• The NHC is demanding Sh1 billion in accrued interests.
• The former council had taken the loan to develop the houses in at least seven estates.
Image: JOHN CHESOLI
Kisumu Governor Anyang’ Nyong’o has appealed to President Uhuru Kenyatta to write off a Sh1 billion debt the National Housing Corporation is claiming from the county.
The claim arises from a loan the former Municipal Council of Kisumu had taken to develop the houses for residents and employees in at least seven estates including Arina, Ondiek, Shauri Moyo, Andersson, Makasembo and Argwings Kodhek.
However, the council defaulted in repaying the loan and had to hand over the estates for NHC to manage, collect rent and pay themselves until the debt is fully recovered.
Nyong’o on Friday said the debt was fully recovered but the NHC is now demanding an unpaid interest of Sh1 billion from the county.
The county has held several meetings with NHC and agreed to gradually take back the estates to develop them in line with Uhuru’s Big Four agenda.
“Over the last two years, we in Kisumu county have been struggling to implement affordable housing by undertaking an urban renewal programme,” Nyong’o said.
He spoke on the sidelines of the Health Sector Intergovernmental Forum on UHC at Whitesands Hotel.
Because of limited availability of land, Nyong’o said it is economical to bring down old dilapidated houses and build new houses.
“Unfortunately, we have come across tremendous roadblocks created by the National Housing Corporation, which has been collecting rent from these houses for over 10 years as a result of previous agreements with the defunct Municipal Council of Kisumu,” Nyong’o said.
He said Kisumu residents want to become homeowners, not tenants.
The county has entered into an agreement with the LAPFUND to start with the renewal of Makasembo estate.
LAPFUND is the holder of the estate title deed and has submitted architectural, structural, electrical and mechanical drawings to the county for evaluation.
“We agreed with the NHC that we shall pay them the nearly Sh1 billion in interest, they are claiming from us so that they vacate Makasembo estate for the development of affordable housing by LAPFUND,” Nyong’o said.
The agreement was to give NHC Sh100 million by December and in the meantime they allow LAPFUND to begin arrangements to build affordable houses by discussing with the tenants on the decanting process.
However, Nyong’o said some NHC officials have been working against the agreement and inciting the tenants to withdraw from the discussions.
“It has come to our attention that some officials of NHC have personal interests in the estate and are not prepared to see the development of affordable housing in Makasembo.”
He called on the NHC management to probe employees who receive rent proceeds.
“Some NHC staff also own illegal structures at Makasembo estate,” said a county official who requested anonymity.
Nyong'o said it is more important to provide affordable housing for Kisumu people than for NHC to make money out of mistakes committed by itself and the former Municipal Council of Kisumu.
“After all, fulfilling the President’s agenda is more important than fulfilling the interests of a specific parastatal.”
The NHC said they have received such complaints and are in the process of investigating them before taking any further steps.