Sonko: Bank has titles for affordable housing land

Former Nairobi Governor Mike Sonko now says that title deeds for the Pangani and Jeevanjee affordable housing projects are being withheld by the National Bank of Kenya over a Sh1.9 billion loan surety.

Sonko shared documents indicating that the bank gave Sh1.9 billion to a Joint Venture Development partner for the projects in a bid to raise the necessary finances to complete the projects.
In an 18th April 2023 letter, the then acting county secretary, Patrick Analo, asked the Nairobi County

Assembly to approve a request to allow the county government to deposit the title deed for the Pangani Estate Urban Renewal Project with the bank as a simple non-collateral deposit.

The assembly debated a related motion and approved the request.

Sonko, who was responding to claims that he was in possession of the title deeds, is now calling on Governor Johnson Sakaja and Nairobi MCAs to fast-track the two projects without diverting attention to someone else.

Deep concerns
An assembly oversight committee last week learnt that the county was unable to produce title deeds for the land earmarked for the two projects.

The 12-member Planning Committee, chaired by Kitisuru Ward Rep Alvin Olando Palapala, was told by County Executive Committee member for the Built Environment and Urban Planning Patrick Mbogo that the title deed for Jeevanjee was still in the hands of the former governor.

The document, Mbogo said, was given to Sonko in 2018 and had not been seen since.

“The Jeevanjee certificate was registered in the name of Nairobi City County on August 9, 2018, but later that year, it was taken by … Sonko, who never returned it to us,” he told the committee.

Committee members expressed deep concerns about the security of county property and the implications for potential investors.

Majority Leader Peter Imwatok and Minority Leader Anthony Kiragu insisted that Sonko must be summoned to explain why he was still holding the Jeevanjee title deed.

Compounding the situation, hundreds of residents occupy completed homes in the Pangani estate though its title deed is also unaccounted for.

Governor Sakaja’s administration was asked to produce the Pangani title deed and explain delays in completing the two housing projects though money was allocated for them.

“These people took money from residents who bought the houses and time has lapsed, yet they have not completed the project,” Palapala noted, highlighting the frustration of the community.
Kiragu claimed county funds were being mismanaged.

But documents seen by PD indicate that National Bank, in a January 1, 2023 letter, confirmed granting Sh1.9 billion to a private developer who had charged the property for financing.
Sonko claims there could be a sinister plan to short-change the original tenants in an attempt to hand over the project to cartels.

“This is propaganda and complete misinformation to the public. There must be something fishy they are planning and my advice to Governor Sakaja is to complete the projects without much drama,” he said.

Paid to move
Sonko said that during his tenure, the county government paid out Sh28.8 million to 48 homeowners at Old Pangani Estate, effectively paving the way for the building of 1,500 affordable housing units.
He said he had a clear plan to complete the projects within two years but was distracted by his impeachment.

“We handed over cheques to verified beneficiaries and each tenant received Sh600,000 to enable them to relocate,” he said.

The tenants were to rent houses for two years for 25,000 per month and were to be given priority upon completion of the projects.

He said the county had an agreement with the investor undertaking the project and this could be the elephant in the house now.