Thousands to lose houses over Sh67m county loans
What you need to know:
- “The owners were given loans in the form of materials to extend their structures. They were supposed to repay them in 30 years,” said the Chief Planning Officer at County Hall, Ms Rose Mwema, on Tuesday.
- Ms Mwema said most of the owners of these structures had developed them into multi-storey buildings and were renting them out but were reluctant to repay their loans.
About 4,000 owners of buildings in Nairobi that were constructed through a World Bank project more than 40 years ago are likely to lose the properties over unpaid loans amounting to Sh67 million.
City Hall has issued a notice to the owners to clear the loans in 30 days or lose the buildings located in Kayole, Dandora, Mathare North, Huruma, Ngei and Umoja estates.
TOOK ADVANTAGE
“The owners were given loans in the form of materials to extend their structures. They were supposed to repay them in 30 years,” said the Chief Planning Officer at County Hall, Ms Rose Mwema, on Tuesday.
She said 25,000 people took advantage of the offer that was jointly funded by the World Bank and the government.
The project, which started in the late 1970s and early 1980s, was intended to improve the housing conditions of low-income earners.
Ms Mwema said most of the owners of these structures had developed them into multi-storey buildings and were renting them out but were reluctant to repay their loans.
She also warned people renting county houses that they would be evicted if they failed to clear rent arrears of Sh79 million immediately.
The Nairobi County Government owns 17,000 houses and shops in Nairobi, most of them located in the Eastlands area. According to Ms Mwema, rentals for these houses range from Sh900 to Sh20,000 and they are strategically located.
