Economy

Ex-NSSF chief’s 20-room home up for auction

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Former NSSF managing trustee Alex Kazongo during an interview with the media in Nairobi. FILE PHOTO | ANN KAMONI |

A 20-roomed mansion owned by Alex Kazongo, the former managing trustee at the National Social Security Fund (NSSF), was Tuesday put up for auction.

The prime property, which sits on 2.62 acres of land on Riat Hills in Kisumu, will be sold when the auctioneer’s hammer falls on November 21.

The sale is said to have been prompted by failure to service a multi-million shilling loan Mr Kazongo took from a local lender that is majority owned by the government.

Riat Hills is increasingly boasting a new breed of investors – well-to-do individuals and real estate developers with a vision for affluent, urban living designs – a factor that has seen an acre of land rise to Sh5 million, up from Sh2.5 million three years ago and Sh1.5 million in 2004.

READ: Growing middle class fuels Kisumu's business boom

“The tenure is freehold interest, registered in the names of Alex Odero Kazongo and Agnes Waganda Okwar,” read the notice of the auction done by Dalali Traders Auctioneers. The property comprises a 20-roomed double storey house with seven bedrooms and a semi-detached servant quarters.

Mr Kazongo’s contract at the NSSF was terminated in February 2012 over what the fund’s trustees termed as his failure to meet the board’s expectations.

“We expect good bids given the location of the home,” said an executive of the auction firm.

Riat Hills has been attracting wealthy individuals from the region and developers from Nairobi who are moving in to explore the property market in Kisumu.

Former premier Raila Odinga has built a 10-bedroomed house with several conference rooms, multiple kitchens, expansive garden and offices. In total, the Riat Hills home has 74 rooms. The construction cost of the house is estimated at Sh1billion.

Home Afrika, a listed real estate firm, is also planning to build a gated community in the same area after it bought a 72-acre piece of land.

Swedish real estate developer, Coromandele Investment Ltd, announced plans to put up luxury Swedish designed villas in the picturesque part of Kisumu to be known as the Riat Hills Villas. The retail prices will be more than Sh40 million.

READ: The investment that promises to change Kisumu’s Riat Hills

The dramatic exit of Mr Kazongo came in the midst of a power struggle at the East African Portland Cement Company (EAPCC), where he was a director seconded by NSSF, pitting the four directors and Lafarge on one side against the government.

READ: Kazongo pays the price for Portland row