Businessman Suleiman Shahbal has defied a Senate committee that suspended works on his Sh6 billion affordable housing project at Buxton in Mombasa County.
On Friday, the Roads, Transport and Infrastructure Committee suspended work on the project until the grievances of evicted tenants are resolved.
“This is to inform you that the Buxton Project is ongoing, and we have to date shared with all Buxton homeowners their Sales Purchase Agreement confirming your homeownership journey at Buxton Point,” said the project’s chief executive, Ahmed Badawy.
Mr Badawy said they hosted the committee at the site on 19 August after they held a public hearing following a petition by former Buxton residents on compensation and relocation.
“The chairman of the committee made remarks to the media that the project has been stopped. We would like to inform you that there is no official communication regarding the matter hence the project is ongoing,” he said in a statement.
“We would like to assure you that we have been following the due legal process and the courts of law have ruled on this matter twice giving us a go-ahead.”
Mr Badawy said they are working with the committee and other stakeholders over the next few weeks to resolve this matter amicably.
“In the meantime, the project is ongoing and we are committed to delivering your home within the agreed time frame. The majority of former Buxton residents are happy with the project and are working with us towards their homeownership journey,” he added.
The proposed project, Buxton Point, sits on about eight acres, formerly the site of Buxton estate. Work started in May 2021. The original tenants were relocated; the old structures were demolished and new housing units are being built for sale to the general public, including the tenants, under the government’s affordable housing scheme.
However, the committee, led by its chairperson, Kimani Wamatangi (Kiambu) stopped the project after listening to former tenants express their complaints.
“We resolve to stop construction until issues raised by the tenants are heard and determined,” Mr Wamatangi said.
The committee said the agreement between the county government and the developer is shrouded in secrecy. The committee demanded that all documents held by the developer, including those protected by a confidentiality clause, be sent to the Senate within 14 days.
Mr Badawy refused to table the documents, saying they were protected by a confidentiality clause.
“We have a joint agreement, but we have a confidentiality clause. I cannot disclose anything,” he said. The project had kicked off and construction was at five percent, he said.
But the lawmakers said it was unclear whether the project is intended to benefit the evicted tenants, Mombasa residents, the county government or private investors.
Meanwhile, Mvita MP Abdulswamad Nassir lauded the Senate for halting the project until the matter is resolved.
“Issues raised by the Senate are worthy to be responded to. We all want development and positive change but let it be within the laws. There are pertinent issues raised by residents,” he said.
“The Public Procurement Act is specific on issues. Was it single sourcing? Was it a non-responding bid? The Public Procurement Act is clear when a project is worth over Sh5 billion the Attorney-General must be included.”
In an interview, the MP said that in 2013 an investor had offered a better deal to tenants.
Mr Nassir poked holes in the project, saying there is a conflict of interest.
“The laws are very clear on the matter of conflict of interest. If your name appears as a sponsor, it is only right for you to realise and follow due process of the law,” he said, urging the developer to respond to the matters.
Some Mombasa leaders, led by Nyali MP Mohammed Ali, former senator Hassan Omar, ward representatives Charles Kitula (Freretown) and Faith Mwende (Kipevu) are among leaders against the project.
They said the project must be evaluated, warning financial institutions against funding what they said was a fraudulent deal.
