Sh8 billion compensation claims by residents of seven Nairobi estates have delayed construction of 14,000 new housing units, the county has said.
The Sh70 billion public-private partnership project was to start in July but failed after the county was unable to agree with the residents.
The houses will be in Old and New Ngara, Pangani, Jeevanjee-Bachelors, Ngong Road Inspectorate staff quarters, Uhuru and Suna Road.
“This is a consensual project. We must compensate or give letters of offer to the owners and tenants who will be affected and sign an MoU,” Lands, Physical Planning and Housing executive Tom Odongo said.
He said the residents want to be paid to look for alternative accommodation with the same specifications, as the ones they currently use. The project will take 18 months.
“They will occupy the new houses once construction is completed and pay the same rent they have been paying,” he said. The move will resolve the shortage, which is considered acute.
Odongo said, however, they expect to complete negotiations and compensations by October to allow the construction to begin. Investors have agreed to meet the compensation cost, he said.
The project is the first phase of a Sh300 billion housing initiative to build more than 100,000 housing units across the city.
Old houses will be demolished and redeveloped to accommodate more tenants.
Late last year, Governor Evans Kidero said there are only 535 houses in the estates targeted in the first phase.
“These houses are very old and were constructed horizontally, occupying a lot of space,” the county boss said.
“There is a lot of space, about 60 acres. We will use the space to construct 15-floor flats. We will relocate them before demolishing the old structures.”
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