By Morris Aron
Individuals who applied to buy the National Social Security Fund (NSSF) houses at Nyayo Embakasi are in for a rude shock.
This follows a new directive requiring that all prospective buyers raise the full purchase price upfront in the next 10 days.
It is now feared the directive by the NSSF Managing Trustee Alex Kazungu to change the terms of sale of some 674 housing units — initially intended for low and middle class — is designed to benefit Cabinet Ministers and senior Government officials.
Besides raising the value of the units by between Sh250,000 and Sh550,000, the new terms also require potential buyers to raise between Sh4.4 million and Sh6.25 million between today and Thursday to secure the houses.
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Full buying price
The new conditions contained in documents seen by The Standard indicate that priority will be given to those who pay the full buying price.
According to the statement signed by Mr Kazungu: "The units are few and preference will be given to those interested in outright purchase terms.
Those who may not raise the total sale price but are able to raise a higher deposit will enjoy an added advantage in the allocation."
The initial terms stated that due to the housing shortage, the housing units would be sold on a first-come-first-serve basis with potential buyers paying only a 10 per cent deposit of the value of the units.
The subsequent amounts were to be paid under a tenant purchase agreement, where rent money goes towards owning the house.
The announcement of the terms in September last year saw thousands of individuals put in applications for the units after some of them secured loans to raise the deposit.
It had been agreed that there would be no changes in the price of the houses at the time of selling into the market on completion.
But in a new twist, Kazungu’s communication to those who had applied for the units has revised the value price upwards.
A three-bedroom apartment that was selling for Sh3.85 million, now bears a tag price of Sh4.4 million.
A three bed-roomed maisonette initially advertised as going for Sh4.80 million is now priced at Sh5.4 million. A similar corner house maisonette costs an extra Sh550,000.
The most expensive of the units— three bed-roomed Duka maisonette, is now Sh6.25 million against the initial offer price of Sh6 million.
Under the initial agreement, buyers were required to pay a 10 per cent deposit ranging between Sh385, 000 and 600,000 and offer proof of the ability to pay the remaining balance in instalments equal to what one would pay as monthly rent.
