Property worth billions at risk after NMS disbanded City Hall planning committee

Property investment projects in Nairobi estimated to be worth Ksh.36 billion are at risk following the move by the newly-formed Nairobi Metropolitan Service (NMS) to disband City Hall’s planning and technical committee.

In a public notice dated May 13, 2020, NMS Director General Director-General Mohammed Badi disbanded the pre-technical committee and nullified all applications processed as from March 18, 2020.

“The e-construction development application processing system formerly managed by NCCG is suspended immediately pending formation of a new system. All applications should continue to be filed to NMS DG’s office at KICC first floor,” read the public notice.

In a letter to Maj-Gen Badi, the Architectural Association of Kenya (AAK) said the move by NMS “punitively victimizes developers, consultants,contractors and daily wage earners on site at no fault of their own.”

“Additionally, and most concerting, the nullification of all approvals from March 18th retroactively is punitive to a construction industry that is already reeling from the effects of the challenges of Covid-19,” said AAK.

“This measure does not contribute to the ease of doing business and punitively victimizes developers, consultants, contractors and daily wage earners on site at no fault of their own.”

Further, the association says the proclamation by the NMS boss is likely to create investor unease in the country.

“To give you an idea of the impact this would have in the last 2 months, 599 projects have been approved valued at Kshs 36 Billion in Construction costs.

“We ask that the matter of nullification of approvals undertaken in the last 2 months, is reversed with some urgency, to mitigate the negative effects this will have on the Industry and the County and Nation as a whole economically,” says AAK in the letter to Badi.

The Architectural Association of Kenya now wants a meeting convened to discuss how to mitigate the negative effects of the transition of functions between the National Government and Nairobi City County Government.