Investors are now protesting the newly built Milimani Executive Apartments by the National Social Security Fund (NSSF) along State House Road.
Reports reaching Kahawa Tungu indicate that according to the initial plan, around 30 houses were to be built, but due to greed and gluttony, at least 104 units were built, each to cost Ksh35 million.
The move is said to have been orchestrated by managing trustee Anthony Omerikwa and Acting general manager in charge of finance Moses Cheseto. Also Chairman Adan Mohammed and managing trustee Richard Kipkoech Langat.
This writer learns that all investors who paid deposits are now demanding their money back saying the hours were small, poor quality and crammed up.
Among those who had paid for the houses include Deputy President William Ruto’s aide Farouk Kibet, who paid full amount for two units.
Construction of the houses cost at least Ksh1.6 billion, with stakeholders now doubting the real value of the houses which cannot fetch even Ksh150,000 per month.
In fact, experts say that the houses should cost at mots Ksh10 million per unit.
“Experts believe that the houses should not be more than Ksh10 million in price for investors to recover their money,” says an inside source.
Initially, NSSF announced that the project was sold out within two weeks, but the institution recently advertised the houses owing to the fact that several investors had pulled out.
“Clients who paid deposit for luxurious units feel conned,” adds the source.
In 2014, Langat said that a total of 114 applications were received for the 104 apartments that were being sold off-the-plan for Ksh31 million and Ksh35 million for those with servant quarters.
“We are not short of cash, but when doing a project you need a guarantee that it will sell. We knew that these high end apartments would be attractive to buyers as they offer great location and the scale of that demand is really pleasing,” he said, but five years on the story is different.
In July 2010, NSSF entered into a deal with Sahal Construction to build at least 4,000 two and three bedroom houses in Mavoko (Mombasa Road) at a cost of at least Ksh12 billion.
The progress of the project is yet to be known.