Nairobi Assembly Planning Committee Questions Sakaja’s Reit Housing Deal at Woodley Estate

In Summary

• The Committee has raised concerns over the proposed cooperation between the Affordable Housing Board and the developer to purchase the County’s share of housing units.
• The Committee wants Governor Johnson Sakaja’s administration to provide detailed explanations on the terms of the deal with Reit Limited, particularly the County’s share of units in exchange for its land.

The Nairobi County Assembly Planning Committee wants Governor Johnson Sakaja’s administration to explain the terms of the deal with Reit Limited, the developer undertaking the Urban Renewal Housing Project on County-owned land at Woodley Estate.

According to Planning Committee Chairman Geoffrey Majiwa, the County Government risks receiving a disproportionately small share of the housing units despite contributing land valued at billions of shillings.

“From our assessment, the County will only get smaller percentage. Tell me, with the cost of land in Woodley how much should we get?… Woodley is prime. You can imagine its proximity to Ngong Road and town, plus other factors. We are talking about billions of shillings in value.’’ He said.

The project is expected to deliver 1,976 housing units, with the County allocated 509 units, representing approximately 25.8 per cent of the total development.

Capacity to Build and Project Timelines

The Committee has also raised questions about the proposed arrangement involving the Affordable Housing Board and the developer to purchase the County’s share of the housing units.

Majiwa questioned why the County would transfer its land to an intermediary developer when it could potentially work directly with the National Government to deliver the project.

“It raises eyebrows because Nairobi County Government could as well issue that land to the National Government directly, then it is developed. It would have been efficient and cheaper because it is now a G-G arrangement. That would be more beneficial. Why put someone in between, that we give them our land, develop, and the National Government comes to purchase the same expensive units in the name of affordable housing?” he added.

The Committee’s concerns centre on the value the County stands to receive from the arrangement, the cost of the housing units and whether the structure adopted offers the best value for public land.

Meanwhile, Maringo/Hamza MCA Patrick Macharia questioned the project’s completion timelines, seeking clarity on when the developer would deliver the promised housing units.

Reit Limited Director in charge of the project, Joyce Wanjiru, assured the oversight Committee that the first phase would be completed by December 28, 2028.

“Actually, our head of account is there. How do you fund this project? You have an account that majorly is just for the project. We don’t mix one project with another project. Meaning that Woodley has got its own funding, and all of those funding goes to the project. Our reputation is very important. Extremely important, and we will ensure that we deliver. If you find us stalled…” she said.