The National Housing Corporation has directed tenants of Otiende estate in Kakamega town to stay put and continue paying rent.
Otiende is one of three estates the county government intends to flatten to pave the way for an upgrade of the town. Others are Mudiri and Amalemba estates.
In a letter signed by Agutu J W O on behalf of the managing director, NHC asked tenants to pay rent to it until directed otherwise.
“Reference is made to your letter dated 10, 8, 2021. We wish to advise you that rent is payable to NHC until advised otherwise. Please ensure you clear any outstanding rent arrears by 30, 10, 2021,” the letter read.
The directive is likely to affect the county government's plans for affordable housing projects on Otiende, Mudiri and Amalemba estates.
Houses on the three estates were built by the old Kakamega Municipality through financing by NHC.
The local authority then defaulted remitting premiums, leading to the takeover of some estates by the corporation, which continues to collect rent to recover its investments.
Tenants, through the Otiende residents' self-help group, wrote to NHC, protesting harassment by county government officials who were threatening them with eviction.
They said they were confused about the ownership status of the estate and where to pay rent given that the corporation was collecting rent, yet the county government was asking them to vacate.
Residents said they had no objection to plans by the county government to build affordable houses, but they want clear communication on the matter.
They want assurances that once the project is completed, they will be prioritised to occupy the new units on either tenant purchase scheme or rent payment terms.
Governor Wycliffe Oparanya announced in June that the three estates would be flattened to pave the way for 4,000 affordable housing units to be constructed by the county government at a cost of Sh6 billion.
He said the units would sell for between Sh1 million and Sh3 million under the tenant purchase scheme.
The project was to start in July and be completed in eight months. It has yet to take off.
While making the announcement, the governor said the tender for housing projects had been awarded to Pinny Agencies in Nairobi.
It turned out that the company was not an investor but was to source for one to develop the project.
Under the scheme, county staff would be required to pay 20 per cent of the total cost of the units they want to purchase, and then the balance would be dedicated to a checkoff from their payslips.
Edited by A.N.
