
Focus has shifted to top ministry of Lands officials who sanctioned the use of a public land title deed to secure Sh1.9 billion from National Bank of Kenya for construction of affordable housing project.
The officials implicated are Stephen Njoroge and chief land registrar David Nyandoro. The duo are still in office courtesy of court orders.
Sources say the two are responsible over the emerging issues and in need ought to be questioned. Sources said investigations are ongoing to know why the deed was used as collateral without clear public approval.
DCI and Ethics and Anti Corruption Commission have launched investigations into the saga.
Those in the know say the duo seem to be the leading source of land issues at the ministry.
The development provides a fresh twist in the mystery over the missing title deeds for an affordable housing project in Jevanjee, Ngara in Nairobi.
It has now emerged that the title deed for the public land was used to secure a Sh1.9billion bank loan.
The revelation has has sparked further controversy and drawn former Nairobi governor Mike Sonko into the spotlight, as he denied into allegations of holding onto the deed while accusing current city officials ofmisinformation.
Governor Johnson Sakaja’s administration had accused Sonko of having the title deed for the estate under LR No 209/5458 registered in the registry of titles in Nairobi as LR 199739/1.
However, while addressing journalists last week, Sonko revealed that the title deeds for both the Jeevanjee and Pangani affordable housing projects are in the possession of the National Bank of Kenya.
He said the documents were charged to the bank as collateral for a Sh1.9billion loan that was approved for a private developer involved in the project.
“The title was taken to the bank as a special purpose vehicle to secure financing, Sonko said, adding that accusations against him were unfounded.
The former governor provided additional documentation, including a letter from the National Bank dated January 1 2023 which confirmed the bank’s disbursement of funds to Jabavu Village Limited, the developer tasked with the Jevanjee project.
According to Sonko, the title deeds were transferred to the bank long after his tenure, casting doubt on claims made by current officials that he still had the deeds.
The Nairobi county assembly’s planning and housing committee, chaired by Kitisuru MCA Alvin Palapala, recently launched an investigation to locate the missing title deeds for both the Jeevanjee and Pangani projects.
The executive committee member for built environment and urban planning Patrick Mbogo alleged that Sonko had kept the Jevanjee deed.
However, Sonko argued that these statements were a diversionary tactic aimed at covering up delays and mismanagement within the current administration.
“This is propaganda and complete misinformation to the public. There must be something fishy they are planning, and my advice to Governor Sakaja is to complete the projects without much drama,’ Sonko remarked, accusing the county government of “playing mind games” with the public.
He suggested that officials were intentionally delaying the project, potentially to adjust its terms in favour of external interests.
Sonko further clarified that during his administration; the Nairobi county government established joint venture agreement with Jabavu Village Limited in 2019 to oversee the Jeevanjee project.
He stated that his administration had also compensated 48 homeowners at the Old Pangani Estate with Sh28.8 million, giving each Sh600,000 to facilitate relocation.
Sonko said the tenants were assured priority access to the new units once the projects were complete.
“We handed over cheques to verified beneficiaries, and each tenant received Sh600,000 to enable them to relocate,” Sonko said.
Records indicate that while the project financing process began in December 2022, the National Bank did not formally approve the loan until January 2023, with registration of the title charge being finalised in May 2023.
Despite this, the Nairobi county assembly did not officially approve the use of the Jeevanjee title as collateral until April 2023.
The loan approval and assembly’s delayed approval have raised questions about due process and transparency.
Sonko also described the transfer process of the Jeevanjee title deed, clarifying that the title was initially issued as a provisional certificate on July 2 2016, before being transferred to the Nairobi county government on July 1 2018, under a 99-year lease.
The lease transfer was witnessed by key officials, including the county secretary and directors of Nairobi Jeevanjee Estate Limited, on July 24 2019. Sonko urged the Nairobi county government to consult the ministry of Lands for verification, arguing that continued delay would only create further confusion.
Sources said investigations are ongoing to know why the deed was used as collateral without clear public approval.
City Hall had earlier estimated that the Jeevanjee housing project is 46pc complete, with a targeted completion date of September 2026.
The project which comprises 1,830 units is planned to have 1,464 allocated to the developer, 8o reserved for former tenants, and an additional in for rental, with the remaining units available for county officials.