Nyong'o asks for Uhuru's help as row over NHC houses escalates

Kisumu Governor Anyang Nyong’o has locked horns with the National Housing Corporation (NHC) over the county’s plans to implement an affordable housing project, accusing it of frustrating the effort over a Sh1 billion debt.

The NHC is accused of refusing to vacate some of the estates earmarked for the project despite an agreement on settlement of the age-old debt that Governor Nyong’o’s administration inherited from the defunct Kisumu Municipal Council.

Prof Nyong’o has appealed to President Uhuru Kenyatta to intervene by writing off the debt.

He says it is this debt that the NHC is using to hold the county government at ransom despite a series of consultations at which some agreements were reached on how to settle it as the housing project is implemented.

It is said that for about 40 year now, the NHC has been collecting rent for some houses in Kisumu following agreements it reached with the Municipal Council.

Loan defaults

The houses in question were developed by the council using a loan from the corporation.

The council, however, defaulted on payments and consequently handed over the houses to the NHC, asking it to collect the rent and pay itself until the debt is fully paid.

Affected estates include Arina, Makasembo, Ondiek, Shauri Moyo, Makasembo and Argwings Kodhek.

The county had reached an agreement with Lapfund for building affordable modern houses in Makasembo, which is being mismanaged by the NHC.

According to Governor Nyong’o, the county committed to settle the Sh1 billion debt for Makasembo to be freed up for the project. He said the NHC has already recovered the principal amount through rent collection.

“Unfortunately, we have come across tremendous roadblocks created by the NHC,” he said.

“Lapfund is already in Kisumu to begin discussions with Makasembo tenants but the NHC has put yet another roadblock on our way by inciting tenants to withdraw from the discussions,” he claimed.

NHC’s position

A meeting convened on October 26 failed to take off, after the NHC allegedly warned stakeholders and Makasembo tenants against participating.

The corporation, in a letter dated October 27, accused the county government of planning to engage the tenants without involving it yet the Makasembo is under its management.

“Kindly be reminded that Makasembo estate is under the management of MHC until Kisumu pays off the debt.. Further, be reminded of several consultative meetings held between NHC and the Kisumu County Government, with a view to resolving and paying off the debt,” said Managing Director WKB Keitany.

In the letter to the county secretary, the NHC cites a court judgement against Kisumu regarding outstanding payment with regard to the tenancy row.

It further cites a pending court case involving Lapfund, the NHC and the county, regarding Makasembo estate.

“It is against the foregoing background that the NHC views your action to invite stakeholders to a meeting on a matter that has not been resolved as a sign of your not acting in good faith given the discussions that have progressed on this matter,” the MD stated, asking the county to desist from holding such discussions until the row is resolved.

"Personal interests"

But Governor Nyong’o claimed some staff of the housing agency had vested interests in the earmarked estates and were behind the stalemate.

“It has come to our attention that some officials at the NHC have personal interests and are not prepared to see the development of affordable housing in Makasembo,” the governor said, appealing to President Kenyatta to step in and write off the contentious debt being claimed by the NHC.

“We have information that some NHC staff … have put up illegal makeshift structures and are fighting to block the change of status quo.”

According to the governor, the NHC has been “very inefficient” in collecting rent over the years, to the extent that it is not raising the figures with respect to the County Government Finance Act since 2013.

He said Kisumu has held several consultative meetings with the NHC and agreed to gradually take back the estates in order to develop them in line with the Big Four agenda as it pursues its decent affordable homes plan for Kisumu residents.

“It is more important to provide affordable housing for our people than for the NHC to make money out of mistakes committed by itself and the Municipal Council. After all, fulfilling the President's agenda is more important than fulfilling the interests of a specific parastatal,” Prof Nyong’o said.

Grand goal

The houses in question were built through a BOT (Build Operate and Transfer) principle. 

The agreement was for the NHC to collect rent to recover its investment and then hand over the estates to the Municipal Council of Kisumu.

“We are seeking help from the President because next year Kisumu will host the Africities Summit with over 10,000 delegates in attendance. My government is in dire need of infrastructure including accommodation for our guests,” Prof Nyong’o said.

“The faster this row is resolved, the better for us, as we race against time to implement our urban renewal commitment,” he said.

Amid the row, the county now requires tenants within all Kisumu estates to register with the City Housing Department effective next week, for identification purposes.

All illegal structures within the estates must also be removed within the next 14 days.

Governor Nyong’o has assured the tenants that they will be given the first priority in ownership of the modern, affordable houses.

“For the time being they should cooperate with my government,” he stated.

“I appeal to the NHC not to incite tenants, especially in Makasembo to disobey our notices and invites for meetings,” he added.