NAIROBI, Kenya – Nairobi’s embattled Jeevanjee Affordable Housing project faces an uncertain future as the National Bank of Kenya threatens to auction the units over a Sh1.9 billion unpaid loan.
National Bank Managing Director George Odhiambo issued the stark warning during a session with the Nairobi County Assembly committee, underscoring the project’s deepening financial and operational woes.
“If the contractor fails to settle the debt in full, we will have no choice but to rely on legal advice and proceed with auctioning the houses to recover the funds,” Odhiambo stated.
The project, which initially attracted over 1,500 eager buyers, has been mired in controversy, with questions arising about its financial structuring and adherence to contractual agreements.
County Assembly members were alarmed to learn that proper valuation was not conducted before the bank approved the loan.
The 3.2-acre parcel of land used as collateral is reportedly worth significantly more than the Sh1.9 billion loan, raising concerns about lax oversight during the financing process.
The controversy deepened when the developer, Jabavu Village Ltd, was found to have attached an unofficial addendum to the original joint agreement.
The addendum, which was not approved by all parties, was allegedly used to secure the loan.
Jabavu Village CEO Abdulkadir Ahmed Hussein added to the intrigue, telling the committee that he could not recall how the land’s title deed came into his possession.
“I am still trying to remember who gave me the title for this land,” he said, sparking further scrutiny.
The Jeevanjee project was envisioned as a flagship initiative to address Nairobi’s housing shortage but has since become a cautionary tale of mismanagement and potential legal battles.
National Bank Managing Director George Odhiambo issued the stark warning during a session with the Nairobi County Assembly committee, underscoring the project’s deepening financial and operational woes.
“If the contractor fails to settle the debt in full, we will have no choice but to rely on legal advice and proceed with auctioning the houses to recover the funds,” Odhiambo stated.
The project, which initially attracted over 1,500 eager buyers, has been mired in controversy, with questions arising about its financial structuring and adherence to contractual agreements.
County Assembly members were alarmed to learn that proper valuation was not conducted before the bank approved the loan.
The 3.2-acre parcel of land used as collateral is reportedly worth significantly more than the Sh1.9 billion loan, raising concerns about lax oversight during the financing process.
The controversy deepened when the developer, Jabavu Village Ltd, was found to have attached an unofficial addendum to the original joint agreement.
The addendum, which was not approved by all parties, was allegedly used to secure the loan.
Jabavu Village CEO Abdulkadir Ahmed Hussein added to the intrigue, telling the committee that he could not recall how the land’s title deed came into his possession.
“I am still trying to remember who gave me the title for this land,” he said, sparking further scrutiny.
The Jeevanjee project was envisioned as a flagship initiative to address Nairobi’s housing shortage but has since become a cautionary tale of mismanagement and potential legal battles.
