• The defunct City Council surrendered the estate Lapfund in 2012 in a debt-swap
• The tenants have been collateral damage in the wrangles between the county government and Lapfund since devolution in 2013
Residents of Mariakani estate can now sleep easy after members of the county assembly stopped their eviction by Local Authorities Provident Fund (Lapfund).
The problems between the residents and Lapfund started after the defunct City Council surrendered the estate to the fund in 2012 in a debt-swap.
The 50-year-old estate sits on 10.13 acres. There are blocks of flats with 240 three-bedroom units.
A recent county Public Accounts Committee report told Lapfund to get into a tenancy agreement with the tenants.
It also stated that the county government should stop claiming ownership of the estate.
PAC was reacting to an inquiry brought up by the Auditor-General on financial statements of the county for the period ended June 30, 2017.
“The county government should immediately stop collecting rent from the estate tenants and instead allow Lapfund to collect the rent to forestall unnecessary litigation and to safeguard the retirement benefits of county employees. Tenants should be informed on the same,” the report reads.
Lapfund has full possession of the property since its transfer as part of the settlement of a debt owed by Nairobi county.
The tenants have been collateral damage in the wrangles between the county government and Lapfund since devolution in 2013. The administration of former Governor Evans Kidero even claimed a stake in the estate.
The residents had in 2015 obtained a court order that allowed them to continue paying rent to City Hall until a pending case was determined.
Last year in January, City Hall wrote to the tenants asking them to be paying rent to the pension fund despite the earlier court order.
PAC has recommended that the county government should in future cease selling or swapping residential properties as doing so disturbed city residents.