Lugari MP Cyrus Jirongo. The National Social Security Fund has began issuing home owners at Hazina Estate in Nairobi title deeds despite the MP’s request to repossess the houses. Photo/File
The National Social Security Fund (NSSF) has overlooked Lugari MP Cyrus Jirongo’s request to repossess Hazina Estate in Nairobi and issued 200 home owners their title deeds on Monday.
The MP had requested to have the ownership of the houses reverted to him in exchange for Sh1.39 billion already paid to his construction firm Sololo Outlets to develop the estate.
The fund’s move to start allocating title deeds for part of the 365 housing units at Sh40 billion estate now seems set to prolong the ownership battle for the houses without the option of a negotiated out of court settlement.
“The houses belonged to NSSF and we have now handed over the houses to the rightful owners,” said Mr Tom Odongo, the Acting NSSF Managing Trustee Tom Odongo.
“We will leave the issue for the courts to decide,” he said, adding that the construction firm is not in possession of any title deeds.
This claim by Sololo Outlets involves a contract the firm entered into with NSSF in 1992 where the fund purchased an incomplete housing project in Nairobi’s South B Estate from the developer for Sh1.2 billion, which included the cost of completing the works.
The seller raised the price to Sh2.65 billion in May 1993 citing a jump in cost of material, prompting NSSF to terminate the contract after Sh900 million had been paid, bringing the total payout to Sh1.39 billion.
Mr Jirongo later claimed that former managing trustee Alex Kazongo promised to pay the amount as part of the deal to review its claim from the Sh1.39 billion to Sh490 million in a recent arbitration.
In his letter, the MP said that the two parties should bring all matters to closure by restoring their original position.
“...give us back our development project in South B and we refund you all the monies ever paid to us. In this way, we can stop the acrimonious and chaotic relationship,” read Mr Jirongo’s letter in part.
The matter is now in court and legal experts point out that Sololo does not need to have a written contract to present a strong case in court, citing that implied agreements can be valid and enforceable.
The multi-billion estate was sold to individuals on a 15-year purchase scheme in 1999 with the official transfer meant to happen after individuals had fully paid up.
The selling price of the flats, apartments and maisonettes at the time ranged between Sh2.5 million and Sh5 million but their value has since more than doubled.
NSSF seems least interested in taking note to the MP’s request and has even gone ahead to initiate negotiations with lenders to offer the 165 tenants who have not fully paid up with low-interest loans.
