Kenyan Economy to Suffer Sh500 Billion Loss if Gov't Demolishes 5,000 Illegal Buildings, Balala Says

The Kenyan economy would suffer Sh500 billion loss if the planned demolition of 5,000 illegal buildings goes ahead, Nairobi Regeneration Committee says.

Speaking when he appeared before the Senate Lands Committee, the Nairobi Regeneration team co-Chairman Najib Balala says 5,000 buildings sitting on riparian land and road reserve are earmarked for demolition.

Balala, who is also the Cabinet Secretary for Tourism, says the Regeneration Committee is advising against going ahead with the demolitions.

“The value of demolition of those buildings will be Sh500 billion; that would be major destruction on the economy; so, before the multi-agency proceeds, I will caution that a serious discussion on policy, compensation, litigation, and action should be taken as a priority,” Balala says.

The Senate Committee led by Chairperson Senator Paul Githiomi (Nyandarua) has asked the team to be fair to the innocent Kenyans who have invested their money and have legal documents for the buildings.

“It is so unfair that those bearing the pain and loss on all these demolitions are the ordinary and innocent Kenyans who were legally allowed to build those structures yet the government officials who issued those licenses are yet to face the law. We want to see justice served to the Kenyans,” Githiomi says.

Balala says President Kenyatta is committed to making sure that government officials involved in the issuance of building approvals for the structures are brought to book.

“Chair and members I want to assure you that this matter is as sensitive to us as it is to you; the President is also really concerned about those innocent Kenyans and I want to reiterate his commitment in dealing with any official who in one way or another was involved in allowing the construction of buildings on riparian land, “says Balala.

Housing Principal Secretary Hinga Mwaura has assured that no building will be flattened until a detailed report on the validity of the exercise is authenticated.

So far the government has demolished a number of expensive buildings in Nairobi including Southend Mall, Java restaurant and Shell Petrol Station in Kileleshwa, Ukay Centre, Airgate Mall, and Grand Manor Hotel in Gigiri.