Six developers win huge city low income housing tenders

The ongoing construction of New Donholm Road in Upper Savannah ward /COURTESY
The ongoing construction of New Donholm Road in Upper Savannah ward /COURTESY

City Hall has awarded six companies multibillion-shilling tenders to construct affordable houses in Nairobi.

The County Assembly Committee on Housing says the development

is part of the Urban Renewal and Housing Regeneration Programme.

The firms - Technofin Kenya, Green Ederman Property, Green Prestik, Jabavu Village, Stanlib Kenya and Directline Assurance Limited - will put up more than 8,000 units across the city.

The Committee on Housing report was brought by the executive to the assembly for adoption on Wednesday. It is based on Sessional Paper 1 of 2018 on urban regeneration policy.

Old and New Ngara, Jeevanjee, Suna Road, Ngong Road Phases one and two, Bachelors’ Quarters and Pangani are among the estates targeted for the urban renewal.

Under the project expected to give Nairobi a face-lift and ease pressure in the housing market, Technofin Kenya will redevelop 1,434 units in Pangani estate. Currently the estate has 48 occupants and their dependants.

The report states that the contract lacks a clause requiring the use of locally sourced skills and materials.

Further, the contract states that Technofin will allot 40 per cent of units for sale at market rate and 60 per cent as low cost housing.

Green Erdemman has been contracted to develop 4,068 housing units in Ngong Road Phases One and Two.

The county government will take 848 units in Phase One and 20 per cent of the units in Phase Two.

The buildings will have 34 floors and 98 metres high.

For Phase One, the contract was signed on August 17, 2018 and Phase Two on August 16, same year.

According to the report, the joint agreements were signed without reference to any county policy.

It says there was a need to review those agreements.

Land for Phase One is valued at Sh4 billion ( 12.5 acres). The construction cost is Sh25 billion. Land

in Phase Two land is also valued at Sh4 billion. The job is projected to cost Sh23 billion.

Mother titles will remain with the county government but sub-leases will be created.

Green Prestik has been awarded Old Ngara, now occupied by 73 tenants and their dependants. The developer will compensate each of them at Sh30,000 a month for the period they will be relocated.

The Kenya Civil Aviation Authority reduced the height for the houses from 68 to 42 metres as the plots are

on a flight path.

Last year, County Executive for Lands Charles Kerich had said the location of estates along flight paths was among the reason why the project had delayed.

For 7.5-acre Uhuru Estate, the county has contracted Stanlib Kenya to build 1,890 units consisting of one, two and three bedrooms.

Ownership percentage between the company and the county was not agreed, but it is expected that the devolved unit will get 20 per cent of mark up selling price and at least 400 houses.

Stanlib raised concern that they were not aware of the policy when they signed the contract. They regretted that access to the site remained a challenge although they were ready to break the

ground.

Directline Assurance will develop 585 houses and 3,000 market stalls in Suna. According to their contract, the county will add a mark up of 20 per cent on the price

quoted for the completed houses and stalls.

However, they are yet to sign a Joint Venture agreement.

The Planning committee chairman, Antony Kiragu, said the project will make it impossible for tenants to continue occupying the houses during the construction.

“In this scenario residents will be relocated,” Kiragu said.

Kerich said the tenants affected will be compensated as the developers already have the money set aside for that purpose.

The tenants will receive a lump sum instead of monthly compensation.

The county will thereafter set a ground-breaking day.

The directive will be implemented in conjunction with the national government through the Ministry of Interior under the Nairobi Regeneration Committee.

The houses are said to be highly subsidised by the county government with a state waiver on taxes making the affordable.

Twenty six developers had expressed interest in the redevelopment of the estates.