Nairobi County Assembly Planning Committee has intensified investigations into stalled urban renewal projects amid delays in housing delivery and concerns over public assets being used to secure private financing.The Pangani-Ngara (Jevanjee) project is under scrutiny after homebuyers and relocated residents complained of prolonged delays.
Lawmakers are probing reports that developers used county land titles to secure loans, including a KSh1.9 billion facility from the National Bank of Kenya.
The Nairobi County Assembly Planning Committee has intensified its probe into stalled urban renewal projects, raising concerns over delayed housing units, frustrated homebuyers and the use of public land to facilitate private financing.
County housing officials led by Chief Officer Godfrey Akumali appeared before the committee to explain why several flagship housing projects have failed to deliver homes to buyers who have already made payments and to former residents who were relocated with promises of returning upon completion of construction.
At the centre of the inquiry is the Pangani-Ngara Urban Renewal Project, popularly known as the Jevanjee Project, which lawmakers say has failed to meet expectations despite significant investments and commitments made to prospective homeowners.
Planning Committee Chairperson Geoffrey Odhiambo Majiwa said the delays had left many Nairobi residents in financial distress, with some servicing housing loans for units they are yet to occupy.
“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.
Kenyans are suffering in silence while developers pocket money and very little progress is being seen,” said Majiwa.
The committee is also investigating allegations that private developers used county-owned land titles as collateral to secure billions of shillings in financing for the projects.
One of the transactions 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 security.
The parcels cited in the financing arrangement are LR No. 209/5458 and LR No. 199739/1, measuring approximately 8.9 acres in Ngara Estate.Majiwa questioned whether the county’s share of proceeds under the original agreement remains justifiable, arguing that Nairobi County not only provided the land but also the security that enabled the developer to access financing.
“Ordinarily, when a bank holds a title, it is advancing money to the owner of that title. Our share in the Kariokor-Jevanjee project should have changed drastically because we provided both the land and the security that enabled the financing. The developers were supposed to bring their own money, but they ended up using county land to obtain funding. Therefore, the percentages contained in the original contract cannot stand,” he said.
The Committee is now seeking to determine whether Nairobi County’s interests were adequately safeguarded in the joint-venture agreements and whether residents received fair value from public land committed to the urban renewal programme.
The probe is expected to examine the financial structures of the projects, compliance with contractual obligations and the status of housing units promised to both buyers and former estate residents.
