Court throws out US$56m Nairobi road project suit

Upgrading of Tassia Estate a housing development scheme in Nairobi, including construction of a 90.4-km tarmac road with culverts, a storm-water drainage system and lighting, will cost US$56m.

Each of the owners of the plots is expected to contribute 920,000 Kenya Shillings for the infrastructure projects. This caused discontent amongst the property owners, citing mischief and breach of the contract signed between the two parties when acquiring the plots. The owners also questioned the method by which China Jiangxi was awarded the tender for the construction works, since they were not consulted.

The High Court in Nairobi has given the National Social Security Fund (NSSF) permission to ask the developers of property in Tassia estate to pay for construction of the roads.
NSSF had sold the plots in 2003 and had advertised for construction works including roads, electrical installations, sewerage and plumbing works. The plot had been sold to residents in the area who had spent millions of shillings to get the land from NSSF. The residents have been forced to deal with impassable roads and poor drainage systems.

The estate has about 5,500 tenants who risk their plots being auctioned if they are unable to produce the amount required for the development.

While dismissing the case, Justice Wendo Korir stated that the owners had agreed to meet the cost of the construction works when they were acquiring the plots.

Read the full article here: http://constructionreviewonline.com/2014/09/08/us56m-upgrading-roads-nssf-nairobi/