Nairobi MCAs question revenue-sharing formula for affordable housing projects
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Nairobi County Assembly's urban planning committee has challenged the formula used to split affordable housing project returns between the county and developers, saying the county was offered too small a share of schemes built on its own land.
The Nairobi County Assembly has raised concern over the formula used to share affordable housing project investment in various estates between the county government and developers. The issue was raised during a session of the Sectoral Committee on Urban Planning with the county executive on Thursday.
Committee chairperson and Baba Dogo MCA Geofrey Majiwa cited the Jevanjee Bachelors Renewable Development on parcel number 209/5458, noting that the county was offered only a 16 percent share even though the developer had used county land to secure a loan from National Bank to fund the project. "They have our title, because ordinarily when a bank holds a title, they are giving money to the owner of the title. That is how it works," Majiwa said.
He argued that the county's percentages for the Jevanjee and Kariokor schemes should change substantially because the developer did not invest its own money, saying the funding secured against the county's title was meant for the development of the project.
Majiwa directed the executive, led by chief officer for Built Environment and Urban Planning Geofrey Akumali, to furnish the committee with the status of the titles under the Affordable Housing Project within Nairobi. The Baba Dogo MCA also wants the executive to explain the safety status of tenants who were expected to occupy the houses, since the completion date agreed earlier is overdue after the project stalled.
The committee session is set to resume on October 6, 2026.