Disquiet at NHC explained

By Morris Aron

A power play is under way at the National Housing Corporation over who will head the yet-to-be created National Housing Fund (NHF) and Kenya Housing Authority (KHA). The corporation will enjoy a budget of Sh70 billion annually as proposed in the Housing Bill.

The Standard has learnt that the power struggle indicate the turmoil that resulted in the house allocation investigations.

Sources say the momentum of events gathered pace after a proposal to merge Ministry of Housing with that of Lands was passed at ministers’ retreat in March.

“There is focus on who is most likely to lead the institution which then would be revamped into the fund and an authority with a bigger mandate created once the Housing Bill is enacted,” said a source who sits at the board and who requested not to be named.

“You also realise that key slots are up for grabs with the merger of the ministries of Lands and Housing and at the end of the term of the managing director of NHC in August.”

It is understood that since this realisation came to the fore, board members have re-aligned themselves depending on who – between Tirop Kosgey, the Housing Permanent Secretary and James Ruitha, the current Managing Director – would re-apply for the position. Everything considered, the new legislation would determine the likely candidate to head the NHF.

Signs of trouble started after an individual leaked to the Press an internal house allocation audit report carried out by the House Allocation Committee before the board discussed it. The report highlighted beneficiaries of NHC houses.

Accusations

What followed were accusations and counter-accusations as to who was to blame for the leakage. Government officials, including three permanent secretaries, were allegedly irregularly allocated houses.

However, rules and regulations on house allocations at NHC, are such that all allocations be done through a House Allocation Committee, which is a sub-committee of the board, before being presented to the board for ratification and approval. The Efficiency Monitoring Unit report over the issue, which was a follow up to the initial leaked report released last week found no fault with the procedure of allocating the houses, as they were done within the guidelines provided.

“The prevailing house allocation policies had flaws, and inadequacies that need to be reviewed to avoid multiple allocations and managerial discretion as currently constituted,” recommended the report.

“The NHC board should provide enhanced oversight and supervisory role in the allocation of housing units,” stated the EMU report.

The audit report also ruled out that the houses be repossessed stating that such a move would lead to law suits, as the allocations were done as per the provisions.

Audit report

The EMU report, which is also a follow up to another one from the Inspectorate of State Corporations, also reversed the decision that the NHC sacks staff who benefited from multiple allocations.

Property analysts say that the current developments at NHC is an urgent sign that National Housing Corporation needs to be reformed, its mandated and resources expanded to cope with the challenge of providing affordable housing, especially with the new constitution.

Plans, which need to be fast-tracked, are already in progress.

In the proposed Housing Bill, there is a provision for the establishment of the Kenya Housing Authority and National Housing Fund, with a budget that is 5 per cent of the national income.

New role

The functions of the authority will range from supervising matters relating to housing and the development of estate management and maintenance standards and procedures.