The Nairobi County Assembly Planning Committee has intensified investigations into stalled urban renewal projects amid growing concerns over delayed housing units, unfulfilled promises to residents, and potential loss of public assets.
County Housing officials led by Chief Officer Godfrey Akumali were put to task to explain why several flagship renewal projects have failed to deliver homes to buyers who have already paid for units and to former residents who were relocated on the promise that they would return upon completion of construction.
Particular attention was directed at the Pangani-Ngara (Jevanjee) project, which has yet to yield houses for occupation despite significant investments and commitments made to respective homeowners.
Nairobi County Assembly Planning Committee Chairperson Geoffrey Odhiambo Majiwa said the delays have left many Nairobi residents burdened with loan repayments for houses they are 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. Kenyans are suffering in silence while developers pocket money and very little progress is being seen," said Majiwa.
The committee is also preparing an investigative report into claims that county-owned titles were used by private developers to secure massive project loans, yet the developments remain unfinished.
According to the committee, the situation raises serious questions about value for money, legitimate expectation, accountability, and the continued suffering of homebuyers who have already made payments.
One of the projects under scrutiny involves Jabavu Village Limited, which entered into a joint venture with the Nairobi County Government and secured a Sh1.9 billion loan from the National Bank of Kenya using county land titles as security.
The loan was reportedly backed by county-owned parcels LR No. 209/5458 and LR No. 199739/1, covering approximately 8.9 acres in Ngara Estate.
Majiwa questioned whether the original revenue-sharing arrangements remain valid, arguing that the county not only contributed land but also effectively facilitated project financing through its assets.
"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," Majiwa stated.
The committee is now examining whether the county's interests were adequately protected in the agreements and whether taxpayers received fair value from the partnerships.
Chief Officer for Housing Godfrey Akumali acknowledged the concerns raised by the committee and admitted the that the County could be disadvantaged if the original shareholding arrangements remain unchanged despite the use of county titles to secure financing.
"To some extent, I agree with you. We will write to our legal adviser, the County Attorney, for guidance on the matter," said Akumali.
The probe comes as pressure mounts on the County Government to account for delayed urban renewal projects that were expected to transform Nairobi's housing sector and provide affordable homes to thousands of residents.
