The Nairobi County Assembly Lands and Planning Committee has now summoned the management of National Bank so as to explain if a title deed belonging to Jee-van-Jee affordable housing land was used to secure a huge loan.
The new twist emerged after former Nairobi County governor Sonko claimed that some senior officials at City Hall had irregularly used the title deed belonging to the parcel of land to secure a Sh1.9 billion loan.
Sonko was responding to allegations leveled against him during the Assembly Committee inquiry on October 16 that he was in possession of the title deed despite the fact that he left the office.
The Committee had invited members from the executive led by Lands CEC Patrick Mbogo to explain why the affordable housing project had stalled yet it was supposed to have been completed and handed over in 2023.
Another sitting that was scheduled to take place on October 30, 2024 did not materialize as expected after officials from the executive snubbed the grilling forcing the Committee to write to the bank to appear and shed light over the matter.
“The Committee currently conducting an inquiry into the implementation and financing of affordable housing projects in the county specifically Pangani and Jee-Van-Jee,” the letter signed by Assembly Clerk Edward Gichana reads in part.
Adding that, “while deliberating of the progress report on the said projects, it came to its attention that the Nairobi City County title deed for the parcel of land on which Jee-van-jee affordable housing project is being implemented was presented to the national bank to secure a loan to ostensibly to finance the said project,”
During the session, some Committee Members claimed that the Executive side was buying time so as to avoid being grilled over the matter and that it was suspicious for the County to seek another loan in a project also supported by the national government.
Through the letter, The Committee requested the bank to stop any further transactions on the said title deed related to Jee-van-Jee project until it concludes its investigations.
The letter added that the bank should explain whether it is true that the title deed of the said land was used to secure loan, the exact amount, the purpose and circumstances under which the county title deed was used to secure the loan.
During the Committee meeting led by Anthony Kiragu, members inquired why the County was seeking another loan yet it had been reported that the project was well financed and some Nairobi residents had already paid for it.
Initially, the project was projected to be completed by June 2023.
“I know very well that in the urban renewal policies, a developer was supposed to come with money, the county was supposed to come with land, and the developer was supposed to develop units and sell to the public,” Kiragu stated.
Adding that, “What is shocking is that the Jee-and-Jee project, where almost 1,400 houses were supposed to be built, were sold out within a month. On top of that, five years later, there is no progress in that project,”
