owned land titles as security to obtain substantial loans for the projects. One of the cases under review involves Jabavu Village Limited, which entered into a joint venture with the Nairobi County Government and reportedly secured a KSh1.9 billion loan from the National Bank of Kenya using county land titles as collateral. The titles reportedly used to secure the financing are LR No. 209/5458 and LR No. 199739/1, covering approximately 8.9 acres in Ngara Estate.
Majiwa questioned whether the original revenue-sharing arrangement between the county and the developer should remain unchanged, given that the county contributed both the land and the security used to obtain financing. The committee is seeking to establish whether the county's interests were adequately protected in the joint-venture agreements and whether Nairobi residents received fair value for the public land committed to the projects.