NSSF adamant on the sale of houses

By Morris Aron

The controversial sale of houses built by the National Social Security Fund (NSSF) in Nairobi, is set to continue, despite growing concerns over the manner in which the sale is being conducted.

While NSSF insists only potential buyers, who will have raised the full, or most of the purchase price of the houses applied for by Friday next week, will secure them, there is growing unease over the decision to change the terms and conditions for sale at the last minute.

"We will only consider those that will have paid the full, or the closest amount to the selling price of the houses," said Alex Kazongo, the managing trustee of NSSF.

With the new terms, potential buyers will be expected to produce between Sh4.4 million and Sh6.25 million in one week, if they are to be assured of purchasing the houses. This comes after the value of houses were revised upwards by between Sh250,000 and Sh550,000.

NSSF said it was forced to raise the purchase price of the houses, after they were completed late, leading to additional costs, and also to reflect the level of demand for middle-income housing.

"We owe it to our pensioners to invest in schemes that will ensure the fund gets maximum returns," said Kazongo.

Initial agreement

According to the initial agreement, the 674 houses were to be sold on a first-come-first-served basis, with the individuals only required to raise a 10 per cent deposit — between Sh385, 000 and 600,000— while the remaining amount would be paid in monthly installments.

Buyers were also required to offer proof of their ability to pay the remaining balance in installments, equal to what they would pay as monthly rent, to make them affordable to the targeted middle class.