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Former Nairobi Governor Mike Sonko has disclosed that the National Bank of Kenya holds the titles for the Pangani and Jeevanjee affordable housing projects as collateral for a Ksh 1.9 billion loan. This revelation comes amid accusations against the current Nairobi City County administration led by Governor Johnson Sakaja, which Sonko claims is misleading the public over the matter.
The controversy escalated when the County Assembly’s Planning and Housing Committee was informed by the Executive Committee Member for Built Environment and Urban Planning that Sonko still held the title deed for the Jeevanjee project. However, Sonko refuted these claims, producing documents to show that the titles were used by the county government and a private investor to secure financing for the projects.
Documents presented to the media indicate that the former Acting County Secretary, Patrick Analo, requested approval from the assembly on April 18, 2022, to deposit the title deed for the Pangani Estate Urban Renewal Project as security. Prior to this, on January 1, 2023, the National Bank confirmed issuing a Ksh 1.9 billion loan to the private developer, based on the charged property.
Sonko alleged that the County Assembly’s statements are a diversion, as senior county officials are signatories to the loan arrangement. “Through the registration of the Special Purpose Vehicle named Nairobi Jeevanjee Estate Company Limited, the title was taken to the bank and charged to enable the financing,” Sonko explained.
The former governor further accused the current administration of a possible scheme to sideline original tenants and hand over the projects to private interests.
“This is propaganda and complete misinformation to the public. There must be something fishy they are planning,” Sonko stated, advising Governor Sakaja to prioritize completing the projects without unnecessary drama.
Sonko highlighted that during his administration, the county government paid Ksh 28.8 million to 48 tenants at the Old Pangani Estate to facilitate the construction of 1,500 affordable housing units. Each tenant received Ksh 600,000 to aid in their relocation, with an agreement to pay Ksh 25,000 per month in rent for two years before being prioritized for the new units upon project completion.
The land for the projects, officially titled under Nairobi Bachelors Jeevanjee Estate Limited, was transferred from the colonial registry and leased to the County Government in July 2018 for 99 years. The formal transfer was signed on July 24, 2019, by officials including the Chief Officer for Lands, the County Secretary, and directors of the estate company.
Sonko is now calling on the current administration and the County Assembly to verify land records with the Ministry of Lands, which serves as the custodian of property documents. He reiterated that his administration had a clear agreement with the investor to ensure timely completion of the housing projects, a plan that was disrupted by his impeachment.
“If they take time, they risk complicating the situation further,” Sonko warned, stressing the importance of transparency in handling the housing initiatives and avoiding actions that could derail affordable housing efforts for Nairobi residents.
