National Bank has Seized Pangani, Jeevanjee Housing Projects Over Sh1.9B Loan – Sonko

The National Bank is in possession of Pangani and Jeevanjee affordable housing projects titles as simple non-collateral deposit used to access Ksh 1.9 billion loan

This has been revealed by former Nairobi Governor Mike Sonko who is accusing Governor Johnson Sakaja’s administration and the NairobI City County Assembly of playing mind games over the matter.

Sonko dismissed claims that he is in possession of the title deeds and produced documents indicating that the County Government and the investor for the projects charged the property to acquire the Kshs 1.9 billion.

The County Assembly through the Planning and Housing Committee was told by the Executive Committee Member for Built Environment and Urban Planning that the title deed for Jevanjee is still in the hands of the former governor.

The Committee chaired by Kitisuru MCA Alvin Palapala was to summon the former governor to clear the air on the title deeds.

But Sonko claims that this is a diversionary tactic by the county government because its senior staff are signatories to the loan facility.

Documents shared to journalists indicate that the then Acting County Secretary Patrick Analo in a letter dated 18th April 202 requested the assembly to approve a request to allow the County Government to deposit the title deed for the Pangani Estate Urban Renewal Project.

Before that, the National Bank in a letter dated 1st January 2023 confirmed granting Ksh 1.9 billion to the private developer who had charged the property for financing.

This means the approval by the assembly happened after the bank had already okayed the disbursement of the facility

“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 said

Sonko claims that there could be a sinister plan to short change the original tenants in a bid to completely 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

Sonko said that during his tenure,the county government paid out sh28.8 million to 48 house owners at Old Pangani Estate which effectively pace way for construction of 1,500 affordable housing units.

He said he had a clear plan on how to ensure the projects were complete within two years but was distracted by his Impeachment.

“We handed over cheques to verified beneficiaries and each tenant received Ksh 600,000 to enable them relocate," he said.

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

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

The provisional certificate for the land was issued on 2nd of July 2016,transferring it from the colonial land registry before the lease to the County Government was done on 1st of July 2018 and was to last 99 years as captured by the registrar of lands.

It is officially captured as Nairobi Bachelors Jeevanjee Estate Limited which is a Private Limited Company incorporated under the Companies Act 2015 and registered by the register of companies.

“If they take time,they will The certificate of official transfer of lease was signed on 24th July 2019 and witnessed by Nairobi City County Government Chief Officer for Lands,the County Secretary and Directors of Nairobi Jeevanjee Estate Limited,” he added

The former governor is now calling on Sakaja and the County Assembly to confirm with the Ministry of Lands as the custodian of land records in the country.