The National Bank of Kenya reportedly holds the title deeds for the Jeevanjee and Pangani affordable housing projects as part of a Ksh. 1.9 billion loan facility. This assertion comes from former Nairobi Governor Mike Sonko, who accused the current administration, led by Governor Johnson Sakaja, and the Nairobi County Assembly of misleading the public on the issue.
Speaking to the press from his Upperhill office on Thursday, Sonko also refuted recent claims that he personally possesses the title deed for the Jeevanjee project. He provided documents showing that the County Government and the project's private investor had used the property as collateral to secure the substantial loan.
This controversy arose after a Nairobi County Executive Committee Member (CECM) for Built Environment and Urban Planning informed the County Assembly’s Planning and Housing Committee that the title deed was still in Sonko's possession. The committee, chaired by Kitisuru MCA Alvin Palapala, even considered summoning Sonko for clarification.
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Sonko dismissed this as a diversion, insisting that senior county officials are signatories to the loan agreement. He presented documents to the media, including a letter from then-Acting County Secretary Patrick Analo dated April 18, 2020, which requested the assembly's approval to deposit the title deed for the Pangani Estate Urban Renewal Project.
Additionally, he shared a letter from the National Bank dated January 1, 2023, confirming the disbursement of Ksh. 1.9 billion to the project's private developer. This loan was approved after the property was charged, suggesting that the County Assembly's approval was obtained only after the funds were secured.
“The title was taken to the bank through the registration of the Nairobi Jeevanjee Estate Company Limited, a special purpose vehicle for financing,” Sonko explained. He warned of potential plans to exploit the original tenants, suggesting there may be a scheme to hand the project over to cartels.
“This is all propaganda aimed at confusing the public. Governor Sakaja should focus on completing the projects without unnecessary drama,” he stated. Sonko also claimed that during his tenure, he compensated 48 homeowners at Old Pangani Estate with Ksh. 28.8 million, facilitating the construction of 1,500 affordable housing units. Each tenant received Ksh. 600,000 for relocation, with the understanding that they would receive priority upon project completion.
Sonko clarified that the provisional certificate for the land was issued on July 2, 2016, and the property was transferred from the colonial land registry to the Nairobi County Government on July 1, 2018, under a 99-year lease. He urged Governor Sakaja and the County Assembly to verify this information with the Ministry of Lands, warning that any delays would only lead to further confusion. He noted that the lease transfer was finalized on July 24, 2019, in the presence of key officials, including the County Secretary and directors of Nairobi Jeevanjee Estate Limited.
